As indicated in our 2020 Federal Budget Update, the government has announced its intention to introduce an exemption from fringe benefits tax (FBT) for retraining and reskilling benefits.
Further information released by the ATO, see here, indicates that this will only apply to benefits provided by employers to redundant, or soon to be redundant employees where the benefits may not be related to their current employment. In addition, it is proposed that this exemption will not apply to:
- retraining provided under a salary packaging arrangement
- training provided through Commonwealth supported places at universities
- repayments towards Commonwealth student loans.
If enacted, this proposed measure is intended to apply from the day it was announced – Friday, 2 October 2020.
Further information will be provided as it becomes available.