The Government has extended the FBT exemption with respect to eligible work-related items that are provided by small business entity employers to their employees. These changes apply from 1 April 2016 (i.e. from the commencement of the 2017 FBT year).

Under the changes, small business entity (‘SBE”) employers will not be limited to providing one eligible work-related item that is a ‘portable electronic device’ (e.g.; laptop computer) to an employee per FBT year (as an expense payment or property benefit) where the items have a ‘substantially identical function’.

So if you are an employee of an SBE, you can package a hybrid laptop computer (detachable screen) and a laptop in the same FBT year or a smart phone and phablet, from 1 April 2016.

FBT WARNING – ‘Work- related use test’ continues to apply.

The exemption under S.58X will still only apply where the item is primarily for use in the employee’s employment.