Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 39 of 1986 as amended
This compilation was prepared on 9 July 2008
taking into account amendments up to Act No. 59 of 2008
Volume 1 includes: Table of Contents
Sections 1 -- 78A
The text of any of those amendments
not in force
on that date is appended in the Notes section
The operation of
amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Volume 2 includes: Table of Contents
Sections 90 -- 167
Schedule
Note 1
Table of Acts
Act Notes
Table of Amendments
Table A
Prepared by the Office of
Legislative Drafting and Publishing,
Attorney‑General's Department,
Canberra
Contents
Part I--Preliminary 1
1............ Short title [see Note 1] ....................................................................... 1
2............ Commencement [see Note 1] .............................................................. 1
2A......... Application of the Criminal Code ...................................................... 1
Part II--Administration 2
3............ General administration of Act ............................................................ 2
4............ Annual report ..................................................................................... 2
5............ Secrecy ................................................................................................ 2
Part IIA--Core provisions 5
Division 1--Working out an employer's fringe benefits taxable amount 5
5A......... Simplified outline of this Division ...................................................... 5
5B......... Working out an employer's fringe benefits taxable amount ............... 5
Division 2--Working out an employer's aggregate fringe benefits amount 12
5C......... Aggregate fringe benefits amount ...................................................... 12
Division 3--Employee's individual fringe benefits amount 15
5D......... Simplified outline .............................................................................. 15
5E.......... Employee's individual fringe benefits amount ................................. 15
5F.......... Working out the employee's share ................................................... 17
Part III--Fringe benefits 19
Division 1--Preliminary 19
6............ Part not to limit generality of benefit ................................................ 19
Division 2--Car fringe benefits 20
Subdivision A--Car benefits 20
7............ Car benefits ....................................................................................... 20
8............ Exempt car benefits .......................................................................... 22
Subdivision B--Taxable value of car fringe benefits 24
9............ Taxable value of car fringe benefits--statutory formula .................. 24
10.......... Taxable value of car fringe benefits--cost basis ............................... 27
10A....... No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained .......................................................................................................... 32
10B....... No reduction of operating cost in a non‑log book year of tax unless log book records and odometer records are maintained in log book year of tax .................................................... 32
11.......... Calculation of depreciation and interest ........................................... 33
12.......... Depreciated value ............................................................................. 35
13.......... Expenditure to be increased in certain circumstances ....................... 36
Division 3--Debt waiver fringe benefits 38
Subdivision A--Debt waiver benefits 38
14.......... Debt waiver benefits ......................................................................... 38
Subdivision B--Taxable value of debt waiver fringe benefits 38
15.......... Taxable value of debt waiver fringe benefits ..................................... 38
Division 4--Loan fringe benefits 39
Subdivision A--Loan benefits 39
16.......... Loan benefits .................................................................................... 39
17.......... Exempt loan benefits ........................................................................ 41
Subdivision B--Taxable value of loan fringe benefits 43
18.......... Taxable value of loan fringe benefits ................................................. 43
19.......... Reduction of taxable value--otherwise deductible rule ..................... 43
Division 5--Expense payment fringe benefits 49
Subdivision A--Expense payment benefits 49
20.......... Expense payment benefits ................................................................ 49
20A....... Exemption--no‑private‑use declaration ........................................... 49
21.......... Exempt accommodation expense payment benefits ......................... 49
22.......... Exempt car expense payment benefits ............................................. 50
Subdivision B--Taxable value of expense payment fringe benefits 51
22A....... Taxable value of in‑house expense payment fringe benefits ............. 51
23.......... Taxable value of external expense payment fringe benefits .............. 52
24.......... Reduction of taxable value--otherwise deductible rule ..................... 53
Division 6--Housing fringe benefits 61
Subdivision A--Housing benefits 61
25.......... Housing benefits ............................................................................... 61
Subdivision B--Taxable value of housing fringe benefits 61
26.......... Taxable value of non‑remote housing fringe benefits ........................ 61
27.......... Determination of market value of housing right ............................... 65
28.......... Indexation factor for valuation purposes--non‑remote housing ...... 66
