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Wednesday, 1 September 1993
Page: 771


Senator GARETH EVANS —Yesterday, Senator Gibson asked me, as Minister representing the Prime Minister, a question about the extension of fringe benefits tax to payment of education and training fees for employees. I am now able to give him the following answer.

  The government has decided to make expenditure by employers on non-deductible fringe benefits subject to FBT and deductible. This measure will come into effect from 1 April 1994. It will cover expenditure on entertainment expenses, the payment of club fees, provision of leisure facilities, travel expenses of an accompanying relative, and the payment of HECS and the student financial supplement scheme, or SFSS, liabilities where provided to employees as fringe benefits.

  This reform will ensure equality of tax treatment between those currently untaxed non-deductible benefits, other fringe benefits and cash remuneration. The reform will also close off an increasingly utilised loophole in the fringe benefits tax provisions.