17 Aug 066 2006 Measures No 5 Bill introducedOn 17 August 2006, Tax Laws Amendment (2006 Measures No 5) Bill 2006 was introduced into the House of Representatives. The following are extracts from the EM.
SCHEDULE 1 to the Bill amends the Fringe Benefits Tax Assessment Act 1986 to:
- increase the minor benefits exemption threshold from less than $100 to less than $300;
- increase the reportable fringe benefits amount threshold from more than $1,000 to more than $2,000;
- increase, from $500 to $1,000, the reduction of taxable value that applies to eligible fringe benefits (ie, in-house fringe benefits and airline transport fringe benefits); and
- extend the definition of ‘remote’, for the purposes of the fringe benefits tax (FBT) concessions, where the shortest practicable route involves travel by water.
These amendments apply in respect of the FBT year starting on 1 April 2007 and all later FBT years.
SCHEDULE 2 to the Bill amends the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) so that supplies of drugs, medicines and other pharmaceutical items are GST-free when supplied as pharmaceutical benefits under the Military Rehabilitation and Compensation Act 2004.
SCHEDULE 2 also amends the GST Act to extend the GST-free car concession to people who have served in the Defence Force or in any other armed force of Her Majesty and as a result of that service, receive, or are eligible to receive, a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004.
These amendments apply to net amounts for tax periods starting on or after 1 July 2004.
SCHEDULE 3 to the Bill amends the Income Tax Rates Act 1986 to remove the part-year tax-free threshold for taxpayers who cease to be engaged in full-time education for the first time. These amendments extend the standard tax-free threshold of $6,000 to students who cease full-time education for the first time in the same way that it applies to other resident taxpayers.
These amendments apply to assessments for the 2006-07 year of income and later years of income.