Division 7--Living‑away‑from‑home allowance fringe benefits 68
Subdivision A--Living‑away‑from‑home allowance benefits 68
30.......... Living‑away‑from‑home allowance benefits ..................................... 68
Subdivision B--Taxable value of living‑away‑from‑home allowance fringe benefits 69
31.......... Taxable value of living‑away‑from‑home allowance fringe benefits . 69
Division 8--Airline transport fringe benefits 70
Subdivision A--Airline transport benefits 70
32.......... Airline transport benefits ................................................................. 70
Subdivision B--Taxable value of airline transport fringe benefits 70
33.......... Taxable value of airline transport fringe benefits .............................. 70
34.......... Reduction of taxable value--otherwise deductible rule ..................... 71
Division 9--Board fringe benefits 73
Subdivision A--Board benefits 73
35.......... Board benefits ................................................................................... 73
Subdivision B--Taxable value of board fringe benefits 73
36.......... Taxable value of board fringe benefits .............................................. 73
37.......... Reduction of taxable value--otherwise deductible rule ..................... 73
Division 9A--Meal entertainment 75
Subdivision A--Meal entertainment 75
37A....... Key principle .................................................................................... 75
37AA.... Division only applies if election made ............................................. 75
37AB.... Employee contributions to be excluded ............................................ 75
37AC.... Meal entertainment benefits ............................................................. 75
37AD.... Meaning of provision of meal entertainment .................................... 75
37AE..... Fringe benefits only arise if employer is provider ............................ 76
37AF..... No other fringe benefits arise if election made .................................. 76
37AG.... Some benefits still arise .................................................................... 76
Subdivision B--50/50 split method of valuing meal entertainment 77
37B....... Key principle .................................................................................... 77
37BA.... Taxable value using 50/50 split method ............................................ 77
7737C....... Key principle .................................................................................... 77
37CA.... Election by employer ....................................................................... 77
37CB..... Taxable value using 12 week register method ................................... 78
37CC..... Choosing the 12 week period for a register ...................................... 78
37CD.... FBT years for which register is valid ............................................... 79
37CE..... Matters to be included in register ..................................................... 79
37CF..... False or misleading entries invalidate register ................................... 80
Division 10--Tax‑exempt body entertainment fringe benefits 81
Subdivision A--Tax‑exempt body entertainment benefits 81
38.......... Tax‑exempt body entertainment benefits ......................................... 81
Subdivision B--Taxable value of tax‑exempt body entertainment fringe benefits 81
39.......... Taxable value of tax‑exempt body entertainment fringe benefits ..... 81
Division 10A--Car parking fringe benefits 82
Subdivision A--Car parking benefits 82
39A....... Car parking benefits .......................................................................... 82
39AA.... Anti‑avoidance--fee on first business day not representative ......... 84
39AB.... When fees are not representative ...................................................... 84
39B....... When commercial parking stations are located within a 1 km radius of business premises or associated premises .......................................................................................................... 84
Subdivision B--Taxable value of car parking fringe benefits 84
39C....... Taxable value of car parking fringe benefits--commercial parking station method 84
39D....... Taxable value of car parking fringe benefits--market value basis .... 85
39DA.... Taxable value of car parking fringe benefits--average cost method 86
39E........ Fees charged by commercial parking stations for all‑day parking .... 87
Subdivision C--Statutory formula method--spaces 88
39F........ The key principle ............................................................................. 88
39FA..... Spaces method of calculating total taxable value of car parking fringe benefits 88
39FB..... Number of spaces exceeds number of employees ............................ 89
39FC..... Meaning of daily rate amount ........................................................... 91
39FD..... Meaning of availability period .......................................................... 91
39FE..... Meaning of relevant recipients contribution ..................................... 91
9239G....... The key principle ............................................................................. 92
39GA.... Employer may elect to use 12 week record keeping method ........... 92
39GB.... Value of fringe benefits for year ....................................................... 92
39GC.... Meaning of total value of car parking benefits (register) ................. 92
39GD.... Meaning of car parking availability period ...................................... 93
39GE..... Choosing the 12 week period for a register ...................................... 93
