Employers Federation Chief Executive Anne Knowles says the Government's move to a 3-tier fringe benefit tax system will mean more work for employers.

"It's good that the Government is addressing the problem of low-paid workers being penalised by high FBT rates. But the solution to that problem is more complicated than need be, because of the high progressive rates for higher paid workers. Unfortunately that complication will now fall on employers' shoulders, as they have to administer the system.

"Rather than bringing in a many-tiered system, employers would prefer a simpler, flatter scheme with fewer administrative costs.

"The Government's desire to make the FBT regime fair for all is creditable, but a low flat rate of FBT would mean less administrative burden for employers and would still be fairer for lower paid workers," Ms Knowles said.

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