Tax News Division
On 28 November 2011, the ATO released details of its administrative treatment regarding the extension of the FBT exemption for fly-in fly-out arrangements enacted by Tax Laws Amendment (2011 Measures No 6) Act 2011.
Under the changes, s 47 of the FBTAA has been amended to provide an exemption from FBT for transport from an employee’s usual place of residence to their usual place of employment, from 1 July 2009, where the employee is:
The ATO says it will accept returns as lodged during the period up until enactment of the legislation (3 November 2011). It says the returns lodged up until 3 November 2011 were processed in accordance with the law as it applied before the enactment of the new law.
With the enactment of the new law, the ATO says employers employing Australian resident taxpayers in a remote area overseas under a fly-in/fly-out arrangement will need to review their positions. It says employers who have not paid FBT (in accordance with the new law) do not need to review their positions. For employers who have paid FBT, the ATO says they may seek amendments if a reduction in liability results. Interest on overpayment will also be paid.
For Australian resident taxpayers who are employees working in a remote area overseas under a fly-in/fly-out arrangement and have received a payment summary from their employers and have reportable fringe benefits on their individual tax returns, the ATO says an amendment can be requested. For those employees who have not received a payment summary from their employer and consequently do not have reportable fringe benefits, the ATO says no further action is required.