The government has announced it will introduce an exemption from FBT for retraining and reskilling benefits provided by employers to redundant, or soon to be redundant, employees where the benefits may not be related to their current employment.
It is proposed that this exemption will not apply to:
- retraining provided under a salary packaging arrangement;
- training provided through Commonwealth supported places at universities; or
- repayments towards Commonwealth student loans.
If enacted, this proposed measure is intended to apply from the day it was announced (i.e., 2 October 2020).
Disclaimer
This publication is intended as a general commentary only and does not purport to be comprehensive. It should not be regarded as tax advice and you should not act solely on the information contained herein. Please contact AscendPoint to further discuss about your circumstances or concerns.
Proposed FBT exemption – retraining and reskilling