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22 June 2021
An employee is voluntarily resigning and our business is gifting their mobile and laptop that is currently used for work. The second-hand market value of these items would be around $1K.
This is considered an ETP, is that correct? Would we need to deduct PAYG from her termination payment using the market value of the assets?
Most helpful response
ATO Certified Response
23 June 2021
You are correct!
Gifting a work phone and laptop as part of the employees termination arrangements is considered an ETP. The value of the gift is the market value of the phone and laptop directly before gifting them.
You are required to deduct PAGYW form the value of the gift.
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