FBT and Victorian Bushfires Appeal
The Government has announced that it will amend the FBT legislation from the beginning of the 2008/09 FBT year (ie from 1 April 2008) to ensure that donations to the Victorian bushfires appeal made under salary sacrifice arrangements do not result in an employer incurring an FBT liability.
Potentially, an FBT liability arises because of the definition of an associate contained in the FBT legislation, which can deem unrelated third parties as an associate of an employee.
Donations collected through an employer’s Workplace Giving arrangements do not give rise to FBT liabilities because the donations are from employees’ post tax dollars.
