Bringing the Old Briefcase Back In Fashion

Are you an Employer who provides fringe benefits to your employees?

At a glance: In a recent meeting, the FBT Subcommittee has highlighted the definition of "briefcase" for FBT purposes.

The Fringe Benefits Tax Legislation provides an exemption from Fringe Benefits Tax [FBT] for certain work related benefits provided to an employee provided they are used primarily in the employees employment. In a recent meeting, members of the Fringe Benefits Tax [FBT] subcommittee discussed the meaning of "briefcase" as it relates to the FBT administration and how to determine whether the item is "primarily used for work related purposes".

The Tax Office uses the Macquarie Dictionary which defines briefcase as "a flat rectangular case or other material used for carrying documents, books, manuscripts etc". The Tax Office advised that the exemption does not extend to other forms of bags that may be used in employment such as satchel bags, wheeled business cases, laptop bags etc.

The Tax Office also advised that the time for ascertaining whether a benefit is used primarily in the employee's employment is the time when the benefit is first provided. Generally, this means that the benefit should be provided with the intention that it will be primarily used for work purposes.

Click here for the detailed minutes of the FBT subcommittee meeting and visit the ATO website at http://www.ato.gov.au.

Remember: You must ensure you are aware of the FBT Exemption for work related items. Contact us if you require any clarification or advice.