Tax Laws Amendment (Budget Measures) Act 2008 (59 of 2008)

Schedule 1   Fringe benefits tax and employee share schemes

Part 1   Fringe benefits tax and related measures

Fringe Benefits Tax Assessment Act 1986

4   Subsections 58X(2), (3) and (4)

Repeal the subsections, substitute:

(2) Subject to subsection (3), each of the following is an eligible work related item if it is primarily for use in the employee’s employment:

(a) a portable electronic device;

(b) an item of computer software;

(c) an item of protective clothing;

(d) a briefcase;

(e) a tool of trade.

(3) An item (the later item ) listed in subsection (2) is not an eligible work related item if, earlier in the FBT year, an expense payment benefit or a property benefit of the employee has arisen in relation to another item that has substantially identical functions to the later item.

(4) However, the rule in subsection (3) does not apply if the later item is a replacement for the other item.

Example: The later item would be a replacement for the other item if the other item were lost or destroyed, or needed replacing because of developments in technology.