Record keeping new measures
Members were thanked for their feedback on the Legislative Instruments (LIs) and Explanatory Statements. The LIs are on track to be made prior to 1 April 2024 and will be accompanied by communications and updated web guidance.
Practical Compliance Guideline PCG 2024/2
The PCG 2024/2 was published on 1 February 2024 and members were thanked for their input. Key changes from the Draft include:
- Where home charging can be accurately determined, a proportionate calculation can be used to include both home charging and commercial charging costs. For example, where the car provides this function, or if there is an app that tracks this information.
- The transitional approach for 2023 year-end odometer readings.
- Reimbursement by leasing companies, with a new example included to make this clear.
It was noted that the shortcut method in the PCG does not require employers to confirm the exact amount of expenditure that was incurred. Rather, an employee would be required to demonstrate that they have incurred an expense, for example, based on an electricity bill.
Plug-in hybrid electric vehicles (PHEVs)
The Australian Taxation Office (ATO) advised that they are reviewing PHEVs in considering the ability to ascertain the cost of both fuel and electricity components, and plan to engage key industry stakeholders to determine whether further ATO guidance can be issued.
Charging private vehicles at work premises
The ATO advised that the minor benefits exemption would generally not apply when a private vehicle is charged at a work premises and as a result, would be considered a fringe benefit. A further issue arises in valuing the benefit.
A new program of work item was proposed, to review the issue and seek input from members.
Electric Vehicles - Demonstrators
The ATO noted that further examples had not been received from members, regarding demonstrator vehicles being first held and used on or around 1 July 2022.
The issue remains on hold pending further submissions.
Programs of work updates
Car parking
The ATO advised that there are still private matters on hand regarding the members of the public issue. Once these are determined, the ATO will communicate the view.
Modification to the carrying capacity of vehicles
The ATO noted that further examples had not been received from members, regarding gaps in current guidance relating to the carrying capacity of vehicles.
The issue remains on hold pending further submissions.