Fringe Benefits Tax Working Group key messages 5 August 2020

Opening Address

Andrea Ross, Chair opened the meeting and welcomed members.

FBT Working Group and its program of work

The annual review of the FBT Working Group will be undertaken to assess outcomes and plan for the next twelve months. This will include consideration of the Group's purpose and future direction.

We will continue to use members' expertise, knowledge and industry intelligence in helping us to identify and resolve issues for employers - and in supporting our engagement strategies.

We will also review the charter to ensure it supports us to draw on the expertise of the group.

Review of agenda items

Agenda Item 3 - Logbooks and COVID-19 impacts

A query was raised with regards to home garaging of cars during COVID-19. In response, the ATO has issued a Fact Sheet online at COVID-19 and car fringe benefits.

It was confirmed that the Fact Sheet applies to circumstances during COVID-19 only.

A query was raised as to the FBT treatment where employers enforce the business-premises garaging of cars during COVID-19. Members to provide high-level numbers of such occurrences and scenarios. New action item.

Agenda item 4 - Employee contributions to car fringe benefits

Addressed scenario where employee payments of fuel are reimbursed, and the flow-on effect to the amount of deduction under both the 'logbook' and 'per kilometre' method.

Members were invited to make further submissions. New action item.

Agenda item 5-Associate lease issue. Action item from previous meeting.

Addressed the issue of whether an associate can be a recipient of a car benefit, and whether a recipient’s expenses can be taken into account, when the associate incurred them.

The answer is ‘yes’. If the associate uses the car, they are recipient of car fringe benefit, provided the usage and expenses of the associate are not disproportionate.

Other issues

FBT and WFH arrangements

Request from members to clarify the treatment of expenses incurred in setting up WFH arrangements.

This is flagged as an action item. Members to provide input on the types of WFH expenses. To be addressed at the next meeting.

Bona fide leases

Members invited to contact the secretariat should they have feedback or submissions regarding draft guidance provided.

Action Items