The Commonwealth Government has announced changes in FBT effective from 1 April 1995. The changes will have the following immediate impact on the Senior Executive Service:

• Car Benefits - increase in statutory fractions:

• Car Parking - FBT to no longer apply to car parking on employer premises unless there is a commercial car park within a 1 kilometre radius that charges more than $5 a day - this is intended to confine FBT on car parking to areas where such benefits have significant values, such as in the CBDs. The valuation of the car parking benefit will remain unchanged from the current arrangements, which are described in Premier's Department Circular 93-9 issued on 14 July 1993. It is anticipated that this change would only have impact in situations where parking is provided on official premises to executives with 100% private use cars.

It would be appreciated if you would arrange for this information to be brought to the attention of the SES Administrator(s) in your organisation to ensure that appropriate action is taken to effect the changes from 1 April. You might also ensure that the changes are brought to the attention of your SES officers.

As well as the SES Unit of my Department, the FBT "Hotline" at the Australian Taxation Office, phone (02) 224 0940 (other numbers identified in respective telephone books) is available to help with specific inquiries.

C Gellatly
Director General