Supplementary Explanatory Memorandum
Amendments to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Reporting of fringe benefits on group certificates
The amendments exclude fringe benefits relating to entertainment facility leasing expenses and remote area housing from the group certificate reporting requirement contained in the A New Tax System (Fringe Benefits Reporting) Bill 1998. The amendments also remove the requirement for employers to issue group certificates earlier than the standard 14 days after the end of the financial year, where an employee has a reportable fringe benefits amount.
Financial Impact : The amendments would result in an unquantifiable gain or loss to revenue that is expected to be insignificant.
Compliance Cost Impact : The amendments would result in a significant reduction in compliance costs for employers.
When an employee leaves during the year, employers will now have additional time to calculate the employees reportable fringe benefits amount and issue them with a group certificate identifying this amount.
Employers will avoid the complexities of having to allocate the value of benefits relating to entertainment facility leasing expenses between individual employees.
Employers providing remote area housing benefits will not need to incur additional compliance costs in order to record these benefits on group certificates.
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