In the 2020-21 Federal Budget, the Government announced that it would introduce a Fringe Benefits Tax (FBT) exemption for employer provided retraining and reskilling benefits for redundant, or soon to be redundant employees. Exposure draft legislation regarding this exemption has now been released.

CA ANZ calls for the government to implement this legislation as a matter of urgency. Members have been asking for details about this proposal so that they can advise their clients of their options as many COVID-19 support packages are withdrawn at both a Federal and State level.

CA ANZ also calls for the explanatory memorandum to provide more guidance regarding:

• how an employer is to demonstrate that the education or training is provided for the primary purpose of enabling the employee to gain salary or wages in respect of nay employment to which the education or training relates
• what is a genuine redundancy
• when is it appropriate to reasonably expect that an employee’s job will no longer be required.