the individual grossed-up type 1 non-exempt amount (see subsection (1F)) in relation to the employer for the year of tax; and

the individual grossed-up type 2 non-exempt amount (see subsection (1G)) in relation to the employer for the year of tax.

The result is the individual grossed-up non-exempt amount for the employee.

Step 2. If:

the employer is a government body and the duties of the employment of one or more employees are as described in paragraph 57A(2)(b) (which is about duties of employment being exclusively performed in or in connection with certain hospitals); or

the employer is a public hospital; or

the employer provides public ambulance services or services that support those services and the employee is predominantly involved in connection with the provision of those services; or

the employer is a hospital described in subsection 57A(4) (which is about hospitals carried on by certain societies and associations that are exempt from income tax);

subtract $17,000 from the individual grossed-up non-exempt amount for each employee of the employer referred to in paragraph (c), (ca) or (d), or each employee referred to in paragraph (b), for the year of tax. However, if the individual grossed-up non-exempt amount for such an employee is equal to or less than $17,000, the amount calculated under this step for the employee is nil.

Step 3. If step 2 does not apply in respect of one or more employees of the employer, reduce the individual grossed-up non-exempt amount for each such employee by $30,000, but not below nil.

Step 4. If the amount calculated under step 2 or 3 in respect of an employee is positive, reduce that amount (but not below nil) by the lesser of:

$5,000; and

so much of the employee’s individual grossed-up non-exempt amount as relates to benefits covered by subsection (1M) (about salary packaged meal entertainment and entertainment facility leasing benefits).

Step 5. Add together the amounts calculated under step 4 in relation to the employees of the employer. The total amount is the employer’s aggregate non-exempt amount for the year of tax.

Individual grossed-up type 1 non-exempt amount

by omitting “or 58”; and

by omitting “one of those sections” from paragraph (b) and “those sections” from paragraph (c) and substituting in each case “that section”.

Step 2. Identify the benefits taken into account in step 1 that are GST-creditable benefits (see section 149A).

Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1K) amount for the individual.

Step 4. The remainder of the amount is the step 4 of subsection (1K) amount for the individual.

Working out the subsection (1L) amounts

that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or

that are car parking fringe benefits; or

whose taxable values are wholly or partly attributable to entertainment facility leasing expenses.

Step 2. Identify the benefits taken into account in step 1 that are GST-creditable benefits (see section 149A).

Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1L) amount for the individual.

Step 4. The remainder of the amount is the step 4 of subsection (1L) amount for the individual.

Salary packaged meal entertainment and entertainment facility leasing benefits

the benefit is constituted by the provision of meal entertainment (as defined in section 37AD, whether or not the employer has elected that Division 9A of Part III apply to the employer); or

the benefit is wholly or partly attributable to entertainment facility leasing expenses.

Using aggregate fringe benefits amount for most recent base year

that is:

constituted by the provision of meal entertainment (as defined in section 37AD, whether or not the employer has elected that Division 9A of Part III apply to the employer); and

(ii) not provided under a salary packaging arrangement; or

that is a car parking fringe benefit (see subsection 136(1)); or

that is:

a benefit whose taxable value is wholly or partly attributable to entertainment facility leasing expenses; and

(ii) not provided under a salary packaging arrangement; or

whose taxable value is worked out under section 59 (about remote area residential fuel); or

whose taxable value is reduced under section 60 (about remote area housing); or

that is an amortised fringe benefit (see subsection 136(1)); or

that is a reducible fringe benefit (see subsection 136(1)); or

that is a benefit prescribed by the regulations for the purposes of this paragraph; or

that relates to occasional travel to a major population centre in Australia provided to employees and family members resident in a location that is not in or adjacent to an eligible urban area; or

that relates to freight costs for foodstuffs provided to employees resident in a location that is not in or adjacent to an eligible urban area; or

that is provided to address a security concern:

relating to the personal safety of an employee, or an associate of an employee; and

that arises in respect of the employee’s employment.

If section 135G applies to the employer

section 135G applies for working out the employer’s liability to pay tax for the year of tax; and

one or more fringe benefits are provided in relation to the year of tax in respect of the employee’s employment by the employer;

the employee’s individual fringe benefits amount is the amount determined by the employer in writing. This subsection has effect despite subsection (2).

Determining individual fringe benefits amounts

ensure that the total of the amount or amounts determined by the employer under that subsection for the year of tax equals the aggregate fringe benefits amount used for working out the employer’s liability to pay tax for the year of tax; and

if that subsection applies to 2 or more of the employer’s employees for the year of tax—act reasonably, having regard to the fringe benefit or fringe benefits provided in relation to the year of tax in respect of each employee’s employment.

Security concerns relating to employees or associates

a relevant industry body or government body; or

the Commissioner;

as competent to make threat assessments.

the fringe benefit was provided in respect of the employment of the employee by the employer and was not provided in respect of the employment of anyone else; and

the taxable value of the fringe benefit was worked out for that particular fringe benefit (not merely as part of the total taxable value of fringe benefits in a class including that particular benefit).

Individually-valued benefit shared by 2 or more employees

the fringe benefit was provided in respect of the employment of the employee by the employer and in respect of the employment of another employee; and

the taxable value of the fringe benefit was worked out for that particular fringe benefit (not merely as part of the total taxable value of fringe benefits in a class including that particular benefit).

Benefits valued in aggregate

the fringe benefit is one of a class of fringe benefits provided in respect of the employment of one or more employees by the employer; and

the total taxable value of all the fringe benefits in the class is worked out by a single calculation;

the employee’s share of the taxable value of the fringe benefit is so much of the total taxable value as is reasonably attributable to the provision of the fringe benefit in respect of the employee’s employment by the employer, taking account of any relevant matters.

Shares of different employees must total 100% of taxable value

the fringe benefit was provided in respect of the employment of 2 or more employees; and

each of those employees has an employee’s share of the taxable value of the fringe benefit;

the sum of those shares must equal the taxable value of the fringe benefit.

Single employee’s shares must equal total taxable value

(a) at any time on a day, in respect of the employment of an employee, a car held by a person (in this subsection referred to as the provider):

is applied to a private use by the employee or an associate of the employee; or

is taken to be available for the private use of the employee or an associate of the employee; and

either of the following conditions is satisfied:

the provider is the employer, or an associate of the employer, of the employee;

the car is so applied or available, as the case may be, under an arrangement between:

(A) the provider or another person; and

(B) the employer, or an associate of the employer, of the employee;

that application or availability of the car shall be taken to constitute a benefit provided on that day by the provider to the employee or associate in respect of the employment of the employee.

a car is held by a person, being:

the employer;

an associate of the employer; or

a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;

the car is garaged or kept at or near a place of residence of the employee or of an associate of the employee;

the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be.

is used by an ambulance service, a firefighting service or a police service; and

is visibly marked on its exterior for that use; and

is fitted with:

a flashing warning light; and

a horn, bell or alarm that can give audible warning of the approach or position of the car by making sounds with different amplitude, tones or frequencies on a regular time cycle.

a car is held by a person, being:

the employer;

an associate of the employer; or

a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;

the car is not at business premises of:

the employer;

an associate of the employer; or

a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;

any of the following conditions is satisfied:

the employee is entitled to apply the car to a private use;

the employee is not performing the duties of his or her employment and has custody or control of the car;

an associate of the employee is entitled to use, or has custody or control of, the car;

the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be.

to have been purchased by the person at the time when the person first took the car on hire; and

to have been owned by the person at all material times.

a car used for taxi travel (other than a limousine) let on hire to the provider; or

a car let on hire to the provider under an agreement of a kind ordinarily entered into by persons taking cars on hire intermittently as occasion requires on an hourly, daily, weekly or other short-term basis unless the car has been or may reasonably be expected to be on hire under successive agreements of a kind that result in substantial continuity of the hiring of the car.

the car is:

a panel van or utility truck, designed to carry a load of less than 1 tonne; or

used for taxi travel, designed to carry a load of less than 1 tonne, and not a limousine; or

any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and

there was no private use of the car during the year of tax and at a time when the benefit was provided other than:

work-related travel of the employee; and

other private use by the employee or an associate of the employee, being other use that was minor, infrequent and irregular.

(a) a car benefit relating to a particular car is provided by a particular person (in this subsection called the provider) in a year of tax in respect of the employment of a current employee of an employer;

at all times during the year of tax when the car was held by the provider, the car was unregistered; and

during the period in the year of tax when the car was held by the provider, the car was wholly or principally used directly in connection with business operations of:

the employer; or

if the employer is a company—the employer or a company that is related to the employer;

the car benefit is an exempt benefit in relation to the year of tax.

the car benefit is provided in the year of tax in respect of the employment of a current employee; and

(b) the person providing the benefit cannot deduct an amount under the Income Tax Assessment Act 1997 for providing the benefit because of section 86-60 of that Act.

the benefit is provided in the year of tax in respect of the employment of a current employee; and

the car is a zero or low emissions vehicle when the benefit is provided; and

(c) no amount of luxury car tax (within the meaning of the A New Tax System (Luxury Car Tax) Act 1999) has become payable on a supply (within the meaning of that Act) or importation (within the meaning of that Act) of the car before the benefit is provided.

a battery electric vehicle; or

a hydrogen fuel cell electric vehicle.

uses only an electric motor for propulsion; and

is fitted with neither a fuel cell nor an internal combustion engine.

uses an electric motor for propulsion; and

is equipped with a fuel cell for converting hydrogen to electricity; and

is not fitted with an internal combustion engine.

