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  • FBT Working Group key messages 3 April 2019

    Update on action items

    Proposed changes to Chapter 9 - Fringe benefits tax - a guide for employers

    The ATO recently sought feedback from members in relation to draft changes to the content of Chapter 9 of the Fringe benefits tax - a guide for employers (the Guide). The updates clarify the factors to consider in determining if the taxable value of an expense payment fringe benefit may be reduced in accordance with the otherwise deductible rule for home telephone and internet expenses.

    Changes were agreed in line with content of PS LA 2001/6.

    Action item

    ATO will finalise changes to the Guide

    Due date

    Next meeting

    Responsibility

    ATO

    Lease residuals and FBT

    The ATO reviewed a submission relating to determining a method to utilise for the residual value of finance leases and internally agreed to provide more clarity around the issue.The ATO will consider possible updates to ATO ID 2002/1004.

    Action item

    ATO will provide an update with the progress of the review.

    Due date

    Next meeting

    Responsibility

    ATO

    Road Tolls

    A member identified some perceived inconsistency in ATO guidance on road tolls, specifically in relation to tolls incurred and reimbursed by employers whilst traveling in exempt vehicles.

    The ATO agreed to review guidance on FBT and road tolls contained in Chapter 20 of the Guide and associated factsheet.

    ATO Guidance Updates

    • Draft Taxation Ruling TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees' travel expenses? The draft is still under review, no update since last meeting.
    • Rewrite of Taxation Ruling TR 96/26 Fringe benefits tax: car parking fringe benefits. The draft ruling to update TR 96/26 is undergoing further internal review prior to udnertaking targeted consultation.
    • TR 2018/D2 religious practitioners ATO is currently working to finalise this ruling, with no major changes anticipated from the draft issued. We are aiming to issue the finalised ruling in June 2019.
    • Remote areas website updates. The work is progressing well, further updates will be provided at the next meeting.
    • Consultation on a possible transfer of annual FBT Taxation Determinations to web content was finalised. A further update will be provided at the next meeting
    • Taxi travel exemption. Internal discussions are progressing. The Guide remains the ATO view.

    Other business

    Third party benefits and FBT

    A member question requesting guidance on third party benefits and arrangements will be forwarded to the FBT team for consideration.

    Action item

    ATO will include this item for consideration at the July meeting.

    Due date

    Next meeting

    Responsibility

    ATO

      Last modified: 13 May 2019QC 58865