TAX NEWS - JUNE 2010

Australian Tax: iPad classed as laptop for taxation purposes

Australian Tax Office confirmed it would class Apple's iPad as laptops for income tax assessment purposes but its eligibility for employee salary sacrifice programs remains unclear.

Australian Tax Office said iPad owners who used the device for work purposes would be able to claim deductions on software, capital depreciation and internet connections for the devices. However, they would have to exclude any portion related to private use.

"Users who use the iPad for both income producing purposes and private purposes will need to apportion their running costs deductions and decline in value deductions on a reasonable basis," an Australian Tax Office spokesman said.

However, the Australian Tax Office has given no advice on whether it would be eligible for employee salary sacrifice programs.

Its eligibility would depend on whether Australian Tax Office would exempt companies from paying fringe benefits tax on the devices.

Australian Tax Office was not able to provide any advice on the matter in time for publication.

The office has already declared the iPad eligible for generous education tax offsets under the federal government's new Education Tax Refund guidelines.

Under the guidelines, parents can receive refunds of up to $375 per primary school student and $750 per secondary school student for desktop computers and laptops, and for repair and running costs.

Australian Tax Office spokesman said: "We accept that the costs of an iPad can be an eligible education expense."

Prices for the iPad start at $629 for a 16GB Wi-Fi model, and $1049