Fring Benefits Tax Amendment Regulations 2006 (No. )

Fringe Benefits Tax Amendment Regulations 2006 (No. 2)1

Select Legislative Instrument 2006 No. 165

I, PHILIP MICHAEL JEFFERY, Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Fringe Benefits Tax Assessment Act 1986.

Dated 22 June 2006

P. M. JEFFERY

Governor‑General

By His Excellency’s Command

PETER DUTTON

Minister for Revenue and Assistant Treasurer

1 Name of Regulations

These Regulations are the Fringe Benefits Tax Amendment Regulations 2006 (No. 2).

2 Commencement

These Regulations are taken to have commenced on the commencement of Schedule 2 to the Tax Laws Amendment (Personal Tax Reduction and Improved Depreciation Arrangements) Act 2006.

3 Amendment of Fringe Benefits Tax Regulations 1992

Schedule 1 amends the Fringe Benefits Tax Regulations 1992.

4 Application

The amendment made by Schedule 1 applies in relation to the year of tax starting on 1 April 2006 and each subsequent year of tax.

Schedule 1 Amendment

(regulation 3)

[1] Regulation 12

substitute

12 Variation of notional tax amount of employers

(1) For paragraph (b) of item 4 of the table in subsection 110 (1) of the Act, an employer’s notional tax amount for the current year is varied by applying the formula:

where:

NT is the employer’s notional tax amount for the current year.

AT is the amount of the employer’s fringe benefits tax for the base year.

CR is the rate of tax, specified in section 6 of the Fringe Benefits Tax Act 1986, in respect of the employer’s fringe benefits taxable amount for the current year.

BR is the rate of tax, specified in section 6 of the Fringe Benefits Tax Act 1986, in respect of the employer’s fringe benefits taxable amount for the base year.

Note For base year and current year — see subsection 110 (1) of the Act.

(2) For item 4 of the table in subsection 110 (1) of the Act, the prescribed day is 1 April 2006.