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Australia: Recommendations for fringe benefits tax amendments

Australia: Recommendations for fringe benefits tax

Recommendations from a commission would, if implemented, change the fringe benefits tax rules.


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In general, the commission recommended certain changes to the fringe benefits tax including:

  • Partial reduction of an exemption for employer-provided housing. Instead of providing a full fringe benefits tax exemption, the commission recommended providing employers with a 50% fringe benefits tax concession based on the value of the benefit
  • Remove a 50% concession on employee-sourced housing (for example, rent concessions and mortgage assistance). Currently, if an employer reimburses an employee for housing that is sourced by the employee (for example, a rental property under the employee’s name), the employer would be eligible for a 50% fringe benefits tax reduction on that benefit. The commission recommended that this concession be removed, so the full value of the benefit is subject to the fringe benefits tax.
  • Limit application of the 50% concession for “remote area residential fuel.” Currently, a concession applies to residential fuel (such as electricity and gas) used in housing that is located in a remote area. Under proposed changes, access to the concession would be limited to employer-provided housing when there is an operational requirement for the employer to provide residential fuel.
  • Remove the 50% concession for remote area holiday transport. Currently, a concession may apply to private holiday transport to specific destinations to and from a remote area, provided certain criteria are met. The commission proposes to remove this concession altogether.

Read a September 2019 report prepared by the KPMG member firm in Australia

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