Subdivision B—Taxable value of car fringe benefits

the base value of the car is the sum of:

where, at the earliest holding time, the car was owned by the provider or an associate of the provider, the amount calculated in accordance with the formula AB, where:

A is the cost price of the car to the provider or associate, as the case may be; and

B is:

(A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time—⅔; or

(B) in any other case—1; and

in a case to which subparagraph (i) does not apply—the amount calculated in accordance with the formula AB, where:

A is the leased car value of the car at the earliest holding time; and

B is:

(A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time—⅔; or

(B) in any other case—1; and

the cost price of each non-business accessory that:

(A) was fitted to the car after the earliest holding time and before the end of the year of tax; and

(B) remained fitted to the car at a time during the year of tax when the car was held by the provider;

(b) the earliest holding time, in relation to a car held by the provider at a particular time (in this paragraph referred to as the current time), is the earliest time before the current time when the car was held by the provider or an associate of the provider; and

the amount of the recipient’s payment is the sum of:

in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits—the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and:

(A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or

(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;

the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

in a case where:

(A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and

(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;

the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

the holding period is the period in the year of tax when the car was held by the provider.

if, under section 10A or 10B, the employer is not entitled to a reduction in the operating cost of the car on account of business journeys undertaken in the car during the holding period—nil; or

in any other case—the business use percentage applicable to the car for the holding period; and

R is the amount (if any) of the recipient’s payment.

the operating cost of the car during the holding period is the sum of:

any car expenses (other than insured repair expenses or expenses in respect of registration and insurance) relating to the car incurred during the holding period (whether the expenses are incurred by the provider or by any other person), not including, in a case where the car is leased to the provider, any car expenses incurred by the lessor pursuant to the lease agreement; and

so much of any expense paid or payable in respect of the registration of, or insurance in respect of, the car as is attributable to the holding period (whether the expenses are incurred by the provider or by any other person), not including:

(A) in a case where the car is owned by the provider—any expense incurred before the provider became the owner of the car; or

(B) in a case where the car is leased to the provider—any expense incurred by the lessor pursuant to the lease agreement; and

in a case where the car is owned by the provider:

(A) the amount of depreciation that is deemed to have been incurred by the provider in respect of the car in respect of the holding period; and

(B) the amount of interest that is deemed to have been incurred by the provider in respect of the car in respect of the holding period; and

in a case where the car is owned by the provider and a non-business accessory was fitted to the car during the period when the car was owned by the provider and remained fitted to the car at a time during the holding period:

(A) the amount of depreciation that would be deemed to have been incurred by the provider in respect of the accessory in respect of the holding period if the accessory were a car; and

(B) the amount of interest that would be deemed to have been incurred by the provider in respect of the accessory in respect of the holding period if the accessory were a car; and

in a case where the car is leased to the provider:

(A) where sub-subparagraph (B) does not apply—so much of the charges paid or payable under the lease agreement as are attributable to the holding period; or

(B) where the lessor was entitled to privileges or exemptions in relation to customs duty in respect of a transaction by which the lessor purchased the car—the amount that could reasonably be expected to have been applicable under sub-subparagraph (A) if the lessor had not been entitled to those privileges or exemptions; and

in a case where the car is neither owned by, nor leased to, the provider—the amount of depreciation and interest that would be deemed to have been incurred by the provider in respect of the car in respect of the holding period if the car had been purchased by the provider at the time when the provider commenced to hold the car for a consideration equal to the leased car value of the car at that time; and

the amount of the recipient’s payment is the sum of:

in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits—the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and:

(A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or

(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;

the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

in a case where:

(A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and

(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;

the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses.

so much of an expense incurred in respect of repairs to the car as does not exceed an amount:

received by way of insurance in respect of the repairs by the person incurring the expense;

paid by way of insurance in respect of the repairs in discharge of the obligation of the insured to pay the expense;

received by way of compensation in respect of the repairs by the person incurring the expense from the person legally responsible for the damage to the car; or

paid by way of compensation in respect of the repairs by the person legally responsible for the damage to the car in discharge of the obligation of the person incurring the expense to pay the expense; or

an expense incurred in respect of repairs to the car:

by an insurer under a contract of insurance; or

by way of compensation by the person legally responsible for the damage to the car.

an expense is paid or payable in respect of the registration of, or insurance in respect of, a car; or

a charge is paid or payable under a lease agreement in respect of a car; or

a lessor of a car is entitled to privileges or exemptions in relation to customs duty in respect of a transaction by which the lessor purchased the car;

a change, in accordance with subsection 162K(2), to the identity of the car shall be disregarded.

shall be made by notice in writing to the Commissioner; and

shall be lodged with the Commissioner on or before the declaration date.

an employer elects that this section apply in relation to all the car fringe benefits in relation to the employer in relation to a year of tax that relate to a particular car; and

the taxable value, or the aggregate of the taxable values, as the case requires, of the car fringe benefits that relate to the car ascertained under subsection (2) of this section exceeds the taxable value, or the aggregate of the taxable values, as the case requires, that would have been ascertained under section 9 if that election had not been made;

this Act (other than section 162G) applies, and shall be deemed always to have applied, for the purposes of ascertaining that taxable value, or the aggregate of those taxable values, as the case requires, as if that election had not been made.

where the car was owned by the person at the beginning of the year of tax—the depreciated value of the car at that time; or

in any other case—the cost price of the car to the person;

B is the amount worked out for the person and the car using the formula in subsection (1AA).

C is the number of days in the period in the year of tax during which the car was owned by the person; and

D is the number of days in the year of tax.

(1AA) The formula for working out the amount of B for the person and the car for subsection (1) is:

where:

DV percentage is the percentage applicable in using the diminishing value method (within the meaning of the Income Tax Assessment Act 1997) as at the start of the year of tax.

effective life of the car is the number of years in the period specified as the effective life of the car in a determination made by the Commissioner under section 40-100 of the Income Tax Assessment Act 1997 and in effect at the most recent time (before the end of the year of tax) the person became the owner of the car.

where the car was owned by the person at the beginning of the year of tax—the depreciated value of the car at that time; or

in any other case—the cost price of the car to the person;

B is the statutory interest rate in relation to the year of tax;

C is the number of days in the period in the year of tax during which the car was owned by the person; and

D is the number of days in the year of tax.

if the car was owned by the person at the start of 1 July 1986—the depreciated value worked out under subsection (2); or

in any other case—the cost price of the car to the person.

B is the total amount of depreciation (if any) that would have been taken to have been incurred by the person in respect of the car for the period after the start of 1 July 1986 and before the relevant time when the person owned the car, if the depreciation taken to have been incurred for that period were calculated in accordance with subsection 11(1).

the depreciation taken to have been incurred for that period were calculated in accordance with subsection 11(1); and

each year starting on 1 July were a year of tax.

a person acquires any property, or is provided with any benefit; and

the person incurs no expenditure in respect of the acquisition of that property or the provision of that benefit;

the person shall be deemed to have incurred, in respect of the acquisition of that property or the provision of that benefit, expenditure equal to the amount that the person could reasonably be expected to have been required to pay to purchase that property, or obtain the provision of that benefit, on the open market.

the loan was made in that year of tax or a previous year of tax; and

(b) a dividend is not taken to be paid under Income Tax Assessment Act 1936 in relation to the loan, because of section 109N of that Act.section 109D of the

See paragraph (s) of the definition of fringe benefit in subsection 136(1) of this Act.

(a) a person (in this subsection referred to as the debtor) is under an obligation to pay or repay an amount (in this subsection referred to as the principal amount) to another person (in this subsection referred to as the creditor);

the principal amount is not the whole or a part of the amount of a loan; and

after the due date for payment or repayment of the principal amount, the whole or part of the principal amount remains unpaid;

the following provisions have effect:

(d) the creditor shall be deemed, immediately after the due date, to have made a loan (in this subsection referred to as the deemed loan) of the principal amount to the debtor;

at any time when the debtor is under an obligation to repay any part of the principal amount, the debtor shall be deemed to be under an obligation to repay that part of the deemed loan;

the deemed loan shall be deemed to have been made:

if interest accrues on so much of the principal amount as remains from time to time unpaid—at the rate of interest at which that interest accrues; or

in any other case—at a nil rate of interest.

the provider shall be deemed, at the end of:

the period of 6 months commencing on the day on which the principal loan was made; and

each subsequent period of 6 months;

(being in either case a period ending on or after 1 July 1986 during the whole of which the recipient is under an obligation to repay the whole or any part of the principal loan) to have made a loan (in this subsection referred to as the deemed loan) to the recipient of an amount equal to the amount by which the interest (in this subsection referred to as the accrued interest) that has accrued on the principal loan in respect of that period exceeds the amount (if any) paid in respect of the accrued interest before the end of that period;

where any part of the accrued interest becomes payable or is paid after the time when the deemed loan is deemed to have been made, the deemed loan shall be reduced accordingly; and

the deemed loan shall be deemed to have been made at a nil rate of interest.

a loan where the whole of the interest is due for payment within 6 months after the loan is made; or

a loan where:

the interest is payable by instalments;

the intervals between instalments do not exceed 6 months; and

the first instalment is due for payment within 6 months after the loan is made.

a loan is made by a person who carries on a business that consists of or includes making loans to members of the public; and

the rate of interest payable in respect of the loan:

is specified in a document in existence at the time the loan is made;

is not less than the rate of interest in respect of a similar arm’s length loan made by the person, at or about that time, to a member of the public in the ordinary course of carrying on that business; and

cannot be varied;

the making of the loan is an exempt benefit.

a loan is made by a person who carries on a business that consists of or includes making loans to members of the public; and

the rate of interest from time to time payable in respect of the loan in respect of a year of tax is not less than the rate of interest applicable at the time concerned in respect of a similar arm’s length loan made by the person, at or about the time the loan referred to in paragraph (a) is made, to a member of the public in the ordinary course of carrying on that business;

the making of the loan is an exempt benefit in relation to that year of tax.

a loan consists of an advance by an employer to a current employee of the employer in respect of his or her employment;

the sole purpose of the making of the loan is to enable the employee to meet expenses incurred by the employee:

in the course of performing the duties of that employment; and

not later than 6 months after the loan is made;

the amount of the loan does not substantially exceed the amount of those expenses that could reasonably be expected to be incurred by the employee; and

the employee is required:

to account to the employer, not later than 6 months after the loan is made, for expenses met from the loan; and

to repay (whether by set-off or otherwise) any amount not so accounted for;

the making of the loan is an exempt benefit.

