Key messages from Fringe Benefits Tax Stakeholder Group meeting held 17 May 2023
Introduction
The Chair opened the meeting with an acknowledgement of country.
Program of work update – electric vehicles
The ATO noted that the Electric vehicles and fringe benefits tax fact sheet was issued on 24 February 2023. Further, the group discussed the outstanding program or work items:
- State rebates
- Information obtained indicates that Victoria is the only state that provides electric vehicle subsidies directly to the car dealer.
- The ATO view, in relation to these (Victorian) subsidies, is that they do not impact the bona fide lease requirements. (Note: the Victorian subsidy scheme will cease on 30 June 2023).
- Issues register
- The ATO is progressing updates to the fact sheet, based on additional issues raised by members.
Draft Practical Compliance Guideline PCG 2023/D1
The ATO noted that the Draft PCG was published in March and opened a discussion for members to provide additional feedback. Feedback included:
- Discussion regarding the cents per km rate
- GST issues
- Closing odometer readings at 31 March 2023
- Guidance regarding substantiation requirements if the electricity bill is not in the employee’s name, and
- Exclusion of plug-in hybrid vehicles.
Program of work update – car parking
The ATO advised that work on stage 1 is well progressed, which includes updated information in chapter 16 of the FBT – a guide for employers concerning:
- when is a car park provided in respect of employment, and
- the definition of a commercial parking station and the hallmark characteristics.
The ATO advised that stage 2, which covers the ATO view on the ‘members of the public’ issue is still being settled. Once finalised, further updates will be made to chapter 16.
FBT program of work submissions
No formal submissions received. However, a discussion board item had been added concerning e-bikes/scooters.
It was noted that the technical issue is settled, and there is an exemption per subsection 47(6) of the FBTAA, but this is not published, except in a class ruling. A discussion was opened for members to provide feedback on the issue. Feedback included:
A linkage in the guide or on the website may help
- There has been a push on cycling, but this was more from a wider policy perspective
- The issue does come up in salary packaging situations
- New Zealand introduced measures, but this was restricted to commuting, and
- If there is a change to exempt private use, this issue may become more prevalent.