Exempt Benefits: work related items - primarily for use in the employee's employment
15 October 2008
1. A laptop is an 'eligible work related item'. This is because it is considered to be ' a portable electronic device'.
2. An exemption exists for benefits relating to the provision of certain work related items. The provision of an expense payment benefit, a property benefit or a residual benefit in respect of an eligible work related item will be an exempt benefit.
3. The employer is required to have a basis for concluding that the laptop computer is 'primarily for use in the employee's employment'. This conclusion is based on intended use at the time the benefit is provided to the employee that is, why the laptop computer was provided to an employee 'in the first place'. This conclusion is determined by reference to the available evidence at the time the benefit is provided.
4. The employee's job description, duty statement or employment contract can provide a basis for concluding that the laptop computer was primarily for business use.
5. Alternatively or in cases where it is evident that there are competing uses, an employer could document such factors as:
6. • the reason or reasons the laptop computer was provided to the employee
• the type of work to be performed by the employee
• how the use of the laptop computer relates to the employee's employment duties, and
• the employer's policy and any conditions relating to the use of a laptop computer;
in order to determine if the laptop computer is primarily for use in the employee's employment.