Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 10

10. (1) An employer may, in relation to a particular car, elect 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 that car.

(2) Where an election is made under sub-section (1), the taxable value, or the
aggregate of the taxable values, as the case requires, of the car fringe
benefits in relation to the employer in relation to the year of tax that
relate to the car while it was held by a particular person (in this section
referred to as the "provider") continuously during a particular period (in
this section referred to as the "holding period") in the year of tax is the
amount
AB calculated in accordance with the formula -- - D, where-
C
A is the operating cost of the car during the holding period;
B is the number of whole private kilometres travelled by the car during the
holding period;
C is the number of whole kilometres travelled by the car in the holding
period; and
D is the amount (if any) of the recipient's payment.

(3) For the purposes of sub-section (2)-

   (a)  the operating cost of the car during the holding period is the sum of-

        (i)    any car expenses (other than 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;

        (ii)   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;

        (iii)  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 year of tax; 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 year of tax;

        (iv)   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 year of tax 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 year of tax if the accessory were a
                     car;

        (v)    in a case where the car is leased to the provider-

                (A)  where sub-sub-paragraph (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 sales tax or 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-sub-paragraph (A) if the lessor had
                     not been entitled to those privileges or exemptions; and

        (vi)   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 year of tax 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;

   (b)  the number of whole private kilometres travelled by the car during the
        holding period is-

        (i)    in a case where relevant car documents in relation to the car
               are maintained by or on behalf of the provider during the
               holding period and, if the provider is not the employer, are
               given to the employer before the declaration date, the number
               ascertained in accordance with the formula A - B, where-
A is the number of whole kilometres travelled by the car during the holding
period; and
B is the number of whole kilometres travelled by the car during the holding
period in respect of business journeys undertaken in the car; and

        (ii)   in any other case-the number of whole kilometres travelled by
               the car during the holding period; and

   (c)  the amount of the recipient's payment is the sum of-

        (i)    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

        (ii)   in a case where-

                (A)  car expenses in respect of 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.

(4) An election by an employer under sub-section (1) in relation to a year
of tax-

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

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

(5) Where-

   (a)  an employer is entitled to make, but does not make, an election under
        sub-section (1) in relation to a car in relation to a year of tax; or

   (b)  an associate of an employer is entitled to make, but does not make, an
        election under sub-section (1) in relation to a car in relation to a
        year of tax, not being a year of tax in relation to which the employer
        makes an election under sub-section (1) in relation to the car, the
        employer is not entitled to make an election under sub-section (1) in
        relation to the car in relation to a later year of tax.

(6) Where an employer-

   (a)  makes an election under sub-section (1) in relation to a car in
        relation to a year of tax; and

   (b)  is entitled to make an election under sub-section (1) in relation to
        the car in relation to a later year of tax, the employer shall be
        deemed, for the purposes of this section, to have made the election
        referred to in paragraph (b).