[pic] Fringe Benefits Tax (Application to the Commonwealth) Act 1986 Act No. 42 of 1986 as amended This compilation was prepared on 25 September 2009 taking into account amendments up to Act No. 88 of 2009 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 Prepared by the Office of Legislative Drafting and Publishing, Attorney-General's Department, Canberra Contents 1 Short title [see Note 1] 1 2 Commencement [see Note 1] 1 2A Objects 1 3 Interpretation 1 4 Application of Assessment Act in relation to Commonwealth employment 3 5 Application of Act to certain Commonwealth authorities 3 5A Modified objection, review and appeal provisions 3 6 Exemption of certain benefits provided under the Defence Service Homes Act 3 6AA Exemption of benefits provided to certain people 4 6AB Exemption of benefits provided to Commonwealth employees under the Entitlements Act and the Military Rehabilitation and Compensation Act 4 6AC Exemption of health care benefits provided to certain members of the Defence Force 5 6A No entitlement to rebate of tax 5 7 Directions by Finance Minister 5 8 Annual report 5 9 Regulations 5 Notes 7 An Act to provide for the notional application of fringe benefits tax, and for the application of the reportable fringe benefits system, in relation to benefits provided in respect of the employment of Commonwealth employees 1 Short title [see Note 1] This Act may be cited as the Fringe Benefits Tax (Application to the Commonwealth) Act 1986. 2 Commencement [see Note 1] This Act shall come into operation on the day on which the Fringe Benefits Tax Assessment Act 1986 comes into operation. 2A Objects The objects of this Act are to provide for: (a) the notional application of fringe benefits tax in relation to benefits provided in respect of the employment of Commonwealth employees; and (b) the calculation of the reportable fringe benefits totals of those employees; and (c) the calculation of the reportable fringe benefits amounts of those employees in respect of that employment. 3 Interpretation (1) In this Act, unless the contrary intention appears: Assessment Act means the Fringe Benefits Tax Assessment Act 1986. Commonwealth employee means an employee of the Commonwealth. Department means: (a) a Department of State; (b) a Department of the Parliament; or (c) an Executive Agency or Statutory Agency (within the meaning of the Public Service Act 1999). Entitlements Act means the Veteran's Entitlements Act 1986. Finance Department means the Department that: (a) deals with matters arising under section 1 of the Financial Management and Accountability Act 1997; and (b) is administered by the Finance Minister. Finance Minister has the meaning given by the Income Tax Assessment Act 1997. responsible Department, in relation to the employment of a Commonwealth employee, means: (a) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated under an annual Appropriation Act-the Department in respect of which the money was appropriated; and (b) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated under an Act other than an annual Appropriation Act: (i) if the employee performs or performed the duties of that employment in, or in respect of, a Department-that Department; or (ii) in any other case-the Department of State administered by the Minister who administers the Act under which that money was appropriated, insofar as the Act appropriated that money; and (c) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated by the Constitution-the Finance Department. (2) Unless the contrary intention appears, an expression that is used in this Act and in the Assessment Act has the same meaning in this Act as it has in the Assessment Act. 4 Application of Assessment Act in relation to Commonwealth employment (1) Subject to this Act and to such modifications as are prescribed, the Assessment Act applies, in respect of any matter or thing in respect of the employment of a Commonwealth employee, as if: (a) the employee were employed by the responsible Department and not by the Commonwealth; (b) the responsible Department were a company and each other Department, and each authority of the Commonwealth, were a company related to the responsible Department; and (c) the responsible Department were a government body. (2) In subsection (1), modifications includes additions, omissions and substitutions. 