Could the ATO consider undertaking a project to review and recommend changes (legislative or otherwise) that would update the thresholds used for various FBT purposes, for example, the $200 for safety awards (section 58R)?
Many, if not most, of these have not changed since 1987 and have become largely irrelevant with many employers having to rely on the 'minor and infrequent' exemption (section 58P) that is not the intended outcome and adds some degree of uncertainty given the potential for varying interpretation of minor and infrequent.
Meeting discussion
Members discussed generally the issues raised in the CTA agenda item including the fact that the threshold in section 58R had not been increased.
Treasury explained that the government, by convention, assumed a caretaker role prior to the election on 21 August 2010 and this continues until the election result is known or, in the event of a change of government, when the new government is appointed.
The conventions prohibited the government from making major decisions on policy that are likely to commit an incoming government, in the event of a change of government. This is distinct from the policy intentions made public during the course of the election campaign.
For this reason the government was unable to respond to a matter that addresses policy issues during that period.
Treasury therefore recommended that if members considered that there was a requirement to increase certain thresholds in the FBTAA, those should be raised with an incoming government (directly or through Treasury) following the election by way of a formal submission.
ATO response
The ATO advised that a change to thresholds in the FBTAA related to policy considerations and was a matter for government, as confirmed by Treasury during the discussion.
The ATO noted that many of the thresholds have been increased by amendments to the FBTAA following decisions taken by government.
Those thresholds that have increased include the following;
- Section 58P - minor benefits, from 1 April 2007, increased from less than $100 to less than $300,
- Section 58Q - long service leave awards, from 1 April 2005, increased from $500 to $1000,
- Section 62 - in-house concession, from 1 April 2006, increased from $500 to $1000 and
- Reportable fringe benefits threshold, from 1 April 2007, increased from $1000 to $2000.
Sections within Agenda items
Last Modified: Friday, 29 October 2010