The FCAI Taxation Committee liaises regularly with the Australian Taxation Office (ATO) on matters relevant to the automotive industry relating to income tax and indirect taxes, including GST and fringe benefits tax (FBT). The committee provides a forum to interface with revenue officials to discuss the administration of taxation law and have input into draft rulings and determinations prior to finalisation of the ATO position.
Efforts to clarify the GST treatment for holdback and incentive payments have remained
a key area of focus over the past year.
The ATO had previously determined that holdback payments were to be treated as ‘out of scope’ for GST purposes. However, the treatment of other third party payments has remained unresolved and subject to ongoing consideration by the ATO in consultation with the FCAI.
During the year, the ATO invited the FCAI to be represented on the Goods & Services Tax (GST) General Industry Forum. It is proposed that the group will discuss emerging GST issues which may impact on the industry. The forum replaces the consultative committee structure that was previously in place with the ATO and will draw participation from a much broader industry base.
The FCAI also maintains active representation on the National Tax Liaison Group (NTLG) Transfer Pricing sub committee and the FBT sub committee. The sub committees provide a mechanism through which the ATO can obtain the views of industry and professional advisers on the administration of tax legislation and on future rulings or determinations.
On identification of issues adversely impacting business, the forums seek to find practical solutions within the existing regulatory framework. The structures also provide a medium to advise government of discord between policy intent and practical application or where unanticipated compliance costs are evident.
Members also participated in the annual review of MT2024 Fringe benefits tax: dual cab vehicles eligibility for exemption where private use is limited to certain work-related travel. This document identifies those vehicles eligible for exemption from FBT and requires regular updating to correctly categorize the range of vehicles available on the Australian market.