The Australian Government has announced that the fringe benefits tax (FBT) statutory formula method is to be abolished for all new contracts entered into from today.
This reform will remove the statutory formula method for both salary-sacrificed and employer-provided car fringe benefits for new contracts entered into after announcement, with effect from 1 April 2014.
Existing contracts materially varied after 16 July 2013 will also fall under the new arrangements.
Existing contracts that are not varied will continue to have access to the existing statutory rate throughout the contract.
This reform has taken the industry by surprise and Enlist are seeking more clarification on the matter.
The moment we have more information available we will communicate same to employers and employees.
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