30 Jul 08 Consultation on FBT - jointly held assetsIn the 2008-09 Budget, the Treasurer, Wayne Swan, announced a number of FBT changes (see the Treasurer's Media Release No 2008/048, 13 May 2008). One of these changes was an amendment to the FBT law to ensure that FBT applies appropriately to employee arrangements involving jointly held investment assets.
As outlined in the Treasurer's media release, changes will generally apply to new arrangements from 7.30 pm (AEST) on 13 May 2008. For existing salary sacrifice arrangements employers and employees will have until 31 March 2009 (the end of the FBT year) to unwind existing arrangements. The media release also advised that transitional arrangements for employees who have entered into a loan arrangement (such as the arrangement that was the subject of the National Australia Bank Ltd v FCT (93 ATC 4919) will be put in place.
In a media release issued on 29 July 2008, the Assistant Treasurer, Chris Bowen, invited submissions on the transitional arrangements that may be required in respect of employees with existing loans, in particular, whether the transitional period that is available for salary sacrifice arrangements until 31 March 2009 will provide sufficient time for employees with existing loans to alter their arrangements. Submissions should be provided by Monday 18 August 2008.
For a copy of the Assistant Treasurer's media release, No 2008/058, 29 July 2008, go here