Fringe Benefits Tax Assessment | My Assignment Tutor

Exemptions – Division 2 to 12 Fringe Benefits Tax Assessment Act 1986Section 8 Exempt car benefits(1) Except insofar as section 7 provides that the application or availability of a car held by a person is a benefit, theapplication or availability of a car held by a person is an exempt benefit.(2) A car benefit provided in a year of tax in respect of the employment of a current employee is an exempt benefit inrelation to the year of tax if:(a) the car is:(i) a taxi, panel van or utility truck, designed to carry a load of less than 1 tonne; or(ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for theprincipal purpose of carrying passengers); and(b) there was no private use of the car during the year of tax and at a time when the benefit was provided otherthan:(i) work‑related travel of the employee; and(ii) other private use by the employee or an associate of the employee, being other use that was minor,infrequent and irregular.(3) Where:(a) a car benefit relating to a particular car is provided by a particular person (in this subsection calledthe provider) in a year of tax in respect of the employment of a current employee of an employer;(b) at all times during the year of tax when the car was held by the provider, the car was unregistered; and(c) during the period in the year of tax when the car was held by the provider, the car was wholly or principallyused directly in connection with business operations of:(i) the employer; or(ii) 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.(4) ………Section 17 Exempt loan benefits(1) Where:(a) a loan is made by a person who carries on a business that consists of or includes making loans to members ofthe public; and(b) the rate of interest payable in respect of the loan:(i) is specified in a document in existence at the time the loan is made;(ii) is not less than the rate of interest in respect of a similar arm’s length loan made by the person, at orabout that time, to a member of the public in the ordinary course of carrying on that business; and(iii) cannot be varied;the making of the loan is an exempt benefit.(2) Where:(a) a loan is made by a person who carries on a business that consists of or includes making loans to members ofthe public; and(b) the rate of interest from time to time payable in respect of the loan in respect of a year of tax is not less thanthe rate of interest applicable at the time concerned in respect of a similar arm’s length loan made by theperson, at or about the time the loan referred to in paragraph (a) is made, to a member of the public in theordinary course of carrying on that business;the making of the loan is an exempt benefit in relation to that year of tax.(3) Where:(a) a loan consists of an advance by an employer to a current employee of the employer in respect of his or heremployment;(b) the sole purpose of the making of the loan is to enable the employee to meet expenses incurred by theemployee:(i) in the course of performing the duties of that employment; and(ii) not later than 6 months after the loan is made;(c) the amount of the loan does not substantially exceed the amount of those expenses that could reasonably beexpected to be incurred by the employee; and(d) the employee is required:(i) to account to the employer, not later than 6 months after the loan is made, for expenses met from theloan; and(ii) to repay (whether by set‑off or otherwise) any amount not so accounted for;the making of the loan is an exempt benefit.(4) ……Section 20A Exemption – no‑private‑use declaration(1) An expense payment fringe benefit that is covered by a no‑private‑use declaration is an exempt benefit.(2) An employer may make a no‑private‑use declaration that covers all the employer’s expense payment fringebenefits for an FBT year for which the employer will only pay or reimburse so much of the expense that is thesubject of the benefit as would result in the taxable value of the benefit being nil.(3) The declaration must be in a form approved in writing by the Commissioner and be made by the declaration date.Section 22 Exempt car expense payment benefitsWhere:(a) an expense payment benefit provided to an employee of an employer in respect of his or her employment isconstituted by the reimbursement of the employee, in whole or in part, in respect of an amount of aDivision 28 car expense incurred by the employee in relation to a car owned by, or leased to, the employee;(b) in a case where the car is leased to the employee—the recipients expenditure is not attributable to a periodwhen the lessor is the provider of a car benefit in relation to the car in relation to the employee;(c) the benefit is not in respect of relocation transport;(ca) the benefit is not in respect of an employment interview or selection test;(cb) the benefit is not associated with:(i) a work‑related medical examination of the employee;(ii) work‑related medical screening of the employee;(iii) work‑related preventative health care of the employee;(iv) work‑related counselling of the employee or of an associate of the employee; or(v) migrant language training of the employee or of an associate of the employee;(cc) neither of the following subparagraphs applies in relation to the transport to which the benefit relates:(i) the transport was provided wholly or partly to enable the employee, or an associate of the employee, tohave a holiday;(ii) the transport was provided at a time when the employee had ceased to perform the duties of thatemployment; and(d) the reimbursement is calculated by reference to the distance travelled by the car;the expense payment benefit is an exempt benefit.Section 41 Exempt property benefits(1) Where:(a) a property benefit is provided to a current employee of an employer in respect of his or her employment; and(b) the property is provided to, and consumed by, the employee on a working day and on business premises of:(i) the employer; or(ii) 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.(2) This section does not apply to food or drink provided to, and consumed by, an employee if the food or drink isprovided under a salary packaging arrangement.Section 47 Exempt residual benefits(1) Where:(a) in respect of the employment of a current employee, the employer, or an associate of the employer, providesa residual benefit to the employee that consists of transport of the employee, otherwise than in an aircraft:(i) 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 employeeperforms duties of that employment; or(ii) in a case where the place referred to in sub‑subparagraph (i)(B) is in a metropolitan area—on a regularand scheduled service over a route wholly within that metropolitan area; and(b) where the provider is the employer—the employer carries on a business of providing transport to membersof the public; and(c) where the provider is an associate of the employer—the employer and the associate each carries on abusiness of providing transport to members of the public; and(d) the transport referred to in paragraph (a) is provided in the same, or substantially the same, circumstances astransport provided to members of the public in the ordinary course of carrying on a business of providingtransport to members of the public; and(e) the employee is employed in the business of providing transport to members of the public; and(f) the benefit is not provided under a salary packaging arrangement;the benefit is an exempt benefit.(1A) Where:(a) a person is an employee of a government body; and(b) the person’s duties of employment are performed in a police service; and(c) the person is provided with a residual benefit consisting of the provision of travel on public transport; and(d) the benefit is provided for the purpose of travel between:(i) the person’s place of residence; and(ii) the person’s primary place of employment;the benefit is an exempt benefit.(2) Where:(a) a residual benefit provided to a current employee in respect of his or her employment consists of:(i) the provision, or use, of a recreational facility; or(ii) the care of children of the employee in a child care facility; and(b) the recreational facility or child care facility, as the case may be, is located on business premises of:(i) the employer; or(ii) 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.(3) Where a residual benefit provided to a current employee in respect of his or her employment consists of the useof property (other than a motor vehicle) that is ordinarily located on business premises of, and is wholly orprincipally used directly in connection with business operations of:(a) the employer; or(b) if the employer is a company—the employer or a company that is related to the employer;the benefit is an exempt benefit.(4) For the purposes of subsection (3), toilets, bathroom facilities, food or drink vending machines, tea or coffeemaking facilities, water dispensers or other amenities (not being facilities for drinking or dining) for the use ofemployees of an employer shall be taken to be principally used directly in connection with business operations ofthe employer. (4A)(5)………… (6)(6A)(6B)……………… (7) ……(8) ……Section 47A Exemption—no‑private‑use declaration(1) A residual fringe benefit that is covered by a no‑private‑use declaration is an exempt benefit.(2) An employer may make a no‑private‑use declaration that covers all the employer’s residual fringe benefits for anFBT year that are covered by a consistently enforced policy in relation to the use of the property that is thesubject of the benefit that would result in the taxable value of the benefit being nil.(3) The declaration must be in a form approved in writing by the Commissioner and be made by the declaration date.

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