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pax
15-05-2008, 11:28 AM
One measure that didn't receive a lot of attention in the budget is that the Government has (more or less) closed the ludicrous laptop salary-sacrifice rort. Previously, you could salary sacrifice a laptop (one per year) that was for private purposes - getting the GST refunded plus a discount of 30-45% depending on your top tax rate. You also used to be able to claim depreciation on top if the laptop was used for work, resulting in an almost free computer (or even a profit if you sold it second hand).

Effective immediately, you can now only salary sacrifice a laptop provided for work purposes. Also, you can no longer claim depreciation on salary sacrificed FBT exempt items.

I'm not sure what the consequences will be for the Eee PC 900 I just ordered a few days ago!

eclectic
15-05-2008, 12:42 PM
don't worry pax!

the budget mentioned the introduction of an artist resale royalty scheme so if you manage to finger paint a masterpiece and sell it to jono and he then later sells it onto say garrett for a much higher price you would now get a cut of the action!!

that surely should offset the loss of depreciation privileges? :eek: :rolleyes:

Southpaw Jim
15-05-2008, 12:45 PM
To be strictly correct, I think what has changed is not that you can no longer salary sac for a laptop if it's not for work purposes, but that you will no longer be exempt from FBT if you do. This is IIRC, I may be wrong.

Capablanca-Fan
15-05-2008, 12:48 PM
I'm not sure what the consequences will be for the Eee PC 900 I just ordered a few days ago!
Presumably the rules won't be retrospective, although you never know with tax-grabbing Laba governments.

pax
15-05-2008, 12:52 PM
Presumably the rules won't be retrospective, although you never know with tax-grabbing Laba governments.
The measure was effective from 7:30pm on budget day, so it comes down to whether the invoice is dated from when the computer was ordered, or from when it is shipped. From speaking to the company, it looks like it might be the former.

Garvinator
15-05-2008, 12:54 PM
The measure was effective from 7:30pm on budget day, so it comes down to whether the invoice is dated from when the computer was ordered, or from when it is shipped. From speaking to the company, it looks like it might be the former.
Ring the company and explain the situation and they might be accommodating ;)

pax
15-05-2008, 01:09 PM
Ring the company and explain the situation and they might be accommodating ;)
They are well aware of the situation - they used to run a buyback scheme for laptops where you salary sacrifice it, claim depreciation, and then sell it back to the company (while buying another of course) and end up making a profit. I suspect this particular company will be rather badly hit by the changes.

Igor_Goldenberg
15-05-2008, 01:21 PM
One measure that didn't receive a lot of attention in the budget is that the Government has (more or less) closed the ludicrous laptop salary-sacrifice rort. Previously, you could salary sacrifice a laptop (one per year) that was for private purposes - getting the GST refunded plus a discount of 30-45% depending on your top tax rate. You also used to be able to claim depreciation on top if the laptop was used for work, resulting in an almost free computer (or even a profit if you sold it second hand).

Effective immediately, you can now only salary sacrifice a laptop provided for work purposes. Also, you can no longer claim depreciation on salary sacrificed FBT exempt items.

I'm not sure what the consequences will be for the Eee PC 900 I just ordered a few days ago!
I bought a laptop less the two years through the salary sacrifice (which means I paid with pre tax dollars, ex-GST and in ten interest free instalments - quite a good deal). Last July our secretary asked whether I need purchase details for the depreciation claim. I could not believe I can claim depreciation for something that was already 100% deducted (did not make sense to me).
After the budget I started to think: "May be I should have claimed depreciation?"

Double - dipping indeed makes not sense.

As far as "work purpose" test, it is easy to pass for anyone working in the office, as well as many other fields. Especially if it's bought through your employer.

MichaelBaron
15-05-2008, 01:45 PM
Once again funding of aboriginal programs has increased in the new budget :(. Also, millions of dollars poured into soccer development :hmm: .

Igor_Goldenberg
15-05-2008, 01:57 PM
Once again funding of aboriginal programs has increased in the new budget :(. Also, millions of dollars poured into soccer development :hmm: .
Some of the government I like (or dislike?) more then the other.
However, it would be very difficult for me to defend a single government program without being a hypocrite. As much as I'd like to get federal (or state) money for chess, it would be hypocritical of me to advocate it while opposing to sports expenditure altogether.

Disclaimer: in the past and even in the present (and most likely in the future) the author of the post was, is and will be a recipient of a government handouts. I am happy to forego almost any of them if other handouts of the similar nature are abolished and money returned to the residents or, better still, to taxpayers.

pax
15-05-2008, 02:04 PM
I bought a laptop less the two years through the salary sacrifice (which means I paid with pre tax dollars, ex-GST and in ten interest free instalments - quite a good deal). Last July our secretary asked whether I need purchase details for the depreciation claim. I could not believe I can claim depreciation for something that was already 100% deducted (did not make sense to me).
After the budget I started to think: "May be I should have claimed depreciation?"

Double - dipping indeed makes not sense.

Yep, it was a complete rort.

Capablanca-Fan
15-05-2008, 02:41 PM
Once again funding of aboriginal programs has increased in the new budget :(.
Buying votes from the usual Aboriginal demagogues leaders, while doing nothing for most Aborigines.


Also, millions of dollars poured into soccer development :hmm: .
As long as many Australians are happy to have the government steal from other Australians for their benefit, this rort will continue.

Desmond
15-05-2008, 03:45 PM
Once again funding of aboriginal programs has increased in the new budget :(. Also, millions of dollars poured into soccer development :hmm: .That's outrageous! That money could have been used for cricket! ;)

Basil
15-05-2008, 06:14 PM
That's outrageous! That money could have been used for cricket! ;)
Women's football to boot! [/pun 'nother excellent pun from Dug-meister]

Capablanca-Fan
15-05-2008, 06:52 PM
That's outrageous! That money could have been used for cricket! ;)
And a serious side to this: it's another illustration of the fact that government funding is a zero sum game.