Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Fringe Benefits Tax
Summary of proposed amendments
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- Purpose of amendment: To reflect a change in the name of the Commonwealth Savings Bank of Australia to the Commonwealth Bank of Australia in subsection 136(1) of the FBTAA.
Date of effect: 1 January 1993
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- Purpose of amendment: To change the word "subsection" to "section" at paragraph 37(b) of the FBTAA to correct a technical error.
Date of effect: Royal Assent
Background to the legislation
The words "Commonwealth Savings Bank of Australia" are used in the definition of "Commonwealth Bank housing loan" in subsection 136(1) of the FBTAA. On 1 January 1993, in accordance with the Bank Integration Act 1991 , the business of the Commonwealth Savings Bank of Australia is to be vested in the Commonwealth Bank of Australia.
Section 37 of the FBTAA deals with the provisions relating to the reduction of taxable value of board fringe benefits. At paragraph 37(b) the word "section" is incorrectly stated as "subsection".
Explanation of proposed amendments
The Bill will amend subsection 136(1) of the FBTAA to omit the words "Commonwealth Savings Bank of Australia" from the definition of "Commonwealth Bank housing loan" and substitute them with the words "Commonwealth Bank of Australia". [Clause 4]
The amendment will apply to loans made on or after 1 January 1993.
The Bill will also amend paragraph 37(b) of the FBTAA to omit the word "subsection" and substitute it with the word "section". [Clause 5]