WEDNESDAY, 9.00AM
The government has agreed to a one-year reprieve for its plans to end non-taxable housing perks, following a meeting with the parliamentary finance committee which expressed strong objections to the bill last week.
The Income Tax Bill to be presented to parliament tomorrow attempts to close up some of the more blatant tax avoidance loopholes. The first draft tightened up on housing fringe benefits made under salary sacrifice schemes, but faced criticism from MPs that it would impose a heavy tax burden on thousands of middle income employees living in accomodations subsidised by employers.
In the version to be presented to parliament tomorrow, a one year reprieve has been granted to employers and employees to make alternative arrangements. But deputy finance minister Gill Marcus has warned that the government remains committed to closing the housing perks loophole.