5 Application of Act to certain Commonwealth authorities (1) Subject to such modifications as are prescribed, this Act applies in relation to an authority of the Commonwealth referred to in paragraph (e) of the definition of employer in subsection 136(1) of the Assessment Act in like manner as it applies in relation to a Department. (2) In subsection (1), modifications includes additions, omissions and substitutions. 5A Modified objection, review and appeal provisions If, apart from this section, Part IVC of the Taxation Administration Act 1953 would apply to an objection made under the Assessment Act in its application in accordance with this Act, then that Part applies as if subsection 14ZX (4), section 14ZZ and Divisions 4 and 5 of that Part were omitted. 6 Exemption of certain benefits provided under the Defence Service Homes Act For the purposes of the application of the Assessment Act in accordance with this Act, where a benefit is provided under the Defence Service Homes Act 1918 in respect of the employment of a Commonwealth employee by reason of the employee being an eligible person within the meaning of that Act otherwise than by virtue of paragraph (h) or (i) of the definition of Australian Soldier in subsection 4(1) of that Act, the benefit is an exempt benefit. 6AA Exemption of benefits provided to certain people For the purposes of the application of the Assessment Act in accordance with this Act, if a benefit (other than a benefit referred to in section 6) is provided, in respect of the employment of a Commonwealth employee, because of the employee being: (a) a veteran as defined by subsection 5C(1) of the Entitlements Act to whom, or in respect of whom, a pension is payable under Part II of that Act; or (b) a veteran as defined by subsection 5C(1) of the Entitlements Act who is eligible to receive a service pension, or in respect of whom a service pension is payable, under Part III of that Act; or (c) a member of the Forces, or a member of a Peacekeeping Force, as defined by subsection 68(1) of the Entitlements Act to whom, or in respect of whom, pension is payable under Part IV of that Act; or (d) a person who has received a lump sum under Part 2 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004 or who is receiving payments under that Part; or (e) a person who is receiving a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004; the benefit is an exempt benefit. 6AB Exemption of benefits provided to Commonwealth employees under the Entitlements Act and the Military Rehabilitation and Compensation Act For the purposes of the application of the Assessment Act in accordance with this Act, if a benefit is provided under the Entitlements Act or the Military Rehabilitation and Compensation Act 2004, in respect of the employment of a Commonwealth employee, the benefit is an exempt benefit. 6AC Exemption of health care benefits provided to certain members of the Defence Force (1) For the purposes of the application of the Assessment Act in accordance with this Act, if a benefit that consists of the provision of health care and is not otherwise an exempt benefit is provided, in respect of the employment of a Commonwealth employee, because of the employee being a member of the Defence Force, the first-mentioned benefit is an exempt benefit. (2) In this section, a reference to an employee being a member of the Defence Force is a reference to an employee who is, was formerly, or will become, a member of the Defence Force. 6A No entitlement to rebate of tax For the purposes of the application of the Assessment Act in accordance with this Act, it is to be assumed that section 65J of that Act (which deals with rebates) had not been enacted. 7 Directions by Finance Minister (1) The Finance Minister may give such directions in writing as are necessary or convenient to be given for carrying out or giving effect to this Act and, in particular, may give directions in relation to the transfer of money within the Public Account. (2) Directions under subsection (1) have effect, and shall be complied with, notwithstanding any other law of the Commonwealth. 8 Annual report The report by the Commissioner under section 4 of the Assessment Act shall include a report on the working of this Act, including any breaches or evasions of this Act of which the Commissioner has notice. 