September 1999 Volume 80 Number 9 "serving the protectors"

New Fringe Benefit Tax rules - Effect on police Association Members

Effect on Police Association Members

The new FBT rules announced by the Australian Taxation Office - which result from a change to federal legislation - are now in operation.

Police Association members will see the effect on July 1, 2000, when the value of any FBT paid by the employer on their behalf will appear on their group certificates at a “grossed up value”. The employer will still have paid the FBT, and members will not have to contribute any FBT or additional personal taxation in respect of this grossed up value.

Members will be affected, however, in that any federal government taxation levy will be calculated on the grossed up income value. Medicare and superannuation levies will be affected, as will child support assessments.

The Police Association thinks it unfair that members, who drive a government vehicle or live in a government house (for the employer’s convenience), be dealt with in this manner.

The South Australian branch of the Police Federation of Australia, along with all other affiliate branches, will lobby the Federal Government in a concerted effort to obtain the same exemptions for its members as recently announced for Australian Defence Force members.

The Police Association will keep members informed on this issue.

Peter Alexander    President  

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