4 August 2005 
 
Fringe Benefits Tax legislation has failed to keep up with the changing face of the Australian workplace according to the Institute of Chartered Accountants.  
 
In its latest submission on the problematic area of FBT the Institute has this time identified where the legislation is failing Australian businesses that provide their employees with health related benefits.  
 
The Institute says these sorts of benefits are becoming more common as businesses see the advantages of a healthy and motivated workforce. However, as they were not contemplated at the time the Fringe Benefits Tax Assessment Act was enacted they are not adequately dealt with by the legislation.  
 
It says ‘health related benefits’ are currently subjected to FBT and has called for certain health benefits to be made exempt when provided on an employer’s business premises during the working day.  
 
The Institute says examples of benefits that could be FBT exempt are remedial massage, pilates and yoga.  
 
“Almost 20 years have passed since the FBT legislation was enacted and it is necessary from time to time to ensure it adequately reflects the changing nature of our work environment,” said Institute Tax Counsel Mr Ali Noroozi.  
 
Mr Noroozi said the legislation has historically been amended to keep place with changing technology by providing exemptions for handheld organisers, portable printers and mobile phones.  
 
He said the changing nature of health benefits demanded a similar review.  
 
“Health benefits reduce levels of physical and mental stress, motivate staff and may help retain quality employees but the current FBT treatment serves as a disincentive for employers to provide these benefits”.