The Australian government has made a series of announcements in an effort to adapt the country’s tax collection system to modern conditions. Among these is the removal of the 47% fringe benefits tax (FBT) for businesses that retrain workers who have been repositioned or made redundant.
Other tax concessions will be made for businesses with a turnover between $10m and $50m. Small businesses will likewise see new tax concessions on startup expenses, beginning in mid-2021. Some will also be exempt from the FBT for offering employee benefits such as free parking, and providing staff with laptops or smartphones.
In addition, the government will consider letting workers deduct education and training expenses, if these costs are unrelated to their current employment.
Josh Frydenberg, treasurer of Australia, is in charge of outlining the new tax concession policy. He stated that the fringe benefits tax (FBT) is not suitable for the current situation, as millions of Australians have lost their jobs and are seeking new opportunities in other industries. According to the Australian Bureau of Statistics, “there have been declines in payroll in sectors such as arts, recreation, accommodation, and food services since mid-March.”
These tax concessions come as the government seeks to inject money elsewhere into the economy. Examples include new road and rail infrastructure projects costing a total of $7.5 billion. “Our plan will create jobs,” Frydenberg said. “Our plan will create opportunity. Our plan will drive investment. Our plan will grow the economy and guarantee the essential services Australians rely on.”