(a) the making of a loan consisting of an advance by an employer to an employee of the employer constitutes a benefit in respect of the employment of the employee in respect of a year of tax (in this subsection called the current year of tax);

the sole purpose of the making of the loan is to enable the employee to pay any of the following amounts payable by the employee in respect of accommodation:

a rental bond;

a security deposit in respect of electricity, gas or telephone services;

any similar amount;

the employee is required to repay (whether by set-off or otherwise) the loan not later than 12 months after the loan is made;

any of the following benefits is provided in, or in respect of, any year of tax to the employee in respect of that employment:

an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of that accommodation;

a housing benefit where the housing right is in respect of that accommodation;

a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; and

either of the following subparagraphs apply:

by virtue of section 21 or subsection 47(5), the benefit referred to in paragraph (d) is an exempt benefit in relation to the year of tax referred to in that paragraph;

the benefit referred to in paragraph (d) is a fringe benefit in relation to the year of tax referred to in that paragraph and, under section 61C, the taxable value of the fringe benefit is reduced by the extent to which that taxable value is attributable to the subsistence of a lease or licence in respect of the accommodation during a particular period in that year of tax;

the making of the loan is an exempt benefit in relation to the current year of tax.

Subdivision B—Taxable value of loan fringe benefits

the recipient of a loan fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and

(b) if the recipient had, on the last day of the period (in this subsection called the loan period) during the year of tax when the recipient was under an obligation to repay the whole or any part of the loan, incurred and paid unreimbursed interest (in this subsection called the gross interest), in respect of the loan, in respect of the loan period, equal to the notional amount of interest in relation to the loan in relation to the year of tax—a once-only deduction (in this subsection called the gross deduction) would, or would if not for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the gross interest; and

(ba) the amount (in this subsection called the notional deduction) calculated in accordance with the formula:

where:

GD is the gross deduction; and

RD is:

if no interest accrued on the loan in respect of the loan period—nil; or

(ii) if interest accrued on the loan in respect of the loan period—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once-only deduction to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of that interest if that interest had been incurred and paid by the recipient on the last day of the loan period;

exceeds nil; and

except where the fringe benefit is:

an employee credit loan benefit in relation to the year of tax; or

an employee share loan benefit in relation to the year of tax;

the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the loan concerned; and

where:

(ii) the loan fringe benefit is a car loan benefit in respect of a car held by the recipient during a period (in this subsection also called the holding period) in the year of tax; and

the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period;

the following conditions are satisfied:

the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax;

in a case where the substantiation rules require log book records or odometer records to be maintained by or on behalf of the recipient in relation to the car—the car substantiation declaration is accompanied by a copy of those documents; and

if:

paragraph (ca) does not apply; and

(ii) the loan fringe benefit is a car loan benefit in respect of a car held by the recipient during a period (the holding period) in the year of tax;

the recipient gives a declaration to the employer, before the declaration date and in a form approved by the Commissioner, that purports to set out:

the holding period; and

the number of whole business kilometres travelled by the car during the holding period; and

the number of whole kilometres travelled by the car during the holding period;

the taxable value, but for Division 14, of the loan fringe benefit in relation to the year of tax is the amount calculated in accordance with the formula:

where:

TV is the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax; and

ND is:

if neither paragraph (ca) nor (d) applies and paragraph (i) does not apply—the notional deduction; or

if paragraph (ca) applies and paragraph (i) does not apply—whichever of the following amounts is applicable:

if it would be concluded that the amount of interest that has accrued on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient—the business use percentage of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax;

if subparagraph (i) does not apply—the business use percentage of the notional amount of interest in relation to the loan in relation to the year of tax; or

where:

paragraph (d) applies; and

paragraph (i) does not apply;

whichever of the following amounts is the least:

the notional deduction;

if it would be concluded that the amount of interest that has accrued on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax;

if subparagraph (iv) does not apply—33⅓% of the notional amount of interest in relation to the loan in relation to the year of tax; or

if, under subsection 138(3), the loan fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (5).

purchase a particular car; or

pay a Division 28 car expense;

subsection (1) and the definition of car loan benefit in subsection 136(1) apply as if that part of the loan had been a separate loan.

(a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing that:

is purchased or paid for using all or part of the loan to which the loan fringe benefit relates; and

is applied or used for the purpose of producing assessable income of the employee; and

does not include the percentage of the interest held in that asset or other thing by the employee’s associate or associates during the holding period.

unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(i) did not apply in relation to the loan fringe benefit.

(a) the provision of property to which the actual fringe benefit relates were an in-house property fringe benefit (in this subsection called the notional fringe benefit); and

the recipients contribution in relation to the notional fringe benefit were equal to the recipients expenditure reduced by whichever of the following amounts is applicable:

the amount of the payment referred to in paragraph 20(a) reduced by the amount of the recipients contribution in relation to the actual fringe benefit;

the amount of the reimbursement referred to in paragraph 20(b);

would have been calculated under section 42 as the taxable value, but for section 44 and Division 14, of the notional fringe benefit in relation to the year of tax.

(a) the provision of the residual benefit to which the actual fringe benefit relates were an in-house residual fringe benefit (in this subsection called the notional fringe benefit); and

the recipients contribution in relation to the notional fringe benefit were equal to the recipients expenditure reduced by whichever of the following amounts is applicable:

the amount of the payment referred to in paragraph 20(a) reduced by the amount of the recipients contribution in relation to the actual fringe benefit;

the amount of the reimbursement referred to in paragraph 20(b);

would have been calculated under whichever of sections 48 and 49 is applicable as the taxable value, but for section 52 and Division 14, of the notional fringe benefit in relation to the year of tax.

“the current identical benefit in relation to” were omitted from paragraph 49(a);

the reference in paragraph 49(b) to the recipients current benefit were a reference to the recipients overall benefit; and

(c) “insofar as it relates to the recipients current benefit” were omitted from section 49.

the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and

(b) if the recipient had, at the time when the recipients expenditure was incurred, incurred and paid unreimbursed expenditure (in this subsection called the gross expenditure), in respect of the same matter in respect of which the recipients expenditure was incurred, equal to:

in the case of an in-house expense payment fringe benefit—the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or

in the case of an external expense payment fringe benefit—the amount of the recipients expenditure;

a once-only deduction (in this subsection called the gross deduction) would, or would if not for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the gross expenditure; and

(ba) the amount (in this subsection called the notional deduction) calculated in accordance with the formula:

where:

GD is the gross deduction; and

RD is:

if there is no recipients portion in relation to the expense payment fringe benefit—nil; or

(ii) if there is a recipients portion in relation to the expense payment fringe benefit—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once-only deduction to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the recipients expenditure (assuming that any payment of that expenditure by the recipient had been paid by the recipient at the time when the recipients expenditure was incurred);

exceeds nil; and

in the case of an expense payment fringe benefit that is not an eligible incidental travel expense payment benefit or an eligible overtime meal expense payment benefit:

where the recipients expenditure is in respect of fuel or oil for a motor vehicle owned by, or leased to, the recipient:

(A) where the fringe benefit is an eligible small expense payment fringe benefit or an undocumentable expense payment fringe benefit—substitute documentary evidence of the recipients expenditure is maintained by or on behalf of the provider and, if the provider is not the employer, that documentary evidence, or a copy, is given to the employer before the declaration date; or

(B) in any case—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or

(C) in any case—the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; or

where subparagraph (ia) does not apply and the fringe benefit is an undocumentable expense payment fringe benefit or an eligible small expense payment fringe benefit:

(A) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or

(B) substitute documentary evidence of the recipients expenditure is maintained by or on behalf of the provider and, if the provider is not the employer, that documentary evidence, or a copy, is given to the employer before the declaration date; or

in any other case—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

where the expense payment fringe benefit is an extended travel expense payment benefit (other than an international aircrew expense payment benefit)—the recipient gives to the employer, before the declaration date, a travel diary in relation to the travel undertaken by the recipient to which the fringe benefit relates; and

except where the expense payment fringe benefit is:

an exclusive employee expense payment benefit; or

covered by a recurring fringe benefit declaration (see section 152A); or

an eligible overtime meal expense payment benefit; or

an eligible incidental travel expense payment benefit; or

an extended travel expense payment benefit; or

a car expense payment benefit;

the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; and

where:

(i) the expense payment fringe benefit is a car expense payment benefit in respect of a car held by the recipient during a period (in this section called the holding period) in the year of tax; and

the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period;

the following conditions are satisfied:

the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax;

in a case where the substantiation rules require log book records or odometer records to be maintained by or on behalf of the recipient in relation to the car—the car substantiation declaration is accompanied by a copy of those documents; and

if:

paragraph (ea) does not apply; and

(ii) the expense payment fringe benefit is a car expense payment benefit in respect of a car held by the recipient during a period (the holding period) in the year of tax;

the recipient gives a declaration to the employer, before the declaration date and in a form approved by the Commissioner, that purports to set out:

the holding period; and

the number of whole business kilometres travelled by the car during the holding period; and

the number of whole kilometres travelled by the car during the holding period;

the taxable value, but for Division 14, of the expense payment fringe benefit in relation to the year of tax is the amount calculated in accordance with the formula:

where:

TV is the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; and

ND is:

if neither paragraph (ea) nor paragraph (f) applies and paragraph (l) does not apply—the notional deduction; or

if paragraph (ea) applies and paragraph (l) does not apply—whichever of the following amounts is applicable:

if it would be concluded that the amount of the providers portion would have been the same even if the recipients expenditure were not incurred in producing assessable income of the recipient—the business use percentage of the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax;

if subparagraph (i) does not apply:

(A) in the case of an in-house expense payment fringe benefit—the business use percentage of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or

