(1) Any of the following benefits provided by an employer to an employee of the employer in respect of the employee's employment is an exempt benefit:
(a) an expense payment benefit where the recipients expenditure is in respect of an eligible work related item;
(b) a property benefit where the recipients property is an eligible work related item;
(c) a residual benefit where the recipients benefit consists of the making available of an eligible work related item.
(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, subsection (3) does not apply if:
(a) the later item is a replacement for the other item; or
(b) the later item is a portable electronic device, and the employer is a small business entity for:
(i) the year of income starting most recently after the start of the FBT year; or
(ii) the year of income ending most recently after the start of the FBT year.
Example: For paragraph (a), 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.