FBT Check: Phones, Laptops and Training Tools in Your Physio Clinic

The ATO updated its guidance on work-related items that can be exempt from fringe benefits tax.

For physio clinic owners, this matters when the clinic buys tools or tech for staff.

A small benefit can become a tax problem if it is not handled the right way.

What is FBT?

FBT stands for fringe benefits tax.

It can apply when a business gives staff a benefit on top of wages.

For a clinic, this might include:

• a work phone
• a laptop
• a tablet
• tools used for work
• training items
• paid expenses
• some salary sacrifice benefits

Not every benefit creates FBT. Some work-related items can be exempt. But the clinic needs records that show why.

Do not guess because it feels work-related

A phone or laptop may feel clearly work-related.

But you still need to ask simple questions.

Who uses it? What is it used for? Is it mainly for work? Was it given to help the staff member do their job?

For example, a practice manager may need a laptop to manage bookings, payroll, and reports. A senior physio may need a tablet for notes or exercise programs.

That is different from buying tech with no clear work reason.

Keep the invoice and the reason

Good records make FBT easier.

For each work item, keep:

• the invoice
• the staff member’s name
• the date it was provided
• the work reason
• any private-use notes
• any salary sacrifice agreement

Do this at the time you buy the item. Do not wait until FBT time.

Watch duplicate items

Be careful when staff already have a similar item.

If the clinic provides more than one item with the same main use in the same FBT year, the rules may be different.

Do not assume the second phone, laptop, or tablet is fine.

Ask before buying it.

Check salary sacrifice first

The ATO also updated salary sacrificing guidance.

If a staff member wants to salary sacrifice an item, get advice first.

A poor setup can cause payroll, PAYG, super, and FBT errors.

The agreement should be clear before the benefit is provided.

What to do this week

Make a short list of staff benefits your clinic pays for.

Include phones, laptops, tablets, tools, paid subscriptions, and training-related items.

Then check two things.

First, is there a clear work reason?

Second, do you have records to prove it?

If not, fix the record now. If you are not sure, ask your accountant before the next purchase.

Sources: ATO, “Work-related items exempt from FBT”; ATO, “Salary sacrificing”.