(B) in the case of an external expense payment fringe benefit—the business use percentage of the recipients expenditure; or

where:

paragraph (f) applies; and

paragraph (l) does not apply;

whichever of the following amounts is the least:

the notional deduction;

if it would be concluded that the amount of the providers portion would have been the same even if the recipients expenditure were not incurred in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax;

if subparagraph (iv) does not apply:

(A) in the case of an in-house expense payment fringe benefit—33⅓% of the amount that but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or

(B) in the case of an external expense payment fringe benefit—33⅓% of the recipients expenditure; or

if, under subsection 138(3), the expense payment fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (9).

while undertaking travel referred to in paragraph (1)(d), engages in an activity in the course of producing assessable income of the recipient; and

(b) does not make, as mentioned in the definition of travel diary in subsection 136(1), an entry relating to the activity, being an entry of the kind referred to in that definition;

the activity shall be deemed not to have been engaged in by the recipient in the course of producing assessable income.

the recipients expenditure in respect of a small expense payment fringe benefit in relation to an employee in relation to an employer in relation to a year of tax; and

the total of the recipients expenditure in respect of all other small expense payment fringe benefits in relation to the employer in relation to the employee in relation to the year of tax, being fringe benefits provided before the fringe benefit referred to in paragraph (a);

does not exceed $200, the fringe benefit referred to in paragraph (a) is an eligible small expense payment fringe benefit.

the recipients expenditure in relation to each of 2 or more expense payment fringe benefits (whether or not in relation to the same year of tax) is the same expenditure; and

paragraph (1)(b) applies in relation to the recipients expenditure;

this Act applies, and shall be deemed always to have applied, as if all the payments or reimbursements to which those fringe benefits relate had been made at the time when the first of those payments or reimbursements was made and not otherwise, and nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to this subsection.

(a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing that:

relates to the matter in respect of which the expense payment fringe benefit is provided; and

is applied or used for the purpose of producing assessable income of the employee; and

does not include the percentage of the interest held in that asset or other thing by the employee’s associate or associates during the holding period.

unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(l) did not apply in relation to the expense payment fringe benefit.

where the recipients unit of accommodation is not located in a State or internal Territory—so much of the market value of the recipients current housing right as exceeds the recipients rent;

where:

paragraph (a) does not apply;

the recipients unit of accommodation is a caravan or mobile home or is in a hotel, motel, hostel or guesthouse; and

during the whole or a part of the tenancy period, the provider carried on a business consisting of or including the provision to outsiders, in respect of identical or similar caravans or mobile homes or in respect of identical or similar units of accommodation in the hotel, motel, hostel or guesthouse, of leases or licences that are identical or similar to the recipients overall housing right;

the amount calculated in accordance with the formula AB, where:

A is the market value of the recipients current housing right; and

B is:

in a case where, if the fringe benefit were not a housing fringe benefit, it would be an in-house residual fringe benefit—0.75; and

in any other case—1;

reduced by the recipients rent; and

in any other case—the amount calculated in accordance with the formula:

where:

A is the statutory annual value of the recipients current housing right;

B is the number of whole days in the tenancy period; and

C is the number of days in the year of tax;

reduced by the recipients rent.

if the current year of tax is a base year of tax in relation to the recipients current housing right—the amount calculated in accordance with the formula:

where:

A is the market value of the recipients current housing right;

B is the number of days in the current year of tax; and

C is the number of whole days in the tenancy period; and

in any other case—the amount ascertained in accordance with the formula AB, where:

A is:

if the year of tax immediately preceding the current year of tax was a base year of tax for the purpose of calculating the taxable value of:

(A) a housing fringe benefit in relation to the employer in respect of the recipients overall housing right or in respect of an equivalent housing right; or

(B) each of 2 or more such housing fringe benefits;

the statutory annual value for the purposes of calculating the taxable value of the fringe benefit referred to in sub-subparagraph (A) or the weighted average of the statutory annual values for the purpose of calculating the taxable values of the housing fringe benefits referred to in sub-subparagraph (B) (those statutory annual values being weighted on the basis of the lengths of the respective periods during that preceding year of tax during which the housing rights to which those housing fringe benefits relate subsisted), as the case may be; and

in any other case—the statutory annual value for the purpose of calculating the taxable values of housing fringe benefits in relation to the employer in relation to the year of tax immediately preceding the current year of tax, being housing fringe benefits in respect of the recipients overall housing right or equivalent housing rights; and

B is the indexation factor in respect of the current year of tax in respect of the State or Territory in which the recipients unit of accommodation is situated.

the employer elects that the current year of tax be treated as a base year of tax in relation to the recipients overall housing right or an equivalent housing right;

there was no housing fringe benefit, in relation to the employer in relation to the year of tax immediately preceding the current year of tax, in respect of the recipients overall housing right or in respect of an equivalent housing right; or

the following conditions are satisfied:

in relation to each of the 9 years of tax immediately preceding the current year of tax there was a housing fringe benefit in relation to the employer in respect of the recipients overall housing right or an equivalent housing right;

none of those 9 years of tax was a base year of tax for the purpose of calculating the taxable value of a housing fringe benefit to which subparagraph (i) applies.

2 or more housing rights shall be taken to be included in the same class of housing rights if:

the housing rights are in respect of the same unit of accommodation; and

the conditions (other than as to duration or consideration) of the housing rights are the same or substantially the same; and

a housing right shall be taken to be equivalent to another housing right if each of those housing rights is included in the same class of housing rights.

the unit of accommodation after the alteration shall be deemed to be a different unit of accommodation from the unit of accommodation before the alteration; and

if the alteration occurs during the subsistence of a housing right granted to a person in respect of the unit of accommodation, that housing right, as it subsists after the alteration, shall be deemed to have been granted to the person in respect of the unit of accommodation as it existed after the alteration and to have been so granted in the same circumstances as the first-mentioned housing right.

additions or improvements made to, or other work carried out in relation to;

any damage to; or

the addition of facilities to, or the removal of facilities from;

the unit of accommodation or any building, place or facility associated with the occupation or use of the unit of accommodation.

shall be made by notice in writing to the Commissioner; and

shall be lodged with the Commissioner on or before the declaration date in relation to the year of tax.

make a payment in discharge, in whole or in part, of an obligation of the recipient to pay an amount to a third person in respect of expenditure incurred by the recipient; or

to reimburse the recipient, in whole or in part, in respect of an amount of expenditure incurred by the recipient;

that entitlement shall be disregarded.

the rent index number in respect of the State or Territory in respect of the December quarter immediately preceding the current year of tax; and

the rent index numbers in respect of the State or Territory in respect of the 3 quarters that immediately preceded that quarter;

by the sum of:

the rent index number in respect of the State or Territory in respect of the December quarter immediately preceding the year of tax that next preceded the current year of tax; and

the rent index numbers in respect of the State or Territory in respect of the 3 quarters that immediately preceded the last-mentioned quarter.

the shall be deemed to be part of the State of ; and

the and the (Keeling) shall be deemed to be part of the .

at a particular time, in respect of the employment of an employee of an employer, the employer pays an allowance to the employee; and

it would be concluded that the whole or a part of the allowance is in the nature of compensation to the employee for:

additional expenses (not being deductible expenses) incurred by the employee during a period; or

additional expenses (not being deductible expenses) incurred by the employee, and other additional disadvantages to which the employee is subject, during a period;

by reason that the duties of that employment require the employee to live away from his or her normal residence;

the payment of the whole, or of the part, as the case may be, of the allowance constitutes a benefit provided by the employer to the employee at that time.

at a particular time after 10 October 1991, in respect of the employment of an employee of an employer, the employer pays an allowance to the employee; and

the employee’s usual place of employment is on an oil rig, or other petroleum or gas installation, at sea; and

the employee is provided with residential accommodation at or near that usual place of employment; and

the allowance is expressed to be paid as a living-away-from-home allowance; and

no part of the allowance is covered by subsection (1); and

it would be concluded that the whole or a part of the allowance is in the nature of compensation to the employee for disadvantages to which the employee is subject, during a period, by reason that the duties of that employment require the employee to live away from his or her usual place of residence;

the payment of the whole of the allowance constitutes a benefit provided by the employer to the employee at that time.

Subdivision B—Taxable value of living-away-from-home allowance fringe benefits

section 31C (about maintaining an Australian home);

section 31D (about the first 12 months);

section 31F (about declarations).

any exempt accommodation component; and

any exempt food component.

the requirement that the employee has residential accommodation at or near his or her usual place of employment;

section 31E (about extra requirements for these employees);

section 31F (about declarations).

any exempt accommodation component; and

any exempt food component.

the employer may pause the 12-month period;

start a separate 12-month period if:

the employer later requires the employee to live at another location for the purposes of that employment; and

it would be unreasonable to expect the employee to commute to that other location from an earlier location for which the employer provided a benefit of the same kind to the employee;

other changes in the nature of that employment are irrelevant;

treat as one employer any of the employee’s earlier employers that is or has been an associate of the current employer.

for a fringe benefit to which section 31 (about employees who maintain an Australian home) applies:

the address of the place in Australia where the employee usually resides when in Australia; and

that section 31C is satisfied for that place; and

the address of each place where the employee actually resided during the period to which the benefit relates; or

for a fringe benefit to which section 31A (about employees who fly-in fly-out or drive-in drive-out) applies:

the address of the employee’s usual place of residence; and

that paragraph 31E(d) is satisfied for the employee’s normal residence; and

the address of each place where the employee actually resided during the period to which the benefit relates.

an expense for the accommodation of eligible family members during the period to which a living-away-from-home allowance fringe benefit relates;

an expense for food or drink for eligible family members during the period to which a living-away-from-home allowance fringe benefit relates, if the total of those food or drink expenses for that period exceeds the amount the Commissioner considers reasonable.

before the declaration date for the year of tax during which the fringe benefit was provided, gives the employer:

documentary evidence of the expense, or a copy; or

a declaration, in a form approved by the Commissioner, purporting to set out information about the expense; and

if the employee gives a declaration under subparagraph (a)(ii)—retains documentary evidence of the expense for a period of 5 years starting at that declaration date.

are incurred by the employee for food or drink for eligible family members during the period to which the fringe benefit relates; and

if section 31G applies to the expenses—are substantiated under that section.

might reasonably be expected to be the total normal food or drink expenses for those eligible family members had they remained living in their normal residence during that period; and

was taken into account in working out the food component.

the date the employer provided meal entertainment;

for each recipient of meal entertainment—whether the recipient is an employee of the employer or an associate of an employee of the employer;

the cost of the meal entertainment;

the kind of meal entertainment provided;

where the meal entertainment is provided;

(f) if the meal entertainment is provided on the employer’s premises—whether it is provided in an in-house dining facility within the meaning of section 32-55 of the Income Tax Assessment Act 1997.

