House of Representatives
Fringe Benefits Tax Amendment Bill 1991
Fringe Benefits Tax Amendment Act 1991
Explanatory Memorandum
(Circulated by the authority of the Treasurer,the Hon. J. Kerin, M.P.)Increase in the rate of Fringe Benefits Tax
General Outline and Financial Impact
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- The Fringe Benefits Tax Amendment Bill 1991 will amend the Fringe Benefits Tax Act 1986 to increase the rate of tax on fringe benefits from 47% to 48.25%.
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- Proposal announced : This proposal was announced in the 1991/92 Budget.
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- Financial Impact :The amendment will result in estimated gains to the revenue of $35 million in 1992/93 and $37 million in 1993/94.
Explanation of the proposed amendments
This Bill will amend section 6 of the Fringe Benefits Tax Act 1986 to increase the fringe benefits tax(FBT) rate from 47% to 48.25%. This amendment will align the FBT rate with the top marginal personal tax rate plus medicare levy. [Clause 3]
Commencement date
The amendment will have effect from 1 April 1992, the commencement of the next FBT year. [Clause 4]
Clauses involved in the proposed amendments
Clause 3 : amends section 6 of the Fringe Benefits Tax Act 1986 to increase the rate of tax.
Clause 4 : provides that the increased rate will apply from 1 April 1992.