Are you thinking about buying an iPad/Tablet for work related use? Why not package it through your wage & save some money?

Sounds too good to be true I know but with the right advice and forward planning you can save a significant percentage of the cost of the device just by correctly structuring the payment of the item.

To enable this saving you and your employer must agree that you will forgo part of your wage in return for your employer providing you with a benefit (i.e. iPad) to a similar value.

For example…

Let’s assume you are earning $80,000 per annum and purchased an iPad for $770.00. The iPad is to be used 80% for employment purposes…

 

Packaged

Not Packaged

Salary

$80,000

$80,000

Less IPad Cost (pre-tax)

*-$700

0

Taxable Income

$79,300

$80,000

Less PAYG Tax Withheld

-$17,320

-17,547

Less Medicare Levy

-$1,190

-$1,200

Take-home Pay

$60,790

$61,253

Less IPad Cost (post-tax)

0

$770

Remaining Disposable Income

$60,790

$60,483

*Employer can claim $70 GST back therefore only $700 deducted

The Australian Tax Office allows for an iPad/Tablet device to be packaged through your pay if it is to be used primarily for employment purposes. This can also be the case with mobile phones, laptops, & other mobile devices.

There are however restrictions on the number of items and the types of items you can package so it is definitely best to contact your accountant to discuss further.


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