The end of the 2016/17 financial year is almost here, so now’s the time to review your Tools of Trade and FBT Exempt Items to minimise your tax.
The purchase of Tools of Trade and other FBT exempt items for business owners and employees can be an effective way to acquire equipment with a tax benefit.
Items that can be packaged include Handheld/Portable Tools of Trade, Notebook Computers, Personal Electronic Organisers, Mobile Phones, Digital Cameras, Briefcases, Protective Clothing, and Computer Software.
If structured correctly, the employer will be entitled to a full tax deduction for the reimbursement payment to the employee (for the cost of the equipment), and the employee’s salary package will only be reduced by the excluding GST cost of the items purchased.
You should buy these items before 30 June 2017.