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FBT – Government not to implement Productivity Commission’s recommendations on remote tax concessions

Attendees at TaxEd’s FBT seminars have been particularly interested in Productivity Commission’s findings and recommendations relating to the Zone Tax Offset, Fringe Benefits Tax Remote Area Concessions and the Remote Area Allowance.

In our October 2019 newsletter, we discussed the Productivity Commission’s draft report in relation to these matters. The Commission’s final report was issued on 26 February 2020.

In a media release, which was also issued on 26 February 2020, the Minister for Housing and Assistant Treasurer, Michael Sukkar, has advised that the Government will not be implementing the Productivity Commission’s recommendations. He said:

‘In its final study, the Productivity Commission has made a number of findings and recommendations relating to the Zone Tax Offset, Fringe Benefits Tax Remote Area Concessions and the Remote Area Allowance. The findings in their final study are consistent with those in their draft report released in September 2019.

Were they to be implemented, the Productivity Commission’s recommendations would result in significant disruption to existing arrangements.  This was confirmed by the volume of submissions which the Productivity Commission received in response to its draft report, the overwhelming majority of which were not supportive of the proposed changes.

Given the challenges faced by regional Australia, including as a result of the impacts of the recent drought, bushfires and now Coronavirus, the Government will not be acting on the Productivity Commission’s recommendations.’ 

 

This article provides a general summary of the subject covered and cannot be relied upon in relation to any specific instance. It is not intended to be, nor should it be relied upon as, a substitute for professional advice. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use.