Changes to the Taxation of Car Fringe Benefits

Event Date: 
07 August 2013
Perth Concert Hall

The federal government has announced that it will introduce legislation to remove the statutory
formula method for valuing car fringe benefits with effect from 1 April 2014, involving new, or
materially varied contractual arrangements entered into after 16 July 2013. Car fringe benefits for
affected cars will need to be valued under the operating cost method, requiring the maintenance of
valid logbooks and the capture of detailed operating cost information for each car. If enacted, this
law change is expected to result in substantially higher FBT liabilities and related compliance
administration costs for employers and will significantly diminish the tax effectiveness for employees of
salary packaging cars. Further, as recognised by the government in setting a proposed date of effect
of 1 April 2014, a sizeable lead time is necessary to allow employers (and other affected parties) to
adequately prepare for the change.

This seminar will provide a valuable insight into what the proposed law changes involve and practical
guidance to assist employers and others potentially impacted by this announcement to identify,
assess and prepare for the likely impact of these changes on their business. Learning outcomes will

- What the announced changes involve;
- The likely implications of the changes;
- The contractual arrangements likely to be involved;
- How does the operating cost method work and what’s required to comply; and
- Practical guidance to assist in preparing for the change.

This is a presentation only, no paper will be provided.

Who Should Attend?
CFOs, Finance Managers, Taxation Accountants, HR Managers, representatives from car
dealerships, salary packaging administrators and fleet management service providers.

The Tax Institute
08 9322 2004
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