Published on 01 Mar 99
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
In AAT Case 12,826 Re : Esso Australia Limited v FCT, the AAT held that a Melbourne child care centre operated by Esso Australia (jointly with Lend Lease Corporation Limited and BP Australia Limited) was exempt from Fringe Benefits Tax. This decision was overturned by the Federal Court in Esso Australia v FCT (1998) 40 ATR 76, and the Commissioner has abandoned an appeal. The decision is welcomed as encouraging more employers to provide child care centress for their staff. The ATO is withdrawing Taxation Ruling 96/27, and will issue a new ruling incorporating the Federal Court decision.