Introduction
The Chair opened the meeting with an acknowledgement of country. New members were welcomed.
Program of work update
The status of the following program of work items were finalised:
- Employee contributions to car fringe benefits: There will be further consultation on a draft ATO document before it is released.
- Car Parking – Taxation Ruling TR 2021/2 Fringe benefits tax: car parking benefits finalises Draft Taxation Ruling TR 2019/D5.
- Car fringe benefits - Chapter 7, Fringe benefits tax - a guide for employers is in the process of being updated.
- Term of a lease – Taxation Determination TD 93/142 Income tax: in calculating the residual value of a leased item, may a lower residual value than those outlined in IT 28 be adopted in light of the more generous depreciation rates? was published on 14 July 2021.
- Tax exempt body, entertainment fringe benefits – feedback from the stakeholder group on draft ATO guidance is being considered prior to publication of online content.
Program of work submission
Car fringe benefits – claiming home electricity costs for electric vehicles. This new item has been accepted on to the program of work and will be subject of ongoing discussions within the stakeholder group.
Reskilling/Retraining 2020–21 Budget measure
The law has now changed to support employers to assist their redundant, or soon to be redundant employees into new employment.
Employers who provide training or education to redundant or soon to be redundant employees may now be exempt from fringe benefits tax (FBT).
Reduced record keeping 2020–21 Budget measure
The government has proposed that it will provide the Commissioner of Taxation with the power to allow employers to rely on alternative records, such as existing corporate records where adequate to finalise their fringe benefits tax (FBT) returns. This would be an alternative to employee declarations and other prescribed records.
An information-gathering process is being initiated whereby external members may volunteer information regarding what existing corporate records may suffice for the purposes of this measure.
FBT meals and accommodation
Two Public Advice and Guidance products concerning meals and accommodation were to be published on 11 August as Taxation Ruling TR 2021/4 and Practical Compliance Guidelines PCG 2021/3.
Vaccine incentives
The ATO indicated that guidance on vaccine incentives (including non-cash benefits) was currently being considered.
Action item update
Action item |
Car fringe benefits - claiming home electricity costs for electric vehicles |
Due date |
To be confirmed |
Responsibility |
ATO |
Action item details |
This matter will be subject of ongoing discussions within the group |