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Fringe Benefits Tax Stakeholder Group key messages 17 August 2022

Summary of the key topics discussed at the Fringe Benefits Tax Stakeholder Group meeting 17 August 2022.

Last updated 11 October 2022

Introduction

The Chair opened the meeting with an acknowledgement of country.

FBT – SMB tax practitioner population strategy

The ATO presentation of the SMB tax practitioner population strategy was followed by discussion, which focussed on seeking out the thoughts of stakeholder group members regarding the relationship between tax practitioners and their clients. Specifically, the intent includes what:

  • the ATO can do to clear any blockers that may be present preventing compliance with FBT
  • information the ATO can provide to tax practitioners to assist with FBT discussions, for example, checklists, webinars, podcasts.

Based on this intent, the ATO wants to support tax practitioners to ensure that their employer clients, who should be in the FBT system, are in the system.

Stakeholder group members will provide their comments and input to help facilitate this goal.

Action item

FBT – SMB Population Strategy (Tax Agents)

Due date

30 September 2022

Responsibility

FBT Stakeholder Group members

Action item details

Members to review ATO presentation information and join discussion to suggest:

  • what can the ATO do to clear any blockers that may be present
  • what information or tools can the ATO provide to tax practitioners to assist with the FBT discussions with clients.
 

Program of work

The status of the following program of work items were discussed.

  • Car fringe benefits – claiming home electricity costs for electric vehicles (EV). A rate has been established for calculation of home electricity costs attributable to the 'fuel' for electric vehicles. The ATO is currently drafting a Practical Compliance Guideline. This remains relevant as, even though a new EV FBT exemption measure is on foot, reportable fringe benefit amounts will still require calculation.
  • Car fringe benefits – Draft Chapter 7, Fringe benefits tax - a guide for employers. The rewrite has been completed, which includes amendment to example 5 based on stakeholder group feedback. There will be a brief period for group feedback prior to the Chapter progressing to publication.

Further updates will be required upon the new EV measure passing into law.

Lodgment program review

The ATO presented the key insights raised by agents and associations in focus group workshops and set out guiding principles for assessment of lodgment date options.

The ATO set out its 'Proposed Option Exploration' impact assessment with regards to a selection of potential lodgment dates and invited stakeholder group members to provide their feedback, comments and preferences.

Action item

Lodgment program review

Due date

16 September 2022

Responsibility

FBT Stakeholder Group members

Action item details

Members to review ATO presentation information and provide input, comments and feedback from their perspectives.

Car parking fringe benefits

The ATO confirmed that Taxation Ruling TR 2021/2 remains the current ATO view on car parking fringe benefits, effective from 1 April 2022.

In relation to Taxation Ruling TR 2021/2, it was agreed that the ATO proceed with an addendum to the ruling to provide its view on the meaning of 'primary place of employment' following the Virgin Australia case.

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