No changes to Fridge Benefits Tax on Novated Leases
11/11/2013 1:37:00 PM
On 6 November 2013, the Federal Government formally confirmed its plans to abolish a number of tax law changes that have yet to be enacted through legislation, including the former government's proposed changes to the Fringe Benefits Tax (FBT) on cars.
The announcement provides further reinforcement of the government's pledge not to proceed with the changes to FBT.
In making the announcement, Federal Treasurer Joe Hockey and Assistant Treasurer Arthur Sinodinos stated:
"During the 2013 election the Coalition pledged not to continue with Labor's $1.8 billion Fringe Benefits Tax change that would make it harder for people to have a company or salary sacrificed vehicle. The Coalition Government today confirms it will not proceed with this measure."
In its 6 November announcement, the government advised that a total 92 unlegislated and unresolved tax and superannuation changes were outstanding. The government is electing not to proceed with 18, significantly amending a further three and committing to further consultation on the remaining 64 measures which are unlikely to proceed.
In addition to abolishing the proposed changes to the FBT on cars, the government announced a further six initiatives that it will not proceed with, including removal of:
- a cap on deductions for self-education expenses (announced as part of the 2013-14 Budget)
- a tax on superannuation pension earnings above $100,000 in the draw-down phase.
A copy of the announcement can be viewed here.