Hi OzBargainers, do you think I will get into trouble for asking my company to salary sacrifice a MacBook purchased from Apple education store?
Salary Sacrificing MacBook Purchased from Apple Education Store
Comments
Because apple education store's policies say that https://www.apple.com/au-hed/shop/open/salespolicies
Additionally, products purchased from the Apple Store for Education must be for your own personal, educational, or research use.
But salary sacrifice is about allowing work-related purchases to be expensed via your pre-tax salary.
So salary sacrifice expects the expense to be work-related while apple's policy requires it for education use.
I'm not an accountant / tax expert, but:
- People can salary sacrifice a novated lease vehicle purchase, which doesn't need to be work-related
- I'm not reading the policies, but will Apple know?
- As long as your salary sacrifice interface/provider accepts the invoice from Apple, it should be ok?Yeah, that makes sense. Do you know if there is anything referring to the education store on the apple invoice? Because if there isn't, I think there shouldn't be any problem submitting the invoice for salary sacrifice. Thanks for your reply it was very helpful.
…Do you know if there is anything referring to the education store on the apple invoice?
No, I don't know. Surely you can ask for a pro-forma invoice.
if there is anything referring to the education store on the apple invoice
Why would this make any difference??
@nepsek: Nothing noting Education on the Apple Tax Invoice I have from an Education Store purchase. It looks identical to Tax Invoices from non-education store purchases I have also made.
It depends how switched on and diligent everyone is.
It sounds like it'll attract Fringe Benefits Tax but if you're the sort of person who doesn't mind lying on matters like these, you're going to fill out paperwork to get the answer you want anyway (e.g. "I want to do this thing which I think is wrong, do you think I'll get into trouble").
Like jaywalking, OP is probably doing something wrong but likely won't get caught. But OP also needs to understand they're in trouble if they are caught and needs to own that ("trouble" can be as simple as displaying to your employer that you are dishonest, of course, which will affect the future working relationship).
@GG57: Yeah, you really can't do much more than "alright, but own it if you get caught". e.g. Employer gets a FBT audit due to some unrelated motor vehicle matter and they check laptop paperwork, and so on.
Just make sure you do at least one personal thing on it before completely devoting it to service to your boss. Maybe check your personal email or look at a video of a puppy falling over on YouTube.
Why do you think you might "…get into trouble…"? With whom?
Works for Microsoft.
Just put it through your tax return … get the same result, save the hassle of dealing with payroll, etc.
Separately, what "conditions of use" Apple might place on your purchase have absolutely nothing to do with the tax deductabilty (or not) of your purchase.
Yes that is exactly what I thought: Apple's conditions to use shouldn't have anything to do with ATO's guideline. I just wanted to confirm. Thanks
Not exactly true.
Firstly salary sacrificing saves you GST as it is not paid. On a MacBook that’s probably a two-hundred dollar saving.
Secondly, post tax on your tax return you can only claim your work percentage use. If OP uses it for only 30% work, they can technically only claim 30% of the cost post tax.
Thirdly and most important, you can’t claim the full amount it’s it’s over a certain threshold. You’d have to claim it over the effective life of the asset.
It is always better to salary sacrifice an item if you are allowed to.
It is always better to salary sacrifice
an itemif you are allowed to.a FBT exempt item
ATO will be knocking on your door.. i wouldn't
Yes
I would have no problem asking my company to salary sacrifice a laptop, Ipad or mobile from Apple Education store
If for work purposes you can salary sacrifice one small portable electronic items FBT free (laptop, rablet, phone, smart watch etc) each year. Small businesses (under 50 million turnover) can provide more than one iten per year.
Where you buy it from or under what scheme from apple is zero to do with the tax office, its only for Apple promotional purposes to get students hooked on the brand much like other brands like Samsung do. Would be good if people read the actual ATO site before posting wrong info about FBT.
https://www.ato.gov.au/Business/Fringe-benefits-tax/Exemptio…I'd be thinking jail time. Likely 5+ years
For using apple student discount on laptop I will be using for work?
Hmm you're right. Most likely 8-12 years.
Also 10 lashes from Tim Cook.
In all seriousness the only issue with the education store is people here have mentioned Apple may conduct random checks on orders, may ask for proof to see if you are actually an educator and can cancel the order if you're not(this is also mentioned in their TOS). However these checks are rare.
Give it a try. But technically you need to be an educator to buy there, otherwise you're double dipping.
The ATO is not going to care about it being bought from the education store or wherever else you buy it. If you pay less, you are then claiming less gst back and have a lower deduction.
They do care though if it is purchased for you to use for work. If you are buying it for someone else to use then it shouldn’t be salary sacrificed.
I think we would need more info.
Why do you think you might "…get into trouble…"? With whom?