From:
www.budget.gov.au
Fringe benefits tax — reform of airline transport fringe benefits
(Table of revenue deleted due formatting)
The Government will update the method of determining the taxable value of airline transport fringe benefits from stand‑by value to market value. This measure will apply to benefits provided after 7.30pm (AEST) on 8 May 2012. This measure is estimated to increase revenue by $12.0 million over the forward estimates period. The measure is also estimated to increase GST payments to the States and Territories by $4.0 million over the same period.
An airline transport fringe benefit may arise when an employee of an airline or travel agent is provided with free or discounted travel on a stand‑by basis. The taxable value of airline transport fringe benefits is currently the stand‑by value of the benefit less the employee contribution. This method was developed when stand‑by travel was a feature of commercial airline pricing and staff could be displaced from a flight up to the time of boarding. The concept of stand‑by travel, however, is no longer commercially relevant as airlines now use discounted pricing to optimise passenger levels. **
This reform progresses another recommendation of the Australia's Future Tax System review, and builds on the Government's growing record of tax reform.
** Maybe that's why Q ran the "confirmed category" Staff Travel survey recently.