(a) during the period or periods, a car is parked on one or more premises of a person (the provider), where:

the premises, or each of the premises, on which the car is parked are business premises, or associated premises, of the provider; and

a commercial parking station is located within a 1 km radius of the premises, or each of the premises, on which the car is parked; and

the lowest fee charged by the operator of any such commercial parking station in the ordinary course of business to members of the public for all-day parking on the first business day of the FBT year is more than the car parking threshold;

the total duration of the period or periods exceeds 4 hours;

any of the following applies:

a car benefit relating to the car is provided on that day to an employee or an associate of an employee in respect of the employment of the employee;

the car is owned by, or leased to, an employee or an associate of an employee at any time during the period or periods;

the car is made available to an employee or an associate of an employee at any time during the period or periods by another person, where:

(A) the other person is neither the employer of the employee nor an associate of the employer of the employee; and

(B) the other person did not make the car available under an arrangement to which the employer of the employee, or an associate of the employer of the employee, is a party;

the provision of parking facilities for the car during the period or periods is in respect of the employment of the employee;

on that day, the employee has a primary place of employment;

during the period or periods, the car is parked at, or in the vicinity of, that primary place of employment;

on that day, the car is used in connection with travel by the employee between:

the place of residence of the employee; and

that primary place of employment;

the provision of parking facilities for the car during the period or periods is not taken, under the regulations, to be excluded from this section;

the day is on or after 1 July 1993;

the provision of parking facilities for the car during the period or periods is taken to constitute a benefit provided by the provider to the employee or the associate of the employee in respect of the employment of the employee.

the carparking threshold for the FBT year beginning on 1 April 1995 is $5.00; and

for later years the carparking threshold is the threshold for the previous FBT year as adjusted on the first business day of the later FBT year by a factor equivalent to the movement in the preceding twelve months in the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.

the amount that the recipient could reasonably be expected to have been required to pay the provider in respect of the provision of the benefit if it were assumed that the provider and the recipient were dealing with each other at arm’s length;

reduced by:

the amount of the recipients contribution.

Valuer’s report must be given to employer

a suitably qualified valuer gives to the employer, before the declaration date, a report, in a form approved by the Commissioner, about the valuation of the fringe benefits; and

the valuer is at arm’s length in relation to the valuation; and

the return of the employer of the FBT year, in so far as it relates to the taxable values of the fringe benefits, is based on the report.

a transaction between the operator of a commercial parking station and a customer is not at arm’s length;

the operator of a commercial parking station sets the level of a fee for the sole or dominant purpose of enabling one or more employers to obtain reductions in the taxable values of car parking fringe benefits;

then, for the purposes of this Subdivision:

if only paragraph (a) applies—it is to be assumed that the fee is the fee that would have been payable if the operator and the customer had been dealing with each other at arm’s length in relation to the transaction; and

if only paragraph (b) applies—it is to be assumed that the fee is the fee that would have been payable if it had been set without that purpose in mind; and

if both paragraphs (a) and (b) apply—it is to be assumed that the fee is the fee that would have been payable if:

the operator and the customer had been dealing with each other at arm’s length in relation to the transaction; and

it had been set without that purpose in mind.

Subdivision C—Statutory formula method—spaces

all the employees; or

all employees of a particular class; or

particular employees.

Total value of car parking fringe benefits

beginning on the first day in the FBT year on which the parking of a car in any space referred to in subsection 39FA(4) gives rise to a car parking fringe benefit of the employer for an employee covered by the election; and

ending on the last day in the FBT year on which the parking of a car in any space referred to in subsection 39FA(4) gives rise to a car parking fringe benefit of the employer for an employee covered by the election.

Number of employees and number of spaces must be representative

the 4 week period ending on the first day of the parking period; or

the 4 week period beginning on the last day of the parking period.

all the employees; or

all employees of a particular class; or

particular employees.

the date on which each car covered by subsection (4) was parked;

whether the car was parked for a total that exceeds 4 hours;

whether the car travelled between the place of residence of an employee covered by the election and his or her primary place of employment on that day;

the place where the car was parked.

a car benefit relating to the car is provided on a day during the 12 week period to an employee covered by the election in respect of the employee’s employment; or

the car is owned by, or leased to, an employee covered by the election at any time during the 12 week period; or

the car is made available by another person to an employee covered by the election at any time during the 12 week period where:

the other person is not the employee’s employer; and

the other person did not make the car available under an arrangement to which the employee’s employer is a party.

a property benefit is provided to a current employee of an employer in respect of his or her employment; and

the property is provided to, and consumed by, the employee on a working day and on business premises of:

the employer; or

if the employer is a company, of the employer or of a company that is related to the employer;

the benefit is an exempt benefit.

if the recipient’s property was provided to the recipient under a salary packaging arrangement—an amount equal to the notional value of the recipient’s property at the provision time; or

if paragraph (aa) does not apply and the benefit is an airline transport fringe benefit—an amount equal to 75% of the stand-by airline travel value of the benefit at the time the transport starts; or

if neither paragraph (aa) nor (ab) applies and the recipient’s property was manufactured, produced, processed or treated by the provider:

if identical property that was manufactured, produced, processed or treated, as the case may be, by the provider was, at or about the provision time, sold by the provider in the ordinary course of business to purchasers being manufacturers, wholesalers or retailers—an amount equal to:

(A) if any of that identical property was, at or about the provision time, sold by the provider under an arm’s length transaction or arm’s length transactions—the lowest price at which it was sold under such a transaction; or

(B) if sub-subparagraph (A) does not apply—the lowest price at which any of that identical property could reasonably be expected to have been sold by the provider at or about the provision time under an arm’s length transaction; or

if subparagraph (i) does not apply but identical property that was manufactured, produced, processed or treated, as the case may be, by the provider was, at or about the provision time, sold by the provider:

(A) in the ordinary course of business to members of the public under an arm’s length transaction or arm’s length transactions; and

(B) in similar circumstances and subject to identical terms and conditions (other than as to price) as those that applied in relation to the provision of the recipient’s property to the recipient;

an amount equal to 75% of the lowest price at which that property was so sold to a member of the public; or

in any other case—an amount equal to 75% of the notional value of the recipient’s property at the provision time; or

if none of the above paragraphs applies and the property was acquired by the provider—an amount equal to the lesser of:

the arm’s length price in respect of the acquisition of the recipient’s property by the provider; or

the notional value of the recipient’s property at the provision time; or

in any other case—an amount equal to 75% of the notional value of the recipient’s property at the provision time;

reduced by the amount of the recipient’s contribution.

if the recipients property was acquired by the provider in the ordinary course of business under an arm’s length transaction—the cost price of the recipients property to the provider; or

in any other case—the amount that the provider could reasonably be expected to have been required to pay to acquire the recipients property under an arm’s length transaction in the ordinary course of business.

the recipient of a property fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and

(b) if the recipient had, at the provision time, incurred and paid unreimbursed expenditure (in this subsection called the gross expenditure), in respect of the purchase of the recipients property, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax—a once-only deduction (in this subsection called the gross deduction) would, or would if not for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the gross expenditure; and

(ba) the amount (in this subsection called the notional deduction) calculated in accordance with the formula:

where:

GD is the gross deduction; and

RD is:

if there is no recipients contribution in relation to the property fringe benefit—nil; or

(ii) if there is a recipients contribution in relation to the property fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients property—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once-only deduction to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of that consideration if that consideration had been incurred and paid by the recipient at the provision time;

exceeds nil; and

except where the property fringe benefit is:

an exclusive employee property benefit; or

covered by a recurring fringe benefit declaration (see section 152A); or

an extended travel property benefit; or

a car property benefit;

the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients property; and

where the property fringe benefit is an extended travel property benefit (other than an international aircrew property benefit)—the recipient gives to the employer, before the declaration date, a travel diary in relation to the travel undertaken by the recipient to which the fringe benefit relates; and

where:

(i) the property fringe benefit is a car property benefit in respect of a car held by the recipient during a period (in this section called the holding period) in the year of tax; and

the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period;

the following conditions are satisfied:

the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax;

in a case where the substantiation rules require log book records or odometer records to be maintained by or on behalf of the recipient in relation to the car—the car substantiation declaration is accompanied by a copy of those documents; and

if:

paragraph (da) does not apply; and

(ii) the property fringe benefit is a car property benefit in respect of a car held by the recipient during a period (the holding period) in the year of tax;

the recipient gives a declaration to the employer, before the declaration date and in a form approved by the Commissioner, that purports to set out:

the holding period; and

the number of whole business kilometres travelled by the car during the holding period; and

the number of whole kilometres travelled by the car during the holding period;

the taxable value, but for Division 14, of the property fringe benefit in relation to the year of tax is the amount calculated in accordance with the formula:

where:

TV is the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax; and

ND is:

if neither paragraph (da) nor paragraph (e) applies and paragraph (k) does not apply—the notional deduction; or

where paragraph (da) applies and paragraph (k) does not apply—whichever of the following amounts is applicable:

if it would be concluded that the amount of the recipients contribution would have been the same even if the property fringe benefit were not applied or used in producing assessable income of the recipient—the business use percentage of the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax;

if subparagraph (i) does not apply—the business use percentage of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax; or

where:

paragraph (e) applies; and

paragraph (k) does not apply;

whichever of the following amounts is the least:

the notional deduction;

if it would be concluded that the amount of the recipients contribution would have been the same even if the property fringe benefit were not applied or used in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax;

if subparagraph (iv) does not apply—33⅓% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax; or

if, under subsection 138(3), the property fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (5).

while undertaking travel referred to in paragraph (1)(d), engages in an activity in the course of producing assessable income of the recipient; and

(b) does not make, as mentioned in the definition of travel diary in subsection 136(1), an entry relating to the activity, being an entry of the kind referred to in that definition;

the activity shall be deemed not to have been engaged in by the recipient in the course of producing assessable income.

