Issue
Where an employee, who regularly visits clients, is provided with a laptop computer by their employer, is that laptop computer primarily for use in the employee's employment as required by subsection 58X(2) of the Fringe Benefits Tax Assessment Act (1986) (FBTAA)?
Decision
Yes. In view of the information available to the employer at the time the benefit is provided to the employee, the laptop computer is primarily for use in the employee's employment, as required by subsection 58X(2) of the FBTAA.
Facts
The employer has provided a laptop computer to the employee to assist the employee to undertake duties of employment.
The employee's main employment duty is visiting clients on a regular basis, which requires ready access to a laptop computer for producing and updating work reports between client visits.
The employer anticipates there may be incidental personal use of the laptop computer.
The employer does not have a written policy restricting this personal use.
A laptop computer is a portable electronic device for the purposes of subsection 58X(2) of the FBTAA.
Reasons for Decision
Section 58X of the FBTAA provides an exemption for benefits relating to the provision of certain work related items. Subsection 58X(1) of the FBTAA states that 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.
Subsection 58X(2) of the FBTAA includes a list of items that, if provided primarily for use in an employee's employment, can be considered as eligible work related items. The list of items in subsection 58X(2) of the FBTAA includes '(a) a portable electronic device'.
The word primarily is not defined in the FBTAA therefore it takes on its ordinary meaning. The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01 defines primarily as: 1. in the first place; chiefly; principally.
The employer in applying section 58X of the FBTAA 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'.
There is no requirement to reach this conclusion by reference to usage which can only be ascertained retrospectively. Rather this conclusion is determined by reference to the available evidence at the time the benefit is provided.
Generally, an employer will know whether a laptop computer is being provided chiefly or principally to enable the employee to undertake their employment duties. For example, 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.
Alternatively, or in cases where it is evident that there are competing uses, in order to determine if the laptop computer is primarily for use in the employee's employment an employer could document such factors as: • 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.
As the employer provides the employee with a laptop computer for use by the employee in their main employment duty that is, regularly visiting clients which requires ready access to a laptop computer for producing and updating work reports between client visits, any personal use of the laptop computer is considered to be incidental to business use.
Accordingly, the laptop computer is primarily for use in the employee's employment as required by subsection 58X(2) of the FBTAA. Note: Before a conclusion can be reached as to whether or not the benefit relating to the provision of the laptop computer is an exempt benefit under section 58X of the FBTAA, consideration of the other requirements stipulated in subsections 58X(3), 58X(4) and 58X(5) of the FBTAA would be needed.
Amendment History
Date of Amendment Part Comment 20 March 2026 Reason for Decision Minor punctuation amendment and inclusion of subsection 58X(5) 20 March 2026 Legislative references Updated to include subsection 58X(5) 20 March 2026 Business Line Updated to correct business line 13 February 2015 Issue Minor punctuation amendment 13 February 2015 Decision Minor punctuation amendment 13 February 2015 Facts Minor punctuation amendment 13 February 2026 Reason for Decision Minor punctuation and style amendments
Date of Amendment | Part | Comment
20 March 2026 | Reason for Decision | Minor punctuation amendment and inclusion of subsection 58X(5)
20 March 2026 | Legislative references | Updated to include subsection 58X(5)
20 March 2026 | Business Line | Updated to correct business line
13 February 2015 | Issue | Minor punctuation amendment
13 February 2015 | Decision | Minor punctuation amendment
13 February 2015 | Facts | Minor punctuation amendment
13 February 2026 | Reason for Decision | Minor punctuation and style amendments