39GF..... FBT years for which register is valid ............................................... 93
39GG.... Matters to be included in register ..................................................... 94
39GH.... Fraudulent entries invalidate register ................................................ 95
Division 11--Property fringe benefits 96
Subdivision A--Property benefits 96
40.......... Property benefits .............................................................................. 96
41.......... Exempt property benefits ................................................................ 96
Subdivision B--Taxable value of property fringe benefits 97
42.......... Taxable value of in‑house property fringe benefits .......................... 97
43.......... Taxable value of external property fringe benefits ........................... 98
44.......... Reduction of taxable value--otherwise deductible rule ..................... 99
Division 12--Residual fringe benefits 105
Subdivision A--Residual benefits 105
45.......... Residual benefits ............................................................................. 105
46.......... Year of tax in which residual benefits taxed .................................... 105
47.......... Exempt residual benefits ................................................................. 106
47A....... Exemption--no‑private‑use declaration ......................................... 111
Subdivision B--Taxable value of residual fringe benefits 112
48.......... Taxable value of in‑house non‑period residual fringe benefits ........ 112
49.......... Taxable value of in‑house period residual fringe benefits ............... 112
50.......... Taxable value of external non‑period residual fringe benefits ......... 113
51.......... Taxable value of external period residual fringe benefits ................ 113
52.......... Reduction of taxable value--otherwise deductible rule ................... 114
Division 13--Miscellaneous exempt benefits 120
53.......... Motor vehicle fringe benefit fuel etc. to be exempt in certain cases 120
54.......... Provision of food or drink to be exempt benefit in certain cases .... 120
55.......... Benefits provided by certain international organisations to be exempt 121
56.......... Preservation of diplomatic and consular immunities ...................... 121
57.......... Exempt benefits--employees of religious institutions ................... 121
57A....... Exempt benefits--public benevolent institutions, health promotion charities, some hospitals and public ambulance services ........................................................................................... 122
58.......... Exempt benefits--live‑in residential care workers ......................... 123
58A....... Exempt benefits--employment interviews and selection tests ...... 124
58AA.... Exempt benefits--engagement of relocation consultant ................. 125
58B....... Exempt benefits--removals and storage of household effects as a result of relocation 126
58C....... Exempt benefits--sale or acquisition of dwelling as a result of relocation 128
58D....... Exempt benefits--connection or re‑connection of certain utilities as a result of relocation 132
58E........ Exempt benefits--leasing of household goods while living away from home 133
58F........ Exempt benefits--relocation transport .......................................... 134
58G....... Exempt benefits--motor vehicle parking ....................................... 135
58GA.... Exempt benefits--small business car parking ................................ 136
58H....... Exempt benefits--newspapers and periodicals used for business purposes 137
58J........ Exempt benefits--compensable work‑related trauma .................... 138
58K....... Exempt benefits--in‑house health care facilities ............................ 139
58L........ Exempt benefits--certain travel to obtain medical treatment ......... 139
58LA..... Exempt benefits--compassionate travel ........................................ 141
58M...... Exempt benefits--work‑related medical examinations, work‑related medical screening, work‑related preventative health care, work‑related counselling, migrant language training ............... 143
58N....... Exempt benefits--emergency assistance ........................................ 145
58P........ Exempt benefits--minor benefits ................................................... 145
58PA..... Exempt benefits--worker entitlement contributions ..................... 148
58PB..... Meaning of approved worker entitlement funds ............................. 148
58PC..... Exempt benefits--existing worker entitlement funds ..................... 150
58Q....... Exempt benefits--long service awards ........................................... 151
58R....... Exempt benefits--safety awards .................................................... 153
58S........ Exempt benefits--trainees engaged under Australian Traineeship System 153
58T....... Exempt benefits--live‑in domestic workers employed by religious institutions or by religious practitioners 154
58U....... Exempt benefits--live‑in help for elderly and disadvantaged persons 155
58V....... Exempt benefits--food and drink for non‑live‑in domestic employees 156
58W...... Exempt benefits--deposits under the Small Superannuation Accounts Act 1995 156
58X....... Exempt benefits--provision of certain work related items ............ 157
58Y....... Exempt benefits--membership fees and subscriptions .................. 158
58Z....... Exempt benefits--taxi travel .......................................................... 158
58ZB..... Exempt benefits--approved student exchange programs ............... 159
58ZC..... Exempt benefits--remote area housing benefits ............................. 159
