Fringe Benefits Tax Changes. Kevin has the Razor out - TopicsExpress

Fringe Benefits Tax Changes. Kevin has the Razor out guys! Yesterday, the Government announced its decision to abolish the statutory formula method for calculating Fringe Benefits Tax (FBT) on car fringe benefits. This applies to new contracts entered into (or existing contracts which are materially varied) from today July 17th, 2013 onwards and will be effective from April 1, 2014. The changes do not affect existing Novated Lease Finance Contracts entered on or before yesterday 16 July 2013 unless they are subsequently materially varied. Deals settled after this date will be able to use the statutory formula method only until 1 April 2014. From 1 April 2014 car fringe benefits will be calculated using the operating cost method only. Note this decision must still be passed into law. Stand-by for an update or The next Federal Election!

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