Mobiles and tablets and lap tops, oh my! Government introduces new FBT exemption for small businesses

Photography / Jeremy Keith

Photography / Jeremy Keith

In an effort to embrace the digital age, the Government has announced in its 2015 budget that small businesses will be able to claim a fringe benefit tax exemption for all portable devices they provide to employees.  

Under current arrangements, the FBT exemption cannot be claimed on multiple devices if they perform similar functions. Understandably, this has created a great deal of confusion in an age when electronic devices overlap on most basic work-related functions.  To overcome this, the changes will allow small businesses to claim the FBT exemption on all devices, even where there is a functional overlap. This means that business could provide an employee with a mobile phone, a laptop and a tablet.

The changes are due to take effect from 1 April 2016. Refer to the ATO website for further information.  

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