The 2008-2009 Federal Budget announced changes to fringe benefits tax (FBT) exemptions on certain work-related items. Once the Federal Government legislation is passed, these changes will apply to items purchased after 7.30pm (AEST) on 13 May 2008 (refer to the Australian Taxation Office website).

As a result of these changes, all work-related items that are offered to both the senior executive service (SES) and non-SES employees can now only be salary packaged if primarily used for business purposes. This covers laptops, personal digital assistants (PDAs) and briefcases. This is consistent with the existing rules applying to mobile phones.

Each agency should decide whether it is appropriate to offer these work-related items. If your agency decides to offer these items, a declaration form will need to be signed by both the employer and the employee verifying that these items are primarily for work purposes.

Any enquiries regarding these changes should be directed to your agency’s nominated salary packaging provider.

Further information concerning salary packaging arrangements is provided in Circular 2007-11 Salary Packaging Arrangements for Non-SES Employees. For SES employees, please refer to Circular 2005-29 Salary Packaging Benefits for Chief and Senior Executive Service and the SES Guidelines. These can be accessed from the Department of Premier and Cabinet website (www.dpc.nsw.gov.au).

(signed)
John Schmidt
Acting Director General