The Government released their Mid-Year Economic and Fiscal Outlook (“MYEFO”) report and announced the following key changes:
- Corporate PAYG Tax Instalments
Companies with a turnover in excess of $20 million per annum will be required to make PAYG Income Tax instalments on a monthly basis.
- In-House Fringe Benefits
Under the current legislation, the taxable value of an in-house fringe benefit under a salary sacrifice arrangement would be reduced to 75% of the lowest price at which an identical benefit would be sold to the public or under an arm’s length transaction. This taxable value would then be eligible for a further $1,000 reduction in determining the FBT payable.
The Government has announced that the 75% reduction to the taxable value on in-house fringe benefits under a salary sacrifice arrangement will be removed such that the taxable value of the benefit will be the lowest price at which an identical benefit would be sold to the public or under an arm’s length transaction. This will take effect for new arrangements from 22 October 2012, with transitional rules applying to arrangements entered into prior to 22 October 2012 and continuing to 1 April 2014.
The $1,000 reduction appears to continue to be available.