Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
A New Tax System (Fringe Benefits Reporting) Bill 1998
Schedule 2 Amendment of the Income Tax Assessment Act 1936

Part 1 Reporting reportable fringe benefits amounts and totals

Division 1—Reporting on group certificates

1  Subsection 6(1)

Insert:

reportable fringe benefits amount for a year of income in respect of an employee’s employment by an employer has the same meaning as in the Fringe Benefits Tax Assessment Act 1986 (as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 ).

2  Subsection 6(1)

Insert:

reportable fringe benefits total for a year of income for a person who is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ) means the employee’s reportable fringe benefits total (as defined in that Act) for the year of income.

3  At the end of subsection 221F(5B)

Add:

             ; and (d)  the reportable fringe benefits amount (if any) for the year of income ending on 30 June in the same year in respect of the employment of the employee by the employer, reduced by so much of the amount (if any) as was set out in a previous group certificate.

4  At the end of subsection 221F(5C)

Add:

Note:          Under subsection (5GA), the employer must also complete another group certificate form if the employee:

·        ceased to be employed on or after 1 April in the period of the 12 months; and

·        has a reportable fringe benefits amount from the employer for the year of income starting immediately after the end of the period of 12 months.

5  After subsection 221F(5CA)

Insert:

     (5CAA)  Subsection (5CA) does not apply if a reportable fringe benefits amount must be set out in the form for the group certificate under paragraph (5D)(d). This subsection does not limit the circumstances in which subsection (5CA) does not apply.

6  At the end of subsection 221F(5D)

Add:

             ; and (d)  the reportable fringe benefits amount (if any) for the year of income ending on the 30 June mentioned in subsection (5C) in respect of the employment of the employee by the employer, reduced by so much of the amount (if any) as was set out in a previous group certificate.

7  Paragraphs 221F(5E)(a) and (b)

Omit “and”.

8  At the end of subsection 221F(5E)

Add:

                   ; (d)  the employee does not have a reportable fringe benefits amount in respect of the employee’s employment by the employer for the year of income ending on the 30 June on which the period of 12 months ended.

9  After subsection 221F(5G)

Insert:

        (5GA)  Subject to subsection (5H), an employer must complete a group certificate form in respect of an employee of the employer, if the employee:

                     (a)  ceased to be employed by the employer at any time after the start of 1 April and before the end of 30 June in a single year of income; and

                     (b)  has a reportable fringe benefits amount for the next year of income in respect of the employee’s employment by the employer.

        (5GB)  In completing the form, the employer must set out (in addition to any other matter required by the form):

                     (a)  if the employee has, for the purposes of Part VA, quoted his or her tax file number in an employment declaration given to the employer—the tax file number; and

                     (b)  the reportable fringe benefits amount mentioned in paragraph (5GA)(b), reduced by so much of the amount (if any) as was set out in a previous group certificate.

        (5GC)  The employer must give the employee 2 copies of the form completed under subsection (5GA) no later than 14 July in the calendar year after the calendar year in which the employee ceased to be employed by the employer.

Note:          For employees described in subsection (5GA), the maximum time between the employee ceasing to be employed by the employer and the employer giving the employee copies of the group certificate will be no longer than 15 months and 2 weeks.

        (5GD)  To avoid doubt, the requirement in subsection (5GA) for the employer to complete the form in respect of the employee is in addition to any requirement under subsection (5C) for the employer to complete a group certificate form in respect of the employee.

10  After paragraph 221F(5J)(a)

Insert:

                    (aa)  each group certificate completed by the employer and setting out all or part of a reportable fringe benefits amount for the year of income ending on 30 June in that year in respect of the employment of an employee by the employer; and

11  Subsection 221F(7)

After “(5D)”, insert “, (5GA) to (5GC)”.

12  Subsection 221F(15)

After “(5D)”, insert “, (5GA) to (5GC)”.

13  At the end of section 221F

Add:

           (16)  This section applies in relation to a person who is an employee within the meaning of the Fringe Benefits Tax Assessment Act 1986 as if the person were an employee for the purposes of this Division.

Note:          Current, former and future employees are all employees within the meaning of the Fringe Benefits Tax Assessment Act 1986 . A person is an employee under that Act if benefits are provided in respect of the person’s employment (even if the person does not actually receive salary or wages): see section 137 of that Act.

14  At the end of section 221F

Add:

           (17)  This section applies in relation to an entity that is an employer for the purposes of the Fringe Benefits Tax Assessment Act 1986 (as it applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 ) as if the entity were an employer for the purposes of this Division.

Note:          Current, former and future employers are all employers within the meaning of the Fringe Benefits Tax Assessment Act 1986 . A person is an employer under that Act if benefits are provided in respect of the person’s employment of someone else (even if the person pays no salary or wages): see section 137 of that Act.

