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Fringe Benefit Tax: A Reply to Johansson
Author(s) -
Webb N.
Publication year - 1986
Publication title -
asia pacific journal of human resources
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.825
H-Index - 33
eISSN - 1744-7941
pISSN - 1038-4111
DOI - 10.1177/103841118602400409
Subject(s) - remuneration , legislation , flexibility (engineering) , income tax , business , context (archaeology) , subject (documents) , public economics , resource (disambiguation) , economics , law and economics , public relations , labour economics , accounting , management , political science , finance , law , computer science , paleontology , computer network , library science , biology
The issue of Fringe Benefit Taxation (FBT) has had significant impact for Human Resource practitioners concerned of with designing remuneration policies sufficient to attract, retain and motivate employees. A recent article on this subject, published in this journal (Johansson 1986), was instructive both for its technical content and in the sense that the Fringe Benefits Tax legislation was viewed as a whole new remuneration issue facing personnel managers. Unfortunately, however, the technical content of the article and FBT as a remuneration issue was not presented in its proper context; that is, the creation of the basis of a totally new remuneration structure arising out of the relationship between the FBT Act and the Income Tax Act. Apart from passing references to the continued cost effectiveness of providing company cars as remuneration and a mention of the increased flexibility enabled by the new legislation, the author has ignored the effect of the legal principles which underpin the way in which the tax changes impact the structure of employee remuneration in Australia.