Tax perk to fuel mad rush for iPad
- By Fran Foo
- From: The Australian
- May 18, 2010 12:00AM..
- 50% of Aussies plan to buy iPad
- Education refund to drive sales
- Demand for device "off the charts"
TAXPAYERS eligible for up to 50 per cent in tax reductions for laptops could start a mad rush for Apple's iPad.
The iPad-mania comes as no surprise, with the Boston Consulting Group finding that nearly half of Australian consumers plan to purchase a tablet, or electronic book reader, within the next three years.
According to the education tax refund 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.
When it goes on sale in Australia on May 28, the iPad will start at $629 for a 16GB Wi-Fi model, and $1049 for the 64GB 3G version.
What Apple called a "magical and revolutionary product" would be deemed a laptop, the Australian Taxation Office said.
Analysts expect parents of primary and secondary schoolchildren eligible for the ETR to use the scheme to purchase iPads.
They can also claim the cost of establishing and maintaining home internet connections as well as printers and flash drives.
Software for educational purposes is also covered in the ETR, alongside other applications such as word processors, spreadsheets, databases, internet filters and antivirus software.
Ovum Australia public sector IT research director Kevin Noonan said he expected a rush for the iPad as taxpayers took advantage of the tax concession.
"This is the best time to buy technology and the government rebate is a good proposition for taxpayers," Mr Noonan said.
Apple in Australia began accepting orders for the iPad last Monday, and will fulfil them by the promised May 28 shipment date. But people who submitted orders three days later received a June 7 delivery date.
"Demand for the iPad has been off the charts," an Apple spokeswoman said.
For more IT stories visit The Australian.