Show download pdf controls
  • Fringe Benefits Tax Working Group key messages 16 September 2020

    Opening Address

    The Chair opened the meeting and welcomed new members.

    Fringe Benefits Tax (FBT) and working from home expenditure

    The group considered a range of issues relating the FBT status of various items provided by employers that employees use to work from home.

    It was discussed that factors effecting the FBT liability for particular items included:

    • the type or class of item provided
    • whether the item was:
      • lent or given to an employer
      • ordinarily located at business premises
      • classed as a minor benefit and
      • otherwise deductible against the employee's income.

    The ATO and the working group will work together to consider what further practical guidance might be able to be provided in relation to some specific items, including:

    • the meaning of 'portable electronic devices', 'ordinarily located on business premises' and 'tools of trade'
    • the provision of special home - work set ups based on employee health needs, for example chair and desk as it relates to FBT.

    Working group members discussed substantiation, including diary usage and other record-keeping requirements during the COVID-19 period.

    COVID-19 and car fringe benefits

    The ATO confirmed that the 'work cars' referred to in the recently released Fact Sheet did not extend to cars subject to novated lease arrangements.

    The ATO advised that there may be some flexibility in the use of car logbooks during the COVID-19 period. However, the methodology employed was still required to provide a reasonable estimate of use that was supportable by logbook records.

    Car Parking

    Members discussed the impact of changed commercial car-parking conditions on FBT, for example, where a hospital offers free public car parking during the COVID-19 period.

    The ATO and the group will work together to consider what practical guidance may be able to be provided in this regard.

    Action Items

    Action item

    What further guidance and clarification might be able to be provided regarding working from home arrangements.

    Due date

    Next meeting

    Responsibility

    ATO & working group members

    Action item details

    Including definitions of terms, substantiation requirements.

     

    Action item

    What further guidance regarding car parking, relating to changes that have taken place during COVID-19, may be required and could be provided.

    Due date

    Next meeting

    Responsibility

    ATO & working group members

    Action item details

    In particular, where car parking sites have no longer charged fees.

      Last modified: 17 Nov 2020QC 64190