Work-related items that are exempt from FBT
There are a number of employee benefits that are exempt from fringe benefits tax (FBT). They include the following work-related items:
- portable electronic devices (mobile phones, laptops, tablets, portable printers and GPS navigation receivers)
- computer software
- protective clothing
- tools of trade
The FBT exemption is limited to items that are primarily for use in the employee’s employment or one item per FBT year for items that have an identical function (unless the item is a replacement item).
From 1 April 2016, the exemption extends to all small businesses that give employees more than one work-related portable device in an FBT year, even if the devices have substantially identical functions.
To be eligible for the exemption, small businesses must be in operation for at least one income year that starts or ends in the relevant FBT year.