August 2006
Just before the end of the Parliamentary Budget sittings, two new tax Bills, Tax Laws Amendment (2006 Measures No 4) Bill 2006 and Tax Laws Amendment (Repeal of Inoperative Provisions) Bill 2006 were introduced into Federal Parliament. In addition, several amendments have been made to the income tax regulations recently, primarily as a result of the new personal income tax rates applicable from 1 July 2006, and the new fringe benefits tax rate applicable from 1 April 2006. We review these legislative and regulatory changes below. Parliament will resume for the Spring sittings on 8 August 2006.
Adjustment for change in FBT rate
The fringe benefits tax (FBT) rate has been reduced from 48.5 per cent to 46.5 per cent for FBT years commencing on and after 1 April 2006.
There has been an amendment made to the FBT regulations which sets out how to calculate an employer’s notional tax amount for the current FBT year, to provide for a generic variation of the employer’s notional tax amount which will be applicable in any year that the FBT rate is changed.
The amendment takes effect from 1 April 2006.
For further information, please complete the following form, or contact:
Paul O’Brien, Partner
PricewaterhouseCoopers Tax
Private Client Services
Phone: +61 (3) 8603 4182
