Second Reading Speech
By the Treasurer the Hon. Paul Keating M.P.I made clear when announcing the Fringe Benefits Tax proposals on 19 September last that the measures to be taken would equate the treatment of fringe benefits for commonwealth public servants with that to apply in the private sector.
That approach is to apply in relation to all employees and officeholders under the commonwealth umbrella including, for example, occupation within the Parliament and the judiciary.
This Bill will specify how this is to be done. Broadly, departments and authorities of the commonwealth will be subject to Fringe Benefits Tax as if they were separate corporate employers.
As such, the various departments and authorities will face the same obligations as other employers to lodge annual Fringe Benefits Tax returns and to pay the tax, including quarterly instalments.
The Government will be at pains to ensure that agencies fully bear the burden of the tax through the annual appropriation procedures and other measures. Consistent with this, the Bill authorises the Minister for finance to give formal and binding directions in relation to the transfer of money within the public account.
I commend the Bill to the House.