• Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/16/2013

Australia - Proposals to limit certain employment-related tax benefits 

August 15: Australia’s government has indicated that it intends to limit certain broadly used employment-related tax benefits—including recent fringe benefits tax (FBT) reform provisions.

For instance, consider—

  • An announcement for the effective repeal of the “statutory method” for purposes of calculating the FBT on motor vehicles
  • The introduction of measures to address a perceived “overuse” of the “living away from home allowance” exemptions and concessions
  • Repeal of FBT concessions for salary packaging of in-house fringe benefits

Superannuation reforms also are part of the government’s agenda with provision to:

  • Repeal of the age-based limit above which superannuation contributions were not previously required
  • Introduce additional reporting requirements on pay slips
  • Change the concessional contributions caps and the ability to withdraw excess concessional contributions and pay tax on these at the individual’s marginal rate, in lieu of the 46.5% rate

Read an August 2013 report prepared by the KPMG member firm in Australia: Employment taxes – Recent developments and the market’s response

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