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