Published on 01 Jan 99
by THE TAX INSTITUTE
The FBT proposals as contained in A New Tax System (Fringe Benefits Reporting) Bill 1998
("the Bill") emphasise the difficulties that result from an abandonment of principle. Fringe
Benefits Tax taxes the employer on the income in kind of the employee. The capacity to
attribute fringe benefits to employees on group certificates now presents an opportunity to
abolish the tax. This was one of the key recommendations previously outlined in the Taxation
Institute's submission to the Review of Business Taxation in response to its First Discussion
Paper, "A Strong Foundation".
The Taxation Institute of Australia believes that as a consequence of the proposal to include
fringe benefits on group certificates under the Bill, there will be a real increase in the cost of
compliance to businesses.
TAX POLICY & RESEARCH DIVISION
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