Nov 2000 Volume 81 Number 11 "serving the protectors"

POLICE FEDERATION OF AUSTRALIA WINS FBT EXEMPTION FOR POLICE HOUSING

This letter (below) from the Assistant Federal Treasurer, Senator Rod Kemp, outlines the exemption won by the PFA relative to the FBT exemption for police housing.

Senator Grant Chapman Senator for South Australia GPO Box 2444 ADEALIDE SA 5001   Dear Grant Thank you for your personal representations of 3 February 2000 to the Treasurer on behalf of Mr P. Alexander, President, Police Federation of Australia, South Australia Police Branch, PO Box 6032, Adelaide, SA 5000, concerning the fringe benefits tax police reporting measure. I apologise for the delay in responding to you. Mr Alexander also wrote directly to my office and I met him, along with other representatives of the Police Federation, to discuss their concerns. The Government has responded generously to the range of concerns that were raised by Mr Alexander on behalf of the police service. In relation to police housing, legislation has now been passed by the Parliament to ensure that a significant proportion of the housing provided by police services in regional areas is exempt from FBT. The new exemption applies to housing provided by a non-profit hospital, a charity or a police service, where the housing is situated at least 100 kilometres from a population centre of 130,000 or more people. Police housing which qualifies for the new exemption will no longer be classified as a fringe benefit and will not have to be reported on employee group certificates. While this exemption took effect from 1 April 2000, regulations have been prepared to exclude the associated benefits from the fringe benefits reporting requirement with effect from 1 April 1999. This exclusion will ensure that eligible housing benefits provided by these employers will not be reported on employee group certificates for the 1999-2000 income year. The Government has also recognised the special considerations which apply to the use of marked emergency vehicles - such as ambulances, firefighting vehicles and marked police cars - the Government has granted an exclusion from the fringe benefits reporting requirement for benefits arising from the use of these vehicles for travel between home and work. In addition to normal home to work travel, the exclusion will cover travel undertaken by police officers in marked police cars in response to ?call-outs’ - for example, to attend an accident or crime scene. The exclusion applies from the FBT year commencing 1 April 1999. As a result of the Government’s decision, benefits arising from home to work travel in marked police vehicles will not be reported on police officers’ group certificates and will not be taken into account in determining the entitlements and obligations affected by the fringe benefits reporting measure. I trust this information will be of assistance to you. Yours Sincerely ROD KEMP

Irrespective of the success of these negotiations, there remains a small number of police officers (those who reside in housing within 100km of a population centre of 130,000 or more people) in this State - and other jurisdictions - who have not received the exemption. This will also be dealt with by further negotiation with the State employer.

The PFA continues to negotiate with the Federal Government over fringe benefits tax provisions for police officers required to use unmarked police vehicles.

Peter Alexander
President

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