Second Reading Speech
The Treasurer the Hon. Paul Keating M.P.The Fringe Benefits Tax assessment Bill which I introduced a little earlier contains a comprehensive code for the taxing of employers on the value of fringe benefits that they provide to their employees.-
Where fringe benefits are taxed in that way, or where they are to be specifically exempted from Fringe Benefits Tax under the earlier Bill, it is to be made clear that they are not to be treated as assessable income in the hands of employees for income tax purposes.
The Fringe Benefits Tax (Miscellaneous Provisions) Bill will amend the Income Tax Assessment Act to ensure this.
It will also amend that act to repeal measures for the concessional valuation of residential accommodation supplied to employees in remote localities which are now to be dealt with under Fringe Benefits Tax legislation. Another amendment sees to it that income tax deductions are not available to employers for amounts paid as Fringe Benefits Tax. Without that measure the Fringe Benefits Tax rate would be effectively reduced for income tax paying employers. Several other consequential changes to the income tax law arise due to Fringe Benefits Tax rules relating to board, living-away-from-home allowances and reimbursements of employees' car expenses. These are detailed in the explanatory memorandum.
Finally, the scope of the Crimes (Taxation Offences) Act 1980 is to be extended so that it will apply to any schemes for the fraudulent evasion of Fringe Benefits Tax as it does to other taxes of the commonwealth.
I commend the Bill to the House.
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