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  • FBT Working Group key messages 6 February 2019

    The FBT Working Group meeting was held on Wednesday 6 February 2019.

    The information below is a summary of topics discussed at the meeting.

    Update on action items

    • Home office expenses: The ATO explained the legislative framework and the inability to issue a PCG on home office internet expenses. The ATO is drafting changes to the content of Chapter 9 of the FBT - a guide for employers to clarify when and how the FBT liability can be reduced by using the otherwise deductible rule.

    Action item:

    ATO to make agreed changes to Chapter 9 FBT - a guide for employers.

    Due date:

    Before next meeting

    Responsibility:

    ATO

    • No taxable fringe benefits provided to employee declaration: The ATO clarified that the option of a No taxable fringe benefits provided to employees declaration would require a legislative change and that it is not possible to achieve the intent by issuing a PCG. The members agreed that similar outcome could be achieved by lodging a nil FBT return.

    Lease residuals and FBT

    • A member raised the need for more guidance in relation to the establishment of appropriate minimum residual values for finance leases of cars where there lease is refinanced for additional periods.

    Action item:

    ATO to consider whether further guidance or updates to IT 28 and ATO ID 2002/1004 are required to clarify what is accepted to be bona fide where the lease is refinanced for additional periods.

    Due date:

    Next meeting

    Responsibility:

    ATO

    PCG and TR updates

    • TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees' travel expenses? Feedback was received from the internal PAG Panel. The ATO is working through the recommendations.
    • TR 96/26 Fringe benefits tax: car parking fringe benefits. Targeted consultation will be undertaken in respect of the draft soon.
    • TR 2018/D2 Fringe benefits tax: benefits provided to religious practitioners. The consultation has been completed and now is being finalised. The aim is to publish the final version before 30 June 2019.
    • Minor benefit guidance. Internal consultation is underway, there is no a planned completion date at this stage.
    • Remote areas website update. The ATO confirmed that a suggestion to improve the remote areas guidance was received and is being considered to ensure the content is clear and accessible. The review will take up to 12 months as previously advised.
    • Consultation on FBT TDs closed on 15 February 2019.
      Last modified: 26 Apr 2019QC 58681