Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 19

19. (1) Where-

   (a)  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;

   (b)  if the recipient had, on the last day of the 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 interest in respect of the
        loan in respect of that period and had not been reimbursed
        in respect of any part of that interest-

        (i)    a once-only deduction would, or would but for section 82A, and
               Subdivisions F and G of Division 3 of Part III, of the Income
               Tax Assessment Act 1936, have been allowable under that Act to
               the recipient in respect of a
percentage (in this sub-section referred to as the "deductible percentage") of
that interest; and

        (ii)   that deduction would not be-

                (A)  a deduction in respect of rental property loan interest
                     within the meaning of Subdivision G of Division 3 of Part
                     III of that Act; or

                (B)  an eligible rental property deduction within the meaning
                     of Subdivision G of Division 3 of Part III of that Act;

   (c)  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

   (d)  where the loan was used by the recipient to purchase a car owned by
        the
recipient during a period (in this paragraph referred to as the "holding
period") in the year of tax-the recipient gives to the employer, before the
declaration date-

        (i)    a declaration, in a form approved by the Commissioner, that
               purports to set out-

                (A)  the holding period;

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

                (C)  the number of whole kilometres travelled by the car
                     during the holding period; or

        (ii)   where the average number of business kilometres per week
               travelled by the car during the holding period exceeded 96-

                (A)  a declaration referred to in sub-paragraph (i); or

                (B)  a declaration, in a form approved by the Commissioner,
                     that purports to set out the holding period and includes
                     a statement by the recipient that the average number of
                     business kilometres per week travelled by the car during
                     the holding period exceeded 96, the taxable value, but
                     for section 60, of the loan fringe benefit in relation to
                     the year of tax is the amount calculated in accordance
                     with the formula A (1-B) where-
A is the amount that, but for this sub-section and section 60, would be the
taxable value of the loan fringe benefit in relation to the year of tax; and
B is-

   (e)  in a case where paragraph (d) does not apply-the deductible
        percentage;

   (f)  where paragraph (d) applies and a declaration referred to in
        sub-paragraph (d) (i) has been given to the employer-

        (i)    in a case to which sub-paragraph (ii) of this paragraph does
               not apply-the deductible percentage or 33 1/3%, whichever is
               the less; or

        (ii)   in a case where the declaration contains a statement that
               relevant car documents were maintained by or on behalf of the
               recipient and the declaration is accompanied by a copy of those
               documents-the deductible percentage; or

   (g)  where sub-paragraph (d) (ii) applies but a declaration referred to in
        sub-paragraph (d) (i) has not been given to the employer-33 1/3%.

(2) Where a part of a loan to which a loan fringe benefit relates is used by
an employee to purchase a particular car, sub-section (1) applies as if that
part of the loan had been a separate loan.