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More employers may now have access to the FBT exemption for work-related items as a result of the definition of small business entities changing.
This excerpts further explains condition 3. However, for the FBT year and later FBT years, a small business entity can provide a portable electronic device to an employee that has substantially identical functions to a device already provided to that employee in the same FBT year, and each of the devices will be exempt from FBT s 58X 4 b.
Broadly, an entity is a small business entity for an income year if it:. During consultation with the ATO, consideration was given to which of the following combinations of portable electronic device are not eligible for the s 58X exemption:.
It is important to note that the exclusion is limited to the provision of no more than one expense payment benefit or property benefit in relation to an eligible work-related item.
During the FBT year, an employee John purchased a laptop computer. The employer agreed to reimburse John for the cost of the computer over a two-year period.
Later in the FBT year, John is provided with a second laptop computer property benefit by his employer that is not a replacement. The s 58X 1 exemption is not available for the second laptop computer. It covers all fringe benefits categories and includes all significant changes made to the FBT law affecting the FBT year to empower you with up-to-date advice.
Work-related items are an exempt benefit if the following conditions are satisfied s 58X: The benefit is an eligible work-related item.
More than one item, with substantially identical functions, cannot be provided in any one FBT year unless it is a replacement item, or the item is a portable electronic device and the employer is a small business entity. An expense payment benefit, property benefit or residual benefit is provided to an employee.
Broadly, an entity is a small business entity for an income year if it: During consultation with the ATO, consideration was given to which of the following combinations of portable electronic device are not eligible for the s 58X exemption: Do you like the content on this page? You can subscribe to receive alerts when new posts are published. This website stores cookies on your computer.
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