The Tax Institute welcomes the opportunity to make a submission to the Australian Taxation Office (ATO) in relation to the following Draft Legislative Instruments:
- LI 2023/D3 Fringe Benefits Tax Assessment (Adequate Alternative Records - Overseas Employment Holiday Transport) Determination 2023 (LI 2023/D3);
- LI 2023/D4 Fringe Benefits Tax Assessment (Adequate Alternative Records - Car Travel to Employment Interview or Selection Test) Determination 2023 (LI 2023/D4);
- LI 2023/D5 Fringe Benefits Tax Assessment (Adequate Alternative Records - Remote Area Holiday Transport) Determination 2023 (LI 2023/D5); and
- LI 2023/D6 Fringe Benefits Tax Assessment (Adequate Alternative Records - Car Travel to Certain Work-Related Activities) Determination 2023 (LI 2023/D6).
In the development of this submission, we have consulted with our National Fringe Benefits Tax & Employment Taxes Technical Committee to prepare a considered response that represents the views of our broader membership.
The Tax Institute is of the view that the fringe benefits tax (FBT) record keeping requirements should be simplified and reduced. Feedback from our members indicates that that there are a number of declarations that are more commonly used for FBT purposes than the four declarations covered by the Draft Legislative Instruments. These include living-away-from-home declarations, and declarations regarding the otherwise deductible nature of various benefits. We consider that simplifying and reducing the record keeping requirements for the more common declarations will benefit a broader range of employers by reducing the FBT compliance costs.