58ZD.... Exempt benefits--meals on working days ..................................... 161
Division 14--Reduction of taxable value of miscellaneous fringe benefits 162
59.......... Reduction of taxable value--remote area residential fuel ............... 162
60.......... Reduction of taxable value--remote area housing .......................... 164
60AA.... Guideline price for repurchase of remote area residential property 167
60A....... Reduction of taxable value--remote area holiday transport fringe benefits subject to ceiling 168
61.......... Reduction of taxable value--remote area holiday transport fringe benefits not subject to ceiling 171
61A....... Reduction of taxable value--overseas employment holiday transport 173
61B....... Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport 176
61C....... Reduction of taxable value--temporary accommodation relating to relocation 176
61D....... Reduction of taxable value of temporary accommodation meal fringe benefits 180
61E........ Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests ................................................................................................ 181
61F........ Reduction of taxable value of certain expense payment fringe benefits associated with work‑related medical examinations, work‑related medical screenings, work‑related preventative health care, work‑related counselling or migrant language training ................................................................. 182
61G....... Reduction of taxable value of fringe benefits if certain deductions relating to payments to associates are not allowed ........................................................................................................ 184
62.......... Reduction of aggregate taxable value of certain fringe benefits ....... 184
63.......... Reduction of taxable value of living‑away‑from‑home food fringe benefits 185
63A....... Reduction of taxable value in respect of entertainment component of certain fringe benefits 186
65A....... Reduction of taxable value--education of children of overseas employees 186
Division 14A--Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes 189
65CA.... Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes 189
65CB..... Amendment of assessments ........................................................... 192
Division 14B--Reducible fringe benefits relating to remote area home repurchase schemes 193
65CC..... Reducible fringe benefits relating to remote area home repurchase schemes 193
Division 15--Car substantiation rules for otherwise deductible provisions 194
65D....... Car substantiation rules .................................................................. 194
65E........ No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained ....................................................................................... 194
65F........ No compliance with substantiation rules in non‑log book year of tax unless log book records kept in previous log book year of tax ....................................................................................... 194
Part IIIA--Rebates of tax 196
65J........ Rebate for certain non‑profit employers etc. ................................. 196
Part IV--Liability to tax 204
66.......... Liability to pay tax ......................................................................... 204
67.......... Arrangements to avoid or reduce fringe benefits tax ....................... 204
Part V--Returns and assessments 207
Division 1--Returns 207
68.......... Annual returns ................................................................................ 207
69.......... Further returns ................................................................................ 207
70.......... Keeping records of indirect tax transactions ................................... 207
70D....... Tax agent to give taxpayer copy of notice of assessment .............. 207
Division 2--Assessments 209
72.......... First return deemed to be an assessment ........................................ 209
73.......... Default assessments ....................................................................... 209
74.......... Amendment of assessments ........................................................... 210
75.......... Refund of amounts overpaid .......................................................... 211
76.......... Amended assessment to be an assessment ..................................... 211
77.......... Notice of assessment ...................................................................... 212
78.......... Validity of assessment .................................................................... 212
78A....... Objections ....................................................................................... 212
An Act relating to the assessment and collection of the tax imposed by the Fringe Benefits Tax Act 1986, and for related purposes
Notes to
the
Fringe Benefits Tax Assessment Act 1986 Note 1 The Fringe Benefits Tax Assessment Act 1986 as shown in
this compilation comprises Act No. 39, 1986 amended as indicated in the
Tables below. The Fringe Benefits Tax Assessment Act 1986 was amended
by the Workplace Relations Amendment (Work Choices) (Consequential
Amendments) Regulations 2006 (No. 1) (SLI 2006 No. 50). The
amendment is incorporated in this compilation. The Fringe Benefits Tax Assessment Act 1986 was
modified by the Bankruptcy Rules (1968 No. 2 as amended). The
modifications are not incorporated in this compilation. The Fringe Benefits Tax Assessment Act 1986 was
modified by the Banking (State Bank of South Australia and
The Fringe Benefits Tax Assessment Act 1986 was modified by the Bankruptcy Regulations (1996 No. 263 as amended). The modifications are not incorporated in this compilation.
