VET News

Treasury Announcements

An exemption from Fringe Benefits Tax (FBT) is being put in place for employer-provided retraining and reskilling, for employees who are redeployed to a different role in the business.  Currently, Fringe Benefits Tax (FBT) is payable if an employer provides training to its employees that is not sufficiently connected to their current employment.  

There will also be continued support for businesses through COVID‑19 as further tax relief is provided to attract and retain workers and reduce red-tape as part of the economic recovery plan.  The changes are estimated to support an additional 20,000 businesses and their employees.

The expanded concessions, as part of the 2020-21 Budget will apply in three phases:

• From 1 July 2020, eligible businesses will be able to immediately deduct certain start-up expenses and certain prepaid expenditure.
• From 1 April 2021, eligible businesses will be exempt from the 47 per cent fringe benefits tax on car parking and multiple work-related portable electronic devices, such as phones or laptops, provided to employees.
• From 1 July 2021, eligible businesses will be able to access the simplified trading stock rules, remit pay as you go (PAYG) instalments based on GDP adjusted notional tax, and settle excise duty and excise-equivalent customs duty monthly on eligible goods. Eligible businesses will also have a two-year amendment period apply to income tax assessments for income years starting from 1 July 2021.

In addition, from 1 July 2021, the Commissioner of Taxation’s power to create a simplified accounting method determination for GST purposes will be expanded to apply to businesses below the $50 million aggregated annual turnover threshold. 

For further information you can access the Treasury Media Releases below:

• Minister's Media Release - Budget 2020-2021: Investing in Education and Research
• Boost for skills training with Fringe Benefits Tax exemption
• Expanding access to small business tax concessions to support jobs

Date posted Oct 8, 2020