As part of the 2008-09 Budget, the Treasurer announced a number of changes to improve the integrity of the Fringe Benefits Tax (FBT) law (Media Release No. 048 of 13 May 2008).
One of these changes was an amendment to the FBT law to ensure that FBT applies appropriately to employee arrangements involving jointly held investment assets.
As outlined in the media release changes will generally apply to new arrangements from 7.30 pm (AEST) on 13 May 2008. For existing salary sacrifice arrangements employers and employees will have until 31 March 2009 (the end of the FBT year) to unwind existing arrangements.
The media release also advised that transitional arrangements for employees who have entered into a loan arrangement (such as the arrangement that was the subject of the National Australia Bank Ltd v Federal Commissioner of Taxation 93 ATC 4919) will be put in place. These arrangements will be the subject of consultation.
Submissions are invited on transitional arrangements that may be required in respect of employees with existing loans, in particular, whether the transitional period that is available for salary sacrifice arrangements until 31 March 2009 will provide sufficient time for employees with existing loans to alter their arrangements.
Submissions should be provided to:
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600
The submissions should be provided by Monday 18 August 2008 and can be emailed to FBTjointlyheldassets@treasury.gov.au.