Fringe Benefits Tax Amendment Regulations 2003 (No. 1) 2003 No. 38
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 38
Issued by authority of the Minister for Revenue and Assistant Treasurer
Fringe Benefits Tax Assessment Act 1986
Fringe Benefits Tax Amendment Regulations 2003 (No. 1)
Section 135 of the Fringe Benefits Tax Assessment Act 1986 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 5E(3) of the Act lists excluded fringe benefits, which are fringe benefits that do not need to be reported on employee payment summaries. As part of this subsection, it is listed that a fringe benefit is excluded from the fringe benefits reporting requirement if it is prescribed by the regulations.
The purpose of the proposed Regulations was to exclude fringe benefits associated with the removal or storage of household effects of police officers from the fringe benefits reporting requirement. The police officer must be a member of a police force or police service of the Commonwealth, a State or Territory and be a resident of Australia or an external Territory. To be eligible for the exclusion, the removal or storage has to be as a result of a move undertaken at the direction of the police force or service that provides the benefit.
Under the proposed Regulations, fringe benefits associated with the removal or storage of household effects of police officers that arise from a move directed by a police force or service are not reported on employee payment summaries for the income year ending 30 June 2003 and later income years.
The Regulations commenced on gazettal.
Overview
The Fringe Benefits Tax Amendment Regulations 2003 (No. 1) were enacted to address the issue of excluding certain fringe benefits from the reporting requirements under the Fringe Benefits Tax Assessment Act 1986. This regulation was issued by the Minister for Revenue and Assistant Treasurer, in accordance with the authority provided by the Act. The objective of this amendment was to alleviate the administrative burden on police officers who are required to relocate due to their duties, by excluding fringe benefits associated with the removal or storage of their household effects from the fringe benefits reporting requirements. These benefits are excluded if they arise from a move directed by a police force or service and the officer is a resident of Australia or an external Territory. The Regulations came into effect immediately upon their gazettal.
Scope and Application
The Fringe Benefits Tax Amendment Regulations 2003 (No. 1) apply to fringe benefits provided to police officers who are members of a police force or police service of the Commonwealth, a state or territory, and are residents of Australia or an external territory. Specifically, the Regulations exclude fringe benefits associated with the removal or storage of household effects from the fringe benefits reporting requirement if the removal or storage is a result of a move directed by the relevant police force or service. This exclusion applies to fringe benefits arising from moves directed by the police force or service and is effective for the income year ending 30 June 2003 and subsequent income years. These Regulations are made under section 135 of the Fringe Benefits Tax Assessment Act 1986, which allows for the creation of regulations necessary or convenient to carry out or give effect to the Act. The Regulations came into effect on the date of their gazettal, thereby immediately excluding the specified fringe benefits from the reporting requirement on employee payment summaries.
Key Provisions
The Fringe Benefits Tax Amendment Regulations 2003 (No. 1) (the Regulations) amend the Fringe Benefits Tax Assessment Act 1986 (the Act) by excluding certain fringe benefits from the reporting requirement on payment summaries (section 1). This exclusion applies specifically to fringe benefits associated with the removal or storage of household effects of police officers who are members of a police force or service of the Commonwealth, a State or Territory, and residents of Australia or an external Territory (section 1). The exclusion is applicable to fringe benefits arising from moves directed by the police force or service (section 1). These changes mean that such fringe benefits are not required to be reported on employee payment summaries for the income year ending 30 June 2003 and subsequent years (section 1).
Under the Regulations, the parties or entities governed by these provisions include police officers who are members of a police force or service and their employers. Employers must ensure compliance with the Act by not reporting these specified fringe benefits on payment summaries. The Regulations provide clarity on the types of fringe benefits that are excluded from the reporting requirement, thereby streamlining the compliance process for both employers and employees.
Failure to comply with the Act and the Regulations can result in penalties. While specific penalties are not detailed in the explanatory statement, the Act generally provides for civil and criminal penalties for non-compliance with fringe benefits tax requirements. Civil penalties may include fines and interest on unpaid tax, while criminal penalties can result in imprisonment and fines. The maximum penalties can vary depending on the nature and extent of the non-compliance, and are set out in other provisions of the Act. Employers and employees should ensure they adhere to the requirements to avoid potential legal repercussions.