Class Ruling

CR 2008/23W

Fringe benefits tax: employer clients of Super Group International (Australia) Pty Limited or SMB Fleet Management Pty Limited who make use of the SMB Cafe Card facility

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Notice of Withdrawal

Class Ruling CR 2008/23 is withdrawn with effect from today.

1. CR 2008/23 deals with the fringe benefits tax consequences for employers whose employees enter into valid salary sacrifice arrangements for food or drink to be provided to, and consumed by, those employees on the employer's business premises on a working day.

2. Tax Laws Amendment (Budget Measures) Act 2008 amends the Fringe Benefits Tax Assessment Act 1986 (FBTAA) by inserting subsection 41(2) which denies exemption under section 41 of the FBTAA for food or drink provided as part of an employee salary sacrifice arrangement.

3. Subsection 41(2) of the FBTAA applies to food or drink provided after 7.30pm AEST on 13 May 2008. However, exemption under section 41 of the FBTAA can still apply to food or drink provided under a valid salary sacrifice arrangement up until 1 April 2009 as long as the arrangement was entered into prior to 7.30pm AEST on 13 May 2008 and the food or drink provided relates to an existing balance at that time.

4. As a result of the above legislative amendments, CR 2008/23 is no longer current and is withdrawn.

Commissioner of Taxation
20 August 2008

Not previously issued as a draft

References

ATO references:
NO 2006/20258