For application, saving or transitional provisions made by the Corporations (Repeals, Consequentials and Transitionals) Act 2001, see Act No. 55, 2001.
All relevant information pertaining to application, saving or transitional provisions prior to 18 December 1996 is not included in this compilation. For subsequent information see Table A.
Table of Acts
|
Act |
Number |
Date |
Date of commencement |
Application, saving or transitional provisions |
|
39, 1986 |
24 June 1986 |
24 June 1986 |
|
|
|
Taxation Boards of Review (Transfer of Jurisdiction) Act 1986 |
48, 1986 |
24 June 1986 |
S. 31 and Parts VII, VIII
(ss. |
-- |
|
112, 1986 |
4 Nov 1986 |
4 Nov 1986 |
||
|
23, 1987 |
26 May 1987 |
|||
|
Taxation Laws Amendment (Fringe Benefits and Substantiation) Act 1987 |
139, 1987 |
18 Dec 1987 |
18 Dec 1987 |
|
|
as amended by |
|
|
|
|
|
11, 1988 |
26 Apr 1988 |
-- |
||
|
78, 1988 |
24 June 1988 |
(see 78, 1988 below) |
-- |
|
|
Petroleum Resource Rent Tax (Miscellaneous Provisions) Act 1987 |
145, 1987 |
18 Dec 1987 |
15 Jan 1988 (see s. 2) |
-- |
|
Australian Airlines (Conversion to Public Company) Act 1988 |
6, 1988 |
9 Mar 1988 |
S. 69(1): Royal Assent (d) |
-- |
|
78, 1988 |
24 June 1988 |
Part II (ss. 3--6), Ss.
37, 39--53 and 55(15)--(25): 1 Nov 1988 (see Gazette 1988, No. S331) |
-- |
|
|
95, 1988 |
24 Nov 1988 |
|||
|
as amended by |
|
|
|
|
|
107, 1989 |
30 June 1989 |
(see 107, 1989 below) |
-- |
|
|
97, 1988 |
25 Nov 1988 |
S. 12: 1 July 1989 (see
Gazette 1989, No. S159) |
-- |
|
|
153, 1988 |
26 Dec 1988 |
Div. 6 of Part III (s.
43): 1 Jan 1989 |
||
|
2, 1989 |
6 Jan 1989 |
Ss. 86 and 87: Royal Assent (f) |
-- |
|
|
11, 1989 |
16 Mar 1989 |
16 Mar 1989 |
||
|
97, 1989 |
30 June 1989 |
30 June 1989 |
||
|
107, 1989 |
30 June 1989 |
Part 6 (ss. 29, 30): (g) Remainder: Royal Assent |
||
|
Petroleum (Australia‑Indonesia Zone of Cooperation) (Consequential Provisions) Act 1990 |
37, 1990 |
7 June 1990 |
18 Feb 1991 (see s. 2 and Gazette 1991, No. S47) |
-- |
|
Taxation Laws Amendment Act (No. 3) 1990 |
58, 1990 |
16 June 1990 |
S. 11: 16 June 1990 (see s. 2(2)) S. 23: 4 Dec 1989 Part 5 (ss. 36--38): 11 May 1989 |
|
|
60, 1990 |
16 June 1990 |
S. 43 and Part 10 (ss.
88--95): 31 Oct 1990 (see Gazette 1990, No. S272) |
-- |
|
|
135, 1990 |
28 Dec 1990 |
|||
|
48, 1991 |
24 Apr 1991 |
|||
|
100, 1991 |
27 June 1991 |
Ss. 3, 5, 7, 10, 12 and 13:
Royal Assent (j) |
||
|
Taxation Laws Amendment Act (No. 3) 1991 |
216, 1991 |
24 Dec 1991 |
Ss. 5--8, 88, 123 and 124:
Royal Assent (k) |
|
|
35, 1992 |
25 May 1992 |
25 May 1992 |
||
|
Superannuation Guarantee (Consequential Amendments) Act 1992 |
92, 1992 |
30 June 1992 |
1 July 1992 |
-- |
|
101, 1992 |
30 June 1992 |
30 June 1992 |