The method of determining the taxable value of airline transport fringe benefits will be changed from stand-by value to market value.
An airline transport fringe benefit may arise when an employee of an airline or travel agent is provided with free or discounted travel on a stand-by basis. The taxable value is currently the stand-by value of the benefit less any employee contribution. Stand-by value will be replaced by market value as the concept of stand-by travel is no longer commercially relevant (airlines now use discounted pricing). The taxable value will continue to be reduced by any contribution by the employee.
Date of effect: This measure will apply to benefits provided after 7.30pm (AEST) on 8 May 2012.
Source: Budget Paper No 2 [p 25]; Treasurer’s press release, 8 May 2012
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