Many businesses continue to offer flexible work-from-home arrangements.
To assist, employees are often provided with work-related items to assist them to work from home.
In general, where work-related items are provided to employees and used primarily for work, Fringe Benefits Tax (FBT) shouldn’t apply.
For example, portable electric devices such as laptops and mobile phones provided to employees shouldn’t trigger an FBT liability, as long as they are primarily used by your employees for work.
Multiple similar items also can be provided during the FBT year where required.
For example, multiple laptops can be provided to the employee, but this is only if the business has an aggregated turnover of less than $50m (previously, this threshold was less than $10m).
If the employee is using equipment provided by the business for their own private use, normally FBT would apply to the private use.
However, the FBT liability can be reduced based on the business use percentage.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au
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