NO.002

FRINGE BENEFITS TAX CONCESSIONS FOR PUBLIC AMBULANCE SERVICES

The Government will amend the Fringe Benefits Tax Assessment Act 1986 to ensure that employees of public ambulance services are afforded the same fringe benefits tax exemption as employees of public hospitals.

In the past, some public ambulance services have been accessing a fringe benefits tax exemption on the grounds that they are public benevolent institutions. However, a recent decision of the Full Federal Court has indicated that public ambulance services which are controlled by State and Territory Governments are not public benevolent institutions and do not qualify for a fringe benefits tax exemption.

In light of this, the Government will legislate to allow employees of public ambulance services to access a $17,000 capped fringe benefits tax exemption, consistent with that available to employees of public hospitals.

As public hospitals are also given deductible gift recipient status, the Government will also legislate to provide this to public ambulance services.

This measure will apply from 1 April 2004, the beginning of the FBT year, and the date on which the Federal Court decision would have been implemented. Legislation to give effect to this announcement will be introduced as soon as practicable.

MELBOURNE

20 January 2004

Contact: David Alexander

02 6277 7340