NO.033

FRINGE BENEFITS TAX CONCESSIONS FOR PUBLIC AMBULANCE SERVICES

The Government has tonight announced that it will provide grants to support public ambulance services in the transition to a capped fringe benefit tax (FBT) exemption and will ensure that they have access to an FBT exemption for ‘regional’ housing.

On 20 January2004, the Government announced that public ambulance services would be allowed to access an FBT exemption of up to $17,000 of grossed-up taxable value per employee and a new category of deductible gift recipient would be created for public ambulance services.

This announcement was in response to a decision of the Full Federal Court that public ambulance services that are controlled by state and territory governments cannot qualify for an FBT exemption of up to $30,000 of grossed-up taxable value per employee, which is available to public benevolent institutions.

Some public ambulance services had previously been endorsed by the Commissioner of Taxation as public benevolent institutions and so could access the $30,000 capped FBT exemption. These public ambulance services will be provided with funding over the 2004-05 to 2007-08 period, to assist with the transition to the lower $17,000 capped FBT exemption.

Public ambulance services will also be able to access an FBT exemption for ‘regional’ housing. This is consistent with the exemption available to public and not-for-profit hospitals. Legislation giving effect to the FBT exemption for the ‘regional’ housing measure was introduced into Parliament on 1April 2004.

CANBERRA

11 May 2004

Contact: David Alexander

02 6277 7340