(a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing that:

is the property to which the property fringe benefit relates; and

is applied or used for the purpose of producing assessable income of the employee; and

does not include the percentage of the interest held in that asset or other thing by the employee’s associate or associates during the holding period.

unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(k) did not apply in relation to the property fringe benefit.

(a) a residual benefit (in this subsection referred to as the eligible benefit), not being a residual benefit constituted by a lease or licence in respect of property, is provided on the basis that, in respect of each of a number of regular periods (in this subsection referred to as a billing period) commencing on or after 1 July 1986 (whether or not there were any such periods before that date), a payment is to be made in respect of the provision of the benefit during the billing period; and

identical benefits are provided to members of the public on the same basis and in the ordinary course of a business carried on by the person providing the eligible benefit;

the following provisions have effect:

the provision of the eligible benefit during each billing period shall be taken to constitute a separate benefit;

each such separate residual benefit shall be deemed to have been provided at the time at which the payment in respect of the billing period concerned is due and payable, and not otherwise.

in respect of the employment of a current employee, the employer, or an associate of the employer, provides a residual benefit to the employee that consists of transport of the employee, otherwise than in an aircraft:

between:

(A) the place of residence of the employee; and

(B) the place of employment of the employee or any other place from which or at which the employee performs duties of that employment; or

in a case where the place referred to in sub-subparagraph (i)(B) is in a metropolitan area—on a regular and scheduled service over a route wholly within that metropolitan area; and

where the provider is the employer—the employer carries on a business of providing transport to members of the public; and

where the provider is an associate of the employer—the employer and the associate each carries on a business of providing transport to members of the public; and

the transport referred to in paragraph (a) is provided in the same, or substantially the same, circumstances as transport provided to members of the public in the ordinary course of carrying on a business of providing transport to members of the public; and

the employee is employed in the business of providing transport to members of the public; and

the benefit is not provided under a salary packaging arrangement;

the benefit is an exempt benefit.

a person is an employee of a government body; and

the person’s duties of employment are performed in a police service; and

the person is provided with a residual benefit consisting of the provision of travel on public transport; and

the benefit is provided for the purpose of travel between:

the person’s place of residence; and

the person’s primary place of employment;

the benefit is an exempt benefit.

a residual benefit provided to a current employee in respect of his or her employment consists of:

the provision, or use, of a recreational facility; or

the care of children of the employee in a child care facility; and

the recreational facility or child care facility, as the case may be, is located on business premises of:

the employer; or

if the employer is a company, of the employer or of a company that is related to the employer;

the benefit is an exempt benefit.

the employer; or

if the employer is a company—the employer or a company that is related to the employer;

the benefit is an exempt benefit.

a residual benefit consisting of the subsistence, during a year of tax, of a lease or licence in respect of a unit of accommodation is provided to an employee of an employer in respect of his or her employment; and

the unit of accommodation is for the accommodation of eligible family members and is provided solely because the duties of that employment require the employee to live away from his or her normal residence; and

the employee satisfies:

sections 31C (about maintaining an Australian home) and 31D (about the first 12 months); or

section 31E (about fly-in fly-out and drive-in drive-out requirements); and

the accommodation is not provided while the employee is undertaking travel in the course of performing the duties of that employment; and

any of the following conditions is satisfied:

subsection (7) applies in relation to the provision of transport for the employee in connection with travel in the period in the year of tax when the lease or licence subsisted, being travel between the employee’s usual place of residence and the employee’s usual place of employment;

if the employee satisfies sections 31C and 31D—the employee gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out the matters in subparagraphs 31F(1)(a)(i) to (iii);

if the employee satisfies the Commissioner, purporting to set out the matters in subparagraphs 31F(1)(b)(i) to (iii);section 31E—the employee gives to the employer, before the declaration date, a declaration, in a form approved by

the benefit is an exempt benefit in relation to the year of tax.

a residual benefit consisting of the provision or use of a motor vehicle is provided in a year of tax in respect of the employment of a current employee;

the motor vehicle is not:

a vehicle used for taxi travel (other than a limousine) let on hire to the provider; or

a car, not being:

(A) a panel van or utility truck; or

(B) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and

there was no private use of the motor vehicle during the year of tax and at a time when the benefit was provided other than:

work-related travel of the employee; and

other private use of the motor vehicle by the employee or an associate of the employee, being other use that was minor, infrequent and irregular;

the benefit is an exempt benefit in relation to the year of tax.

(a) a residual benefit consisting of the provision or use of a motor vehicle is provided by a particular person (in this subsection called the provider) in a year of tax in respect of the employment of a current employee of an employer;

at all times during the year of tax when the motor vehicle was held by the provider, the motor vehicle was unregistered; and

during the period in the year of tax when the motor vehicle was held by the provider, the motor vehicle was wholly or principally used directly in connection with business operations of:

the employer; or

if the employer is a company—the employer or a company that is related to the employer;

the benefit is an exempt benefit in relation to the year of tax.

a motor vehicle owned by the provider;

a motor vehicle leased to the provider; or

a motor vehicle otherwise made available to the provider by another person.

an employee’s usual place of employment is:

on an oil rig, or other installation, at sea; or

at a location in a State or internal Territory but not in, or adjacent to, an eligible urban area; or

at a remote location that is not in a State or internal Territory; and

the employee is provided with residential accommodation, at or near that usual place of employment, by:

the employer; or

an associate of the employer; or

(iii) a person (in this subparagraph referred to as the arranger) other than the employer or an associate of the employer under an arrangement between:

(A) the employer or an associate of the employer; and

(B) the arranger or another person; and

the employee, on a regular basis:

works for a number of days and has a number of days off; and

on completion of the working days, travels from that usual place of employment to his or her usual place of residence and, on completion of the days off, returns from his or her usual place of residence to that usual place of employment; and

the employee is provided with transport on a regular basis in connection with the travel referred to in subparagraph (c)(ii) and that transport is provided by:

the employer; or

an associate of the employer; or

(iii) a person (in this subparagraph referred to as the arranger) other than the employer or an associate of the employer under an arrangement between:

(A) the employer or an associate of the employer; and

(B) the arranger or another person; and

it would be unreasonable to expect the employee to travel on a daily basis on work days between:

that usual place of employment; and

the location of the employee’s usual place of residence;

having regard to the location of those places;

the residual benefit constituted by the provision of the transport referred to in paragraph (d) is an exempt benefit.

a residual benefit provided in respect of the employment of an employee arose out of priority of access, for a child or children of the employee, to:

(i) a place that is an eligible child care centre for the purposes of any provision of the Child Care Act 1972; or

(ii) family day care provided before the commencement of item 1 of Schedule 10 to the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 2) 1999; or

(iii) care outside school hours provided before the commencement of item 1 of Schedule 10 to the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 2) 1999; or

(iv) care in school vacations provided before the commencement of item 1 of Schedule 10 to the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 2) 1999; or

(v) an approved child care service within the meaning of the A New Tax System (Family Assistance) (Administration) Act 1999; and

in order to obtain that priority of access, the employer of the employee, or an associate of the employer, made a contribution under a program administered by the Families Department;

the residual benefit is an exempt benefit.

the recipient of a residual fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and

(b) if the recipient had, at the comparison time, incurred and paid unreimbursed expenditure (in this subsection called the gross expenditure), in respect of the provision of the recipients benefit, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax—a once-only deduction (in this subsection called the gross deduction) would, or would if not for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the gross expenditure; and

(ba) the amount (in this subsection called the notional deduction) calculated in accordance with the formula:

where:

GD is the gross deduction; and

RD is:

if there is no recipients contribution in relation to the residual fringe benefit—nil; or

(ii) if there is a recipients contribution in relation to the residual fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients benefit—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997 have been allowable as a once-only deduction to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of so much of that consideration as was taken into account for the purposes of section 4-15 or 8-1 of the Income Tax Assessment Act 1997, if that consideration had been incurred and paid by the recipient at the comparison time;

exceeds nil; and

except where the fringe benefit is:

an exclusive employee residual benefit; or

covered by a recurring fringe benefit declaration (see section 152A); or

an extended travel residual benefit; or

a car residual benefit;

the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients benefit; and

where the fringe benefit is an extended travel residual benefit (other than an international aircrew residual benefit)—the recipient gives to the employer, before the declaration date, a travel diary in relation to the travel undertaken by the recipient to which the fringe benefit relates; and

where:

(i) the fringe benefit is a car residual benefit in respect of a car held by the recipient during a period (in this section called the holding period) in the year of tax; and

the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period;

the following conditions are satisfied:

the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax;

in a case where the substantiation rules require log book records or odometer records to be maintained by or on behalf of the recipient in relation to the car—the car substantiation declaration is accompanied by a copy of those documents; and

if:

paragraph (da) does not apply; and

(ii) the fringe benefit is a car residual benefit in respect of a car held by the recipient during a period (the holding period) in the year of tax;

the recipient gives a declaration to the employer, before the declaration date and in a form approved by the Commissioner, that purports to set out:

the holding period; and

the number of whole business kilometres travelled by the car during the holding period; and

the number of whole kilometres travelled by the car during the holding period;

the taxable value, but for Division 14, of the residual fringe benefit in relation to the year of tax is the amount calculated in accordance with the formula:

where:

TV is the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax; and

ND is:

if neither paragraph (da) nor paragraph (e) applies and paragraph (k) does not apply—the notional deduction; or

where paragraph (da) applies and paragraph (k) does not apply—whichever of the following amounts is applicable:

if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient—the business use percentage of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax;

if subparagraph (i) does not apply—the business use percentage of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; or

where:

paragraph (e) applies; and

paragraph (k) does not apply;

whichever of the following amounts is the least:

the notional deduction;

if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax;

if subparagraph (iv) does not apply—33⅓% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; or

if, under subsection 138(3), the residual fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (5).

while undertaking travel referred to in paragraph (1)(d), engages in an activity in the course of producing assessable income of the recipient; and

(b) does not make, as mentioned in the definition of travel diary in subsection 136(1), an entry relating to the activity, being an entry of the kind referred to in that definition;

the activity shall be deemed not to have been engaged in by the recipient in the course of producing assessable income.

