Car fringe benefit reforms introduced into Parliament
Further to the reform announced in the Federal Budget, the
Government has introduced into the Parliament on 2 June 2011 Tax
Laws Amendment (2011 Measures No. 5) Bill 2011 (the Bill) which
details changes to the statutory formula method in calculating the
taxable value of car fringe benefits provided as well as associated
transitional arrangements.
The proposed legislation seeks to replace the current tiered
statutory rates with a flat rate of 20% applicable regardless of
the distance travelled from 1 April 2014.
The operating cost method remains unchanged and is available as
an alternative option for employers.
Transitional rules