15  Subsection 221H(1)

Repeal the subsection, substitute:

             (1)  An employee who is given a group certificate that sets out:

                     (a)  salary or wages received by the employee in a year of income; or

                     (b)  all or part of the employee’s reportable fringe benefits amount for a year of income in respect of the employee’s employment by an entity that is an employer for the purposes of the Fringe Benefits Tax Assessment Act 1986 (as that Act applies of its own force or because of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 );

must keep the group certificate for 5 years after the employee’s assessment for the year of income.

Note:       The heading to section 221H is altered by omitting “ Application ” and substituting “ Record-keeping and application ”.

16  After subsection 221H(1A)

Insert:

       (1AA)  Subsections (1) and (1A) apply to a person who is an employee within the meaning of the Fringe Benefits Tax Assessment Act 1986 as if the person were an employee for the purposes of this Division.

17  Application of amendments of sections 221F and 221H

The amendments of sections 221F and 221H of the Income Tax Assessment Act 1936 made by this Division apply in relation to group certificate forms and group certificates setting out (or required to set out) information relating to the 1999-2000 year of income or a later year of income.



 

Division 2—Returns of reportable fringe benefits totals

18  Subsection 162(1)

After “fuller return,”, insert “of the person’s reportable fringe benefits total for a year of income or”.

19  Subsection 162(2)

After “to furnish a return,”, insert “or the person does not have a reportable fringe benefits total for the year of income,”.

20  Application of amendments

The amendments made by this Division apply in relation to reportable fringe benefits totals for the 1999-2000 year of income and later years of income.



 

Part 2 Effect of fringe benefits on deductions for superannuation contributions

21  Sub-subparagraph 82AAS(3)(b) (i)(A)

After “year of income”, insert “, or the person’s reportable fringe benefits total for the year of income,”.

22  Sub-subparagraph 82AAS(3)(b)(i)(A)

Omit “that were derived from”, substitute “attributable to”.

23  Sub-subparagraph 82AAS(3)(b)(i)(B)

Omit “person’s assessable income of the year of income”, substitute “total of the person’s assessable income of the year of income and reportable fringe benefits total (if any) for the year of income”.

24  Subparagraph 82AAS(3)(b)(ii)

After “year of income”, insert “, or the person’s reportable fringe benefits total for the year of income,”.

25  Subparagraph 82AAS(3)(b)(ii)

Omit “that was derived from”, substitute “attributable to”.

26  Application of amendment s

The amendments made by this Part apply to assessments for the 1999-2000 year of income and later years of income.



 

Part 3 Effect of fringe benefits on rebate for personal superannuation contributions

27  Paragraph 159SZ(1)(c)

Repeal the paragraph, substitute:

                     (c)  the total of the following is less than $31,000:

                              (i)  the taxpayer’s assessable income for the taxpayer’s year of income;

                             (ii)  the taxpayer’s reportable fringe benefits total (if any) for the year of income.

28  Paragraph 159SZ(1)(d)

Omit “taxpayer’s assessable income of the taxpayer’s year of income”, substitute “total mentioned in paragraph (c)”.

29  Application of amendments

The amendments made by this Part apply to assessments for the 1999-2000 year of income and later years of income.



 

Part 4 Effect of fringe benefits on rebate for contributions to spouse’s superannuation

30  Paragraph 159T(1)(c)

Repeal the paragraph, substitute:

                     (c)  the total of the following is less than $13,800:

                              (i)  the spouse’s assessable income;

                             (ii)  the spouse’s reportable fringe benefits total (if any) for the year of income.

31  Paragraph 159T(2)(a)

Omit “spouse’s assessable income of that year”, substitute “total mentioned in paragraph (1)(c)”.

32  Application of amendments

The amendments made by this Part apply to assessments for the 1999-2000 year of income and later years of income.



 

Part 5 Medicare levy surcharge on reportable fringe benefits total

33  Part VIIB (heading)

Repeal the heading, substitute:

Part VIIB Medicare levy and Medicare levy surcharge

34  After subsection 251R(1)

Insert:

          (1A)  In this Part, unless the contrary intention appears:

surcharge means Medicare levy surcharge imposed by the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 .

35  At the end of subsection 251R(7)

Add “and surcharge”

36  Subsection 251W(1)

After “levy”, insert “or surcharge”.

37  Section 251X

Repeal the section, substitute:

251X   Notice of assessment to set out Medicare levy and surcharge

                   The notice of assessment to be served under section 174 on a taxpayer who must pay levy or surcharge for a year of income must specify the total of levy and surcharge (if any) payable by the taxpayer for the year of income.

38  At the end of Part VIIB

Add:

251Z   Administration of Medicare levy surcharge Act

                   The Commissioner has the general administration of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 .

39  Application

The amendments made by this Part apply in relation to levy and surcharge payable in respect of the 1999-2000 year of income and later years of income.

40  Saving provision

The amendment of subsection 251W(1) of the Income Tax Assessment Act 1936 made by this Schedule does not affect the validity of any regulations made for the purposes of that subsection that were in force immediately before the amendment.