GST Refund Vs Salary Packaging for Laptop

s1mply22 on 14/08/2016 - 11:01

Since I soon would travelling (after end of my contract at work), and want to buy a macbook pro..So wondering what would be better option availing GST refund at airport or including the laptop in a Salary Packaging offered by my company. Laptop I am looking is worth around 2.5K.

I am assuming we cant do both as someone over internet suggested that when we opt for the Salary Packaging option GST is not included so we cant avail the GST refund. Somehow I could not find the same thread again so wanted to get you guys opinion on this.

Travel

Comments

  • modsec802 on 14/08/2016 - 13:30
    +4

    If you have the option to salary package a laptop that will be much cheaper as you save whatever your marginal tax rate + medicare levy is (typically 39% if you earn over $80k), and you won't pay GST as your company is buying the laptop so they don't pay GST (well they get GST as credits which is the same).

    TRS won't work anyway for a $2,500 laptop as you'll have to declare it on the way back in and pay 10% GST so a waste of time - and no you can't do both - if your employer buys it for you the receipt will be in your employers name and the TRS won't refund it as its a company purchase (who don't pay GST)

    Just be grateful your employer allows you to salary sacrifice one as most employers won't.

    • s1mply22 on 14/08/2016 - 15:53
      +2

      Thanks juicedpixels, I agree with you, however my employer has given me the option of buying a laptop myself and then sending them a copy of bill. They even get me 8-10% discount at Apple online store. If that is the case then I would anyways will be paying GST when I buy it online, so will my employer refund the GST after I present them the bill?

      Also since I would be travelling back with family so I think I don't have to worry about declaring as I think it would be well under the combined allowance for 5 people. This is my understanding, which could be incorrect, please share your opinion.

      • Mad Max on 15/08/2016 - 13:38

        It is not "legal" because effectively you would be getting the GST back 2 times, but it is very unlikely you would get caught as long as your employer is happy with a copy of the invoice. You will need the original for TRS and they will stamp it.

        • whooah1979 on 16/08/2016 - 06:44

          It is not "legal" because effectively you would be getting the GST back 2 times,

          op would be claiming the gst back only once. anyone else claiming a gst on this item isn't op's business.

        • Mad Max on 16/08/2016 - 18:47

          @whooah1979:
          That would be true if OP notified his employer that he has already claimed gst through TRS. Otherwise the employer will get the GST back from the ATO and should refund it back to OP

    • whooah1979 on 14/08/2016 - 19:03

      TRS won't work anyway for a $2,500 laptop as you'll have to declare it on the way back in

      don't worry about customs. they won't check. it's rather easy to "sail" through customs with multiple iphones, ipad, laptops, jewellery or whatnot.

    • ChillBro on 14/08/2016 - 19:06

      What about salary packaging compared to claiming it as a business expense? Would it not be the same?

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