Question:
FBT - salary sacrifice
I have some questions relating to the provision of laptops to employees under a salary sacrifice arrangement. My questions are:1. Since laptops are FBT exempt, is the employer able to claim the GST on the purchase? 2. How would the purchase transaction be recorded? Should it be reflected as part of the salary deduction? 3. Would the cost of the laptop be reported on the employee’s year end payment summary?
Answer:
Recent changes are outlined below:
1. The employer can claim the input tax credit provided he holds a tax invoice. The expense is fully deductible to the employer and not subject to FBT provided the laptop is used mainly for work purposes and only one laptop (or equivalent device) is provided to each employee per FBT year.
2. The purchase transaction should be debited to an account styled Employee Benefits.
3. As the laptop should be FBT exempt, it does not have a FBT taxable value and therefore no amount is required to be included in the Reportable Fringe Benefits field on the PAYG payment summary [group certificate].
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