Contact: Gavin Clancy
Deloitte
Communications Manager
+61 3 9208 7759

Contact: Vessa Playfair
Deloitte
Director of Communications
+61 2 9322 7576

Contact: Karen Stein
Deloitte
Partner - Indirect Taxes
+61-2-9322 7387

The Federal Budget has provided a number of additional fringe benefits tax concessions in its 2004 Budget that will benefit the police force, public ambulance officers and recipients of military compensation payments according to Karen Stein, Partner of Deloitte.

All public ambulance services will be able to provide benefits of up to $17,000 of grossed up taxable value per employee without incurring a first liability. This will align them with public benevolent institutions and provide significant savings for this industry of over $3m per year.

Further, those employees in receipt of particular military compensation payments would be presented with FBT exemptions, Ms Stein said.

“These measures recognise the contribution these organisations make to the community and will improve their ability to offer more attractive salary packaging to recruit and retain employees,” she said.

Of benefit to employees generally is the provision of additional exempt work related benefits. This includes printers associated with exempt laptop computers and the provision of personal digital assistants (PDAs). This recognises the technological change being adopted by electronically savvy employees.

Employers will have further opportunity to reward employees with exempt long service awards. The exemption will increase from $500 per annum to $1000 per annum for 15 years of service and from $50 to $100 for each additional year of service.

“Finally, there have been reporting concessions offered for approved child tuition assistance provided to members of the defence force and additional concessions for police officers,” Ms Stein said.