9 Regulations The Governor-General may make regulations, not inconsistent with this Act, prescribing matters: (a) required or permitted by this Act to be prescribed; or (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act. Notes to the Fringe Benefits Tax (Application to the Commonwealth) Act 1986 Note 1 The Fringe Benefits Tax (Application to the Commonwealth) Act 1986 as shown in this compilation comprises Act No. 42, 1986 amended as indicated in the Tables below. Table of Acts |Act |Number |Date |Date of |Applica| | |and year|of Assent|commencement|tion, | | | | | |saving | | | | | |or | | | | | |transit| | | | | |ional | | | | | |provisi| | | | | |ons | |Fringe Benefits |42, 1986|24 June |24 June 1986| | |(Application to | |1986 |(see s. 2) | | |the | | | | | |Commonwealth) | | | | | |Act 1986 | | | | | |Taxation Boards |48, 1986|24 June |S. 31 and |- | |of Review | |1986 |Parts VII | | |(Transfer of | | |and VIII | | |Jurisdiction) | | |(ss. | | |Act 1986 | | |45-56): | | | | | |24 June 1986| | | | | |(see s. | | | | | |2(2)) | | | | | |Remainder: | | | | | |1 July 1986 | | |Taxation Laws |216, |24 Dec |S. 113: |Ss. 114| |Amendment Act |1991 |1991 |1 March 1992|and 116| |(No. 3) 1991 | | |(see Gazette| | | | | |1992, No. | | | | | |GN7) (a) | | |Taxation Laws |223, |24 Dec |1 Apr 1994 |S. 4 | |Amendment |1992 |1992 | | | |(Fringe Benefits| | | | | |Tax Measures) | | | | | |Act 1992 | | | | | |Veterans' |146, |12 Dec |S. 3(5): |Sch. 13| |Affairs |1995 |1995 |Royal Assent|(item 3| |Legislation | | |(b) |) | |Amendment | | | | | |(1995-96 Budget | | | | | |Measures) Act | | | | | |(No. 2) 1995 | | | | | |A New Tax System|17, 1999|19 Apr |Schedule 1 |- | |(Fringe Benefits| |1999 |(items 17, | | |Reporting) Act | | |18): Royal | | |1999 | | |Assent (c) | | |Public |146, |11 Nov |Schedule 1 |- | |Employment |1999 |1999 |(item 494): | | |(Consequential | | |5 Dec 1999 | | |and | | |(see Gazette| | |Transitional) | | |1999, No. | | |Amendment Act | | |S584) (d) | | |1999 | | | | | |Military |52, 2004|27 Apr |Schedule 3 |- | |Rehabilitation | |2004 |(items 22, | | |and Compensation| | |23): 1 July | | |(Consequential | | |2004 (see s.| | |and Transitional| | |2) | | |Provisions) Act | | | | | |2004 | | | | | |Tax Laws |88, 2009|18 Sept |Schedule 5 |- | |Amendment (2009 | |2009 |(items 14-18| | |Measures No. 4) | | |): Royal | | |Act 2009 | | |Assent | | (a) The Fringe Benefits Tax (Application to the Commonwealth) Act 1986 was amended by section 113 only of the Taxation Laws Amendment Act (No. 3) 1991, subsection 2(10) of which provides as follows: (10) Subject to subsection (11), sections 112 to 117 (inclusive) commence on a day to be fixed by Proclamation. (b) The Fringe Benefits Tax (Application to the Commonwealth) Act 1986 was amended by the Veterans' Affairs Legislation Amendment (1995-96 Budget Measures) Act (No. 2) 1995, subsection 2(1) of which provides as follows: (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. (c) The Fringe Benefits Tax (Application to the Commonwealth) Act 1986 was amended by Schedule 1 (items 17 and 18) only of the A New Tax System (Fringe Benefits Reporting) Act 1999, subsection 2(1) provides as follows: (1) This Act commences on the day on which it receives the Royal Assent. (d) The Fringe Benefits Tax (Application to the Commonwealth) Act 1986 was amended by Schedule 1 (item 494) only of the Public Employment (Consequential and Transitional) Amendment Act 1999, subsections 2(1) and (2) of which provide as follows: (1) In this Act, commencing time means the time when the Public Service Act 1999 commences. (2) Subject to this section, this Act commences at the commencing time. Table of Amendments |ad. = added or inserted am. = amended rep. = | |repealed rs. = repealed and substituted | |Provision affected|How affected | |Title |am. No. 17, 1999 | |S. 2A |ad. No. 17, 1999 | |S. 3 |am. No. 146, 1995; No. 146, 1999; | | |No. 88, 2009 | |S. 4 |am. No. 48, 1986; No. 216, 1991 | |S. 5A |ad. No. 216, 1991 | |S. 6A |ad. No. 223, 1992 | |S. 6AA |ad. No. 146, 1995 | | |am. No. 52, 2004 | |Heading to s. 6AB |am. No. 52, 2004 | |S. 6AB |ad. No. 146, 1995 | | |am. No. 52, 2004 | |S. 6AC |ad. No. 146, 1995 | |Heading to s. 7 |am. No. 88, 2009 | |S. 7 |am. No. 88, 2009 |