(a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing:

to which the residual fringe benefit relates; and

that is applied or used for the purpose of producing assessable income of the employee; and

does not include the percentage of the interest held in that asset or other thing by the employee’s associate or associates during the holding period.

unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(k) did not apply in relation to the residual fringe benefit.

a car expense payment benefit;

a car property benefit; or

a car residual benefit;

in respect of a car, being a benefit that is attributable to a period when a car fringe benefit was provided, or would but for subsection 8(2) or section 8A have been provided, in relation to the car, is an exempt benefit.

the motor vehicle were a car; and

a car fringe benefit were provided during that period in relation to the motor vehicle.

the employer of an employee is a government body; and

the duties of the employment of the employee are exclusively performed in, or in connection with:

a public hospital; or

a hospital carried on by a society or association that is a rebatable employer;

a benefit provided in respect of the employment of the employee is an exempt benefit.

the employer of the employee is a public hospital; or

the employer provides public ambulance services or services that support those services and the employee is predominantly involved in connection with the provision of those services.

(a) is exempt from income tax under Income Tax Assessment Act 1997; andDivision 50 of the

is not a company referred to in paragraph 65J(5)(a) or (b); and

is not a registered public benevolent institution or registered health promotion charity.

the employer of the employee is a registered health promotion charity; and

the registered health promotion charity is endorsed under subsection 123D(1).

the employer of an employee is:

a government body; or

a registered religious institution; or

(iii) a company that is registered under the Australian Charities and Not-for-profits Commission Act 2012 and does not meet the description of the subtype of entity in column 2 of item 4 of the table in subsection 25-5(5) of that Act; or

a non-profit company that is not an ACNC type of entity;

whose activities consist of, or include, caring for elderly persons or disadvantaged persons; and

the duties of the employment of the employee consist of, or consist principally of:

caring for elderly persons and any children of those elderly persons who reside with those elderly persons; or

caring for disadvantaged persons and any children of those disadvantaged persons who reside with those disadvantaged persons; and

in the performance of those duties, the employee lives, together with elderly persons or disadvantaged persons, in residential premises of the employer; and

the fact that the person lives in those premises is directly related to the provision, in the course of the performance of the duties of the employment of the employee, of care to the elderly persons or disadvantaged persons living in those premises;

any benefit arising from the provision, during that period, of:

that accommodation to the employee or to the employee and a spouse or child of the employee who resides in those premises with the employee; or

residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; or

meals provided on those premises to the employee or to a spouse or child of the employee who resides in those premises with the employee; or

food or drink (other than meals) for consumption during that period by the employee or by a spouse or child of the employee who resides in those premises with the employee;

is an exempt benefit.

elderly persons or disadvantaged persons and children of elderly persons or disadvantaged persons;

persons the duties of whose employment consist of, or consist principally of, caring for persons referred to in paragraph (a); and

spouses and children of persons referred to in paragraph (b).

the benefit is an expense payment benefit, or a residual benefit, provided in, or in respect of, the year of tax in respect of the employment of an employee; and

the benefit is in respect of, or consists of, the engagement of a relocation consultant; and

the engagement of the relocation consultant is required solely for one or more of the following reasons:

(i) the employee is required to live away from his or her usual place of residence to perform the duties of the employment mentioned in paragraph (a) (the new employment duties);

having lived away from his or her usual place of residence to perform the new employment duties, the employee is required to return there to perform them, or because the employee has ceased to perform them;

the employee is required to change his or her usual place of residence to perform those duties; and

the relocation consultant is engaged to help a family member:

if subparagraph (c)(i) applies—to settle, or to remain, at or near the location where the employee performs the new employment duties while living away from his or her usual place of residence; or

if subparagraph (c)(ii) applies—to settle at the location of the employee’s usual place of residence; or

if subparagraph (c)(iii) applies—to settle, or to remain, at the location of the employee’s new usual place of residence; and

the benefit is not provided under a non-arm’s length arrangement; and

if the benefit is an expense payment benefit—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date.

a relocation consultant finding, or providing information to the family member about, accommodation for the family member at the location; or

a relocation consultant providing information to the family member about education facilities or other community amenities and services at the location;

but does not include a reference to a relocation consultant paying expenses on behalf of a family member.

either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee:

an expense payment benefit where the recipients expenditure is in respect of the removal or storage of household effects of the employee;

a residual benefit where the recipients benefit consists of the removal or storage of household effects of the employee;

the removal or storage is required solely because:

the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment;

the employee, having lived away from his or her usual place of residence in order to perform the duties of that employment, is required to return to his or her usual place of residence:

(A) in order to perform those duties; or

(B) because the employee has ceased to perform those duties; or

the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

the removal or storage is required to enable a family member to:

if subparagraph (b)(i) applies—take up residence, or to continue to reside, at or near the place where the employee performs the duties of that employment while living away from his or her usual place of residence;

if subparagraph (b)(ii) applies—take up residence at the employee’s usual place of residence; or

if subparagraph (b)(iii) applies—take up residence, or to continue to reside, at the employee’s new usual place of residence;

if subparagraph (b)(iii) applies:

the removal takes place, or the storage commences to be provided, within 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; and

the benefit is not provided under a non-arm’s length arrangement;

if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

the removal or storage was not provided in connection with travel undertaken by the employee in the course of performing the duties of that employment;

the benefit is an exempt benefit in relation to the year of tax.

a reference to the household effects of an employee is a reference to tangible property (whether or not owned by a family member) kept primarily for the personal use of family members; and

without limiting the generality of an expression used in subsection (1), the recipients expenditure shall be taken to be in respect of, and the recipients benefit shall be taken to consist of, the removal or storage of household effects if the expenditure or benefit is in respect of, or consists of, the transport, packing, unpacking or insurance of the household effects in connection with the removal or storage of the household effects.

(a) during a particular period (in this subsection called the former home holding period), an employee of an employer, or an associate of an employee of an employer, holds:

a prescribed interest in land on which:

(A) there is a building constituting or containing a dwelling;

(B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing a dwelling;

a prescribed interest in a stratum unit in relation to a dwelling; or

a proprietary right in respect of a dwelling, being a flat or home unit;

the employee or associate sells or proposes to sell, the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of his or her employment;

(c) the employer first notifies the employee at a time (in this subsection called the notice time) during the former home holding period that the employee is required to perform the duties of that employment at the employee’s new place of employment; and

at the notice time, the employee occupied, or proposed to occupy, the dwelling, or proposed to occupy the proposed dwelling, as his or her usual place of residence;

the following subsections have effect.

either of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax:

an expense payment benefit where the recipients expenditure is incidental to the sale of that interest or right;

a residual benefit where the recipients benefit is incidental to the sale of that interest or right;

(aa) the employee or associate entered into a contract for the sale of the interest or right within 2 years after the day (the new employment day) on which the employee commenced to perform the duties of that employment at the employee’s new place of employment;

if, apart from this paragraph, this subsection would apply in relation to 2 or more dwellings or proposed dwellings in relation to the change in the employee’s usual place of residence—the employer of the employee elects that this subsection apply in relation to only one of those dwellings or proposed dwellings;

if paragraph (b) applies—the benefit relates to the dwelling or proposed dwelling in respect of which the election is made;

if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

the benefit is not provided under a non-arm’s length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

at a particular time, the employee or an associate of the employee acquires:

a prescribed interest in land on which:

(A) there is a building constituting or containing another dwelling;

(B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing another dwelling;

a prescribed interest in a stratum unit in relation to another dwelling; or

a proprietary right in respect of another dwelling, being a flat or home unit;

the employee or associate acquires the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment at the employee’s new place of employment;

(c) the employee or associate entered into a contract for the acquisition of the interest or right on a day (the contract day) within 4 years after the new employment day;

if, on the contract day, the employee or associate holds an interest or right in another dwelling in a situation where:

if that interest or right were sold within 2 years after the new employment day; and

if a benefit of a kind referred to in subsection (2) were provided in relation to that interest or right;

the benefit would be an exempt benefit under subsection (2)—not more than 2 years have elapsed since the new employment day;

immediately after the completion of the acquisition, the employee occupied the other dwelling, or proposed to occupy the other proposed dwelling, as his or her usual place of residence;

any of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax:

an expense payment benefit where the recipients expenditure is incidental to the acquisition of that interest or right;

a residual benefit where the recipients benefit is incidental to the acquisition of that interest or right;

an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling;

a residual benefit where the recipients benefit is constituted by the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling;

an expense payment benefit where the recipients expenditure is in respect of the act of re-connecting gas or electricity to the other dwelling or proposed dwelling;

a residual benefit where the recipients benefit is constituted by the act of re-connecting gas or electricity to the other dwelling or proposed dwelling;

if subparagraph (e)(iii) or (iv) applies—immediately before the change, a telephone service was provided to the unit of accommodation that was the employee’s usual place of residence before the change;

if subparagraph (e)(i), (iii) or (v) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

the benefit is not provided under a non-arm’s length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

shall be made by notice in writing to the Commissioner; and

shall be lodged with the Commissioner on or before the declaration date.

