ATO ID 2008/133: Exempt Benefits: work related items - a portable electronic device
Date of decision: 27 August 2008
Year of income: Year ended 31 March 2009
Business line: Superannuation and Employer Obligations

Issue
Is a GPS navigation receiver a portable electronic device under paragraph 58X(2)(a) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision
Yes. A GPS navigation receiver is a portable electronic device under paragraph 58X(2)(a) of the FBTAA.

Facts
An employer provides an employee with a GPS navigation receiver. The GPS navigation receiver is portable and can be attached to the employee's motor vehicle. The GPS navigation receiver:

Reasons for decision
Summary: Section 58X of the FBTAA provides an exemption for benefits relating to the provision of certain work related items. Subsection 58X(1) of the FBTAA states that the provision of an expense payment benefit, a property benefit or a residual benefit in respect of an eligible work related item will be an exempt benefit. Subsection 58X(2) of the FBTAA includes a list of items that, if provided primarily for use in an employee's employment, can be considered as 'eligible work related items'. The list in subsection 58X(2) of the FBTAA is as follows: A 'portable electronic device' is included in the list. However, the FBTAA does not provide a definition of 'a portable electronic device'; therefore, it takes on its ordinary meaning. The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01. defines 'portable' as: 2. easily carried or conveyed by hand. The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01. defines 'electronic' as: 2. of, relating to, or concerned with electronics or any devices or systems based on electronics. The meaning of the words 'a portable electronic device' should be restricted to the characteristics of the words that precede the word device. That is, the meaning of 'a portable electronic device' is limited to a device that is easily carried by hand and is based on electronics. The Tax Laws Amendment (Budget Measures) Act 2008 repealed the former subsection 58X(2) of the FBTAA. Previously under subsection 58X(2) of the FBTAA the list of exempt items included, as relevant: This previous list of exempt items had become outdated because of changes in technology, for example, many portable electronic devices have more than one function and other work-related electronic devices have become available. 'A portable electronic device' is a generic term which would include but is not restricted to items which were previously exempt under subsection 58X(2) of the FBTAA and items of new technology which may have characteristics similar to those previously listed items. Taken together the dictionary meanings and characteristics of the previous listed items noted above indicate that the primary characteristics of 'a portable electronic device' for the purposes of this provision would be that the device is: If a device has these characteristics, it would be 'a portable electronic device' for the purposes of paragraph 58X(2)(a) of the FBTAA. Accordingly as the GPS receiver can operate on a battery power source, is small and light, easily portable and designed as a complete receiver for use away from an office environment it is a portable electronic device under paragraph 58X(2)(a) of the FBTAA.

Legislative references: Fringe Benefits Tax Assessment Act 1986 section 58X subsection 58X(1) subsection 58X(2) paragraph 58X(2)(a) subsection 58X(3) subsection 58X(4) subsection 58X(5)
Related ATO interpretative decisions: ATO ID 2006/44
Other references: The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01. Tax Laws Amendment (Budget Measures) Act 2008
Subject references: Exempt benefits Fringe benefits Fringe benefits tax