a benefit is an exempt benefit in relation to a year of tax under subsection (3); and

paragraph (3)(ca) applied to the employee; and

the employee or associate does not enter into a contract for the sale of the interest or right in the other dwelling referred to in that paragraph within 2 years after the new employment day;

this Act has effect as if:

a benefit equivalent to the exempt benefit were provided in respect of the employment of the employee in, or in respect of, the year of tax in which that period of 2 years expired; and

that equivalent benefit were not an exempt benefit.

either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:

an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re-connecting a telephone service to a unit of accommodation;

a residual benefit where the recipients benefit is constituted by the act of connecting or re-connecting a telephone service to a unit of accommodation;

the unit of accommodation is for the accommodation of family members;

the accommodation is required solely because:

the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or

the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

if subparagraph (c)(ii) applies:

the telephone service is connected or re-connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment;

immediately before the change, a telephone service was provided to the unit of accommodation that was the employee’s usual place of residence before the change; and

the benefit was not provided under a non-arm’s length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:

an expense payment benefit where the recipients expenditure is in respect of the act of re-connecting gas or electricity to a unit of accommodation;

a residual benefit where the recipients benefit is constituted by the act of re-connecting gas or electricity to a unit of accommodation;

the unit of accommodation is for the accommodation of family members;

the accommodation is required solely because:

the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or

the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

if subparagraph (c)(ii) applies:

the gas or electricity is re-connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; and

the benefit was not provided under a non-arm’s length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

an expense payment benefit, where:

the recipients expenditure is in respect of the provision of motor vehicle parking facilities; and

the benefit is not an eligible car parking expense payment benefit;

a residual benefit where the recipients benefit consists of motor vehicle parking facilities.

a scientific institution (other than an institution carried on by a company, society or association for the purposes of profit or gain to its individual shareholders or members); or

a registered charity; or

a public educational institution;

the following benefits provided in respect of the employment of the employee are exempt benefits:

an eligible car parking expense payment benefit;

a car parking benefit.

the employer of an employee is a government body; and

the employee is exclusively employed in, or in connection with, a public educational institution;

the following benefits provided in respect of the employment of the employee are exempt benefits:

an eligible car parking expense payment benefit;

a car parking benefit.

the car is not parked at a commercial parking station; and

the employer of the employee is not a public company (see subsection (3)), or a subsidiary of a public company (see subsection (3)), in relation to the day on which the benefit is provided; and

the employer is not a government body; and

either:

the sum of the employer’s ordinary income and statutory income for the year of income ending most recently before the start of the FBT year is less than $10 million; or

the employer is a small business entity, or is an employer covered by subsection (1A), for the year of income ending most recently before the start of the FBT year.

the employer is not a small business entity for the year of income; and

the employer would be a small business entity for the year of income if:

(i) each reference in Subdivision 328-C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and

the reference in paragraph 328-110(5)(b) of that Act to a small business entity were instead a reference to an employer covered by this subsection.

New employers

in the case of a tax-exempt employer (see subsection (3))—did not start to carry out operations or activities; or

in any other case—did not start to carry out business operations;

until after the start of the year of income mentioned in subparagraph (1)(d)(i), then:

that subparagraph does not apply; and

(d) the employer must make a reasonable estimate of the amount that would be the sum of the employer’s ordinary income and statutory income for the year of income (the business start-up year) in which the employer did start those operations or activities, or those business operations; and

that estimate is to be made on the assumption that the employer had started the operations or activities, or the business operations, at the start of the business start-up year; and

the benefit is an exempt benefit only if that estimate is less than $10 million.

Definitions

a reference in section 103A of that Act to a year of income as a reference to the day on which the benefit is provided; and

a reference in that section to a public company as a reference to a public company within the meaning of this section.

tax-exempt employer means an employer all of whose income is wholly exempt from income tax.

any of the following benefits is provided to an employee in respect of his or her employment:

an expense payment benefit where the recipients expenditure is in respect of a newspaper or periodical;

a property benefit where the recipients property is a newspaper or periodical;

a residual benefit where the recipients benefit consists of the making available of a newspaper or periodical; and

the newspaper or periodical was for use by the employee for the purpose, or for purposes that included the purpose, of gaining or producing salary or wages of the employee in respect of that employment;

the benefit is an exempt benefit.

a benefit is provided in respect of the employment of an employee for or in respect of compensable work-related trauma suffered by the employee; and

either of the following subparagraphs applies:

the benefit is provided under a workers’ compensation law that applies to that employment;

the benefit is not provided under a workers’ compensation law but the provision of the benefit is reasonable having regard to all relevant matters including, but without limiting the generality of the foregoing, the value of the benefit and the nature and effects of the trauma;

the benefit is an exempt benefit.

a residual benefit provided in, or in respect of, a year of tax in respect of the employment of an employee is constituted by the subsistence, during the year of tax, of a contingent right (whether arising under a contract of insurance or otherwise) to a benefit for or in respect of compensable work-related trauma suffered by the employee; and

in the case of a contingent right arising under a contract of insurance—the contract of insurance does not provide for a benefit that is not for or in respect of compensable work-related trauma suffered by any employee;

the benefit is an exempt benefit in relation to the year of tax.

(a) a person (in this subsection called the traveller):

is provided with transport by another person; or

provides transport for himself or herself;

any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:

a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of the transport;

an expense payment benefit where the recipients expenditure is in respect of the provision of:

(A) the transport; or

(B) meals or accommodation for the traveller;

a property benefit where the recipients property consists of meals for the traveller;

a residual benefit where the recipients benefit consists of the provision of:

(A) the transport; or

(B) accommodation for the traveller;

(c) the transport is required solely because a person (in this subsection called the patient) requires medical treatment;

(d) the medical treatment is provided in a particular place (in this subsection called the treatment place) at a time during a period when the employee is, or would but for that requirement to obtain treatment or any other temporary absence be, performing the duties of that employment in another place (in this subsection called the overseas employment place), being a place in:

a foreign country;

a part of a foreign country; or

a territory, dependency or colony (however described) of a foreign country;

the transport is between:

a place at or near the overseas employment place; and

a place at or near the treatment place;

if the patient is not the employee—the patient is a family member and lives with the employee at or near the overseas employment place;

if the traveller is not the patient—either of the following conditions is satisfied:

the traveller accompanies the patient because:

(A) the patient has not attained the age of 18 years and requires the traveller as an escort; or

(B) the patient requires the traveller as an escort for medical reasons;

the traveller is a family member and accompanies or visits the patient where it is customary for family members to accompany or visit patients receiving medical treatment of the same nature and duration as the medical treatment required by the patient;

the meals or accommodation:

are:

(A) in connection with the transport; or

(B) required solely in connection with the presence of the traveller at the treatment place for purposes related to the medical treatment of the patient; and

where sub-subparagraph (i)(B) applies and the traveller is the patient—are not provided to the patient in a hospital, clinic or similar place in connection with the medical treatment of the patient;

either of the following conditions is satisfied:

the treatment place was the place nearest to the overseas employment place at which medical treatment suitable for the patient could be provided;

the total cost associated with obtaining medical treatment at the treatment place was equal to, or less than, the lowest total cost associated with obtaining medical treatment at any of the places at which medical treatment suitable for the patient could have been provided; and

if subparagraph (b)(ii) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date;

the benefit is an exempt benefit in relation to the year of tax.

to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation; or

to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth; or

to a person registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by that person for the supply, alteration or repair of artificial teeth; or

for therapeutic treatment administered by direction of a legally qualified medical practitioner; or

in respect of an artificial limb (or part of a limb), artificial eye or hearing aid; or

in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner; or

for:

the testing of eyes or the prescribing of spectacles or contact lenses by a person legally qualified to perform those services; or

the supply of spectacles or contact lenses in accordance with any such prescription; or

as remuneration of a person for services rendered by him or her as an attendant of a person who is blind or permanently confined to a bed or an invalid chair; or

for the maintenance of a dog used for the guidance or assistance of, but not social therapy for, a person with a disability, being a dog that the Commissioner is satisfied is properly trained in the guidance or assistance of persons with disabilities.

medical treatment means an act or thing where a payment in respect of the act or thing:

is a medical expense; and

is not a payment:

(i) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service (Health Insurance Act 1973) for which a medicare benefit is payable under Part II of that Act (or for which a medicare benefit would be payable under that Part if section 19AD of that Act were disregarded); orwithin the meaning of subsection 3(1) of the

to a legally qualified dentist for dental services that are, or dental treatment that is, solely cosmetic.

the payment is made to an employer (not being a public or private hospital) of the qualified person, or a person with whom the qualified person has entered into a contract for services; and

the payment is made in respect of the provision of those services or that treatment, or the supply of those goods, by the qualified person.

the payment is made to an employer of the dentist, or a person with whom the dentist has entered into a contract for services; and

the payment is made in respect of the provision of those services or that treatment or the supply, alteration or repair of those artificial teeth, by the dentist.

the payment is made to an employer of such a person, or a person with whom such a person has entered into a contract for services; and

the charges are made in respect of the supply, alteration or repair of artificial teeth by the dental mechanic.

an expense payment benefit where the recipients expenditure is in respect of:

a work-related medical examination of the employee;

work-related medical screening of the employee;

work-related preventative health care of the employee;

work-related counselling of the employee or of an associate of the employee; or

migrant language training of the employee or of an associate of the employee;

a property benefit where the recipients property is required solely for the purposes of:

a work-related medical examination of the employee;

work-related medical screening of the employee;

work-related preventative health care of the employee;

work-related counselling of the employee or of an associate of the employee; or

migrant language training of the employee or of an associate of the employee;

a residual benefit where the recipients benefit consists of the provision of: