TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 NO. 139 OF 1987 TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 NO. 139 OF 1987 - TABLE OF PROVISIONS 1. Short title 2. Commencement 3. Principal Act 4. Exempt car benefits 5. Taxable value of car fringe benefits-statutory formula 6. Taxable value of car fringe benefits-cost basis 7. 8. Calculation of depreciation and interest 9. Taxable value of debt waiver fringe benefits 10. Exempt loan benefits 11. Taxable value of loan fringe benefits 12. Reduction of taxable value-''otherwise deductible'' rule 13. Exempt accommodation expense payment benefits 14. Exempt car expense payment benefits 15. 16. Taxable value of external expense payment fringe benefits 17. Reduction of taxable value-''otherwise deductible'' rule 18. Taxable value of non-remote housing fringe benefits 19. Indexation factor for valuation purposes-non-remote housing 20. Taxable value of remote area accommodation 21. 22. Living-away-from-home allowance benefits 23. Taxable value of living-away-from-home allowance fringe benefits 24. Reduction of taxable value-''otherwise deductible'' rule 25. Reduction of taxable value-''otherwise deductible'' rule 26. Taxable value of tax-exempt body entertainment fringe benefits 27. Reduction of taxable value-''otherwise deductible'' rule 28. Exempt residual benefits 29. Reduction of taxable value-''otherwise deductible'' rule 30. Heading to Division 13 of Part III 31. Exempt benefits-employees of religious institutions 32. 33. Exempt benefits-live-in residential care workers 34. 35. Reduction of taxable value-remote area residential fuel 36. Reduction of taxable value-remote area housing 37. 38. Reduction of taxable value-remote area holiday transport fringe benefits not subject to ceiling 39. 40. Reduction of aggregate taxable value of certain fringe benefits 41. Reduction of taxable value of living-away-from-home food fringe benefits 42. 43. Application of payments of instalments of tax 44. Notional tax amount 45. 46. Retention of statutory evidentiary documents 47. 48. Interpretation 49. 50. Housing loans, prescribed interests in land or stratum units and proprietary rights in respect of dwellings 51. 52. Remote area housing 53. 54. Remote area holiday transport 55. 56. Residual benefits to include provision of property in certain circumstances 57. Associates and relatives 58. Business journeys in car 59. Holding of car 60. 61. Application of amendments 62. Amendment of assessments 63. Principal Act 64. Deductions not allowable for entertainment expenses 65. Deductions not allowable where expenses incurred by employee are reimbursed 66. 67. Interpretation 68. 69. Log book year of income 70. Deduction for car expenses where income-producing use does not exceed 5,000 kilometres-statutory formula 71. Elections 72. Aggregate claims not exceeding a certain amount 73. 74. Application of amendments 75. Amendment of assessments TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - LONG TITLE An Act to amend the law relating to taxation TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 1 Short title (Assented to 18 December 1987) 1. This Act may be cited as the Taxation Laws Amendment (Fringe Benefits and Substantiation) Act 1987. (Minister's second reading speech made in- House of Representatives on 29 October 1987 Senate on 23 November 1987) TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 2 Commencement 2. This Act shall come into operation on the day on which it receives the Royal Assent. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 3 Principal Act 3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment Act 1986*1*. *1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112, 1986; and No. 23, 1987. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 4 Exempt car benefits 4. Section 8 of the Principal Act is amended: (a) by omitting paragraph (2) (b) and substituting the following paragraph: "(b) there was no private use of the car during the year of tax and at a time when the benefit was provided other than: (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."; and (b) by adding at the end the following subsection: "(3) Where: (a) a car benefit relating to a particular car is provided by a particular person (in this subsection called the '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 principally used 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.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 5 Taxable value of car fringe benefits-statutory formula 5. Section 9 of the Principal Act is amended: (a) by omitting from subsection (1) "Subdivision" and substituting "Part"; (b) by omitting from subparagraph (2) (e) (i) "and"; (c) by inserting after subparagraph (2) (e) (i) the following subparagraph: "(ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and: (A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or (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; and"; and (d) by inserting in sub-subparagraph (2) (e) (ii) (A) "(other than car expenses in respect of fuel or oil for the car)" after "in respect of the car". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 6 Taxable value of car fringe benefits-cost basis 6. Section 10 of the Principal Act is amended: (a) by omitting from subsection (2) "Where" and substituting "Subject to this Part, where"; (b) by omitting from subsection (2) "continuously"; (c) by omitting from subsection (2) all the words after "amount calculated" and substituting the following: "in accordance with the formula: (C X (100%-BP))-R where: C is the operating cost of the car during the holding period; BP is: (a) if, under section 10A or 10B, the employer is not entitled to a reduction in the operating cost of the car on account of business journeys undertaken in the car during the holding period-nil; (b) if, under section 10A or 10B, the employer is entitled to such a reduction and the percentage calculated in accordance with the formula: N-U where: N is the percentage applicable to the car specified in the employer's return for the year of tax as mentioned in section 10A or 10B; and U is the percentage (in this paragraph called the 'reasonable percentage') that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the provider for the holding period; is a percentage that: (i) if either of the following sub-subparagraphs applies: (A) the year of tax is a log book year of tax of the employer in relation to the car; (B) the year of tax is not a log book year of tax of the employer in relation to the car and the car is a low business kilometre car of the provider in relation to the year of tax; exceeds nil; or (ii) in any other case-exceeds 10%; the reasonable percentage; or (c) in any other case-the percentage applicable to the car specified in the employer's return for the year of tax as mentioned in section 10A or 10B; and R is the amount (if any) of the recipient's payment."; (d) by inserting in subparagraph (3) (a) (i) "insured repair expenses or" after "other than"; (e) by omitting from subparagraphs (3) (a) (iii), (iv) and (vi) "year of tax" and substituting "holding period"; (f) by adding at the end of paragraph (3) (a) "and"; (g) by omitting paragraph (3) (b); (h) by omitting from subparagraph (3) (c) (i) "and"; (j) by inserting after subparagraph (3) (c) (i) the following subparagraph: "(ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and: (A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or (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; and"; (k) by inserting in sub-subparagraph (3) (c) (ii) (A) "(other than car expenses in respect of fuel or oil for the car)" after "in respect of the car"; (m) by inserting after subsection (3) the following subsections: "(3A) A reference in subparagraph (3) (a) (i) to an insured repair expense relating to a car is a reference to: (a) so much of an expense incurred in respect of repairs to the car as does not exceed an amount: (i) received by way of insurance in respect of the repairs by the person incurring the expense; (ii) paid by way of insurance in respect of the repairs in discharge of the obligation of the insured to pay the expense; (iii) received by way of compensation in respect of the repairs by the person incurring the expense from the person legally responsible for the damage to the car; or (iv) paid by way of compensation in respect of the repairs by the person legally responsible for the damage to the car in discharge of the obligation of the person incurring the expense to pay the expense; or (b) an expense incurred in respect of repairs to the car: (i) by an insurer under a contract of insurance; or (ii) by way of compensation by the person legally responsible for the damage to the car. "(3B) Where, in accordance with subsection 162K (2), the identity of a car changes one or more times during the period (in this subsection called the 'overall holding period') that, apart from that subsection, would be the holding period, the operating cost of the car during each period (in this subsection called a 'statutory holding period') that is a holding period in relation to the car when the car had a separate identity is so much of the amount that would have been the operating cost of the car during the overall holding period (assuming that the identity of the car had not changed during the overall holding period) as is attributable to the statutory holding period. "(3C) Where, in accordance with subsection 162K (2), the identity of a car changes one or more times during the period (in this subsection called the 'overall holding period') that, apart from that subsection, would be the holding period, the recipient's payment in relation to each period (in this subsection called a 'statutory holding period') that is a holding period in relation to the car when the car had a separate identity is so much of the amount that would have been the recipient's payment in relation to the overall holding period (assuming that the identity of the car had not changed during the overall holding period) as is attributable to the statutory holding period. "(3D) In determining, for the purposes of this section, whether: (a) an expense is paid or payable in respect of the registration of, or insurance in respect of, a car; (b) a charge is paid or payable under a lease agreement in respect of a car; or (c) a lessor of a car is 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; a change, in accordance with subsection 162K (2) or 162M (2), to the identity of the car shall be disregarded."; and (n) by omitting subsections (5) and (6) and substituting the following subsections: "(5) Where: (a) an employer elects 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 a particular car; and (b) the taxable value, or the aggregate of the taxable values, as the case requires, of the car fringe benefits that relate to the car ascertained under subsection (2) of this section exceeds the taxable value, or the aggregate of the taxable values, as the case requires, that would have been ascertained under section 9 if that election had not been made; this Act (other than section 162G) applies, and shall be deemed always to have applied, for the purposes of ascertaining that taxable value, or the aggregate of those taxable values, as the case requires, as if that election had not been made. "(6) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (5).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 7 7. After section 10 of the Principal Act the following sections are inserted: No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained "10A. Where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a car while it was held by a particular person (in this section called the 'provider') during a particular period (in this section called the 'holding period') in a year of tax that is a log book year of tax of the employer in relation to the car, the employer is entitled to a reduction in the operating cost of the car on account of business journeys undertaken in the car during the holding period if, and only if: (a) if either of the following subparagraphs applies: (i) the provider commenced to hold the car during the last 12 weeks of the year of tax; (ii) the Commissioner is satisfied, having regard to the provider's circumstances, that it would be unreasonable to expect log book records and odometer records in relation to the car to have been maintained by or on behalf of the provider for an applicable log book period in relation to the car; the employer, in his or her return for the year of tax, specifies a percentage as the nominated business percentage applicable to the car in relation to the provider for the holding period; or (b) in any other case-both of the following conditions are satisfied: (i) log book records and odometer records are maintained by or on behalf of the provider for the applicable log book period in relation to the car and, if the provider is not the employer, are given to the employer before the declaration date; and (ii) the employer, in his or her return for the current year of tax, specifies a percentage as the nominated business percentage applicable to the car in relation to the provider for the holding period, not being a percentage that exceeds the business percentage established during the applicable log book period. 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 "10B. Where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a car while it was held by a particular person (in this section called the 'provider') during a particular period (in this section called the 'holding period') in a year of tax that is not a log book year of tax of the employer in relation to the car, the employer is entitled to a reduction in the operating cost of the car on account of business journeys undertaken during the holding period in the car if, and only if: (a) odometer records are maintained by or on behalf of the provider in relation to the car for the holding period and, if the provider is not the employer, are given to the employer before the declaration date; and (b) the employer, in his or her return for the year of tax, specifies whichever of the following percentages is applicable: (i) the percentage that was: (A) the nominated business percentage applicable to the car in relation to the provider for the period that was the holding period in the year of tax that was the last log book year of tax of the employer in relation to the car; and (B) specified in the employer's return for that last log book year of tax; (ii) if the percentage referred to in subparagraph (i) would otherwise be applicable but the employer is of the opinion that the percentage calculated in accordance with the formula: N-U where: N is the percentage referred to in subparagraph (i); and U is the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the provider for the holding period; is a percentage that: (A) if the car is a low business kilometre car of the provider in relation to the year of tax-exceeds nil; or (B) in any other case-exceeds 10%; a percentage as the nominated business percentage applicable to the car in relation to the provider for the holding period. Nominated business percentage to be reduced if it exceeds business percentage established during applicable log book period or if it is unreasonable "10C. (1) Where: (a) an employer, in his or her return for a year of tax, specifies, or purports to specify, a percentage (in this subsection called the 'excessive percentage') of the kind mentioned in subparagraph 10A (b) (ii) in respect of a car held by the provider of a car fringe benefit in relation to the employer in respect of the car during a period (in this subsection called the 'holding period') in the year of tax; and (b) the excessive percentage exceeds the percentage (in this subsection called the 'reduced percentage') that is the lesser of the following percentages: (i) the business percentage applicable to the car that was established during the applicable log book period referred to in subparagraph 10A (b) (ii); (ii) the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the provider for the holding period; the following provisions have effect: (c) the employer shall be treated as if he or she had, in the return, specified, in respect of the car, the reduced percentage instead of the excessive percentage; (d) if the employer, in his or her return for a subsequent year of tax, specifies, or purports to specify, in respect of the car, the excessive percentage in accordance with the condition set out in subparagraph 10B (b) (i)-the employer shall be treated as if he or she had, in the return for that subsequent year of tax, specified, in respect of the car, the reduced percentage instead of the excessive percentage. "(2) For the purposes of this Act, where: (a) subparagraph 10B (b) (ii) applies in relation to a car held by a provider of a car fringe benefit during a period (in this subsection called the 'holding period') in a year of tax; and (b) the employer concerned fails to specify, in his or her return for the year of tax, a percentage as the nominated business percentage applicable to the car in relation to the provider for the holding period; the employer shall be treated as if he or she had, in the return, specified, in respect of the car, as that nominated business percentage, the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the provider for the holding period.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 8 Calculation of depreciation and interest 8. Section 11 of the Principal Act is amended: (a) by inserting before subsection (1) the following subsection: "(1A) For the purposes of this Subdivision, the amount of depreciation that is deemed to have been incurred by a person in respect of a car in respect of the period (in this subsection called the 'holding period') during a year of tax while the car was held by the person is the amount calculated in accordance with the formula: DEP X DHP DEP X DCO where: DEP is the amount of depreciation that is deemed to have been incurred by the person in respect of the car in respect of the year of tax; DHP is the number of days in the holding period during which the car was owned by the person; and DCO is the number of days in the period in the year of tax during which the car was owned by the person.''; and (b) by inserting after subsection (1) the following subsection: "(1B) For the purposes of this Subdivision, the amount of interest that is deemed to have been incurred by a person in respect of a car in respect of the period (in this subsection called the 'holding period') during a year of tax while the car was held by the person is the amount calculated in accordance with the formula: INT X DHP INT X DCO where: INT is the amount of interest that is deemed to have been incurred by the person in respect of the car in respect of the year of tax; DHP is the number of days in the holding period during which the car was owned by the person; and DCO is the number of days in the period in the year of tax during which the car was owned by the person.''. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 9 Taxable value of debt waiver fringe benefits 9. Section 15 of the Principal Act is amended by omitting "The taxable" and substituting "Subject to this Part, the taxable". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 10 Exempt loan benefits 10. Section 17 of the Principal Act is amended: (a) by omitting from subparagraph (3) (b) (i) "his or her" and substituting "that"; and (b) by adding at the end the following subsection: "(4) Where: (a) the making of a loan consisting of an advance by an employer to an employee of the employer constitutes a benefit in respect of the employment of the employee in respect of a year of tax (in this subsection called the 'current year of tax'); (b) the sole purpose of the making of the loan is to enable the employee to pay any of the following amounts payable by the employee in respect of accommodation: (i) a rental bond; (ii) a security deposit in respect of electricity, gas or telephone services; (iii) any similar amount; (c) the employee is required to repay (whether by set-off or otherwise) the loan not later than 12 months after the loan is made; (d) any of the following benefits is provided in, or in respect of, any year of tax to the employee in respect of that employment: (i) an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of that accommodation; (ii) a housing benefit where the housing right is in respect of that accommodation; (iii) a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; and (e) either of the following subparagraphs apply: (i) by virtue of section 21 or subsection 47 (5), the benefit referred to in paragraph (d) is an exempt benefit in relation to the year of tax referred to in that paragraph; (ii) the benefit referred to in paragraph (d) is a fringe benefit in relation to the year of tax referred to in that paragraph and, under section 61C, the taxable value of the fringe benefit is reduced by the extent to which that taxable value is attributable to the subsistence of a lease or licence in respect of the accommodation during a particular period in that year of tax; the making of the loan is an exempt benefit in relation to the current year of tax.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 11 Taxable value of loan fringe benefits 11. Section 18 of the Principal Act is amended by omitting subsection (2). TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 12 Reduction of taxable value-''otherwise deductible'' rule 12. Section 19 of the Principal Act is amended: (a) by omitting paragraph (1) (b) and substituting the following paragraphs: "(b) if the recipient had, on the last day of the period (in this subsection called the 'loan 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 unreimbursed interest (in this subsection called the 'gross interest'), in respect of the loan, in respect of the loan period, equal to the notional amount of interest in relation to the loan in relation to the year of tax-both of the following conditions would have been satisfied: (i) a once-only deduction (in this subsection called the 'gross 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 to the recipient under that Act in respect of the gross interest; (ii) in the case of the transitional year of tax-the gross 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; (ba) the amount (in this subsection called the 'notional deduction') calculated in accordance with the formula: GD - RD where: GD is the gross deduction; and RD is: (i) if no interest accrued on the loan in respect of the loan period-nil; or (ii) if interest accrued on the loan in respect of the loan period-the amount (if any) that would, or that 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: (A) as a once-only deduction; and (B) in the case of the transitional year of tax-otherwise than as a deduction in respect of rental property loan interest within the meaning of Subdivision G of Division 3 of Part III of that Act and otherwise than as an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; to the recipient under that Act in respect of that interest if that interest had been incurred and paid by the recipient on the last day of the loan period; exceeds nil;"; (b) by omitting paragraph (1) (c) and substituting the following paragraphs: "(c) except where the fringe benefit is: (i) an employee credit loan benefit in relation to the year of tax; or (ii) an employee share loan benefit in relation to the year of tax; 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; (ca) where: (i) in the case of the transitional year of tax or the first standard year of tax-the loan was used by the recipient to purchase a car held by the recipient during a period (in this subsection called the 'holding period') in the year of tax; (ii) in the case of the second standard year of tax or a subsequent year of tax-the loan fringe benefit is a car loan benefit in respect of a car held by the recipient during a period (in this subsection also called the 'holding period') in the year of tax; and (iii) the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period; the following conditions are satisfied: (iv) the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax; (v) in a case where the substantiation rules require log book records or odometer records to be maintained by or on behalf of the recipient in relation to the car-the car substantiation declaration is accompanied by a copy of those documents; and"; (c) by omitting from paragraph (1) (d) all the words from and including "where the loan" to "declaration date -" and substituting the following: "where paragraph (ca) does not apply and: (ia) in the case of the transitional year of tax or the first standard year of tax-the loan was used by the recipient to purchase a car held by the recipient during a period (in this subsection also called the 'holding period') in the year of tax; or (ib) in the case of the second standard year of tax or a subsequent year of tax-the loan fringe benefit is a car loan benefit in respect of a car held by the recipient during a period (in this subsection also called the 'holding period') in the year of tax; the recipient gives to the employer, before the declaration date:"; (d) by omitting from subsection (1) "section 60" (first occurring) and substituting "Division 14"; (e) by omitting from subsection (1) all the words after "the amount calculated" and substituting the following words and paragraphs: "in accordance with the formula: TV - ND where: TV is the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax; and ND is: (e) if neither paragraph (ca) nor (d) applies-the notional deduction; (f) if paragraph (ca) applies-whichever of the following amounts is applicable: (i) if it would be concluded that the amount of interest that has accrued on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax; (ii) if subparagraph (i) does not apply-the car deduction percentage, ascertained under section 65G, of the notional amount of interest in relation to the loan in relation to the year of tax; (g) where: (i) paragraph (d) applies; and (ii) a declaration referred to in subparagraph (d) (i) has been given to the employer; whichever of the following amounts is the least: (iii) the notional deduction; (iv) if it would be concluded that the amount of interest that has accrued on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax; (v) if subparagraph (iv) does not apply-331/3% of the notional amount of interest in relation to the loan in relation to the year of tax; or (h) where: (i) subparagraph (d) (ii) applies; and (ii) a declaration referred to in subparagraph (d) (i) has not been given to the employer; whichever of the following amounts is applicable: (iii) if it would be concluded that the amount of interest that has accrued on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax; (iv) if subparagraph (iii) does not apply-331/3% of the notional amount of interest in relation to the loan in relation to the year of tax."; and (f) by omitting subsection (2) and substituting the following subsections: "(2) Where a part of a loan to which a loan fringe benefit relates is used by an employee to: (a) in all cases-purchase a particular car; or (b) in the case of the second standard year of tax or a subsequent year of tax-pay a car expense within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936; subsection (1) and the definition of 'car loan benefit' in subsection 136 (1) apply as if that part of the loan had been a separate loan. "(3) Where: (a) apart from this subsection, paragraph (1) (ca) applies in relation to a fringe benefit in relation to an employer in respect of a car held by the recipient during a period in the year of tax; and (b) whichever of the following amounts is the greater exceeds the amount that, apart from this subsection, would be ascertained under paragraph (1) (f) as representing the component ND in the formula in subsection (1): (i) in all cases-the amount that would have been ascertained under paragraph (1) (g) as representing that component if: (A) paragraph (1) (d) had applied in relation to the fringe benefit; and (B) a declaration of the kind referred to in subparagraph (1) (d) (i) had been given to the employer; (ii) in a case where the average number of business kilometres per week travelled by the car during the holding period exceeded 96-the amount that would have been ascertained under paragraph (1) (h) as representing that component if: (A) subparagraph (1) (d) (ii) had applied in relation to that fringe benefit; (B) a declaration of the kind referred to in subparagraph (1) (d) (i) had not been given to the employer; and (C) a declaration of the kind referred to in sub-subparagraph (1) (d) (ii) (B) had been given to the employer; this Act applies, and shall be deemed always to have applied, as if the amount represented by that component had been calculated as mentioned in whichever of subparagraphs (b) (i) or (ii) of this subsection is applicable. "(4) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (3).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 13 Exempt accommodation expense payment benefits 13. Section 21 of the Principal Act is amended: (a) by omitting from paragraph (b) "and is not expenditure to which paragraph 24 (1) (b) applies"; (b) by inserting after paragraph (b) the following paragraph: "(ba) the accommodation is not provided while the employee is undertaking travel in the course of performing the duties of that employment;"; and (c) by omitting from paragraph (c) "his or her employment" and substituting "that employment". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 14 Exempt car expense payment benefits 14. Section 22 of the Principal Act is amended by omitting paragraph (c) and substituting the following paragraphs: "(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, to have a holiday; (ii) the transport was provided at a time when the employee had ceased to perform the duties of that employment; and". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 15 15. Before section 23 of the Principal Act the following section is inserted in Subdivision B of Division 5 of Part III: Taxable value of in-house expense payment fringe benefits "22A. (1) Subject to this Part, the taxable value in relation to a year of tax of an in-house property expense payment fringe benefit (in this subsection called the 'actual fringe benefit') provided during the year of tax is the amount that, if: (a) the provision of property to which the actual fringe benefit relates were an in-house property fringe benefit (in this subsection called the 'notional fringe benefit'); and (b) the recipients contribution in relation to the notional fringe benefit were equal to the recipients expenditure reduced by whichever of the following amounts is applicable: (i) the amount of the payment referred to in paragraph 20 (a) reduced by the amount of the recipients contribution in relation to the actual fringe benefit; (ii) the amount of the reimbursement referred to in paragraph 20 (b); would have been calculated under section 42 as the taxable value, but for section 44 and Division 14, of the notional fringe benefit in relation to the year of tax. "(2) Subject to this Part, the taxable value in relation to a year of tax of an in-house residual expense payment fringe benefit (in this subsection called the 'actual fringe benefit') provided during the year of tax is the amount that, if: (a) the provision of the residual benefit to which the actual fringe benefit relates were an in-house residual fringe benefit (in this subsection called the 'notional fringe benefit'); and (b) the recipients contribution in relation to the notional fringe benefit were equal to the recipients expenditure reduced by whichever of the following amounts is applicable: (i) the amount of the payment referred to in paragraph 20 (a) reduced by the amount of the recipients contribution in relation to the actual fringe benefit; (ii) the amount of the reimbursement referred to in paragraph 20 (b); would have been calculated under whichever of sections 48 and 49 is applicable as the taxable value, but for section 52 and Division 14, of the notional fringe benefit in relation to the year of tax. "(3) For the purposes of subsection (2), section 49 has effect as if: (a) 'the current identical benefit in relation to' were omitted from paragraph 49 (a); (b) the reference in paragraph 49 (b) to the recipients current benefit were a reference to the recipients overall benefit; and (c) 'insofar as it relates to the recipients current benefit' were omitted from section 49. "(4) Where the recipients expenditure in relation to each of 2 or more in-house expense payment fringe benefits (whether or not in relation to the same year of tax) is the same expenditure, this Act applies, and shall be deemed to have applied, as if all the payments or reimbursements to which those fringe benefits relate had been made at the time when the first of those payments or reimbursements was made and not otherwise. "(5) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (4).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 16 Taxable value of external expense payment fringe benefits 16. Section 23 of the Principal Act is amended by inserting "external" before "expense". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 17 Reduction of taxable value-''otherwise deductible'' rule 17. Section 24 of the Principal Act is amended: (a) by omitting paragraph (1) (b) and substituting the following paragraphs: "(b) if the recipient had, at the time when the recipients expenditure was incurred, incurred and paid unreimbursed expenditure (in this subsection called the 'gross expenditure'), in respect of the same matter in respect of which the recipients expenditure was incurred, equal to: (i) in the case of an in-house expense payment fringe benefit-the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or (ii) in the case of an external expense payment fringe benefit-the amount of the recipients expenditure; both of the following conditions would have been satisfied: (iii) a once-only deduction (in this subsection called the 'gross 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 to the recipient under that Act in respect of the gross expenditure; (iv) in the case of the transitional year of tax-the gross 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; (ba) the amount (in this subsection called the 'notional deduction') calculated in accordance with the formula: GD-RD where: GD is the gross deduction; and RD is: (i) if there is no recipients portion in relation to the expense payment fringe benefit-nil; or (ii) if there is a recipients portion in relation to the expense payment fringe benefit-the amount (if any) that would, or that 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: (A) as a once-only deduction; and (B) in the case of the transitional year of tax-otherwise than as a deduction in respect of rental property loan interest within the meaning of Subdivision G of Division 3 of Part III of that Act and otherwise than as an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; to the recipient under that Act in respect of the recipients expenditure (assuming that any payment of that expenditure by the recipient had been paid by the recipient at the time when the recipients expenditure was incurred); exceeds nil;"; (b) by inserting before subparagraph (1) (c) (i) the following subparagraph: "(ia) where the recipients expenditure is in respect of fuel or oil for a motor vehicle owned by, or leased to, the recipient: (A) where the fringe benefit is an eligible small expense payment fringe benefit or an undocumentable expense payment fringe benefit-substitute documentary evidence of the recipients expenditure is maintained by or on behalf of the provider and, if the provider is not the employer, that documentary evidence, or a copy, is given to the employer before the declaration date; (B) in any case-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or (C) in any case-the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure;"; (c) by inserting in subparagraph (1) (c) (i) "subparagraph (ia) does not apply and" after "where"; (d) by inserting in subparagraph (1) (c) (i) "an undocumentable expense payment fringe benefit or" before "an eligible"; (e) by inserting in subparagraph (1) (c) (i) "fringe" before "benefit" (last occurring); (f) by omitting from paragraph (1) (e) "and"; (g) by inserting after paragraph (1) (e) the following paragraph: "(ea) where: (i) the expense payment fringe benefit is a car expense payment benefit in respect of a car held by the recipient during a period (in this section called the 'holding period') in the year of tax; and (ii) the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period; the following conditions are satisfied: (iii) the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax; (iv) in a case where the substantiation rules require log books or odometer records to be maintained by or on behalf of the recipient in relation to the car-the car substantiation declaration is accompanied by a copy of those documents; and"; (h) by omitting from paragraph (f) "the expense" and substituting "paragraph (ea) does not apply and the expense payment"; (j) by omitting from paragraph (1) (f) "owned by, or leased to," and substituting "held by"; (k) by omitting from paragraph (1) (f) "in this paragraph referred to as" and substituting "in this subsection also called"; (m) by omitting from subsection (1) all the words after "and Division" and substituting the following words and paragraphs: "14, of the expense payment fringe benefit in relation to the year of tax shall be reduced by: (g) if neither paragraph (ea) nor paragraph (f) applies-the notional deduction; (h) if paragraph (ea) applies-whichever of the following amounts is applicable: (i) if it would be concluded that the amount of the providers portion would have been the same even if the recipients expenditure were not incurred in producing assessable income of the recipient-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; (ii) if subparagraph (i) does not apply: (A) in the case of an in-house expense payment fringe benefit-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or (B) in the case of an external expense payment fringe benefit-the car deduction percentage, ascertained under section 65G, of the recipients expenditure; (j) where: (i) paragraph (f) applies; and (ii) a declaration referred to in subparagraph (f) (i) has been given to the employer; whichever of the following amounts is the least: (iii) the notional deduction; (iv) if it would be concluded that the amount of the providers portion would have been the same even if the recipients expenditure were not incurred in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; (v) if subparagraph (iv) does not apply: (A) in the case of an in-house expense payment fringe benefit-331/3% of the amount that but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or (B) in the case of an external expense payment fringe benefit-331/3% of the recipients expenditure; (k) where: (i) subparagraph (f) (ii) applies; and (ii) a declaration referred to in subparagraph (f) (i) has not been given to the employer; whichever of the following amounts is applicable: (iii) if it would be concluded the amount of the providers portion would have been the same even if the recipients expenditure were not incurred in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; (iv) if subparagraph (iii) does not apply: (A) in the case of an in-house expense payment fringe benefit-331/3% of the amount that, but for this Subdivision and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or (B) in the case of an external expense payment fringe benefit-331/3% of the recipients expenditure."; (n) by inserting after subsection (3) the following subsection: "(3A) For the purposes of this section, where the Commissioner is satisfied, having regard to the nature of the recipients expenditure in respect of an expense payment fringe benefit, that it would be unreasonable to expect the recipient to have obtained documentary evidence of the recipients expenditure, the expense payment fringe benefit shall be deemed to be, and always to have been, an undocumentable expense payment fringe benefit."; and (p) by adding at the end the following subsections: "(6) For the purposes of the application of this section to an in-house expense payment fringe benefit, a reference to the recipients contribution in relation to the fringe benefit is a reference to the amount ascertained under whichever of paragraphs 22A (1) (b) or (2) (b) is applicable. "(7) Where: (a) apart from this subsection, paragraph (1) (ea) applies in relation to a fringe benefit in relation to an employer in respect of a car held by the recipient during a period in a year of tax; and (b) whichever of the following amounts is the greater exceeds the amount that, apart from this subsection, would be ascertained under paragraph (1) (h) as the amount (in this subsection called the 'reducing amount') by which the taxable value, but for subsection (1) and Division 14, of the fringe benefit is reduced under subsection (1): (i) in all cases-the amount that would have been ascertained under paragraph (1) (j) as the reducing amount if: (A) paragraph (1) (f) had applied in relation to the fringe benefit; and (B) a declaration of the kind referred to in subparagraph (1) (f) (i) had been given to the employer; (ii) in a case where the average number of business kilometres per week travelled by the car during the holding period exceeded 96-the amount that would have been ascertained under paragraph (1) (k) as the reducing amount if: (A) subparagraph (1) (f) (ii) had applied in relation to that fringe benefit; (B) a declaration of the kind referred to in subparagraph (1) (f) (i) had not been given to the employer; and (C) a declaration of the kind referred to in sub-subparagraph (1) (f) (ii) (B) had been given to the employer; this Act applies, and shall be deemed always to have applied, as if the reducing amount had been calculated as mentioned in whichever of subparagraphs (b) (i) or (ii) of this subsection is applicable. "(8) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (7).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 18 Taxable value of non-remote housing fringe benefits 18. Section 26 of the Principal Act is amended: (a) by omitting from subsection (1) "The taxable" and substituting "Subject to this Part, the taxable". (b) by inserting in subparagraph (1) (b) (iii) "identical or similar caravans or mobile homes or in respect of" after "in respect of"; (c) by inserting after paragraph (3) (a) the following paragraph: "(aa) the employer elects that the current year of tax be treated as a base year of tax in relation to the recipients overall housing right or an equivalent housing right;"; and (d) by adding at the end the following subsection: "(7) An election by an employer under paragraph (3) (aa) 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 in relation to the year of tax.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 19 Indexation factor for valuation purposes-non-remote housing 19. Section 28 of the Principal Act is amended by omitting from subsection (1) "this Subdivision" and substituting "section 26". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 20 Taxable value of remote area accommodation 20. Section 29 of the Principal Act is amended: (a) by omitting subsections (1), (2) and (3) and substituting the following subsections: "(1) Subject to this Part, the taxable value of a remote area housing fringe benefit in relation to an employer in relation to a year of tax (in this subsection called the 'current year of tax') is: (a) if the employer has made an election under subsection (2) in relation to the recipients unit of accommodation in relation to the current year of tax-the amount calculated in accordance with the formula: DTP SA X--- DYT where: SA is: (i) if the recipients unit of accommodation is: (A) eligible shared accommodation in a house, flat or home unit in relation to the year of tax; (B) accommodation in a bunkhouse, dormitory or similar living quarters; or (C) eligible accommodation in an employees hostel in relation to the year of tax; the single quarters statutory amount in relation to the year of tax; or (ii) in any other case-the standard statutory amount in relation to the year of tax; DTP is the number of whole days in the tenancy period; and DYT is: (iii) in the case of the transitional year of tax-365; and (iv) in any other case-the number of days in the current year of tax; reduced by the recipients rent; (b) where: (i) paragraph (a) does not apply; and (ii) if the housing fringe benefit were not a remote area housing fringe benefit, the taxable value of the fringe benefit would be calculated under paragraph 26 (1) (b); the amount that would be calculated under that paragraph if component B in the formula in that paragraph were 0.5; or (c) in any other case-the amount that would be calculated under paragraph 26 (1) (c) if the amount represented by component A in the formula in that paragraph were reduced by 50%. "(2) An employer may elect that paragraph (1) (a) be applied in determining the taxable values of all remote area housing fringe benefits in relation to the employer in relation to a particular unit of accommodation in relation to a year of tax. "(3) An election by an employer under subsection (2) 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 in relation to the year of tax. "(3A) For the purposes of this section: (a) the single quarters statutory amount in relation to a year of tax (in this paragraph called the 'current year of tax') is: (i) in the case of the transitional year of tax-$780; or (ii) in the case of a standard year of tax-the amount calculated: (A) by multiplying the single quarters statutory amount in relation to the immediately preceding year of tax by the indexation factor for the current year of tax; or (B) if the amount ascertained in accordance with sub-subparagraph (A) is not a number of whole dollars-by increasing or decreasing the amount to the nearest number of whole dollars or, if the amount is a number of whole dollars plus 50 cents, by increasing the amount by 50 cents; and (b) the standard statutory amount in relation to a year of tax (in this paragraph called the 'current year of tax') is: (i) in the case of the transitional year of tax-$3,120; or (ii) in the case of a standard year of tax-the amount calculated: (A) by multiplying the standard statutory amount in relation to the immediately preceding year of tax by the indexation factor for the current year of tax; or (B) if the amount ascertained in accordance with sub-subparagraph (A) is not a number of whole dollars-by increasing or decreasing the amount to the nearest number of whole dollars or, if the amount is a number of whole dollars plus 50 cents, by increasing the amount by 50 cents."; and (b) by omitting subparagraph (4) (e) (i) and substituting the following subparagraph: "(i) a non-arm's length arrangement; or". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 21 21. After section 29 of the Principal Act the following section is inserted in Division 6 of Part III: Indexation factor for valuation purposes-remote area accommodation "29A. (1) For the purposes of section 29, the indexation factor in respect of a year of tax (in this subsection called the 'current year of tax') is the number (calculated to 3 decimal places) ascertained, as at the date on which the rent index number for Australia for the December quarter immediately preceding the current year of tax was first published, by dividing the sum of: (a) the rent index number for Australia in respect of the December quarter immediately preceding the current year of tax; and (b) the rent index number for Australia in respect of the 3 quarters that immediately preceded that quarter; by the sum of: (c) the rent index number for Australia in respect of the December quarter immediately preceding the year of tax that next preceded the current year of tax; and (d) the rent index number for Australia in respect of the 3 quarters that immediatley preceded the last-mentioned quarter. "(2) Subject to subsection (3), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes a rent index number in respect of a quarter in substitution for a rent index number previously published by the Australian Statistician in respect of that quarter, the publication of the later rent index number shall be disregarded for the purposes of this section. "(3) If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the reference base for the rent sub-group of the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to the index numbers published in terms of the new reference base. "(4) Where the factor ascertained in accordance with subsection (1) in relation to a year of tax would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained in accordance with that subsection in relation to that year of tax shall be taken to be the factor calculated to 3 decimal places in accordance with that subsection and increased by 0.001.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 22 Living-away-from-home allowance benefits 22. Section 30 of the Principal Act is amended by omitting from paragraph (b) "his or her employment" and substituting "that employment". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 23 Taxable value of living-away-from-home allowance fringe benefits 23. Section 31 of the Principal Act is amended by omitting "The taxable" and substituting "Subject to this Part, the taxable". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 24 Reduction of taxable value-''otherwise deductible'' rule 24. Section 34 of the Principal Act is amended: (a) by omitting paragraph (1) (b) and substituting the following paragraphs: "(b) if the recipient had, at the comparison time, incurred and paid unreimbursed expenditure (in this subsection called the 'gross expenditure'), in respect of the provision of the recipients transport, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the airline transport fringe benefit in relation to the year of tax-a once-only deduction (in this subsection called the 'gross deduction') would, or would but for section 82A, and Subdivision F of Division 3 of Part III, of the Income Tax Assessment Act 1936, have been allowable to the recipient under that Act in respect of the gross expenditure; (ba) the amount (in this subsection called the 'notional deduction') calculated in accordance with the formula: GD-RD where: GD is the gross deduction; and RD is: (i) if there is no recipients contribution in relation to the airline transport fringe benefit-nil; or (ii) if there is a recipients contribution in relation to the airline transport fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients transport-the amount (if any) that would, or that would but for section 82A, and Subdivision F of Division 3 of Part III, of the Income Tax Assessment Act 1936, have been allowable as a once-only deduction to the recipient under that Act in respect of that consideration if that consideration had been incurred and paid by the recipient at the comparison time; exceeds nil; "; (b) by omitting from subsection (1) "Division 13" and substituting "Division 14"; and (c) by omitting from subsection (1) "deductible percentage" (last occurring) and substituting "notional deduction". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 25 Reduction of taxable value-''otherwise deductible'' rule 25. Section 37 of the Principal Act is amended: (a) by omitting from paragraph (a) "and"; (b) by omitting paragraph (b) and substituting the following paragraphs: "(b) if the recipient had, at the time when the benefit was provided, incurred and paid unreimbursed expenditure (in this section called the 'gross expenditure'), in respect of the provision of the recipients meal, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the board fringe benefit in relation to the year of tax-a deduction (in this subsection called the 'gross deduction') would, or would but for section 82A, and Subdivision F of Division 3 of Part III, of the Income Tax Assessment Act 1936, have been allowable to the recipient under section 51 of that Act in respect of the whole or a part of the gross expenditure; and (c) the amount (in this section called the 'notional deduction') calculated in accordance with the formula: GD-RD where: GD is the gross deduction; and RD is: (i) if there is no recipients contribution in relation to the board fringe benefit-nil; or (ii) if there is a recipients contribution in relation to the board fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients meal-the amount (if any) that would, or that would but for section 82A, and Subdivision F of Division 3 of Part III, of the Income Tax Assessment Act 1936, have been allowable to the recipient under section 51 of that Act in respect of the whole or a part of that consideration if that consideration had been incurred and paid by the recipient at the time when the benefit was provided; exceeds nil;"; (c) by omitting "but for this section" and substituting "but for this section and Division 14"; and (d) by omitting "deductible percentage" (last occurring) and substituting "notional deduction". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 26 Taxable value of tax-exempt body entertainment fringe benefits 26. Section 39 of the Principal Act is amended by omitting "The taxable" and substituting "Subject to this Part, the taxable". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 27 Reduction of taxable value-''otherwise deductible'' rule 27. Section 44 of the Principal Act is amended: (a) by omitting paragraph (1) (b) and substituting the following paragraphs: "(b) if the recipient had, at the provision time, incurred and paid unreimbursed expenditure (in this subsection called the 'gross expenditure'), in respect of the purchase of the recipients property, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax-both of the following conditions would have been satisfied: (i) a once-only deduction (in this subsection called the 'gross 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 to the recipient under that Act in respect of the gross expenditure; (ii) in the case of the transitional year of tax-the gross deduction would not be an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; (ba) the amount (in this subsection called the 'notional deduction') calculated in accordance with the formula: GD-RD where: GD is the gross deduction; and RD is: (i) if there is no recipients contribution in relation to the property fringe benefit-nil; or (ii) if there is a recipients contribution in relation to the property fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients property-the amount (if any) that would, or that 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: (A) as a once-only deduction; and (B) in the case of the transitional year of tax-otherwise than as an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; to the recipient under that Act in respect of that consideration if that consideration had been incurred and paid by the recipient at the provision time; exceeds nil;"; (b) by omitting from paragraph (1) (d) "and"; (c) by inserting after paragraph (1) (d) the following paragraph: "(da) where: (i) the property fringe benefit is a car property benefit in respect of a car held by the recipient during a period (in this section called the 'holding period') in the year of tax; and (ii) the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period; the following conditions are satisfied: (iii) the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax; (iv) in a case where the substantiation rules require log books or odometer records to be maintained by or on behalf of the recipient in relation to the car-the car substantiation declaration is accompanied by a copy of those documents; and"; (d) by inserting in paragraph (1) (e) "paragraph (da) does not apply and" after "where" (first occurring); (e) by omitting from paragraph (1) (e) "owned by, or leased to," and substituting "held by"; (f) by omitting from paragraph (1) (e) "referred to as" and substituting "also called"; (g) by omitting from subsection (1) "Division 13" (first occurring) and substituting "Division 14"; (h) by omitting from subsection (1) all the words after "the amount calculated" and substituting the following words and paragraphs: "in accordance with the formula: TV-ND where: TV is the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax; and ND is: (f) if neither paragraph (da) nor paragraph (e) applies-the notional deduction; (g) where paragraph (da) applies-whichever of the following amounts is applicable: (i) if it would be concluded that the amount of the recipients contribution would have been the same even if the property fringe benefit were not applied or used in producing assessable income of the recipient-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax; (ii) if subparagraph (i) does not apply-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax; (h) where: (i) paragraph (e) applies; and (ii) a declaration referred to in subparagraph (e) (i) has been given to the employer; whichever of the following amounts is the least: (iii) the notional deduction; (iv) if it would be concluded that the amount of the recipients contribution would have been the same even if the property fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax; (v) if subparagraph (iv) does not apply-331/3% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax; or (j) where: (i) subparagraph (e) (ii) applies; and (ii) a declaration referred to in subparagraph (e) (i) has not been given to the employer; whichever of the following amounts is applicable: (iii) if it would be concluded that the amount of the recipients contribution would have been the same even if the property fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the property fringe benefit in relation to the year of tax; (iv) if subparagraph (iii) does not apply-331/3% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the property fringe benefit in relation to the year of tax."; and (j) by adding at the end the following subsections: "(3) Where: (a) apart from this subsection, paragraph (1) (da) applies in relation to a fringe benefit in relation to an employer in respect of a car held by the recipient during a period in a year of tax; and (b) whichever of the following amounts is the greater exceeds the amount that, apart from this subsection, would be ascertained under paragraph (1) (g) as representing the component ND in the formula in subsection (1): (i) in all cases-the amount that would have been ascertained under paragraph (1) (h) as representing that component if: (A) paragraph (1) (e) had applied in relation to the fringe benefit; and (B) a declaration of the kind referred to in subparagraph (1) (e) (i) had been given to the employer; (ii) in a case where the average number of business kilometres per week travelled by the car during the holding period exceeded 96-the amount that would have been ascertained under paragraph (1) (j) as representing that component if: (A) subparagraph (1) (e) (ii) had applied in relation to that fringe benefit; (B) a declaration of the kind referred to in subparagraph (1) (e) (i) had not been given to the employer; and (C) a declaration of the kind referred to in sub-subparagraph (1) (e) (ii) (B) had been given to the employer; this Act applies, and shall be deemed always to have applied, as if the amount represented by that component had been calculated as mentioned in whichever of subparagraphs (b) (i) or (ii) of this subsection is applicable. "(4) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (3).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 28 Exempt residual benefits 28. Section 47 of the Principal Act is amended: (a) by omitting from sub-subparagraph (1) (a) (i) (B) "his or her" and substituting "that"; (b) by omitting from subsection (3) ", on a working day, of property that is" and substituting "of property (other than a motor vehicle) that is ordinarily"; (c) by inserting after subsection (4) the following subsection: "(4A) For the purposes of subsection (3), a building site, construction site or any similar place where a person carries on business operations shall be taken to be business premises of the person."; (d) by omitting from paragraph (5) (b) "his or her employment" and substituting "that employment"; (e) by omitting paragraphs (5) (c) and (d) and substituting the following paragraphs: "(c) the accommodation is not provided while the employee is undertaking travel in the course of performing the duties of that employment; and (d) either of the following conditions is satisfied: (i) subsection (7) applies in relation to the provision of transport for the employee in connection with travel in the period in the year of tax when the lease or licence subsisted, being travel between the employee's usual place of residence and the employee's usual place of employment; (ii) the employee gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (A) the employee's usual place of residence; and (B) the place at which the employee actually resided while living away from his or her usual place of residence;"; (f) by omitting from paragraph (6) (a) "and"; (g) by inserting after paragraph (6) (a) the following paragraph: "(aa) in the case of a standard year of tax-the motor vehicle is not: (i) a taxi let on hire to the provider; or (ii) a car, not being: (A) a panel van or utility truck; or (B) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and"; (h) by omitting paragraph (6) (b) and substituting the following paragraph: "(b) there was no private use of the motor vehicle during the year of tax and at a time when the benefit was provided other than: (i) work-related travel of the employee; and (ii) other private use of the motor vehicle by the employee or an associate of the employee, being other use that was minor, infrequent and irregular;"; and (j) by inserting after subsection (6) the following subsections: "(6A) Where: (a) a residual benefit consisting of the provision or use of a motor vehicle is provided by a particular person (in this subsection called the '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 motor vehicle was held by the provider, the motor vehicle was unregistered; and (c) during the period in the year of tax when the motor vehicle was held by the provider, the motor vehicle was wholly or principally used 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 benefit is an exempt benefit in relation to the year of tax. "(6B) A reference in subsection (6A) to a motor vehicle held by a provider is a reference to: (a) a motor vehicle owned by the provider; (b) a motor vehicle leased to the provider; or (c) a motor vehicle otherwise made available to the provider by another person.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 29 Reduction of taxable value-''otherwise deductible'' rule 29. Section 52 of the Principal Act is amended: (a) by omitting paragraph (1) (b) and substituting the following paragraphs: "(b) if the recipient had, at the comparison time, incurred and paid unreimbursed expenditure (in this subsection called the 'gross expenditure'), in respect of the provision of the recipients benefit, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax-both of the following conditions would have been satisfied: (i) a once-only deduction (in this subsection called the 'gross 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 to the recipient under that Act in respect of the gross expenditure; (ii) in the case of the transitional year of tax-the gross deduction would not be an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; (ba) the amount (in this subsection called the 'notional deduction') calculated in accordance with the formula: GD-RD where: GD is the gross deduction; and RD is: (i) if there is no recipients contribution in relation to the residual fringe benefit-nil; or (ii) if there is a recipients contribution in relation to the residual fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients benefit-the amount (if any) that would, or that 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: (A) as a once-only deduction; and (B) in the case of the transitional year of tax-otherwise than as an eligible rental property deduction within the meaning of Subdivision G of Division 3 of Part III of that Act; to the recipient under that Act in respect of so much of that consideration as was taken into account for the purposes of section 48, 49, 50 or 51 if that consideration had been incurred and paid by the recipient at the comparison time; exceeds nil;"; (b) by omitting from paragraph (1) (d) "and"; (c) by inserting after paragraph (1) (d) the following paragraph: "(da) where: (i) the fringe benefit is a car residual benefit in respect of a car held by the recipient during a period (in this section called the 'holding period') in the year of tax; and (ii) the substantiation rules set out in Division 15 have been complied with in relation to the car in relation to the holding period; the following conditions are satisfied: (iii) the recipient gives to the employer, before the declaration date, a car substantiation declaration for the car for the year of tax; (iv) in a case where the substantiation rules require log books or odometer records to be maintained by or on behalf of the recipient in relation to the car-the car substantiation declaration is accompanied by a copy of those documents; and"; (d) by inserting in paragraph (1) (e) "paragraph (da) does not apply and" after "where" (first occurring); (e) by omitting from paragraph (1) (e) "owned by, or leased to," and substituting "held by"; (f) by omitting from paragraph (1) (e) "referred to as" and substituting "also called"; (g) by omitting from subsection (1) "Division 13" (first occurring) and substituting "Division 14"; (h) by omitting from subsection (1) all the words after "the amount calculated" and substituting the following words and paragraphs: "in accordance with the formula: TV-ND where: TV is the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax; and ND is: (f) if neither paragraph (da) nor paragraph (e) applies-the notional deduction; (g) where paragraph (da) applies-whichever of the following amounts is applicable: (i) if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient-the car deduction percentage, ascertained under section 65G of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax; (ii) if subparagraph (i) does not apply-the car deduction percentage, ascertained under section 65G, of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; (h) where: (i) paragraph (e) applies; and (ii) a declaration referred to in subparagraph (e) (i) has been given to the employer; whichever of the following amounts is the least: (iii) the notional deduction; (iv) if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax; (v) if subparagraph (iv) does not apply-331/3% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; or (j) where: (i) subparagraph (e) (ii) applies; and (ii) a declaration referred to in subparagraph (e) (i) has not been given to the employer; whichever of the following amounts is applicable: (iii) if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient-331/3% of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax; (iv) if subparagraph (iii) does not apply-331/3% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax."; and (j) by adding at the end the following subsections: "(3) Where: (a) apart from this subsection, paragraph (1) (da) applies in relation to a fringe benefit in relation to an employer in respect of a car held by the recipient during a period in a year of tax; and (b) whichever of the following amounts is the greater exceeds the amount that, apart from this subsection, would be ascertained under paragraph (1) (g) as representing the component ND in the formula in subsection (1): (i) in all cases-the amount that would have been ascertained under paragraph (1) (h) as representing that component if: (A) paragraph (1) (e) had applied in relation to the fringe benefit; and (B) a declaration of the kind referred to in subparagraph (1) (e) (i) had been given to the employer; (ii) in a case where the average number of business kilometres per week travelled by the car during the holding period exceeded 96-the amount that would have been ascertained under paragraph (1) (j) as representing that component if: (A) subparagraph (1) (e) (ii) had applied in relation to that fringe benefit; (B) a declaration of the kind referred to in subparagraph (1) (e) (i) had not been given to the employer; and (C) a declaration of the kind referred to in sub-subparagraph (1) (e) (ii) (B) had been given to the employer; this Act applies, and shall be deemed always to have applied, as if the amount represented by that component had been calculated as mentioned in whichever of subparagraphs (b) (i) or (ii) of this subsection is applicable. "(4) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (3).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 30 Heading to Division 13 of Part III 30. The heading to Division 13 of Part III of the Principal Act is amended by adding at the end "Exempt Benefits". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 31 Exempt benefits-employees of religious institutions 31. Section 57 of the Principal Act is amended by omitting paragraph (b) and substituting the following paragraph: "(b) the employee is a religious practitioner;". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 32 32. Section 57A of the Principal Act is repealed and the following section is substituted: Exempt benefits-public benevolent institutions "57A. (1) Where the employer of an employee is a public benevolent institution, a benefit provided in respect of the employment of the employee is an exempt benefit. "(2) Where: (a) the employer of an employee is a government body; and (b) the duties of the employment of the employee are exclusively performed in, or in connection with, a public hospital that is a public benevolent institution; a benefit provided in respect of the employment of the employee is an exempt benefit.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 33 Exempt benefits-live-in residential care workers 33. Section 58 of the Principal Act is amended: (a) by inserting in paragraphs (1) (a), (c) and (d) "elderly persons or" before "disadvantaged persons"; (b) by omitting paragraph (1) (b) and substituting the following paragraph: "(b) the duties of the employment of the employee consist of, or consist principally of: (i) caring for elderly persons and any children of those elderly persons who reside with those elderly persons; or (ii) caring for disadvantaged persons and any children of those disadvantaged persons who reside with those disadvantaged persons;"; (c) by omitting from paragraph (1) (e) "or" (last occurring); (d) by adding at the end of paragraph (1) (f) "or"; (e) by inserting after paragraph (1) (f) the following paragraphs: "(g) meals provided on those premises to the employee or to a spouse or child of the employee who resides in those premises with the employee; (h) food or drink (other than meals) for consumption during that period by the employee or by a spouse or child of the employee who resides in those premises with the employee;"; (f) by omitting from subsection (2) the definition of "disadvantaged person"; and (g) by omitting paragraph (a) of the definition of "residential premises" in subsection (2) and substituting the following paragraph: "(a) elderly persons or disadvantaged persons and children of elderly persons or disadvantaged persons;". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 34 34. After section 58 of the Principal Act the following sections and heading are inserted: Exempt benefits-employment interviews and selection tests "58A. Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is in respect of an employment interview or selection test; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-removals and storage of household effects as a result of relocation "58B. (1) Where: (a) either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee: (i) an expense payment benefit where the recipients expenditure is in respect of the removal or storage of household effects of the employee; (ii) a residual benefit where the recipients benefit consists of the removal or storage of household effects of the employee; (b) the removal or storage is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; (ii) the employee, having lived away from his or her usual place of residence in order to perform the duties of that employment, is required to return to his or her usual place of residence: (A) in order to perform those duties; or (B) because the employee has ceased to perform those duties; or (iii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (c) the removal or storage is required to enable a family member to: (i) if subparagraph (b) (i) applies-take up residence, or to continue to reside, at or near the place where the employee performs the duties of that employment while living away from his or her usual place of residence; (ii) if subparagraph (b) (ii) applies-take up residence at the employee's usual place of residence; or (iii) if subparagraph (b) (iii) applies-take up residence, or to continue to reside, at the employee's new usual place of residence; (d) if subparagraph (b) (iii) applies: (i) the removal takes place, or the storage commences to be provided, within 12 months after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; and (ii) the benefit is not provided under a non-arm's length arrangement; (e) if subparagraph (a) (i) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (f) the removal or storage was not provided in connection with travel undertaken by the employee in the course of performing the duties of that employment; the benefit is an exempt benefit in relation to the year of tax. "(2) For the purposes of this section: (a) a reference to the household effects of an employee is a reference to tangible property (whether or not owned by a family member) kept primarily for the personal use of family members; and (b) without limiting the generality of an expression used in subsection (1), the recipients expenditure shall be taken to be in respect of, and the recipients benefit shall be taken to consist of, the removal or storage of household effects if the expenditure or benefit is in respect of, or consists of, the transport, packing, unpacking or insurance of the household effects in connection with the removal or storage of the household effects. Exempt benefits-sale or acquisition of dwelling as a result of relocation "58C. (1) Where: (a) during a particular period (in this subsection called the 'former home holding period'), an employee of an employer, or an associate of an employee of an employer, holds: (i) a prescribed interest in land on which: (A) there is a building constituting or containing a dwelling; (B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing a dwelling; (ii) a prescribed interest in a stratum unit in relation to a dwelling; or (iii) a proprietary right in respect of a dwelling, being a flat or home unit; (b) the employee or associate sells the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of his or her employment; (c) the employer first notifies the employee at a time (in this subsection called the 'notice time') during the former home holding period that the employee is required to perform the duties of that employment at the employee's new place of employment; (d) at the notice time, the employee occupied, or proposed to occupy, the dwelling, or proposed to occupy the proposed dwelling, as his or her usual place of residence; and (e) the employee or associate entered into a contract for the sale of the interest or right within 2 years after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; the following subsections have effect. "(2) Where: (a) either of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax: (i) an expense payment benefit where the recipients expenditure is incidental to the sale of that interest or right; (ii) a residual benefit where the recipients benefit is incidental to the sale of that interest or right; (b) if, apart from this paragraph, this subsection would apply in relation to 2 or more dwellings or proposed dwellings in relation to the change in the employee's usual place of residence-the employer of the employee elects that this subsection apply in relation to only one of those dwellings or proposed dwellings; (c) if paragraph (b) applies-the benefit relates to the dwelling or proposed dwelling in respect of which the election is made; (d) if subparagraph (a) (i) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) the benefit is not provided under a non-arm's length arrangement; the benefit is an exempt benefit in relation to the year of tax. "(3) Where: (a) at a particular time, the employee or an associate of the employee acquires: (i) a prescribed interest in land on which: (A) there is a building constituting or containing another dwelling; (B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing another dwelling; (ii) a prescribed interest in a stratum unit in relation to another dwelling; or (iii) a proprietary right in respect of another dwelling, being a flat or home unit; (b) the employee or associate acquires the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment at the employee's new place of employment; (c) the employee or associate entered into a contract for the acquisition of the interest or right within 4 years after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; (d) immediately after the completion of the acquisition, the employee occupied the other dwelling, or proposed to occupy the other proposed dwelling, as his or her usual place of residence; (e) any of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax: (i) an expense payment benefit where the recipients expenditure is incidental to the acquisition of that interest or right; (ii) a residual benefit where the recipients benefit is incidental to the acquisition of that interest or right; (iii) an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling; (iv) a residual benefit where the recipients benefit is constituted by the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling; (v) an expense payment benefit where the recipients expenditure is in respect of the act of re-connecting gas or electricity to the other dwelling or proposed dwelling; (vi) a residual benefit where the recipients benefit is constituted by the act of re-connecting gas or electricity to the other dwelling or proposed dwelling; (f) if subparagraph (e) (iii) or (iv) applies-immediately before the change, a telephone service was provided to the unit of accommodation that was the employee's usual place of residence before the change; (g) if subparagraph (e) (i), (iii) or (v) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (h) the benefit is not provided under a non-arm's length arrangement; the benefit is an exempt benefit in relation to the year of tax. "(4) An election by an employer under subsection (2) 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. Exempt benefits-connection or re-connection of certain utilities as a result of relocation "58D. (1) Where: (a) either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re-connecting a telephone service to a unit of accommodation; (ii) a residual benefit where the recipients benefit is constituted by the act of connecting or re-connecting a telephone service to a unit of accommodation; (b) the unit of accommodation is for the accommodation of family members; (c) the accommodation is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or (ii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (d) if subparagraph (a) (i) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) if subparagraph (c) (ii) applies: (i) the telephone service is connected or re-connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; (ii) immediately before the change, a telephone service was provided to the unit of accommodation that was the employee's usual place of residence before the change; and (iii) the benefit was not provided under a non-arm's length arrangement; the benefit is an exempt benefit in relation to the year of tax. "(2) Where: (a) either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) an expense payment benefit where the recipients expenditure is in respect of the act of re-connecting gas or electricity to a unit of accommodation; (ii) a residual benefit where the recipients benefit is constituted by the act of re-connecting gas or electricity to a unit of accommodation; (b) the unit of accommodation is for the accommodation of family members; (c) the accommodation is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or (ii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (d) if subparagraph (a) (i) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) if subparagraph (c) (ii) applies: (i) the gas or electricity is re-connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; and (ii) the benefit was not provided under a non-arm's length arrangement; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-leasing of household goods while living away from home "58E. Where: (a) either of the following benefits (in this section called a 'household goods leasing benefit') is provided in, or in respect of, a year of tax in respect of the employment of an employee: (i) an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of goods; (ii) a residual benefit where the recipients benefit consists of the subsistence of a lease or licence in respect of goods; (b) the goods are primarily for domestic use by, and in connection with accommodation for, family members; (c) either of the following benefits is provided in, or in respect of, the year of tax to the employee in respect of that employment: (i) an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of that accommodation; (ii) a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; and (d) by virtue of section 21 or subsection 47 (5), the benefit referred to in paragraph (c) is an exempt benefit in relation to the year of tax; the household goods leasing benefit is an exempt benefit in relation to the year of tax. Exempt benefits-relocation transport "58F. Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is in respect of relocation transport; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-motor vehicle parking "58G. Each of the following benefits is an exempt benefit: (a) an expense payment benefit where the recipients expenditure is in respect of the provision of motor vehicle parking facilities; (b) a residual benefit where the recipients benefit consists of motor vehicle parking facilities. Exempt benefits-newspapers and periodicals used for business purposes "58H. (1) Where: (a) any of the following benefits is provided to an employee in respect of his or her employment: (i) an expense payment benefit where the recipients expenditure is in respect of a newspaper or periodical; (ii) a property benefit where the recipients property is a newspaper or periodical; (iii) a residual benefit where the recipients benefit consists of the making available of a newspaper or periodical; and (b) the newspaper or periodical was for use by the employee for the purpose, or for purposes that included the purpose, of gaining or producing salary or wages of the employee in respect of that employment; the benefit is an exempt benefit. "(2) In determining for the purposes of paragraph (1) (b) whether a newspaper or periodical was for use for the purpose of gaining or producing salary or wages, no regard shall be had to a purpose that is a merely incidental purpose. Exempt benefits-compensable work-related trauma "58J. (1) Where: (a) a benefit is provided in respect of the employment of an employee for or in respect of compensable work-related trauma suffered by the employee; and (b) either of the following subparagraphs applies: (i) the benefit is provided under a workers' compensation law that applies to that employment; (ii) the benefit is not provided under a workers' compensation law but the provision of the benefit is reasonable having regard to all relevant matters including, but without limiting the generality of the foregoing, the value of the benefit and the nature and effects of the trauma; the benefit is an exempt benefit. "(2) Where: (a) a residual benefit provided in, or in respect of, a year of tax in respect of the employment of an employee is constituted by the subsistence, during the year of tax, of a contingent right (whether arising under a contract of insurance or otherwise) to a benefit for or in respect of compensable work-related trauma suffered by the employee; and (b) in the case of a contingent right arising under a contract of insurance-the contract of insurance does not provide for a benefit that is not for or in respect of compensable work-related trauma suffered by any employee; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-in-house health care facilities "58K. Where: (a) a benefit consisting of the provision of health care is provided in respect of the employment of an employee of an employer; and (b) the health care is provided: (i) in an in-house health care facility of the employer; or (ii) by a member of the staff of an in-house health care facility of the employer in the performance of his or her duties as such a member; the benefit is an exempt benefit. Exempt benefits-certain travel to obtain medical treatment "58L. (1) Where: (a) a person (in this subsection called the 'traveller'): (i) is provided with transport by another person; or (ii) provides transport for himself or herself; (b) any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of the transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of: (A) the transport; or (B) meals or accommodation for the traveller; (iii) a property benefit where the recipients property consists of meals for the traveller; (iv) a residual benefit where the recipients benefit consists of the provision of: (A) the transport; or (B) accommodation for the traveller; (c) the transport is required solely because a person (in this subsection called the 'patient') requires medical treatment; (d) the medical treatment is provided in a particular place (in this subsection called the 'treatment place') at a time during a period when the employee is, or would but for that requirement to obtain treatment or any other temporary absence be, performing the duties of that employment in another place (in this subsection called the 'overseas employment place'), being a place in: (i) a prescribed foreign country; (ii) a prescribed part of a foreign country; or (iii) a prescribed territory, dependency or colony (however described) of a foreign country; (e) the transport is between: (i) a place at or near the overseas employment place; and (ii) a place at or near the treatment place; (f) if the patient is not the employee-the patient is a family member and lives with the employee at or near the overseas employment place; (g) if the traveller is not the patient-either of the following conditions is satisfied: (i) the traveller accompanies the patient because: (A) the patient has not attained the age of 18 years and requires the traveller as an escort; or (B) the patient requires the traveller as an escort for medical reasons; (ii) the traveller is a family member and accompanies or visits the patient where it is customary for family members to accompany or visit patients receiving medical treatment of the same nature and duration as the medical treatment required by the patient; (h) the meals or accommodation: (i) are: (A) in connection with the transport; or (B) required solely in connection with the presence of the traveller at the treatment place for purposes related to the medical treatment of the patient; and (ii) where sub-subparagraph (i) (B) applies and the traveller is the patient-are not provided to the patient in a hospital, clinic or similar place in connection with the medical treatment of the patient; (j) either of the following conditions is satisfied: (i) the treatment place was the place nearest to the overseas employment place at which medical treatment suitable for the patient could be provided; (ii) the total cost associated with obtaining medical treatment at the treatment place was equal to, or less than, the lowest total cost associated with obtaining medical treatment at any of the places at which medical treatment suitable for the patient could have been provided; and (k) if subparagraph (b) (ii) applies-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax. "(2) A reference in this section to medical treatment is a reference to an act or thing where a payment in respect of the act or thing is a medical expense within the meaning of section 159P of the Income Tax Assessment Act 1936. Exempt benefits-work-related medical examinations, work-related medical screening, work-related preventative health care, work-related counselling, migrant language training "58M. (1) Where any of the following benefits is provided in respect of the employment of an employee: (a) an expense payment benefit where the recipients expenditure is in respect of: (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; (b) a property benefit where the recipients property is required solely for the purposes of: (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; (c) a residual benefit where the recipients benefit consists of the provision of: (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; the benefit is an exempt benefit. "(2) Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is 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; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-emergency assistance "58N. Where: (a) a benefit is provided in respect of the employment of an employee of an employer; (b) the benefit is provided solely by way of the grant of emergency assistance to the recipient; and (c) if the benefit is: (i) an expense payment benefit where the recipients expenditure is wholly or partly in respect of health care; (ii) a property benefit where the recipients property is supplied in connection with the provision of health care; (iii) a residual benefit where the recipients benefit consists of the provision of health care; or (iv) a loan benefit constituted by the making of a loan where the purpose of the making of the loan is wholly or partly to enable the recipient to meet expenses incurred by the recipient in respect of health care; the health care is provided: (v) by an employee of the employer or, if the employer is a company, of the employer or of a company that is related to the employer; (vi) on premises of the employer or, if the employer is a company, of the employer or of a company that is related to the employer; or (vii) at or adjacent to a place where employees of the employer or, if the employer is a company, of the employer or of a company that is related to the employer perform the duties of their employment; the benefit is an exempt benefit. Exempt benefits-minor benefits "58P. (1) Where: (a) a benefit (in this section called a 'minor benefit') is provided in, or in respect of, a year of tax (in this section called the 'current year of tax') in respect of the employment of an employee of an employer; (b) the benefit is not an airline transport benefit; (c) in the case of an expense payment benefit, a property benefit or a residual benefit-if the minor benefit were an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit, as the case may be, in relation to the employer, the expense payment fringe benefit, the property fringe benefit or the residual fringe benefit, as the case requires, would not be an in-house fringe benefit; (d) in the case of a tax-exempt body entertainment benefit where the provider incurs non-deductible exempt entertainment expenditure that is wholly or partly in respect of the provision of entertainment to the employee or an associate of the employee: (i) the provision of entertainment to the employee or the associate of the employee, as the case may be: (A) is incidental to the provision of entertainment to outsiders; and (B) neither consists of, nor is provided in connection with, the provision of a meal (other than a meal consisting of light refreshments) to the employee or the associate of the employee, as the case may be; or (ii) the entertainment is provided to the employee or the associate of the employee, as the case may be: (A) on eligible premises of the employer; and (B) solely as a means of recognising the special achievements of the employee in a matter relating to the employment of the employee; (e) the notional taxable value of the minor benefit in relation to the current year of tax is small; and (f) having regard to: (i) the infrequency and irregularity with which associated benefits, being benefits that are identical or similar to: (A) the minor benefit; or (B) benefits provided in connection with the provision of the minor benefit; have been or can reasonably be expected to be provided; (ii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of the minor benefit and any associated benefits, being benefits that are identical or similar to the minor benefit, in relation to the current year of tax or any other year of tax; (iii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of any other associated benefits in relation to the current year of tax or any other year of tax; (iv) the practical difficulty for the employer in determining the notional taxable values in relation to the current year of tax of: (A) if the minor benefit is not a car benefit-the minor benefit; and (B) if there are any associated benefits that are not car benefits-those associated benefits; and (v) the circumstances surrounding the provision of the minor benefit and any associated benefits including, but without limiting the generality of the foregoing: (A) whether the benefit concerned was provided to assist the employee to deal with an unexpected event; and (B) whether the benefit concerned was provided otherwise than wholly or principally by way of a reward for services rendered, or to be rendered, by the employee; it would be concluded that it would be unreasonable to treat the minor benefit as a fringe benefit in relation to the employer in relation to the current year of tax; the minor benefit is an exempt benefit in relation to the current year of tax. "(2) For the purposes of this section, a benefit is an associated benefit in relation to a minor benefit if, and only if: (a) any of the following subparagraphs applies: (i) the benefit is identical or similar to the minor benefit; (ii) the benefit is provided in connection with the provision of the minor benefit; (iii) the benefit is identical or similar to a benefit provided in connection with the provision of the minor benefit; (b) the benefit and the minor benefit both relate to the same employment of a particular employee; and (c) the benefit is not an exempt benefit by virtue of a provision of this Act other than this section. Exempt benefits-long service awards "58Q. (1) Where: (a) a long service award benefit (in this section called the 'current long service award benefit') is provided in, or in respect of, a year of tax in respect of the employment of an employee; (b) the current long service award benefit is in recognition of a particular recognised long service period (in this section called the 'current recognised long service period') of the employee; (c) if there is no other long service award benefit provided in, or in respect of, any year of tax in respect of that employment in recognition of a different recognised long service period of the employee that is shorter than the current recognised long service period-the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula: $500 + ($50 X (RLS-15)) where RLS is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and (d) if paragraph (c) does not apply-the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula: $50 X (RLS-ERLS) where: RLSE is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and ERLS is the number of whole years in the longest recognised long service period of the employee that: (i) is shorter than the current recognised long service period; and (ii) was recognised by the provision of one or more long service award benefits in, or in respect of, any year of tax, in respect of the employment of the employee; the current long service award benefit is an exempt benefit in relation to the year of tax. "(2) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to this section. Exempt benefits-safety awards "58R. Where: (a) one or more safety award benefits are provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; and (b) the notional taxable value of that safety award benefit, or the sum of the notional taxable values of those safety award benefits, in relation to that year of tax, does not exceed $200; the safety award benefit, or the safety award benefits, as the case may be, are exempt benefits in relation to that year of tax. Exempt benefits-trainees engaged under Australian Traineeship System "58S. Where: (a) an employee is a trainee employed under a training agreement as part of the scheme known as the Australian Traineeship System; (b) any of the following benefits is provided in, or in respect of, a year of tax in respect of that employment of the employee: (i) an expense payment benefit where the recipients expenditure is in respect of accommodation, or food or drink, for the employee; (ii) a housing benefit where the housing right is in respect of accommodation for the employee; (iii) a board benefit in respect of a meal for the employee; (iv) a property benefit where the recipients property consists of food or drink for the employee; (v) a residual benefit where the recipients benefit consists of the subsistence of a lease or licence in respect of a unit of accommodation for the accommodation of the employee; (c) in a case where the benefit relates to food or drink-the food or drink is not provided at a party, reception or other social function; and (d) either of the following conditions are satisfied: (i) the benefit is provided pursuant to the provisions of an industrial instrument relating to the employment of the employee; (ii) it is customary for employers in the industry in which the employee is employed to provide benefits of the same kind as the benefit provided to the recipient and to provide such benefits in similar circumstances to those that applied in relation to the provision of the benefit to the recipient; the benefit is an exempt benefit in relation to the year of tax. Exempt benefits-live-in domestic workers employed by religious institutions or by religious practitioners "58T. Where, during a particular period: (a) the employer of an employee is: (i) a religious institution; or (ii) a religious practitioner; (b) the duties of the employment of the employee consist of, or consist principally of, rendering domestic services or personal services, or both, for: (i) one or more religious practitioners who reside in one or more units of accommodation located on a particular parcel of land; and (ii) any relatives of that religious practitioner, or of those religious practitioners, who reside in the unit of accommodation with the religious practitioner concerned; (c) the employee resides in a unit of accommodation located on the same parcel of land; and (d) the fact that the employee resides in the unit of accommodation is directly related to the rendering, in the course of the performance of the duties of the employment of the employee, of those domestic services or of those personal services; any benefit arising from the provision, during that period, of: (e) that accommodation to the employee or to the employee and a spouse or child of the employee who resides in that unit of accommodation with the employee; (f) residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; (g) meals provided on the parcel of land to the employee or to a spouse or child of the employee who resides in that unit of accommodation with the employee; or (h) food or drink (other than meals) for consumption, during that period, by the employee or by a spouse or child of the employee who resides in that unit of accommodation with the employee; is an exempt benefit. Exempt benefits-live-in help for elderly and disadvantaged persons "58U. Where, during a particular period: (a) the employer of an employee is a natural person; (b) the duties of the employment of the employee consist of, or consist principally of: (i) caring for one or more elderly persons and any child or children of that elderly person, or those elderly persons, who reside with the elderly person concerned; or (ii) caring for one or more disadvantaged persons and any child or children of that disadvantaged person, or those disadvantaged persons, who reside with the disadvantaged person concerned; (c) in the performance of those duties, the employee resides in the same unit of accommodation as the person or persons being cared for; and (d) the fact that the employee resides in that unit of accommodation is directly related to the provision, in the course of the performance of the duties of the employment of the employee, of care to the elderly person or elderly persons or to the disadvantaged person or disadvantaged persons; any benefit arising from the provision, during that period, of: (e) that accommodation to the employee or to the employee and a spouse or child of the employee who resides in that unit of accommodation with the employee; (f) residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; (g) meals provided in that unit of accommodation to the employee or to a spouse or child of the employee who resides in that unit of accommodation with the employee; or (h) food or drink (other than meals) for consumption, during that period, by the employee or by a spouse or child of the employee who resides in that unit of accommodation with the employee; is an exempt benefit. Exempt benefits-food and drink for non-live-in domestic employees "58V. Where: (a) the employer of an employee is: (i) a natural person; or (ii) a religious institution; (b) if the employer is a natural person-the duties of the employment of the employee consist of, or consist principally of, rendering domestic services for the employer or one or more relatives of the employer at a place of residence of the employer; (c) if the employer is a religious institution-the duties of the employment of the employee consist of, or consist principally of, rendering domestic services for one or more religious practitioners or one or more relatives of religious practitioners at a place of residence of the religious practitioner concerned; and (d) the employee is not provided with residential accommodation in respect of that employment; any benefit arising from the provision of food or drink consumed by the employee at that place of residence at or about the time the employee was engaged in the performance of the duties of that employment is an exempt benefit. "Division 14 - Reduction of Taxable Value of Miscellaneous Fringe Benefits". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 35 Reduction of taxable value-remote area residential fuel 35. Section 59 of the Principal Act is amended: (a) by omitting from subsections (1) and (2) "40%" and substituting "50%"; (b) by inserting in subparagraphs (2) (a) (i), (ii) and (iii) "in relation to an employer in relation to an employee" after "benefit"; (c) by omitting from paragraph (2) (a) "and"; (d) by inserting after paragraph (2) (b) the following word and paragraph: "; and (c) the fringe benefit was not provided under: (i) a non-arm's length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section;"; and (e) by adding at the end the following subsection: "(3) Where: (a) any of the following conditions are satisfied: (i) the recipients expenditure in relation to an expense payment fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is in respect of the supply of residential fuel; (ii) the recipients property in relation to a property fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is residential fuel; (iii) the recipients benefit in relation to a residual fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is the benefit of the consumption of residential fuel; (b) the residential fuel is for use in connection with a unit of accommodation during a period in the year of tax or, in a case to which subparagraph (a) (i) applies, in a preceding year of tax, during which: (i) the recipient of the fringe benefit occupied or used the unit of accommodation as his or her usual place of residence; and (ii) remote area housing rent connected with the unit of accommodation accrued; and (c) the fringe benefit was not provided under: (i) a non-arm's length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 36 Reduction of taxable value-remote area housing 36. Section 60 of the Principal Act is amended: (a) by omitting from subsections (1), (2) and (3) "40%" and substituting "50%"; (b) by omitting from paragraph (2) (b) "and"; (c) by omitting from paragraph (2)(c) "in the year of tax"; (d) by inserting after paragraph (2) (c) the following word and paragraph: "; and (d) the fringe benefit was not provided under: (i) a non-arm's length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section;"; and (e) by inserting after subsection (2) the following subsection: "(2A) Where: (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; (b) the recipients expenditure is in respect of remote area housing rent connected with a unit of accommodation; (c) the recipient occupied or used the unit of accommodation as his or her usual place of residence during a period (in this subsection called the 'occupation period') during which the rent accrued; and (d) the fringe benefit was not provided under: (i) a non-arm's length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50% of so much of the recipients expenditure as relates to the occupation period.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 37 37. After section 60 of the Principal Act the following section is inserted: Reduction of taxable value-remote area holiday transport fringe benefits subject to ceiling "60A. (1) Where one or more remote area holiday transport fringe benefits in relation to an employer in relation to a year of tax relate to a particular employee of the employer and to a particular holiday for a particular family member, the amount (in this subsection called the 'gross taxable value') that, but for this subsection and section 62, would be: (a) so much of the taxable value of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or (b) so much of the sum of the taxable values of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member; as the case requires, in relation to that year of tax, shall be reduced by: (c) 50% of the gross taxable value; or (d) 50% of the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member; whichever is the less. "(2) Subsection (1) does not apply in relation to a remote area holiday transport fringe benefit unless: (a) subsection 143 (3) applies to the fringe benefit; and (b) if the fringe benefit is an expense payment fringe benefit: (i) in the case of an expense payment fringe benefit where: (A) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient; and (B) the reimbursement is calculated by reference to the distance travelled by the car; the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; or (ii) in the case of an expense payment fringe benefit where subparagraph (i) does not apply: (A) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or (B) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure. "(3) Where subsection (1) applies, in relation to 2 or more years of tax, in relation to 2 or more fringe benefits relating to a particular holiday for a particular family member, subsection (1) has effect, in relation to each of those years of tax, as if the reference in paragraph (1) (d) to the benchmark travel amount in relation to that fringe benefit, or those fringe benefits, in relation to the holiday for the family member were a reference to the amount calculated in accordance with the formula: BTA X TV TTV where: BTA is the amount that, but for this subsection, would be the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member; TV is the amount that, but for this section and section 62, would be: (a) so much of the taxable value, in relation to the year of tax concerned, of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or (b) so much of the sum of the taxable values, in relation to the year of tax concerned, of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member; and TTV is the amount that, but for this section and section 62, would be so much of the sum of the taxable values, in relation to all of those years of tax, of all of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member. "(4) Where: (a) subparagraph (2) (b) (i) applies to an expense payment fringe benefit; and (b) the amount of the reimbursement concerned exceeds the reimbursement (in this subsection called the 'statutory reimbursement') that would have been paid if it had been calculated on the basis of the sum of the rates: (i) prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax Assessment Act 1936; and (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the expense payment fringe benefit is a remote area holiday transport fringe benefit-prescribed for the purposes of this subparagraph; a reference in subsection (1) or (3) of this section to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the statutory reimbursement.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 38 Reduction of taxable value-remote area holiday transport fringe benefits not subject to ceiling 38. Section 61 of the Principal Act is amended: (a) by inserting before subsection (1) the following subsection: "(1A) This section does not apply in relation to a fringe benefit in respect of remote area holiday transport if subsection 143 (3) applies in relation to the fringe benefit."; (b) by omitting paragraph (1)(b); (c) by omitting from paragraph (1)(c) all the words after "approved by the Commissioner," and substituting "in respect of the recipients expenditure; and"; (d) by inserting after paragraph (1)(c) the following paragraph: "(d) if paragraph (c) does not apply: (i) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or (ii) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure;"; (e) by omitting paragraphs (1)(d) and (e) and substituting the following paragraphs: "(e) where paragraph (c) does not apply-50%; and (f) where paragraph (c) applies-50% of so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the rates: (i) prescribed for the purposes of paragraph 82KX (1)(a) of the Income Tax Assessment Act 1936; and (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the recipients expenditure is in respect of remote area holiday transport-prescribed for the purposes of this subparagraph."; and (f) by inserting after subsection (1) the following subsection: "(1AA) Where the recipients property in relation to a property fringe benefit in relation to a year of tax is in respect of remote area holiday transport, the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 39 39. After section 61 of the Principal Act the following sections are inserted: Reduction of taxable value-overseas employment holiday transport "61A. (1) Where one or more fringe benefits, being fringe benefits in respect of overseas employment holiday transport, in relation to an employer in relation to a year of tax relate to a particular employee of the employer, the amount (in this subsection called the 'gross taxable value') that, but for this subsection and sections 62, 65B and 65C, would be: (a) so much of the taxable value of that fringe benefit as is attributable to transport, meals or accommodation for a particular family member; or (b) so much of the sum of the taxable values of those fringe benefits as is attributable to transport, meals or accommodation for a particular family member; as the case requires, in relation to that year of tax, shall be reduced by: (c) 50% of the gross taxable value; or (d) 50% of the benchmark travel amount in relation to that fringe benefit in relation to the family member or 50% of the greatest benchmark travel amount in relation to those fringe benefits in relation to the family member, as the case requires; whichever is the less. "(2) Subsection (1) does not apply in relation to a fringe benefit in respect of overseas employment holiday transport, being an expense payment fringe benefit, unless: (a) in the case of an expense payment fringe benefit where: (i) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient; and (ii) the reimbursement is calculated by reference to the distance travelled by the car; the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (iii) particulars of the car; and (iv) the number of whole kilometres travelled by the car in providing transport by virtue of which the recipients expenditure is in respect of overseas employment holiday transport; or (b) in the case of an expense payment fringe benefit where paragraph (a) does not apply-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date. "(3) Where: (a) subsection (1) applies in relation to one or more fringe benefits (in this subsection called the 'overseas holiday transport fringe benefits') in relation to an employer in relation to a year of tax, being fringe benefits that relate to a particular employee of the employer; (b) one or more of the overseas holiday transport fringe benefits are home country fringe benefits in relation to a particular holiday or holidays for a particular family member; (c) if the home country fringe benefit, or home country fringe benefits, referred to in paragraph (b) relate to only one holiday for the family member-the home country holiday amount in relation to the holiday in relation to the family member exceeds the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1) (d) in relation to the overseas holiday transport fringe benefits in relation to the family member; and (d) if the home country fringe benefit, or home country fringe benefits, referred to in paragraph (b) relate to 2 or more holidays for the family member-the greatest of the home country holiday amounts in relation to the holidays in relation to the family member exceeds the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1) (d) in relation to the overseas holiday transport fringe benefits in relation to the family member; the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1) (d) in relation to the overseas holiday transport fringe benefits in relation to the family member shall be increased by the amount of the excess referred to in whichever of paragraph (c) or (d) of this subsection is applicable. "(4) For the purposes of subsection (3), where the whole or a part (which whole or part is in this subsection called the 'attributable portion') of the amount that, but for subsection (1) and sections 62, 65B and 65C, would be the taxable value, or of the sum of the taxable values, in relation to the year of tax, of one or more home country fringe benefits in relation to a particular holiday for a particular family member is attributable to transport, meals or accommodation in relation to the holiday for the family member, the home country holiday amount, in relation to the holiday, in relation to the family member, is an amount equal to the attributable portion. "(5) Where: (a) paragraph (2)(a) applies to an expense payment fringe benefit; and (b) the amount of the reimbursement concerned exceeds the reimbursement (in this subsection called the 'statutory reimbursement') that would have been paid if it had been calculated on the basis of the sum of the rates: (i) prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax Assessment Act 1936; and (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the expense payment fringe benefit is in respect of overseas employment holiday transport-prescribed for the purposes of this subparagraph; a reference in subsection (1) or (4) of this section to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the statutory reimbursement. Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport "61B. Where: (a) an expense payment fringe benefit in respect of relocation transport is provided in a year of tax to an employee of an employer, or to an associate of the employee, in respect of the employment of the employee; (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (i) particulars of the car; and (ii) the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is in respect of relocation transport; the amount that, but for this section and sections 65B and 65C, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the rates: (d) prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax Assessment Act 1936; and (e) where 2 or more family members travelled in the car when it provided the transport by virtue of which the benefit is in respect of relocation transport-prescribed for the purposes of this paragraph. Reduction of taxable value-temporary accommodation relating to relocation "61C. (1) Where: (a) any of the following fringe benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) an expense payment fringe benefit where the recipients expenditure is in respect of: (A) a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or (B) a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members; (ii) a housing fringe benefit where the housing right is in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; (iii) a residual fringe benefit where the recipients benefit: (A) is constituted by the subsistence of a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or (B) is constituted by the subsistence of a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members; (b) the temporary accommodation is required solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (c) if the unit of accommodation is located at or near the employee's former usual place of residence-the temporary accommodation was required because the unit of accommodation that was the employee's former usual place of residence became unavailable, or unsuitable, for residential use by family members due to removal, storage or other arrangements relating to the change in the usual place of residence of the employee; (d) if the unit of accommodation is located at or near the employee's new place of employment-the employee, or an associate of the employee, either before, on, or as soon as reasonably practicable after, the day (in this section called the 'relocation day') on which the employee commenced to perform the duties of that employment at the employee's new place of employment, commenced sustained reasonable efforts to acquire, or to acquire the right to occupy or use, a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee; and (e) the fringe benefit is not provided under a non-arm's length arrangement; the following provisions have effect. "(2) Where: (a) paragraph (1) (c) applies; and (b) a percentage (in this subsection called the 'attributable percentage') of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1) (a) during the whole or a part of the period of 21 days that ended on the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; the amount that, but for this subsection and sections 62, 65B and 65C, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage. "(3) Where: (a) paragraph (1) (d) applies; (b) any of the following subparagraphs applies: (i) the year of tax is the transitional year of tax or the first standard year of tax; (ii) the employee, not later than 4 months after the relocation day, pursuant to a contract entered into by the employee or an associate of the employee, commences or commenced to occupy or use a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee; (iii) the employee gives to the employer, before the declaration date, a declaration in a form approved by the Commissioner, in respect of the application of this section in relation to the employee; and (c) a percentage (in this subsection called the 'attributable percentage') of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1) (a) during the whole or a part of the period commencing 7 days before the relocation day and ending on the earlier or earliest of whichever of the following days is applicable: (i) if, during the initial accommodation search period, a contract is or was entered into by the employee or an associate of the employee for the acquisition of, or of the right to occupy or use, a unit of accommodation intended by the employee or associate to provide a long-term place of residence for the employee-the day on which the employee could reasonably be or have been expected to commence, or to have commenced, to occupy or use that unit of accommodation pursuant to that contract; (ii) if the initial accommodation search period ends or ended before any contract of a kind referred to in subparagraph (i) of this paragraph is or was entered into by the employee or an associate-the day on which that period ends or ended; (iii) if: (A) the unit of accommodation that was the employee's former usual place of residence was a dwelling in which the employee, or an associate of the employee, held a relevant proprietary interest; (B) within 6 months after the relocation day, a contract for the sale of that relevant proprietary interest is or was entered into; and (C) the efforts referred to in paragraph (1) (d), and the efforts of that kind that continue or continued to be made during the initial accommodation search period are, or were, efforts to acquire a relevant proprietary interest in a unit of accommodation, being a dwelling; the day occurring 12 months after the relocation day; (iv) except in a case where subparagraph (iii) applies-the day occurring 6 months after the relocation day; the amount that, but for this subsection and sections 62, 65B and 65C, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage. "(4) A reference in this section to the acquisition of a unit of accommodation includes a reference to the acquisition of a relevant proprietary interest in a unit of accommodation, being a dwelling. "(5) In this section: 'initial accommodation search period', in relation to a case to which paragraph (1) (d) applies, means the period commencing on the commencement, or the first commencement, as the case requires, of the efforts referred to in that paragraph and ending when efforts of that kind first cease or ceased to be made; 'relevant proprietary interest', in relation to a unit of accommodation, being a dwelling, means: (a) in any case-a prescribed interest in land on which a building constituting, or containing, the dwelling is located; (b) in any case-a prescribed interest in a stratum unit in relation to the dwelling; or (c) if the dwelling is a flat or home unit-a proprietary right in respect of the dwelling. Reduction of taxable value of temporary accommodation meal fringe benefits "61D. (1) Where: (a) either of the following fringe benefits (in this section called a 'temporary accommodation meal fringe benefit') is provided in a year of tax to an employee of an employer, or to an associate of the employee, in respect of the employment of the employee: (i) an expense payment fringe benefit where the recipients expenditure is in respect of a meal; (ii) a property fringe benefit where the recipients property is a meal; and (b) the meal was for consumption by a family member at a time when the family member was accommodated in a hotel, motel, hostel or guest-house; (c) any of the following fringe benefits is provided in, or in respect of, the year of tax in respect of that employment: (i) an expense payment benefit where the recipients expenditure is in respect of that accommodation; (ii) a housing benefit where the housing right is in respect of that accommodation; (iii) a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; (d) both of the following conditions are satisfied: (i) under section 61C, the taxable value of the fringe benefit referred to in paragraph (c) in relation to the year of tax is reduced by the extent to which that taxable value is attributable to the subsistence of a lease or licence, or a housing right, in respect of the accommodation during a particular period in the year of tax; (ii) the meal was for consumption by a family member at a time during that period; and (e) the amount that, but for this section and sections 62, 65B and 65C and the recipients contribution, would be the taxable value of the temporary accommodation meal fringe benefit exceeds: (i) in a case where the recipient had attained the age of 12 years before the beginning of the year of tax-$2.00; or (ii) in any other case-$1.00; the amount that, but for this section and sections 62, 65B and 65C and the recipients contribution, would be the taxable value of that temporary accommodation meal fringe benefit shall be reduced by the amount of the excess referred to in paragraph (e). "(2) For the purposes of the application of this section to an in-house property expense payment fringe benefit, a reference in this section to the recipients contribution in relation to the fringe benefit is a reference to the amount ascertained under paragraph 22A (1) (b). Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests "61E. Where: (a) an expense payment fringe benefit in respect of an employment interview or selection test is provided in a year of tax to an employee of an employer in respect of the employment of the employee; (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (i) particulars of the car; and (ii) the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is in respect of an employment interview or selection test; the amount that, but for this section and sections 65B and 65C, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the rate prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax Assessment Act 1936. Reduction of taxable value of certain expense payment fringe benefits associated with work-related medical examinations, work-related medical screening, work-related preventative health care, work-related counselling or migrant language training "61F. Where: (a) an expense payment fringe benefit associated with: (i) a work-related medical examination of an employee of an employer; (ii) work-related medical screening of an employee of an employer; (iii) work-related preventative health care of an employee of an employer; (iv) work-related counselling of an employee of an employer or of an associate of an employee of an employer; or (v) migrant language training of an employee of an employer or of an associate of an employee of an employer; is provided in a year of tax to the employee, or to an associate of the employee, in respect of the employment of the employee; (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a car expense, within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936, incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (i) particulars of the car; and (ii) the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is associated with: (A) a work-related medical examination of the employee; (B) work-related medical screening of the employee; (C) work-related preventative health care of the employee; (D) work-related counselling of the employee or of an associate of the employee; or (E) migrant language training of the employee or of an associate of the employee; the amount that, but for this section and sections 65B and 65C, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the rates: (d) prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax Assessment Act 1936; and (e) where: (i) the benefit is associated with work-related counselling of the employee or of an associate of the employee or with migrant language training of the employee or of an associate of the employee; and (ii) 2 or more family members travelled in the car when it provided the transport by virtue of which the benefit is associated with work-related counselling of the employee or of an associate of the employee or with migrant language training of the employee or of an associate of the employee; prescribed for the purposes of this paragraph.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 40 Reduction of aggregate taxable value of certain fringe benefits 40. Section 62 of the Principal Act is amended: (a) by omitting from paragraph (1) (a) "$150" (wherever occurring) and substituting "$375"; and (b) by omitting from paragraph (1) (b) "$200" (wherever occurring) and substituting "$500". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 41 Reduction of taxable value of living-away-from-home food fringe benefits 41. Section 63 of the Principal Act is amended: (a) by omitting from paragraphs (e) and (f) "section 62" and substituting "sections 62, 65B and 65C"; and (b) by adding at the end the following subsection: "(2) For the purposes of the application of this section to an in-house property expense payment fringe benefit, a reference in this section to the recipients contribution in relation to the fringe benefit is a reference to the amount ascertained under paragraph 22A (1) (b).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 42 42. After section 65 of the Principal Act the following sections and Division are inserted in Part III: Reduction of taxable value-education of children of overseas employees "65A. Where: (a) any of the following fringe benefits in relation to a year of tax is provided in respect of the employment of an employee: (i) a car fringe benefit where the application or availability of the car is in respect of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided; (ii) an expense payment fringe benefit where the recipients expenditure is in respect of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided; (iii) a property fringe benefit where the recipients property is required solely for the purposes of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the provision time; (iv) a residual fringe benefit where the recipients benefit consists of, or is required solely for the purposes of, the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the comparison time; (b) the full-time education is: (i) at an educational institution; or (ii) by a tutor; (c) the whole or any part of the full-time education is undertaken by the child when the employee is an overseas employee; (d) either of the following conditions is satisfied: (i) the benefit is provided pursuant to the provisions of an industrial instrument relating to the employment of the employee; (ii) it is customary for employers in the industry in which the employee is employed to provide benefits of the same kind as the benefit provided to the recipient and to provide such benefits in similar circumstances to those that applied in relation to the provision of the benefit to the recipient; (e) in the case of an expense payment fringe benefit-documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer of the employee before the declaration date; and (f) a percentage (in this section called the 'attributable percentage') of the taxable value, in relation to the year of tax, of the fringe benefit is attributable to the full-time education of the child in the period commencing on whichever of the following days is applicable: (i) if: (A) the full-time education is at an educational institution; (B) the overseas posting period is a period of not less than 28 days; and (C) the overseas posting period commenced during an academic period of the educational institution; the day on which that academic period commenced; or (ii) in any other case-the day on which the overseas posting period commenced; and ending on whichever of the following days is applicable: (iii) if: (A) the full-time education is at an educational institution; (B) the overseas posting period is a period of not less than 28 days; and (C) the overseas posting period ended during an academic period of the educational institution; the day on which that academic period ended; (iv) in any other case-the day on which the overseas posting period ended; the amount that, but for this section and sections 62, 65B and 65C, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the attributable percentage. Reduction of taxable value of certain fringe benefits-section 23AF of the Income Tax Assessment Act 1936 "65B. (1) Where: (a) a fringe benefit (not being a car fringe benefit) in relation to an employer in relation to a year of tax relates to a particular employee; (b) the employee has been engaged on qualifying service on a particular approved project for a continuous period of less than 365 days but not less than 91 days; (c) the employee derived eligible foreign remuneration, being salary or wages paid by the employer, that is attributable to that qualifying service; (d) the fringe benefit was provided in respect of that qualifying service; (e) the fringe benefit was not also provided in respect of, by reason of, by virtue of, or for or in relation directly or indirectly to, any other matter or thing; (f) subsection 65C (1) does not apply in relation to the fringe benefit; and (g) a percentage (in this subsection called the 'exempt percentage') of the eligible foreign remuneration is exempt income by virtue of section 23AF of the Income Tax Assessment Act 1936; the amount that, but for this subsection and sections 62, 64 and 65, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the exempt percentage. "(2) Where: (a) one or more car fringe benefits (in this subsection called the 'eligible car fringe benfits') in relation to an employee, in relation to an employer, in relation to a year of tax, relate to a particular car; (b) the employee has been engaged on qualifying service on a particular approved project for a continuous period of less than 365 days but not less than 91 days; (c) the employee derived eligible foreign remuneration, being salary or wages paid by the employer, that is attributable to that qualifying service; (d) the eligible car fringe benefits were provided in respect of that qualifying service; (e) the eligible car fringe benefits were not also provided in respect of, by reason of, by virtue of, or for or in relation directly or indirectly to, any other matter or thing; (f) subsection 65C (2) does not apply in relation to the eligible car fringe benefits; and (g) a percentage (in this subsection called the 'exempt percentage') of the eligible foreign remuneraton is exempt income by virtue of section 23AF of the Income Tax Assessment Act 1936; the amount that, but for this subsection and sections 62, 64 and 65, would be the taxable value, or the sum 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 shall be reduced by the amount calculated in accordance with the formula: TV X EP where: TV is so much of the taxable value or the sum of the taxable values as is attributable to the eligible car fringe benefits; and EP is the exempt percentage. "(3) Subject to subsection (4), an expression (other than 'employee' or 'salary or wages') used in this section and in section 23AF of the Income Tax Assessment Act 1936 has the same meaning in this section as it has in that section. "(4) In determining whether a fringe benefit was provided in respect of qualifying service, subsections 23AF (6) and (7) of the Income Tax Assessment Act 1936 shall be disregarded. "(5) A reference in this section to salary or wages includes a reference to a payment that would be salary or wages if salary or wages included exempt income. Reduction of taxable value of certain fringe benefits-section 23AG of the Income Tax Assessment Act 1936 "65C. (1) Where: (a) a fringe benefit (not being a car fringe benefit) in relation to an employer in relation to a standard year of tax relates to a particular employee; (b) the employee has been engaged in foreign service for a continuous period of less than 365 days but not less than 91 days; (c) on or after 1 July 1987, the employee derived foreign earnings from that foreign service, being salary or wages paid by the employer; (d) the fringe benefit was provided in respect of that foreign service; (e) the fringe benefit was not also provided in respect of, by reason of, by virtue of, or for or in relation directly or indirectly to, any other matter or thing; (f) except in the case of a loan fringe benefit, a housing fringe benefit or a period residual fringe benefit-the benefit was provided on or after 1 July 1987; (g) in the case of a loan fringe benefit, a housing fringe benefit or a period residual fringe benefit-the whole or a part (which whole or part is in this subsection called the 'reducible portion') of the taxable value of the fringe benefit is attributable to the obligation to repay the whole or any part of the loan, the subsistence of the housing right or the provision of the residual benefit, as the case may be, on or after 1 July 1987; and (h) a percentage (in this subsection called the 'exempt percentage') of the foreign earnings is exempt income by virtue of section 23AG of the Income Tax Assessment Act 1936; the amount that, but for this subsection and sections 62, 64 and 65, would be the taxable value or, if paragraph (g) applies, the reducible portion of the taxable value, of that fringe benefit in relation to the year of tax shall be reduced by the exempt percentage. "(2) Where: (a) one or more car fringe benefits (in this subsection called the 'eligible car fringe benefits') in relation to an employee, in relation to an employer, in relation to a standard year of tax, relate to a particular car; (b) the employee has been engaged in foreign service for a continuous period of less than 365 days but not less than 91 days; (c) on or after 1 July 1987, the employee derived foreign earnings from that foreign service, being salary or wages paid by the employer; (d) the eligible car fringe benefits were provided on or after 1 July 1987 in respect of that foreign service; (e) the eligible car fringe benefits were not also provided in respect of, by reason of, by virtue of, or for or in relation directly or indirectly to, any other matter or thing; and (f) a percentage (in this subsection called the 'exempt percentage') of the foreign earnings is exempt income by virtue of section 23AG of the Income Tax Assessment Act 1936; the amount that, but for this subsection and sections 62, 64 and 65, would be taxable value, or the sum 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 shall be reduced by the amount calculated in accordance with the formula: TV X EP where: TV is so much of the taxable value or the sum of the taxable values as is attributable to the eligible car fringe benefits; and EP is the exempt percentage. "(3) An expression (other than 'employee' or 'salary or wages') used in this section and in section 23AG of the Income Tax Assessment Act 1936 has the same meaning in this section as it has in that section. "(4) A reference in this section to salary or wages includes a reference to a payment that would be salary or wages if salary or wages included exempt income. "Division 15-Car Substantiation Rules for Otherwise Deductible Provisions Car substantiation rules "65D. The object of this Division is to set out the substantiation rules that apply for the purposes of sections 19, 24, 44 and 52 in relation to cars held by recipients of fringe benefits. No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained "65E. Where a car is held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to an employer during a period (in this section called the 'holding period') in a year of tax that is a log book year of tax of the recipient in relation to the car, the substantiation rules shall be taken to have been complied with in relation to the car in relation to the holding period if, and only if: (a) if either of the following subparagraphs applies: (i) the recipient commenced to hold the car during the last 12 weeks of the year of tax; (ii) the Commissioner is satisfied, having regard to the recipient's circumstances, that it would be unreasonable to expect log books and odometer records in relation to the car to have been maintained by or on behalf of the recipient for an applicable log book period in relation to the car; the employer, in his or her return for the year of tax, specifies a percentage as the nominated business percentage applicable to the car in relation to the recipient for the year of tax; or (b) in any other case-both of the following conditions are satisfied: (i) log book records and odometer records are maintained by or on behalf of the recipient for the applicable log book period in relation to the car; (ii) the employer, in his or her return for the year of tax, specifies a percentage as the nominated business percentage applicable to the car in relation to the recipient for the holding period, not being a percentage that exceeds the business percentage established during the applicable log book period. No compliance with substantiation rules in non-log book year of tax unless log book records kept in previous log book year of tax "65F. Where a car is held by the recipient of a loan fringe benefit, an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit during a period (in this section called the 'holding period') in a year of tax that is not a log book year of tax of the recipient in relation to the car, the substantiation rules shall be taken to be complied with in relation to the car if, and only if: (a) odometer records are maintained by or on behalf of the recipient in relation to the car for the holding period; and (b) the employer, in his or her return for the year of tax, specifies whichever of the following percentages is applicable: (i) the percentage that was: (A) the nominated business percentage applicable to the car in relation to the recipient for the period that was the holding period in the year of tax that was the last log book year of tax of the recipient in relation to the car; and (B) specified in the employer's return for that last log book year of tax; (ii) if the percentage referred to in subparagraph (i) would otherwise be applicable but the employer is of the opinion that that percentage calculated in accordance with the formula: N-U where: N is the percentage referred to in subparagraph (i); and U is the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the recipient for the holding period; is a percentage that: (A) if the car is a low business kilometre car of the recipient in relation to the year of tax-exceeds nil; or (B) in any other case-exceeds 10%; a percentage as the nominated business percentage applicable to the car in relation to the recipient for the holding period. Car deduction percentage "65G. Where a car is held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to an employer during a period (in this section called the 'holding period') in a year of tax, the car deduction percentage in relation to the car in relation to the recipient for the year of tax is: (a) if the percentage calculated in accordance with the formula: N-U where: N is the percentage applicable to the car specified in the employer's return for the year of tax as mentioned in section 65E or 65F; and U is the percentage (in this paragraph called the 'reasonable percentage') that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the recipient for the holding period; is a percentage that: (i) if either of the following sub-subparagraphs applies: (A) the year of tax is a log book year of tax of the recipient in relation to the car; (B) the year of tax is not a log book year of tax of the recipient in relation to the car and the car is a low business kilometre car of the recipient in relation to the year of tax; exceeds nil; or (ii) in any other case-exceeds 10%; the reasonable percentage; or (b) in any other case-the percentage applicable to the car specified in the employer's return for the year of tax as mentioned in section 65E or 65F. Nominated business percentage to be reduced if it exceeds business percentage established during applicable log book period or if it is unreasonable "65H. (1) For the purposes of this Act, where: (a) an employer, in his or her return for a year of tax, specifies, or purports to specify, a percentage (in this subsection called the 'excessive percentage') of the kind mentioned in subparagraph 65E (b) (ii) in respect of a car held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to the employer during a period (in this subsection called the 'holding period') in the year of tax; and (b) the excessive percentage exceeds the percentage (in this subsection called the 'reduced percentage') that is the lesser of the following percentages: (i) the business percentage applicable to the car that was established during the applicable log book period referred to in subparagraph 65E (b) (ii); (ii) the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the recipient for the holding period; the following provisions have effect: (c) the employer shall be treated as if he or she had, in the return, specified, in respect of the car, the reduced percentage instead of the excessive percentage; (d) if the employer, in his or her return for a subsequent year of tax, specifies, or purports to specify, in respect of the car, the excessive percentage in accordance with the condition set out in subparagraph 65F (b) (i)-the employer shall be treated as if he or she had, in the return for that subsequent year of tax, specified, in respect of the car, the reduced percentage instead of the excessive percentage. "(2) For the purposes of this Act, where: (a) subparagraph 65F (b) (ii) applies in relation to a car held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to an employer during a period (in this subsection called the 'holding period') in a year of tax; and (b) the employer fails to specify in his or her return for the year of tax a percentage as the nominated business percentage applicable to the car in relation to the recipient for the holding period; the employer shall be treated as if he or she had, in the return, specified, in respect of the car, as that nominated business percentage, the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the recipient for the holding period.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 43 Application of payments of instalments of tax 43. Section 104 of the Principal Act is amended by adding at the end the following subsection: "(2) For the purposes of subsection (1), where: (a) an employer has paid an amount (in this subsection called the 'instalment amount') in respect of an instalment of tax in respect of the transitional year of tax; and (b) the whole or a part of the instalment amount is refunded to the employer otherwise than under this Act; the amount refunded shall be deemed never to have been paid by the employer.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 44 Notional tax amount 44. Section 106 of the Principal Act is amended: (a) by inserting in paragraph (1) (a) "or for the purposes of the application of the car substantiation rules" after "car"; (b) by inserting after paragraph (1) (a) the following paragraph: "(aa) for the purposes of the application of the car substantiation rules: (i) the first quarter (in this subsection also called the 'notional year of tax') were the transitional year of tax; (ii) the second quarter (in this subsection also called the 'notional year of tax') were the first standard year of tax and the rate of tax were the same as the rate for the transitional year of tax; (iii) low business kilometre cars were treated as cars other than low business kilometre cars; (iv) a reference to an employer's return for a year of tax were a reference to a document lodged with the Commissioner before the twenty-eighth day after the date of commencement of this paragraph or within such further time as the Commissioner allows; (v) section 162H applied in relation to the second notional year of tax as if the second notional year of tax had commenced at the commencement of the first notional year of tax; (vi) sections 10B and 65F applied in relation to the second notional year of tax as if paragraph 10B (a) or 65F (a), as the case requires, were omitted; (vii) a reference to the declaration date, in relation to the employer, were a reference to the twenty-eighth day after the date of commencement of this paragraph, or such later date as the Commissioner allows;"; (c) by inserting in paragraph (1) (c) "except for the purposes of the car substantiation rules," before "a reference" (first occurring); (d) by inserting after paragraph (1) (e) the following paragraph: "(ea) if a benefit (in this paragraph called the 'second notional year benefit') was provided in, or in respect of, the second notional year of tax and a declaration relating to the second notional year benefit was not given under whichever of the following provision or provisions is applicable: (i) paragraph 19 (1) (c); (ii) paragraph 19 (1) (ca); (iii) paragraph 19 (1) (d); (iv) paragraph 21 (1) (d); (v) paragraph 24 (1) (e); (vi) paragraph 24 (1) (ea); (vii) paragraph 24 (1) (f); (viii) paragraph 34 (1) (c); (ix) paragraph 44 (1) (c); (x) paragraph 44 (1) (da); (xi) paragraph 44 (1) (e); (xii) paragraph 47 (5) (d); (xiii) paragraph 52 (1) (c); (xiv) paragraph 52 (1) (da); (xv) paragraph 52 (1) (e); (xvi) paragraph 63 (1) (d); (xvii) the definition of 'exempt accommodation component' in subsection 136 (1); (xviii) the definition of 'exempt food component' in subsection 136 (1); before the declaration date for the second notional year of tax, the provision concerned applies in relation to the second notional year benefit as if a declaration: (xix) given under the provision concerned before the declaration date for the first notional year of tax; and (xx) that related to a benefit that was: (A) provided in, or in respect of, the first notional year of tax; and (B) the same, or substantially the same, as the second notional year benefit; had also been given in accordance with the provision concerned in relation to the second notional year benefit;"; (e) by omitting "A" from paragraph (1) (g) and substituting "SA"; (f) by omitting from paragraph (1) (g) "and"; (g) by inserting after paragraph (1) (g) the following paragraph: "(ga) section 58R applied in relation to the second notional year of tax as if: (i) paragraph 58R (b) were omitted and the following paragraph were substituted: '(b) the sum of: (i) the notional taxable value of that safety award benefit, or the sum of the notional taxable values of those safety award benefits, as the case may be, in relation to the year of tax; and (ii) if one or more safety award benefits in relation to the employer in relation to the immediately preceding year of tax relate to the employee-the notional taxable value of that safety award benefit, or the sum of the notional taxable values of those safety award benefits, as the case may be, in relation to the preceding year of tax; does not exceed $200;'; and (ii) 'first-mentioned' were inserted before 'safety award benefit' (last occurring) and before 'safety award benefits' (last occurring); and"; (h) by omitting subsection (2); and (j) by adding at the end the following subsection: "(5) In this section: 'car substantiation rules' means the following provisions: (a) sections 10, 10A, 10B and 10C; (b) paragraphs 19 (1) (ca) and (f); (c) paragraphs 24 (1) (ea) and (h); (d) paragraphs 44 (1) (da) and (g); (e) paragraphs 52 (1) (da) and (g); (f) Division 15 of Part III; (g) any of the following provisions, to the extent to which the provision is relevant for the purposes of a provision referred to in paragraph (a) to (f) (inclusive) of this definition: (i) subsection 136 (1); (ii) sections 162C to 162M (inclusive).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 45 45. After section 115 of the Principal Act the following section is inserted: Penalty tax for over-estimating business percentage applicable to car "115A. (1) Where: (a) an employer, in his or her return for a year of tax, specifies, or purports to specify, (otherwise than by virtue of section 10C) a percentage (in this subsection called the 'excessive percentage') of the kind mentioned in section 10A or 10B in respect of a car held, during a period (in this subsection called the 'holding period') in the year of tax, by the provider of a car fringe benefit in relation to the employer in respect of the car; (b) the excessive percentage exceeds the percentage (in this subsection called the 'reduced percentage') that is the lesser of the following percentages: (i) if the excessive percentage is a percentage of the kind mentioned in subparagraph 10A (b) (ii)-the business percentage applicable to the car that was established during the applicable log book period referred to that subparagraph; (ii) in all cases-the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the provider for the holding period; (c) the percentage calculated in accordance with the formula: EP-RP where: EP is the excessive percentage; and RP is the reduced percentage; is a percentage that: (i) if either of the following sub-subparagraphs applies: (A) the year of tax is a log book year of tax of the employer in relation to the car; (B) the year of tax is not a log book year of tax of the employer in relation to the car and the car is a low business kilometre car of the provider in relation to the year of tax; exceeds nil; or (ii) in any other case-exceeds 10%; and (d) the tax properly payable by the employer exceeds the tax that would have been payable by the employer if the percentage represented by component BP in the formula in subsection 10 (2) were equal to the excessive percentage; the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in paragraph (d). "(2) Where: (a) an employer, in his or her return for a year of tax, specifies, or purports to specify (otherwise than by virtue of section 65H), a percentage (in this subsection called the 'excessive percentage') of the kind mentioned in section 65E or 65F in respect of a car held during a period (in this subsection called the 'holding period') in the year of tax by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to the employer; (b) the excessive percentage exceeds the percentage (in this subsection called the 'reduced percentage') that is the lesser of the following percentages: (i) if the excessive percentage is a percentage of the kind mentioned in subparagraph 65E (b) (ii)-the business percentage applicable to the car that was established during the applicable log book period referred to in that subparagraph; (ii) in all cases-the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the recipient for the holding period; (c) the percentage calculated in accordance with the formula: EP - RP where: EP is the excessive percentage; and RP is the reduced percentage; is a percentage that: (i) if either of the following sub-subparagraphs applies: (A) the year of tax is a log book year of tax of the recipient in relation to the car; (B) the year of tax is not a log book year of tax of the recipient in relation to the car and the car is a low business kilometre car of the recipient in relation to the year of tax; exceeds nil; or (ii) in any other case-exceeds 10%; and (d) the tax properly payable by the employer exceeds the tax that would have been payable by the employer if the car deduction percentage ascertained under section 65G in relation to the car in relation to the recipient for the year of tax were equal to the excessive percentage; the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in paragraph (d).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 46 Retention of statutory evidentiary documents 46. Section 123 of the Principal Act is amended: (a) by omitting from subsection (2) "paragraph 10 (3) (b)" and substituting "sections 10A and 10B"; (b) by omitting from subsection (2) "relevant car documents" and substituting "log book records or odometer records"; and (c) by inserting in subsection (3) "(ia) or" after "24 (1) (c)". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 47 47. After section 124 of the Principal Act the following section is inserted: Assessment on assumption "124A. (1) Subject to subsection (4), where: (a) an employee of an employer has derived eligible foreign remuneration or foreign earnings during a year of tax; and (b) at the time of making an assessment of the fringe benefits taxable amount of the employer of the year of tax, it is reasonable to assume that, at a later time, circumstances will exist because of which the whole or a part of that eligible foreign remuneration or foreign earnings, as the case may be, will be exempt income by virtue of section 23AF or 23AG of the Income Tax Assessment Act 1936; this Act applies as if those circumstances existed at the time of making that assessment. "(2) Subject to subsection (4), where, at the time of making an assessment of the fringe benefits taxable amount of an employer of a year of tax, it is reasonable to assume that, at a later time, circumstances will exist because of which a benefit provided in respect of the employment of an employee of the employer in, or in respect of, the year of tax will be an exempt benefit by virtue of section 58B, 58C or 58D, this Act applies as if those circumstances existed at the time of making that assessment. "(3) Subject to subsection (4), where: (a) a fringe benefit (in this subsection called the 'temporary accommodation fringe benefit') of a kind referred to in paragraph 61C (1) (a) is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; and (b) at the time of making an assessment of the fringe benefits taxable amount of the employer of the year of tax, it is reasonable to assume that, at a later time, circumstances will exist because of which section 61C will apply to reduce the taxable value of the temporary accommodation fringe benefit in relation to the year of tax by a particular amount; this Act applies as if those circumstances existed at the time of making that assessment. "(4) Where this Act has, by virtue of subsection (1), (2) or (3), applied on the basis that a circumstance that did not exist at the time of making an assessment would exist at a later time and the Commissioner, after making the assessment, becomes satisfied that that circumstance will not exist, then, notwithstanding section 74, the Commissioner may amend the assessment at any time for the purposes of ensuring that this Act shall be taken always to have applied on the basis that that circumstance did not exist.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 48 Interpretation 48. Section 136 of the Principal Act is amended: (a) by omitting "Divisions 4, 5, 11 and 12 of Part III in relation to a fringe benefit" from paragraph (b) of the definition of "business journey" in subsection (1) and substituting "sections 19, 24, 44 and 52 in relation to a loan fringe benefit, an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit, as the case requires,"; (b) by omitting "an airline transport fringe benefit, in relation to" from the definition of "economy air fare" in subsection (1) and substituting "a person being carried on"; (c) by omitting "recipient" from paragraph (b) of the definition of "economy air fare" in subsection (1) and substituting "person"; (d) by inserting "entertainment," after "in relation to" in the definition of "eligible premises" in subsection (1); (e) by omitting "his or her employment" from the definition of "eligible premises" in subsection (1) and substituting "that employment"; (f) by omitting "includes" from the definition of "employment" in subsection (1) and substituting "means"; (g) by omitting "deemed to be" from paragraph (b) of the definition of "fringe benefit" in subsection (1); (h) by omitting ", or originally provided, as the case may be," from the definition of "fringe benefit" in subsection (1); (j) by inserting ", or by a relative of the employee," after "employee" in paragraph (h) of the definition of "fringe benefit" in subsection (1); (k) by omitting "in relation to" from paragraphs (a) and (b) of the definition of "living-away-from-home food fringe benefit" in subsection (1) and substituting "provided in respect of the employment of"; (m) by omitting subparagraph (a) (ii) of the definition of "living-away-from-home food fringe benefit" in subsection (1) and substituting the following subparagraph: "(ii) the food or drink was not for consumption while the employee was undertaking travel in the course of performing the duties of that employment; and"; (n) by omitting "his or her employment" from subparagraphs (a) (iii) and (b) (iii) of the definition of "living-away-from-home food fringe benefit" in subsection (1) and substituting "that employment"; (p) by omitting subparagraph (b) (ii) of the definition of "living-away-from-home food fringe benefit" in subsection (1) and substituting the following subparagraph: "(ii) the food or drink was not for consumption while the employee was undertaking travel in the course of performing the duties of that employment; and"; (q) by inserting "(in this definition called the 'current year of tax')" after "year of tax" (first occurring) in the definition of "statutory evidentiary document" in subsection (1); (r) by omitting "or" from sub-subparagraph (a) (ii) (A) of the definition of "statutory evidentiary document" in subsection (1); (s) by inserting after sub-subparagraph (a) (ii) (A) of the definition of "statutory evidentiary document" in subsection (1) the following sub-subparagraph: "(AA) the notional taxable value of a benefit provided in, or in respect of, the current year of tax in respect of the employment of an employee of the employer; or"; (t) by inserting "in, or in respect of, the current year of tax" after "provided" in sub-subparagraphs (a) (ii) (A) and (B) of the definition of "statutory evidentary document" in subsection (1); (u) by omitting "and" (last occurring) from paragraph (a) of the definition of "statutory evidentiary document" in subsection (1); (w) by omitting paragraph (b) of the definition of "statutory evidentiary document" in subsection (1) and substituting the following paragraphs: "(b) a document maintained by the employer in relation to the current year of tax as mentioned in paragraph 10A (b) or 10B (a) or sub-subparagraph 24 (1) (c) (ia) (A) or 24 (1) (c) (i) (B); and (c) log book records or odometer records maintained in relation to a particular car where any of the following subparagraphs apply: (i) both of the following conditions are satisfied: (A) the current year of tax is not a log book year of tax of the employer in relation to the car; (B) section 10A required the records to be maintained by or on behalf of the provider of a car fringe benefit in relation to the employer as a condition of the employer being entitled, in respect of the year of tax that was the last log book year of tax of the employer in relation to the car before the current year of tax, to a reduction in the operating cost of the car on account of business journeys undertaken in the car during that last log book year of tax; (ii) both of the following conditions are satisfied: (A) the current year of tax is not a log book year of tax of the recipient of a loan fringe benefit, an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit in relation to the car while it was held by the recipient during a period in the current year of tax; (B) section 65E required the records to be maintained by or on behalf of the recipient as a condition of the employer being entitled, in relation to the year of tax that was the last log book year of tax of the recipient before the current year of tax, to a reduction of the taxable value of a fringe benefit on account of business journeys undertaken in the car in that last log book year of tax;"; (y) by inserting after paragraph (a) of the definition of "unit of accommodation" in subsection (1) the following paragraph: "(aa) accommodation in a house, flat or home unit;"; (z) by omitting from subsection (1) the definitions of "in-house fringe benefit", "in-house property fringe benefit", "in-house residual fringe benefit" and "rent index number" and substituting the following definitions: " 'in-house fringe benefit' means: (a) an in-house expense payment fringe benefit; (b) an in-house property fringe benefit; or (c) an in-house residual fringe benefit; 'in-house property fringe benefit', in relation to an employer, means a property fringe benefit in relation to the employer in respect of tangible property: (a) where both of the following conditions are satisfied: (i) the provider is the employer or an associate of the employer; and (ii) at or about the provision time, the provider carried on a business that consisted of or included the provision of identical or similar property principally to outsiders; or (b) where all of the following conditions are satisfied: (i) the provider is not the employer or an associate of the employer; (ii) the property was acquired by the provider from the employer or an associate of the employer (which employer or associate is in this definition called the 'seller'); and (iii) at or about the provision time, both the provider and the seller carried on a business that consisted of or included the provision of identical or similar property principally to outsiders; 'in-house residual fringe benefit', in relation to an employer, means a residual fringe benefit in relation to the employer: (a) where both of the following conditions are satisfied: (i) the provider is the employer or an associate of the employer; (ii) at or about the comparison time, the provider carried on a business that consisted of or included the provision of identical or similar benefits principally to outsiders; or (b) where all of the following conditions are satisfied: (i) the provider is not the employer or an associate of the employer; (ii) the provider purchased the benefit from the employer or an associate of the employer (which employer or associate is in this definition called the 'seller'); (iii) at or about the comparison time, both the provider and the seller carried on a business that consisted of or included the provision of identical or similar property principally to outsiders; but does not include a benefit provided under a contract of investment insurance; 'rent index number' (a) in relation to a quarter in relation to a State or Territory-means the index number for the rent sub-group of the Consumer Price Index published by the Australian Statistician in respect of that quarter for the capital city of that State or Territory; or (b) in relation to a quarter in relation to Australia-means the index number for the rent sub-group of the Consumer Price Index, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter;"; (za) by omitting from subsection (1) the definitions of "board benefit", "board fringe benefit", "relevant car documents" and "statutory annual rent amount"; and (zb) by inserting in subsection (1) the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis): " 'academic period', in relation to an educational institution, means: (a) if the academic years of the educational institution are divided into terms but not semesters-a term of the academic year; (b) if the academic years of the educational institution are divided into semesters (whether or not they are also divided into terms)-a semester of the academic year; or (c) if the academic years of the educational institution are not divided into terms or semesters-an academic year of the institution; 'Australian workers' compensation law' means a workers' compensation law that is a law of the Commonwealth or of a State or Territory; 'board benefit' means a benefit referred to in section 35; 'board fringe benefit' means a fringe benefit that is a board benefit; 'car loan benefit' means a loan fringe benefit where the loan was used by the recipient to: (a) purchase a car; or (b) pay a car expense within the meaning of Subdivision F of Division 3 of Part III of the Income Tax Assessment Act 1936; 'car substantiation declaration', in relation to a car held by a person during a period (in this definition called the 'holding period') in a year of tax, means a declaration, in a form approved by the Commissioner, for the purposes of paragraphs 19 (1) (ca), 24 (1) (ea), 44 (1) (da) and 52 (1) (da), in relation to the car in relation to the holding period; 'compensable work-related trauma' means work-related trauma suffered by an employee where: (a) if there is no Australian workers' compensation law that applies to the employment of the employee-if any Australian workers' compensation law had applied to the employment of the employee, that law would have provided for compensation or other benefits for or in respect of the trauma; or (b) in all cases-there is a workers' compensation law that: (i) applies to the employment of the employee; and (ii) provides for compensation or other benefits for or in respect of the trauma; 'counselling' includes the giving of advice or information in a seminar; 'disadvantaged person' means: (a) a person who is intellectually, psychiatrically or physically handicapped; or (b) a person who is in necessitous circumstances; 'disease' includes any physical or mental ailment, disorder, defect or morbid condition whether of sudden onset or gradual development and whether of genetic or other origin; 'domestic services' includes: (a) child care; (b) gardening; (c) home renovations, repairs or maintenance; (d) house cleaning; (e) nursing care; and (f) preparation of meals; 'educational institution' means a school, college or university; 'elderly person' means a person who has attained the age of 60 years; 'eligible foreign remuneration' has the same meaning as in section 23AF of the Income Tax Assessment Act 1936; 'eligible pre-commencement loan' means a loan made before 1 July 1986 at a rate of interest that: (a) is specified in a document in existence at the time when the loan was made; and (b) cannot be varied; 'emergency' means an emergency involving any of the following matters: (a) a natural disaster; (b) a conflict involving an armed force; (c) a civil disturbance; (d) an accident; (e) a serious illness; (f) any similar matter; 'emergency assistance', in relation to a person, means assistance granted to the person where: (a) the person is, or is at immediate risk of becoming, the victim of an emergency; (b) the assistance is granted to the person solely in order to provide immediate relief; (c) the assistance is in respect of all or any of the following matters: (i) first aid or other emergency health care; (ii) emergency meals or food supplies; (iii) emergency clothing; (iv) emergency transport; (v) emergency accommodation; (vi) emergency use of household goods; (vii) temporary repairs; (viii) any similar matter; 'employee credit loan benefit', in relation to a year of tax, means a loan fringe benefit in relation to an employee in relation to the year of tax where: (a) the loan consists of the provision of credit to the employee in respect of: (i) property sold; or (ii) other benefits provided; to the employee by the provider of the fringe benefit; and (b) if the employee had, on the last day of the period during the year of tax when the employee was under an obligation to repay the whole or any part of the loan, incurred interest in respect of the loan in respect of that period, that interest would have been exclusively incurred in gaining or producing salary or wages of the employee in respect of the employment to which the fringe benefit relates; 'employee share loan benefit', in relation to a year of tax, means a loan fringe benefit in relation to an employee in relation to an employer in relation to the year of tax where: (a) the sole purpose of the making of the loan is to enable the employee to acquire shares, or rights to acquire shares, in a company, being: (i) the employer; or (ii) an associate of the employer; and (b) the shares or rights were beneficially owned by the employee at all times during the period during the year of tax when the employee was under an obligation to repay the whole or any part of the loan; 'external expense payment fringe benefit' means an expense payment fringe benefit other than an in-house expense payment fringe benefit; 'family member', in relation to a benefit provided to an employee, or to an associate of an employee, in respect of the employment of the employee, means: (a) the employee; (b) the spouse of the employee; or (c) a child of the employee; 'foreign earnings' has the same meaning as in section 23AG of the Income Tax Assessment Act 1936; 'health care' means any examination, test or form of care (whether therapeutic, preventative or rehabilitative) that is related to the physiological or psychological health of a person and, without limiting the generality of the foregoing, includes: (a) the supply, maintenance or repair of: (i) an artificial limb or other artificial substitute; or (ii) a medical, surgical or similar aid or appliance used by a person; and (b) the supply of drugs or other property in connection with such an examination, test or form of care; 'in-house expense payment fringe benefit' means: (a) an in-house property expense payment fringe benefit; or (b) an in-house residual expense payment fringe benefit; 'in-house health care facility', in relation to an employer, means a clinic, surgery, first-aid station or similar facility that is: (a) operated wholly or principally for providing health care in respect of compensable work-related trauma suffered: (i) in any case-by employees of the employer; or (ii) if the employer is a company-by employees of the employer or by employees of a company that is related to the employer; and (b) located: (i) on premises of the employer or, if the employer is a company, of the employer or of a company that is related to the employer; or (ii) at or adjacent to a place where employees of the employer or, if the employer is a company, of the employer or of a company that is related to the employer (other than members of the staff of the facility) perform the duties of their employment; 'in-house property expense payment fringe benefit', in relation to an employer, means an expense payment fringe benefit in relation to the employer where: (a) the recipients expenditure was incurred in respect of the provision of tangible property by a person (in this definition called the 'property provider'); (b) the provision of the property is a property benefit; (c) if the property provider is the employer or an associate of the employer-at or about the provision time, the property provider carried on a business that consisted of or included the provision of identical or similar property principally to outsiders; (d) if the property provider is not the employer or an associate of the employer: (i) the property was acquired by the property provider from the employer or an associate of the employer (which employer or associate is in this definition called the 'seller'); and (ii) at or about the provision time, both the property provider and the seller carried on a business that consisted of or included the provision of identical or similar property principally to outsiders; and (e) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; 'in-house residual expense payment fringe benefit', in relation to an employer, means an expense payment fringe benefit in relation to the employer where: (a) the recipients expenditure was incurred in respect of the provision of a residual benefit (other than a benefit provided under a contract of investment insurance) by a person (in this definition called the 'residual benefit provider'); (b) if the residual benefit provider is the employer or an associate of the employer-at or about the time that, if the residual benefit had been a residual fringe benefit, would have been the comparison time, the residual benefit provider carried on a business that consisted of or included the provision of identical or similar benefits principally to outsiders; (c) if the residual benefit provider is not the employer or an associate of the employer: (i) the residual benefit provider purchased the benefit from the employer or an associate of the employer (which employer or associate is in this definition called the 'seller'); and (ii) at or about the time that, if the residual benefit had been a residual fringe benefit, would have been the comparison time, both the residual benefit provider and the seller carried on a business that consisted of or included the provision of identical or similar benefits principally to outsiders; and (d) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; 'injury' means any physical or mental injury; 'law', in relation to a foreign country, means a law of that country, or of any part of, or place in, that country; 'log book records', in relation to a car held by a person (in this definition called the 'holder'), in relation to a period, means a daily log book or similar document in which, in respect of each business journey: (a) that is undertaken in the car during the period; and (b) that the holder, or a person acting on behalf of the holder, chooses to record in the document for the purpose of demonstrating the pattern of use of the car during the period; an entry setting out particulars of: (c) the date on which the journey began and the date on which it ended; (d) the respective odometer readings of the car at the beginning and end of the journey; (e) the number of kilometres travelled by the car in the course of the journey; (f) the purpose or purposes of the journey; (g) the name of the person, or the names of the persons, driving the car on that journey; (h) the date on which the entry is made; and (j) the name of the person by whom the entry is made; is made in the English language at, or as soon as reasonably practicable after, the end of the journey, and that, in relation to each such entry so made, is signed, at the time when the entry is made, by the person who made the entry; 'long service leave' means: (a) long service leave; (b) long leave; (c) furlough; (d) extended leave; or (e) leave of a similar kind (however described); 'long service award benefit', in relation to an employee of an employer, means a benefit provided to the employee, in respect of the employment of the employee, in, or in respect of, a year of tax solely by way of an award in recognition of the existence of a recognised long service period in relation to the employee that is not less than 15 years, but does not include: (a) a payment of salary or wages or a payment that would be salary or wages if salary or wages included exempt income for the purposes of the Income Tax Assessment Act 1936; (b) a benefit provided under a non-arm's length arrangement; or (c) a benefit provided under an arrangement where, having regard to: (i) the form and substance of the arrangement; (ii) the matters taken into account in determining the period of recognised long service leave recognised by the award; and (iii) the eligibility of other employees of the employer to be awarded benefits in recognition of the existence of recognised long service periods; it would be concluded that the arrangement, or any part of the arrangement, was entered into by any of the parties to the arrangement for the sole or dominant purpose of enabling the employer to obtain the benefit of the application of section 58Q; 'low business kilometre car', in relation to a person, in relation to a year of tax, means a car held by the person during a particular period (in this definition called the 'holding period') in the year of tax where the number calculated in accordance with the formula: DY BK X --- DHP where: DHP is the number of days in the holding period; DY is the number of days in the year of tax; and BK is the number of whole kilometres travelled by the car during the holding period in respect of business journeys undertaken in the car; does not exceed: (a) in the case of the transitional year of tax-3,750; or (b) in the case of a standard year of tax-5,000; 'migrant language training', in relation to a person, means a course attended by the person where: (a) at the time of attending the course, the person is, or intends to become, an immigrant to Australia; and (b) the course is designed to: (i) teach the English language; or (ii) impart an understanding of the rights and duties of an Australian citizen and of the way of living of the Australian people; to persons whose first language is not English; 'nominated business percentage' means: (a) for the purposes of the application of section 10 in relation to a car fringe benefit in relation to an employer in relation to a car while it was held by a person (in this paragraph called the 'provider') during a particular period (in this paragraph called the 'holding period') in a year of tax-a percentage that represents an estimate made by the employer of the underlying business percentage applicable to the car in relation to the provider for the holding period, having regard to all relevant matters including, but without limiting the generality of the foregoing: (i) any log book records, odometer records or other records maintained by or on behalf of the provider; and (ii) any variations in the pattern of use of the car during the holding period; and (b) for the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, as the case requires, in relation to an employer in relation to a car held by the recipient during a particular period (in this paragraph called the 'holding period') in a year of tax-a percentage that represents an estimate made by the employer of the underlying business percentage applicable to the car in relation to the holding period, having regard to all relevant matters including, but without limiting the generality of the foregoing: (i) any log book records, odometer records or other records maintained by or on behalf of the recipient; and (ii) any variations in the pattern of use of the car during the holding period; 'non-arm's length arrangement' means an arrangement other than an arm's length arrangement; 'notional amount of interest', in relation to a loan in relation to a year of tax, means the amount of interest that would have accrued on the loan in respect of the year of tax if the interest were calculated on the daily balance of the loan at: (a) where the loan is an eligible pre-commencement loan: (i) the statutory interest rate in relation to the time when the loan was made; or (ii) the statutory interest rate in relation to the year of tax; whichever is the less; (b) where the loan is not an eligible pre-commencement loan, was made before 3 April 1986 and is a housing loan relating to a dwelling: (i) the statutory interest rate in relation to the year of tax; or (ii) 13.5% per annum; whichever is the less; or (c) in any other case-the statutory interest rate in relation to the year of tax; 'notional taxable value', in relation to a benefit provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer, means the amount that, if it were assumed that: (a) in the case of a car benefit-the car benefit was a residual benefit; and (b) in all cases-the benefit was a fringe benefit in relation to the employer in relation to the year of tax; would be the taxable value of the fringe benefit in relation to the year of tax; 'odometer records', in relation to a car, in relation to a period, means a document in which particulars of: (a) the odometer reading of the car at the commencement of the period or, if the first business journey undertaken in the car occurred during the period, at the commencement of that business journey; (b) the odometer reading of the car at the end of the period or, if the last business journey undertaken in the car occurred during the period, at the end of that business journey; (c) if paragraph 162K (2) (b) or 162L (2) (b) applies with effect from a particular date-the odometer readings of both the replacement car and of the original car referred to in that paragraph, as at that date; (d) the respective dates on which the entries are made; and (e) the name of the person, or the names of the persons, by whom the entries are made; are entered in the English language, and that is signed by the person or persons referred to in paragraph (e), at, or as soon as reasonably practicable after, the respective times to which those odometer readings relate; 'personal services' includes services as a personal secretary or chauffeur; 'providers portion', in relation to an expense payment fringe benefit, means whichever of the following amounts is applicable: (a) the amount of the payment referred to in paragraph 20 (a) reduced by the amount of the recipients contribution; (b) the amount of the reimbursement referred to in paragraph 20 (b); 'recipients portion', in relation to an expense payment fringe benefit, means the recipients expenditure reduced by whichever of the following amounts is applicable: (a) the amount of the payment referred to in paragraph 20 (a) reduced by the amount of the recipients contribution; (b) the amount of the reimbursement referred to in paragraph 20 (b); 'recognised long service period', in relation to an employee of an employer, means: (a) if the employee has an entitlement to long service leave under: (i) a law of the Commonwealth, a State, a Territory or a foreign country; (ii) an award, order, determination or industrial agreement in force under any such law; (iii) a scheme or arrangement by reason of the existence and nature of which the employer has secured an exemption from obligations to comply with any such law relating to long service leave; (iv) a contract of employment; or (v) the terms of appointment to an office; the period by reference to which that long service leave is determined; (b) if: (i) long service leave may be made available to the employee as a privilege; and (ii) the availability of that leave is determined by reference to matters similar to matters by reference to which an entitlement of the kind referred to in paragraph (a) is ordinarily determined; the period by reference to which that long service leave is determined; or (c) in any other case: (i) the period for which the employee has been employed by the employer; or (ii) such longer period of employment (whether with that employer or any other employer) as might reasonably be expected to be taken into account in determining long service leave if the employee had an entitlement to long service leave; 'relative' has the same meaning as in the Income Tax Assessment Act 1936; 'religious practitioner' means: (a) a minister of religion; (b) a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; (c) a full-time member of a religious order; or (d) a student at a college conducted solely for training persons to become members of religious orders; 'safety award benefit', in relation to an employee of an employer, means a benefit provided to the employee, in respect of the employment of the employee, solely by way of an award in recognition of the special achievements of the employee, or of the employee and another person or persons, in occupational health matters, or in occupational safety matters, relating to the employment of the employee, or of the employee and that other person or persons, but does not include: (a) a payment of salary or wages or a payment that would be salary or wages if salary or wages included exempt income for the purposes of the Income Tax Assessment Act 1936; (b) a benefit provided under a non-arm's length arrangement; or (c) a benefit provided under an arrangement where, having regard to: (i) the form and substance of the arrangement; (ii) the achievements recognised by the award; and (iii) the eligibility of other employees of the employer to be awarded benefits in recognition of their special achievements in occupational health matters or in occupational safety matters; it would be concluded that the arrangement, or any part of the arrangement, was entered into by any of the parties to the arrangement for the sole or dominant purpose of enabling the employer to obtain the benefit of the application of section 58R; 'underlying business percentage', in relation to a car held by a person during a particular period (in this definition called the 'holding period') in a year of tax, means the percentage calculated in accordance with the formula: BK 100 X--- TK where: BK is the number of whole kilometres travelled by the car during the holding period in respect of business journeys undertaken in the car; and TK is the number of whole kilometres travelled by the car during the holding period; 'unreimbursed expenditure' means expenditure no part of which has been reimbursed; 'unreimbursed interest' means interest no part of which has been reimbursed; 'work-related counselling': (a) in relation to an employee of an employer, means counselling attended by the employee; and (b) in relation to an associate of an employee of an employer, means counselling attended by the associate where the associate is accompanied by the employee; where all of the following conditions are satisfied: (c) the attendance of: (i) if paragraph (a) applies-the employee; and (ii) if paragraph (b) applies-both the employee and the associate; at the counselling gives effect to an objective, purpose, plan or policy devised, adopted or required to be followed, by the employer to: (iii) improve or maintain the quality of the performance of employees' duties; or (iv) prepare employees for retirement; (d) the counselling relates to any of the following matters: (i) safety; (ii) health; (iii) fitness; (iv) stress management; (v) personal relationships; (vi) retirement problems; (vii) drug or alcohol abuse; (viii) rehabilitation or prevention of work-related trauma or of other disease or injury; (ix) first aid; (x) any similar matter; (e) there is no benefit that: (i) is provided in respect of the employment of the employee; (ii) consists of the provision of, or relates to, the counselling; and (iii) is provided wholly or principally as a reward for services rendered or to be rendered by the employee; 'work-related medical examination', in relation to a benefit provided in respect of the employment of an employee, means an examination or test carried out by, or on behalf of, an audiometrist or a legally qualified medical practitioner, nurse, dentist or optometrist wholly or principally in order to ascertain the physiological or psychological condition of the employee for any or all of the following purposes: (a) the commencement of the employment of the employee; (b) the confirmation of probationary employment of the employee; (c) a change in the duties or location of the employment of the employee; (d) the employee becoming a member of a superannuation fund; 'work-related medical screening', in relation to an employee of an employer, means an examination or test carried out by, or on behalf of, an audiometrist or a legally qualified medical practitioner, nurse, dentist or optometrist wholly or principally in order to ascertain whether the employee has suffered, is suffering or is at risk of suffering, from work-related trauma, but does not include an examination or test that is not made available generally to all employees of the employer: (a) who are likely to have suffered, be suffering or be at risk of suffering, from similar work-related trauma; (b) who perform the duties of their employment at or near the place where the employee performs the duties of his or her employment; and (c) whose duties of employment are similar to those of the employee; 'work-related preventative health care', in relation to an employee of an employer, means any form of care provided by, or on behalf of, a legally qualified medical practitioner, nurse, dentist or optometrist wholly or principally in order to prevent the employee suffering from work-related trauma, but does not include a form of care that is not made available generally to all employees of the employer: (a) who are likely to be at risk of suffering from similar work-related trauma; (b) who perform the duties of their employment at or near the place where the employee performs the duties of his or her employment; and (c) whose duties of employment are similar to those of the employee; 'work-related trauma', in relation to an employee, means: (a) the injury of the employee (including the aggravation, acceleration or recurrence of an injury of the employee); (b) the contraction, aggravation, acceleration or recurrence of a disease of the employee; (c) the loss or destruction of, or damage to: (i) an artificial limb or other artificial substitute; (ii) a medical, surgical or similar aid or appliance used by the employee; or (iii) clothing worn by the employee; or (d) the coming into existence, the aggravation, acceleration or recurrence of any other physiological or psychological condition in relation to the employee that is or may be harmful or disadvantageous to, or result in harm or disadvantage to, the employee; that is related to any employment of the employee; 'workers' compensation law' means a law of the Commonwealth, a State, a Territory or a foreign country that provides for compensation or other benefits for or in respect of work-related trauma suffered by employees without requiring proof of any breach by, or by persons associated with, employers;". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 49 49. After section 138 of the Principal Act the following sections are inserted: Benefit provided in respect of a year of tax "138A. A reference in this Act to a benefit provided in respect of a year of tax is a reference to a benefit that is deemed to be provided in respect of the year of tax. Benefit provided in respect of the employment of an employee "138B. A reference in this Act to a benefit provided in respect of the employment of an employee is a reference to a benefit provided, or originally provided, as the case may be, in respect of that employment. Application or use of benefit "138C. A reference in this Act to the application or use of a benefit is a reference to the application or use of: (a) in the case of an airline transport benefit-the recipients transport; (b) in the case of a board benefit-the recipients meal; (c) in the case of a loan benefit-the loan to which the benefit relates; (d) in the case of a property benefit-the recipients property; or (e) in the case of a residual benefit-the recipients benefit.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 50 Housing loans, prescribed interests in land or stratum units and proprietary rights in respect of dwellings 50. Section 141 of the Principal Act is amended by omitting from subsection (2) "the purposes of this section" and substituting "the purposes of this Act". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 51 51. After section 141 of the Principal Act the following section is inserted: Benefits incidental to acquisition or sale of prescribed interests in land or stratum units and proprietary rights in respect of dwellings "141A. (1) For the purposes of this Act, recipients expenditure shall be taken to be incidental to the acquisition or sale of a prescribed interest in land or a stratum unit or of a proprietary right in respect of a dwelling if, and only if: (a) in the case of an acquisition of a prescribed interest in land on which the employee or associate concerned proposes to construct, or complete the construction of, a building constituting or containing a dwelling-the recipients expenditure is in respect of any of the following matters: (i) stamp duty; (ii) legal services; (iii) agent's services; (iv) discharge of a mortgage; (v) expenses of borrowing; (vi) any similar matter; being a matter of a capital nature that is incidental to the construction, or the completion of the construction, of that building; (b) in all cases-the recipients expenditure is in respect of any of the following matters: (i) stamp duty; (ii) advertising; (iii) legal services; (iv) agent's services; (v) discharge of a mortgage; (vi) expenses of borrowing; (vii) any similar matter; being a matter of a capital nature that is incidental to the acquisition or sale of the interest or right; and (c) in all cases-the recipients expenditure is not in respect of: (i) interest; (ii) repayments of principal; (iii) loan service fees; (iv) the discharge of a mortgage, or expenses of borrowing, where the money borrowed was not applied wholly in respect of the land, stratum unit or proprietary right or in respect of a building on the land; (v) insurance; or (vi) rates. "(2) For the purposes of this Act, a recipients benefit shall be taken to be incidental to the acquisition or sale of a prescribed interest in land or a stratum unit or of a proprietary right in respect of a dwelling if, and only if: (a) the recipients benefit consists of any of the following matters: (i) advertising; (ii) legal services; (iii) agent's services; (iv) services related to borrowing; (v) any similar matter; being a matter of a capital nature that is incidental to the acquisition or sale of the interest or right; and (b) the recipients benefit does not consist of or relate to: (i) insurance; or (ii) services related to borrowing where the money borrowed was not applied wholly in respect of the land, stratum unit or proprietary right or in respect of a building on the land.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 52 Remote area housing 52. Section 142 of the Principal Act is amended: (a) by omitting subparagraph (1) (d) (i) and substituting the following subparagraph: "(i) a non-arm's length arrangement; or"; (b) by inserting after subsection (1) the following subsections: "(1A) In this Act, a reference, in relation to a year of tax in relation to an employee of an employer, to remote area housing rent connected with a unit of accommodation is a reference to rent or other consideration payable in respect of the subsistence of a lease or licence in respect of the unit of accommodation where: (a) during the whole of the period (in this subsection referred to as the 'occupation period') in the year of tax when the employee occupied or used the unit of accommodation as his or her usual place of residence: (i) the unit of accommodation was situated in a State or internal Territory and was not at a location in, or adjacent to, an eligible urban area; and (ii) the employee was a current employee of the employer and the usual place of employment of the employee was not at a location in, or adjacent to, an eligible urban area; (b) it is customary for employers in the industry in which the employee was employed during the occupation period to provide housing assistance for their employees; (c) it would be concluded that it was necessary for the employer, during the year of tax, to provide or arrange for the provision of housing assistance for employees of the employer because: (i) the nature of the employer's business was such that employees of the employer were liable to be frequently required to change their places of residence; (ii) there was not, at or near the place or places at which the employees of the employer were employed, sufficient suitable residential accommodation for those employees (other than residential accommodation provided by or on behalf of the employer); or (iii) it is customary for employers in the industry in which the employee was employed during the occupation period to provide housing assistance for their employees; and (d) the lease or licence was not granted under: (i) a non-arm's length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of section 60."; (c) by omitting subparagraph (2) (d) (i) and substituting the following subparagraph: "(i) a non-arm's length arrangement; or"; and (d) by inserting after paragraph (3) (a) the following paragraph: "(aa) the making of payments in discharge or reimbursement of rent or other consideration incurred by a person in respect of the subsistence of a lease or licence in respect of a unit of accommodation;". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 53 53. After section 142 of the Principal Act the following sections are inserted: Benefits relating to transport "142A. (1) For the purposes of this Act, recipients expenditure that is in respect of, or a recipients benefit that consists of: (a) accident insurance, airport or departure tax, a passport, a visa or a vaccination; or (b) any similar matter or thing; in connection with transport shall be taken to be in respect of the provision of, or to consist of, transport. "(2) For the purposes of this Act, where: (a) transport is between a particular place and another place; (b) the transport is provided in consecutive stages; and (c) apart from this subsection, a particular matter or thing would be in respect of only one, or only some, of those stages; the matter or thing shall be taken to be in respect of the provision of that transport. Employee's new place of employment "142B. Where a provision of this Act refers to an employee who is required to change his or her usual place of residence in order to perform the duties of his or her employment, a reference in the provision to the employee's new place of employment shall not be taken as implying that the employee was employed when he or she resided at his or her former usual place of residence. Eligible shared accommodation in a house, flat or home unit "142C. For the purposes of this Act, where: (a) the recipients unit of accommodation (in this section called the 'shared unit of accommodation') in relation to a housing fringe benefit in relation to an employee in relation to a year of tax consists of accommodation in a house, flat or home unit; and (b) throughout the tenancy period, there ordinarily subsisted 3 or more other housing fringe benefits, where each of those other housing fringe benefits was a housing fringe benefit: (i) where the recipients unit of accommodation consisted of accommodation in the house, flat or home unit; and (ii) in relation to a different employee; the shared unit of accommodation shall be taken to be eligible shared accommodation in the house, flat or home unit in relation to the year of tax. Eligible accommodation in an employees hostel "142D. For the purposes of this Act, where: (a) the recipients unit of accommodation in relation to a housing fringe benefit in relation to an employee in relation to an employer in relation to a year of tax consists of accommodation in a hostel or a similar building that is operated wholly or principally for the purpose of providing accommodation for employees of: (i) the employer; or (ii) if the employer is a company-the employer or a company that is related to the employer; and (b) the recipient is not entitled to exclusive use of: (i) cooking facilities in the hostel or building; or (ii) more than one bedroom in the hostel or building; the recipients unit of accommodation shall be taken to be eligible accommodation in an employees hostel in relation to the year of tax.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 54 Remote area holiday transport 54. Section 143 of the Principal Act is amended: (a) by omitting from paragraph (a) "or"; (b) by inserting after paragraph (a) the following paragraph: "(aa) the recipients property in relation to a property fringe benefit; or"; (c) by inserting ", in relation to an employee," after "in relation to an employer"; (d) by inserting after paragraph (c) the following paragraph: "(ca) in the case of a property benefit-the recipients property consists of meals in connection with transport;"; (e) by adding at the end of paragraph (d) "or accommodation in connection with transport"; (f) by omitting paragraphs (e), (f), (g), (h) and (j) and substituting the following paragraphs: "(e) the transport, accommodation or meals is for a family member; (f) apart from temporary absences, the employee performs the duties of his or her employment at a place in a State or internal Territory but not at a location in, or adjacent to, an eligible urban area; (g) the transport is provided wholly or principally to enable the family member to have a holiday for a period of not less than 3 days; (h) if the transport is for the employee: (i) the transport is provided while the employee is on recreation leave, being recreation leave of not less than 3 working days; and (ii) at the completion of that recreation leave, the employee resumes the duties of that employment at the place referred to in paragraph (f); (j) either of the following subparagraphs applies: (i) the transport is between: (A) a place at or near the place referred to in paragraph (f); and (B) another place; (ii) the transport is for the spouse, or a child, of the employee, being a spouse or a child of the employee who does not live with the employee at or near the place referred to in paragraph (f), and the transport is between: (A) a place where the spouse or child, as the case may be, meets the employee; and (B) another place; (ja) if the transport is for the spouse, or a child, of the employee-the transport is not provided to enable the spouse or child to accompany the employee: (i) while the employee is undertaking travel in the course of performing the duties of his or her employment; and (ii) where the circumstances referred to in paragraph 51AG (1) (c), (d) or (e) of the Income Tax Assessment Act 1936 apply; and"; and (g) by adding at the end the following subsections: "(2) For the purposes of this Act, where: (a) the recipients expenditure in relation to an expense payment fringe benefit; (b) the recipients property in relation to a property fringe benefit; or (c) the recipients benefit in relation to a residual fringe benefit; is in respect of remote area holiday transport, the fringe benefit shall be taken to be a remote area holiday transport fringe benefit. "(3) Where: (a) one or more remote area holiday transport fringe benefits in relation to a particular employee in relation to a year of tax relate to a holiday for a particular family member; and (b) the transport to which that fringe benefit or those fringe benefits relates does not consist wholly of transport, by the most direct practicable route, between: (i) a place at or near the place referred to in paragraph (1) (f); and (ii) a place in a State or internal Territory, being: (A) a place at or near the place that was the employee's usual place of residence immediately before the employee began employment at the place referred to in paragraph (1) (f); or (B) the capital city of the State or Territory in which the place referred to in paragraph (1) (f) is located; the benchmark travel amount in relation to that fringe benefit or those fringe benefits in relation to that holiday for that family member is: (c) if either of the following subparagraphs apply: (i) the employee was entitled to be provided with capital city holiday transport assistance pursuant to the provisions of an industrial instrument relating to the employment of the employee; (ii) there was a custom in the industry in which the employee was employed such that the employee could have been provided with capital city holiday transport assistance by the employer; the sum of: (iii) the return economy air fare in respect of the air service, or the total of the return economy air fares in respect of the air services, to which that capital city holiday transport assistance relates; and (iv) the expenses that could reasonably be expected to have been incurred in respect of the family member (whether by way of airport transfer, meals, accommodation, accident insurance, airport or departure tax or any similar matter or thing) in accordance with the entitlement or custom to which that capital city holiday transport assistance relates and in connection with travelling on that return service or those return services; (d) if paragraph (c) does not apply but the following conditions are satisfied in respect of one or more return scheduled passenger air services: (A) the service was operated, at or about the time the holiday commenced, between eligible places; (B) the nature of the service is such that it would not be unreasonable for the family member to travel on the service; the lowest of the return economy air fares for those services; (e) if neither paragraph (c) nor (d) applies but the following conditions are satisfied in respect of one or more combinations of return scheduled passenger air services: (A) the combination was operated at or about the time the holiday commenced and would have enabled a person to travel between eligible places; (B) the nature of the combination, and of the services in the combination, is such that it would not be unreasonable for the family member to travel on the services; the total of the return economy air fares for the combination that has the lowest total of economy return air fares; or (f) in any other case-an amount equal to the lowest return fare, or combination of return fares, in respect of travel services in respect of which the following conditions are satisfied: (A) the service, or combination of services, was operated at or about the time the holiday commenced and would have enabled a person to travel between eligible places; (B) the nature of the service, or the nature of the combination and of the services included in the combination, is such that it would not be unreasonable for the family member to travel on the service or services. "(4) For the purposes of the application of this section in relation to a benefit provided in respect of the employment of an employee: (a) a reference in this section to travel, or to the operation of a service or services, between eligible places is a reference to travel, or the operation of a service or services, between: (i) a place at or near the place referred to in paragraph (1) (f); and (ii) the capital city of the State or Territory in which the place referred to in paragraph (1) (f) is located; (b) a reference in this section to the provision of capital city holiday transport assistance to the employee is a reference to: (i) the making of payments in discharge or reimbursement of expenditure incurred by a person in respect of a return scheduled passenger air service or combination of return scheduled passenger air services operated by a carrier or carriers between eligible places; or (ii) the provision of transport on such a service or services; (c) Adelaide shall be treated as the capital city of the Northern Territory; and (d) Perth shall be treated as the capital city of the Territory of Christmas Island.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 55 55. After section 143 of the Principal Act the following sections are inserted: Relocation transport "143A. For the purposes of this Act, where: (a) any of the following benefits is provided in, or in respect of, a year of tax to an employee, or to an associate of the employee, in respect of the employment of the employee: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of transport, or meals or accommodation in connection with transport; (iii) a property benefit where the recipients property consists of meals in connection with transport; (iv) a residual benefit where the recipients benefit consists of the provision of transport or accommodation in connection with transport; (b) the transport, meals or accommodation is for a family member; (c) the transport is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; (ii) the employee, having lived away from his or her usual place of residence in order to perform the duties of that employment, is required to return to his or her usual place of residence: (A) in order to perform those duties; or (B) because the employee has ceased to perform those duties; or (iii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (d) the transport is provided to enable a family member to: (i) if subparagraph (c) (i) applies-take up residence at or near the place where the employee performs the duties of that employment while living away from his or her usual place of residence; (ii) if subparagraph (c) (ii) applies-take up residence at the employee's usual place of residence; or (iii) if subparagraph (c) (iii) applies-take up residence at the employee's new usual place of residence; (e) if the transport is for the spouse, or a child, of the employee-the transport is not provided to enable the spouse or child to accompany the employee: (i) while the employee is undertaking travel in the course of performing the duties of that employment; and (ii) where the circumstances referred to in paragraph 51AG (1) (c), (d) or (e) of the Income Tax Assessment Act 1936 apply; (f) if the transport is for the employee-the transport is not provided while the employee is undertaking travel in the course of performing the duties of that employment; and (g) if subparagraph (c) (iii) applies-the benefit is not provided under a non-arm's length arrangement; the benefit shall be taken to be in respect of relocation transport. Overseas employees "143B. For the purposes of this Act, where: (a) an employee's usual place of residence is in a particular country (in this section called the 'home country'); (b) apart from temporary absences, the employee performs the duties of his or her employment at: (i) a place outside the home country; or (ii) 2 or more places outside the home country; and (c) the employee is required to live outside the home country in order to perform the duties of his or her employment at the place or places referred to in paragraph (b); the following provisions have effect: (d) the period commencing when the employee commences to perform the duties of his or her employment at: (i) if subparagraph (b) (i) applies-the place referred to in that subparagraph; or (ii) if subparagraph (b) (ii) applies-the first place referred to in that subparagraph at which the employee performs those duties; and ending when the employee ceases, apart from any temporary absences, to perform those duties at: (iii) if subparagraph (b) (i) applies-the place referred to in that subparagraph; or (iv) if subparagraph (b) (ii) applies-the last place referred to in that subparagraph at which the employee performs those duties; shall be taken to be the overseas posting period of the employee; (e) the employee shall be taken to be an overseas employee during the overseas posting period; (f) the place, or each of the places, referred to in paragraph (b) shall be taken to be an overseas employment place. Overseas employment holiday transport "143C. (1) For the purposes of this Act, where: (a) any of the following fringe benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) an expense payment fringe benefit where the recipients expenditure is in respect of the provision of transport, or meals or accommodation in connection with transport; (ii) a property fringe benefit where the recipients property consists of meals in connection with transport; (iii) a residual fringe benefit where the recipients benefit consists of the provision of transport or accommodation in connection with transport; (b) the transport, accommodation or meals is for a family member; (c) the transport is provided wholly or principally to enable the family member to have a holiday for a period of not less than 3 days; (d) at the time (in this section called the 'outbound travel time') immediately before the commencement of travel undertaken by the family member in connection with that holiday: (i) the employee was an overseas employee; and (ii) disregarding days of recreation leave, the employee's overseas posting period was a period of not less than 28 days; (e) if the transport is for the employee: (i) the transport is provided while the employee is on recreation leave, being recreation leave of not less than 3 working days; and (ii) at the completion of that recreation leave, the employee resumes the duties of that employment at the place that was the employee's overseas employment place at the outbound travel time; (f) either of the following subparagraphs applies: (i) the transport is between: (A) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and (B) another place; (ii) the transport is for the spouse, or a child, of the employee, being a spouse or a child of the employee who does not live with the employee at the place that was the employee's overseas employment place at the outbound travel time, and the transport is between: (A) a place where the spouse or child, as the case may be, meets the employee; and (B) another place; (g) in the case of an expense payment fringe benefit-the recipients expenditure is not in respect of remote area holiday transport; (h) in the case of a property fringe benefit-the recipients property is not in respect of remote area holiday transport; (j) in the case of a residual fringe benefit-the recipients benefit is not in respect of remote area holiday transport; (k) if the transport is for the spouse, or a child, of the employee-the transport is not provided to enable the spouse or child to accompany the employee: (i) while the employee is undertaking travel in the course of performing the duties of his or her employment; and (ii) where the circumstances referred to in paragraph 51AG (1) (c), (d) or (e) of the Income Tax Assessment Act 1936 apply; and (m) either of the following conditions is satisfied: (i) the benefit is provided pursuant to the provisions of an industrial instrument relating to the employment of the employee; (ii) it is customary for employers in the industry in which the employee is employed to provide benefits of the same kind as the benefit provided to the recipient and to provide such benefits in similar circumstances to those that applied in relation to the provision of the benefit to the recipient; the following provisions have effect: (n) the fringe benefit shall be taken to be in respect of overseas employment holiday transport; (p) the benchmark travel amount in relation to the family member in relation to the fringe benefit is: (i) if either of the following sub-subparagraphs apply: (A) the employee was entitled to be provided with home country holiday transport assistance pursuant to the provisions of an industrial instrument relating to the employment of the employee; (B) there was a custom in the industry in which the employee was employed such that the employee could have been provided with home country holiday transport assistance by the employer; the sum of: (C) the return economy air fare in respect of the air service, or the total of the return economy air fares in respect of the air services, to which that home country holiday transport assistance relates; and (D) the expenses that could reasonably be expected to have been incurred in respect of the family member (whether by way of airport transfer, meals, accommodation, accident insurance, airport or departure tax, or any similar matter or thing) in accordance with the entitlement or custom to which that home country holiday transport assistance relates and in connection with travelling on that return service or those return services; (ii) if subparagraph (i) does not apply but the following conditions are satisfied in respect of one or more return scheduled passenger air services: (A) the service was operated, at or about the outbound travel time, between eligible places; (B) the nature of the service is such that it would not be unreasonable for the family member to travel on the service; the lowest of the return economy air fares for those services; (iii) if neither subparagraph (i) nor (ii) applies but the following conditions are satisfied in respect of one or more combinations of return scheduled passenger air services: (A) the combination was operated at or about the outbound travel time and would have enabled a person to travel between eligible places; (B) the nature of the combination, and of the services in the combination, is such that it would not be unreasonable for the family member to travel on the services; the total of the economy return air fares for the combination that has the lowest total of economy return air fares; or (iv) in any other case-an amount equal to the lowest return fare, or combination of return fares, in respect of travel services in respect of which the following conditions are satisfied: (A) the service, or combination of services, was operated at or about the outbound travel time and would have enabled a person to travel between eligible places; (B) the nature of the service, or the nature of the combination and of the services included in the combination, is such that it would not be unreasonable for the family member to travel on the service or services; (q) if the transport for a particular family member consists wholly of transport: (i) in respect of a holiday taken by the family member; and (ii) by the most direct practicable route between: (A) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and (B) a place in the country in which the employee's usual place of residence during the overseas posting period was located; the fringe benefit shall be taken to be a home country fringe benefit in relation to the holiday for the family member. "(2) For the purposes of the application of this section in relation to a benefit provided in respect of the employment of an employee: (a) a reference in this section to travel, or to the operation of a service or services, between eligible places is a reference to travel, or the operation of a service or services, between: (i) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and (ii) a place at or near the usual place of residence of the employee during the overseas posting period; and (b) a reference in this section to the provision of home country holiday transport assistance to the employee is a reference to: (i) the making of payments in discharge or reimbursement of expenditure incurred by a person in respect of a return scheduled passenger air service, or combination of return scheduled passenger air services, operated by a carrier or carriers between eligible places; or (ii) the provision of transport on such a service or services. Employment interviews and selection tests "143D. For the purposes of this Act, where: (a) any of the following benefits is provided in, or in respect of, a year of tax to an employee of an employer in respect of his or her employment: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of transport, or meals or accommodation in connection with transport; (iii) a property benefit where the recipients property consists of meals in connection with transport; (iv) a residual benefit where the recipients benefit consists of the provision of transport or accommodation in connection with transport; (b) the transport, meals or accommodation is for the employee; (c) the transport is required solely because the employee is required to attend an interview or selection test in connection with an application by the employee for: (i) employment; (ii) promotion; or (iii) job transfer; and (d) the benefit is not provided under a non-arm's length arrangement; the benefit shall be taken to be in respect of an employment interview or selection test. Work-related medical examinations, work-related medical screening, work-related preventative health care, work-related counselling, migrant language training "143E. For the purposes of this Act, where: (a) any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of transport, or meals or accommodation in connection with transport; (iii) a property benefit where the recipients property consists of meals in connection with transport; (iv) a residual benefit where the recipients benefit consists of the provision of transport or accommodation in connection with transport; (b) the transport is required solely because: (i) the employee attends: (A) a work-related medical examination of the employee; (B) work-related medical screening of the employee; (C) work-related preventative health care of the employee; (D) work-related counselling of the employee; or (E) migrant language training of the employee; or (ii) an associate of the employee attends: (A) work-related counselling of the associate; or (B) migrant language training of the associate; (c) if subparagraph (b) (i) applies-the transport, meals or accommodation is for the employee; and (d) if subparagraph (b) (ii) applies-the transport, meals or accommodation is for the associate of the employee; the benefit shall be taken to be associated with: (e) a work-related medical examination of the employee; (f) work-related medical screening of the employee; (g) work-related preventative health care of the employee; (h) work-related counselling of the employee or of the associate of the employee; or (j) migrant language training of the employee or of the associate of the employee; as the case requires. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 56 Residual benefits to include provision of property in certain circumstances 56. Section 153 of the Principal Act is amended by inserting in paragraph (b) "(other than food or drink)" after "property". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 57 Associates and relatives 57. Section 159 of the Principal Act is amended by inserting in subsection (1) "or relative" after "associate". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 58 Business journeys in car 58. Section 161 of the Principal Act is amended: (a) by omitting from paragraph (1) (b) ", or but for subsections (2) and (3) would be,"; and (b) by omitting subsections (2) and (3). TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 59 Holding of car 59. Section 162 of the Principal Act is amended by adding at the end the following subsections: "(2) For the purposes of the application of section 10 in relation to car fringe benefits in relation to an employer in relation to a particular car, the car shall be taken to be held by a particular person if, and only if, the car is held by the person for use in providing those fringe benefits (whether or not the car was used for any other purpose while it was so held). "(3) For the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, as the case requires, a car shall be taken to be held by the recipient of the fringe benefit if, and only if, the car is owned or leased by the recipient for use in the course of producing assessable income of the recipient (whether or not the car was used for any other purpose while it was so owned or leased). "(4) A reference in this Act to a period during which a car was held by a person is a reference to a period during which the car was continuously held by the person.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 60 60. After section 162 of the Principal Act the following sections are inserted: When car used for the purpose of producing assessable income "162B. For the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, as the case requires, the question whether a car is used by a person for the purposes of producing assessable income shall be determined in the same manner as the question whether property is used by a taxpayer for the purpose of producing assessable income is determined under the Income Tax Assessment Act 1936. Holding period of car "162C. Unless the contrary intention appears, a reference in this Act to a period in a year of tax during which a person held a car is a reference to the period that: (a) commences on whichever of the following times is applicable: (i) if the person held the car at the time of commencement of the year of tax-that time; (ii) in any other case-the time in the year of tax when the person commenced to hold the car; and (b) ends at whichever of the following times is applicable: (i) if the person continued to hold the car until the time of the end of the year of tax-that time; (ii) in any other case-the time in the year of tax when the person ceased to hold the car. Deemed specification of matters in employer's return "162D. Where: (a) an employer furnishes a return for a year of tax; and (b) the employer fails: (i) in the case of the transitional year of tax-for any reason; or (ii) in the case of a standard year of tax-through inadvertence; to specify in the return any or all of the following matters: (iii) a period of a kind mentioned in subsection 162H (1) or (2); (iv) a nomination of the kind mentioned in subsection 162K (2) or 162L (2) or particulars of such a nomination; (v) a percentage of a kind mentioned in section 10A, 10B, 65E or 65F; the Commissioner may determine that a period, nomination, particular or percentage of that kind specified by the employer in a document lodged with the Commissioner shall be treated, for the purposes of this Act, as if it had been specified by the employer in that return. Unsigned or fraudulent entries in log book records "162E. For the purposes of this Act, where log book records maintained by or on behalf of a person for a period in respect of a car held by the person purport to contain an entry of the kind referred to in the definition of 'log book records' in subsection 136 (1) but: (a) the entry is not signed as mentioned in that definition; or (b) the entry is false or misleading in a material particular; the pattern of use of the car purporting to be shown by the log book records shall be determined as if that entry had not been made. Reasonable estimate of underlying business percentage "162F. For the purposes of this Act, the percentage that represents a reasonable estimate of the underlying business percentage applicable to a car held by a person during a period in a year of tax shall be determined having regard to all relevant matters including, but without limiting the generality of the foregoing: (a) any log book records, odometer records or other records maintained by or on behalf of the person; and (b) any variations in the pattern of use of the car. Log book year of tax "162G. (1) For the purposes of the application of section 10 in relation to a car fringe benefit in relation to an employer in relation to a particular car while it was held by a particular person (in this subsection called the 'provider') during a particular period (in this subsection called the 'holding period') in a year of tax (in this subsection called the 'current year of tax'), the current year of tax is a log book year of tax of the employer in relation to the car if, and only if: (a) the current year of tax is the transitional year of tax; (b) the employer elects that the current year of tax be treated as a log book year of tax of the employer in relation to the car; (c) the employer did not make an election that section 10 apply in relation to all the car fringe benefits in relation to the employer in relation to the preceding year of tax that related to the car; (d) the car was not held by the provider at any time during the preceding year of tax; (e) the car was held by the provider during a period in the preceding year of tax but there were no car fringe benefits in relation to the employer in relation to the preceding year of tax that related to the car while it was held by the provider; (f) the preceding year of tax was a log book year of tax of the employer in relation to the car and either of the following conditions is satisfied: (i) subparagraph 10A (a) (i) or (ii) applied in relation to the car in relation to the preceding year of tax; (ii) the conditions set out in subparagraphs 10A (b) (i) and (ii) were not satisfied in relation to the car in relation to the preceding year of tax; (g) the preceding year of tax was not a log book year of tax of the employer in relation to the car and any of the following conditions is satisfied: (i) the condition set out in paragraph 10B (a) was not satisfied in relation to the car in relation to the preceding year of tax; (ii) the condition set out in subparagraph 10B (b) (i) was not satisfied in relation to the car in relation to the preceding year of tax; (iii) both of the following conditions are satisfied: (A) the employer specified (otherwise than by virtue of section 10C), in his or her return for the preceding year of tax, a percentage of the kind mentioned in subparagraph 10B (b) (ii); (B) the percentage calculated in accordance with the formula referred to in that subparagraph exceeded 10%; or (h) the Commissioner causes a notice in writing to be served on the employer before the commencement of the current year of tax requiring the employer to treat the current year of tax as a log book year of tax of the employer in relation to the car. "(2) For the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, as the case requires, in relation to an employer in relation to a particular car held by the recipient of the fringe benefit during a particular period (in this subsection called the 'holding period') in a year of tax (in this subsection called the 'current year of tax'), the current year of tax is a log book year of tax of the recipient in relation to the car if, and only if: (a) the current year of tax is the transitional year of tax; (b) the employer elects that the current year of tax be treated as a log book year of tax of the recipient in relation to the car; (c) the recipient did not hold the car at any time during the preceding year of tax; (d) paragraph 19 (1) (d), 24 (1) (f), 44 (1) (e) or 52 (1) (e) applied for the purpose of determining the taxable value of one or more fringe benefits in relation to the employer in relation to the recipient in relation to the car in relation to the preceding year of tax; (e) both of the following conditions are satisfied: (i) the recipient held the car during a period in the preceding year of tax; (ii) none of the following provisions was applied for the purpose of determining the taxable value of any fringe benefit in relation to the employer in relation to the recipient in relation to the car in relation to the preceding year of tax: (A) paragraph 19 (1) (ca) or (d); (B) paragraph 24 (1) (ea) or (f); (C) paragraph 44 (1) (da) or (e); (D) paragraph 52 (1) (da) or (e); (f) the preceding year of tax was a log book year of tax of the recipient in relation to the car and either of the following conditions are satisfied: (i) subparagraph 65E (a) (i) or (ii) applied in relation to the car in relation to the preceding year of tax; (ii) the conditions set out in subparagraphs 65E (b) (i) and (ii) were not satisfied in relation to the car in relation to the preceding year of tax; (g) the preceding year of tax was not a log book year of tax of the recipient in relation to the car and any of the following conditions is satisfied: (i) the condition set out in paragraph 65F (a) was not satisfied in relation to the recipients car in relation to the preceding year of tax; (ii) the condition set out in subparagraph 65F (b) (i) was not satisfied in relation to the car in relation to the preceding year of tax; (iii) both of the following conditions are satisfied: (A) the employer specified (otherwise than by virtue of section 65H), in his or her return for the preceding year of tax, a percentage of the kind mentioned in subparagraph 65F (b) (ii); (B) the percentage calculated in accordance with the formula referred to in that subparagraph exceeded 10%; or (h) the Commissioner causes a notice in writing to be served on the employer before the commencement of the current year of tax requiring the employer to treat the current year of tax as a log book year of tax of the recipient in relation to the car. "(3) An election by an employer under this section 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. Applicable log book period "162H. (1) For the purposes of the application of section 10 in relation to a car fringe benefit in relation to an employer in relation to a car while it was held by a particular person during a particular period (in this subsection called the 'holding period') in a year of tax, a reference to the applicable log book period is a reference to: (a) if the holding period is a period of less than 12 weeks-the holding period; or (b) in any other case-a continuous period of not less than 12 weeks that: (i) begins and ends during the holding period; and (ii) is specified by the employer in his or her return for the year of tax. "(2) For the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, as the case requires, in relation to an employer in relation to a car held by the recipient of the fringe benefit during a particular period (in this subsection called the 'holding period') in a year of tax, a reference to the applicable log book period is a reference to: (a) if the holding period is a period of less than 12 weeks-the holding period; or (b) in any other case-a continuous period of not less than 12 weeks that: (i) begins and ends during the holding period; and (ii) is specified by the employer in his or her return for the year of tax. Business percentage established during log book period "162J. A reference in this Act to the business percentage established during an applicable log book period in relation to a car held by a particular person (in this section called the 'holder') during a period (in this section called the 'holding period') in a year of tax is the underlying business percentage that would apply to the car in relation to the holder for the holding period if it were assumed that the actual pattern of use of the car throughout the holding period were the same as the pattern of use of the car purporting to be shown by the log book records and odometer records maintained by or on behalf of the holder for the applicable log book period. Replacement cars-car fringe benefits "162K. (1) This section has effect for the purposes of the application of section 10 in relation to car fringe benefits in relation to an employer in relation to a year of tax (in this section called the 'current year of tax') or a subsequent year of tax. "(2) Where the employer, in his or her return for the current year of tax, nominates a particular car (in this section called the 'replacement car') as having replaced another car (in this section called the 'original car') with effect from a specified date in the current year of tax: (a) the original car shall be treated, with effect from that date, as a different car; and (b) the replacement car shall be treated, with effect from that date, as the same car as the original car. "(3) A nomination shall specify the make, model and registration number (if any) of the original car and of the replacement car. "(4) This section does not apply for the purposes of the application of subsection 10 (5) or section 11 or 12. Replacement cars-otherwise deductible provisions "162L. (1) This section has effect for the purposes of the application of sections 19, 24, 44 and 52 in relation to a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit, in relation to an employer in relation to a year of tax (in this section called the 'current year of tax') or a subsequent year of tax. "(2) Where the employer, in his or her return for the current year of tax, nominates a particular car (in this section called the 'replacement car') as having replaced another car (in this section called the 'original car') with effect from a specified date in the current year of tax: (a) the original car shall be treated, with effect from that date, as a different car; and (b) the replacement car shall be treated, with effect from that date, as the same car as the original car. "(3) A nomination shall specify the make, model and registration number (if any) of the original car and of the replacement car. Re-acquisition etc. of cars "162M. (1) Subject to sections 162K and 162L, for the purposes of this Act, where: (a) a person holds a car during a period (in this section called the 'current period'); and (b) the person held the car during a period that ended, or during 2 or more periods each of which ended, before the commencement of the current period; the car shall be treated as a different car in each of the periods referred to in this section. "(2) This section does not apply for the purposes of the application of subsection 10 (5) or section 11 or 12. Registration of motor vehicle "162N. For the purposes of this Act, a motor vehicle shall be taken to be registered in a particular place if it may be driven on a public road in that place without contravening the law in force in that place.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 61 Application of amendments 61. (1) In this section, "amended Act" means the Principal Act as amended by this Part. (2) Subject to this section, the amendments made by this Part apply to: (a) assessments of the fringe benefits taxable amount of an employer of the transitional year of tax and of each subsequent year of tax; and (b) instalments of tax in respect of the transitional year of tax. (3) Section 115A of the amended Act applies in relation to returns furnished after 29 October 1987. (4) For the purposes of the application of subsection 17 (4) of the amended Act to a loan benefit provided in respect of the transitional year of tax or in respect of the first standard year of tax to an employee in respect of his or her employment: (a) the period commencing on 1 April 1986 and ending on 30 June 1986 shall be taken to be a period in the transitional year of tax; (b) the year commencing on 1 April 1985 shall be taken to be a year of tax; and (c) if the benefit referred to in paragraph 17 (4) (d) of that Act was not provided after 31 March 1986 to the employee in respect of that employment-paragraph 21 (d) and 47 (5) (d) of that Act shall be disregarded in determining whether the benefit is an exempt benefit by virtue of section 21 or subsection 47 (5) of that Act. (5) An approval given by the Commissioner under paragraph 19 (1) (c) or 47 (5) (d) of the Principal Act before the commencement of this subsection has effect, for the purposes of the amended Act, as if it had been given under paragraph 19 (1) (c) or 47 (5) (d), as the case requires, of the amended Act. (6) The first approval of a form given by the Commissioner after the commencement of this subsection for the purposes of a provision of the amended Act that was inserted in that Act by this Act (other than paragraph 19 (1) (c) or 47 (5) (d)) has effect, for the purposes of the amended Act, as if it had been given immediately before the commencement of the transitional year of tax. (7) Where: (a) a residual benefit consisting of the provision or use of a motor vehicle is provided in the first standard year of tax in respect of the employment of a current employee; and (b) if: (i) paragraph 47 (6) (aa) of the amended Act had not been enacted; and (ii) the first standard year of tax had ended on 29 October 1987; the benefit would have been an exempt benefit in relation to the year of tax; subsection 47 (6) of the amended Act applies to each residual benefit consisting of the provision or use of the motor vehicle provided in the first standard year of tax in respect of the employment of the employee as if paragraph 47 (6) (aa) had not been enacted. (8) Where the date of lodgment of the return of the fringe benefits taxable amount of an employer of the transitional year of tax is an earlier day than the day (in this subsection called the "post-commencement day") that is the twenty-eighth day after the date of commencement of this subsection, the definition of "declaration date" in subsection 136 (1) of the amended Act, insofar as that definition applies for the purposes of a provision of the amended Act that was inserted in that Act by this Act, has effect, in relation to the employer in relation to the transitional year of tax, as if the reference in that definition to the date of lodgment of that return were a reference to the post-commencement day. (9) For the purposes of the amended Act, where: (a) one or more car fringe benefits in relation to an employer in relation to the transitional year of tax or the first standard year of tax relate to a car while it was held by a particular person (in this subsection called the "provider") during a particular period (in this subsection called the "holding period") in the year of tax; (b) apart from this subsection, odometer records in relation to the car were not maintained by or on behalf of the provider for: (i) if the year of tax is a log book year of tax of the employer in relation to the car-the applicable log book period referred to in subparagraph 10A (b) (i); or (ii) in any other case-the holding period; and (c) before the date of lodgment of the employer's return for the year of tax, or within such further time as the Commissioner allows, the employer sets out in a document, in the English language: (i) reasonable estimates of the odometer readings of: (A) the car; and (B) if paragraph 162K (2) (b) of that Act applies-both the replacement car and the original car referred to in that paragraph; as at the dates or times referred to in the definition of "odometer records" in subsection 136 (1) of that Act; and (ii) a declaration signed by or on behalf of the employer that, to the best of his or her knowledge and belief, the estimates are reasonable; the following provisions have effect: (d) the document shall be deemed to be and to have been, at all times after the commencement of the holding period: (i) if the provider is the employer-odometer records maintained by or on behalf of the provider in relation to the car for the period mentioned in paragraph (b); or (ii) in any other case-odometer records maintained by or on behalf of the provider in relation to the car for the period referred to in paragraph (b) and given to the employer before the declaration date; (e) the retention period in relation to the document shall be deemed to commence when the declaration is signed. (10) For the purposes of the amended Act, where: (a) a car is held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to an employer during a particular period (in this subsection called the "holding period") in the transitional year of tax or the first standard year of tax; (b) apart from this subsection, odometer records in relation to the car were not maintained by or on behalf of the recipient for: (i) if the year of tax is a log book year of tax of the recipient in relation to the car-the applicable log book period referred to in subparagraph 65E (b) (i); or (ii) in any other case-the holding period; and (c) before the date of lodgment of the employer's return for the year of tax, or within such further time as the Commissioner allows, the employer sets out in a document, in the English language: (i) reasonable estimates of the odometer readings of: (A) the car; and (B) if paragraph 162L (2) (b) of that Act applies-both the replacement car and the original car referred to in that paragraph; as at the dates or times referred to in the definition of "odometer records" in subsection 136 (1) of that Act; and (ii) a declaration signed by or on behalf of the employer that, to the best of his or her knowledge and belief, the estimates are reasonable; the following provisions have effect: (d) the document shall be deemed to be and to have been, at all times after the commencement of the holding period, odometer records maintained by or on behalf of the recipient in relation to the car for the period mentioned in paragraph (b) and given to the employer before the declaration date; (e) the retention period in relation to the document shall be deemed to commence when the declaration is signed. (11) For the purposes of the application of section 19, 24, 44 or 52 of the amended Act in relation to a loan fringe benefit, an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit, as the case requires, in relation to an employer in relation to a particular car held by the recipient of the fringe benefit during a particular period (in this subsection called the "holding period") in a year of tax, where: (a) on or before 29 October 1987, the recipient gave to the employer a declaration in a form approved by the Commissioner for the purposes of paragraph 19 (1) (d), 24 (1) (f), 44 (1) (e) or 52 (1) (e) of the Principal Act, as the case may be, being a declaration relating to the car in respect of a particular period (in this subsection called the "declaration period") that ended on or before 29 October 1987; and (b) the declaration period is the same as, or includes, the holding period; the declaration shall be treated as if it were a car substantiation declaration in relation to the car in relation to the holding period. (12) An amendment made by section 13, paragraph 18 (b), section 22, paragraph 28 (a), (d) or (e), section 32, paragraph 35 (d), 36 (d) or 48 (e), (k), (m), (n) or (p) or section 56 does not apply, in relation to the transitional year of tax or the first standard year of tax, to a benefit provided, or commenced to be provided, on or before 29 October 1987 if the application of the amendment would increase the liability of an employer to fringe benefits tax in respect of that benefit. (13) Where: (a) the application of a provision of the amended Act depends on a condition requiring that documentary evidence of an expense be obtained and given to an employer; and (b) the application of that provision is dependent on that condition because of the amendments made by this Part; that provision applies as if the condition were satisfied in all cases where the benefit concerned was provided on or before 29 October 1987. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 62 Amendment of assessments 62. Nothing in section 74 of the Principal Act prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the amendments made by this Act. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 63 Principal Act 63. In this Part, "Principal Act" means the Income Tax Assessment Act 1936*2*. *2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123 and 168, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 49, 51, 52, 90, 109, 112 and 154, 1986; and Nos. 23, 58, 61 and 62, 1987. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 64 Deductions not allowable for entertainment expenses 64. Section 51AE of the Principal Act is amended: (a) by inserting in paragraph (5A) (b) ", 58, 58N, 58S or 58T" after "54"; (b) by omitting from paragraph (5A) (b) "or" (last occurring); (c) by adding at the end of subsection (5A) the following paragraphs: "(d) the provision of a meal where the provision of the meal would, but for section 58A, 58F, 58L or 58M of the Fringe Benefits Tax Assessment Act 1986, constitute a fringe benefit within the meaning of that Act; (e) the provision of a fringe benefit, within the meaning of the Fringe Benefits Tax Assessment Act 1986, where section 61D or 65A of that Act applies in relation to the fringe benefit; (f) the provision of a remote area holiday fringe benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986; or (g) the provision of a fringe benefit, within the meaning of the Fringe Benefits Tax Assessment Act 1986, where the fringe benefit is in respect of overseas employment holiday transport within the meaning of that Act."; and (d) by inserting after subsection (5B) the following subsection: "(5C) Section 58P of the Fringe Benefits Tax Assessment Act 1986 shall be disregarded in applying paragraphs (5A) (a), (b), (c) and (d).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 65 Deductions not allowable where expenses incurred by employee are reimbursed 65. Section 51AH of the Principal Act is amended by omitting from subsection (1) all the words after "outgoing" (last occurring) and substituting the following words and paragraphs: "shall be: (d) if it would be concluded that the amount of the payment or reimbursement would have been the same even if the loss or outgoing were not incurred in producing assessable income of the taxpayer-calculated as if the loss or outgoing were reduced by the amount of the payment or reimbursement; or (e) in any other case-reduced by the amount of the payment or reimbursement.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 66 66. After section 51AH of the Principal Act the following section is inserted: Deductions not allowable for private component of contributions for fringe benefits etc. "51AJ. (1) Where: (a) any of the following benefits is provided in respect of the employment of an employee of an employer: (i) an airline transport benefit; (ii) a board benefit; (iii) a loan benefit; (iv) a property benefit; (v) a residual benefit; (b) the benefit is: (i) a fringe benefit; or (ii) a benefit that, but for paragraph (g) of the definition of 'fringe benefit' in subsection 136 (1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit; (c) in the case of a loan benefit-the taxpayer, being the recipient or the employee, incurs interest (in this section called the 'recipients interest') in respect of the loan; (d) in the case of a benefit other than a loan benefit-the taxpayer, being the recipient or the employee, incurs consideration (in this section called the 'recipients contribution') to the provider or to the employer in respect of the provision of the recipients transport, the recipients meal, the recipients property or the recipients benefit, as the case may be; (e) it would be concluded that, in calculating the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, the provider or the employer made an allowance for a particular level of application or use of the benefit in producing assessable income of the taxpayer; and (f) it would be concluded that the amount of the recipients interest, or the amount of the recipients contribution, as the case may be, would have been greater if it had been calculated without making that allowance; the following provisions have effect: (g) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer is equal to, or less than, that level-a deduction is not allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution; (h) if the extent of the application or use of the benefit concerned in producing assessable income of the taxpayer exceeds that level-the amount of the deduction that, but for this section, has been allowed or would be allowable to the taxpayer under this Act in respect of the recipients interest or the recipients contribution shall not exceed the amount calculated in accordance with the formula: D - A where: D is the amount of the deduction that, but for this section, would have been allowable to the taxpayer under this Act in respect of the amount of the recipients interest or the amount of the recipients contribution if it had been calculated without making that allowance; and A is the amount of that allowance. "(2) Expressions (other than 'recipients contribution') used in this section and in the Fringe Benefits Tax Assessment Act 1986 have the same respective meanings in this section as they have in that Act.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 67 Interpretation 67. Section 82KT of the Principal Act is amended: (a) by omitting "or" (last occurring) from paragraph (a) of the definition of "eligible expense" in subsection (1); (b) by adding at the end of the definition of "eligible expense" in subsection (1) the following word and paragraph: "or (c) in relation to an eligible transport payment-a transport expense to the extent that it is related to the eligible transport payment, being an expense that was incurred by a taxpayer to whom the eligible transport payment was paid or is payable;"; (c) by inserting in subsection (1) the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis): " 'car expense reimbursement payment' means a payment by way of a reimbursement to which paragraph 26 (eaa) applies, being a reimbursement that: (a) is in respect of the whole or a part of a car expense; and (b) is paid by an employer to an employee in respect of travel by the employee in the course of performing duties as an employee of the employer; 'eligible transport payment' means a payment (in this definition called the 'current payment') in respect of which all of the following conditions are satisfied: (a) the current payment is a transport allowance payment, or a car expense reimbursement payment, paid in respect of particular travel (in this definition called the 'current travel') of an employee; (b) the current payment was paid under an industrial instrument that was in force on 29 October 1986; (c) the aggregate of: (i) the current payment; and (ii) any other transport allowance payments or car expense reimbursement payments, as the case may be, payable under the industrial instrument in respect of the current travel; does not exceed the total amount of transport allowance payments or car expense reimbursement payments, as the case may be, that would have been payable in respect of the current travel under the industrial instrument if no alterations had been made to the industrial instrument after 29 October 1986; (d) if the aggregate of: (i) the current payment; and (ii) any other transport allowance payments or car expense reimbursement payments, as the case may be, payable under the industrial instrument in respect of the current travel; exceeds the total amount of transport allowance payments or car expense reimbursement payments, as the case may be, that would have been payable in respect of the current travel if the amounts had been determined at the rates applicable on 29 October 1986-the whole of the excess is attributable to increases determined solely by reference to matters contained in the industrial instrument on 29 October 1986; 'substantiation sections' means sections 82KUA, 82KUB, 82KUC, 82KUD, 82KW (other than subsection (3)), 82KZ and 82KZA; 'transport allowance payment' means: (a) a payment by way of an allowance paid or payable by an employer to an employee for the sole purpose of enabling the employee to incur transport expenses in respect of travel in the course of performing duties as an employee of the employer; or (b) so much of a payment by way of an allowance paid or payable by an employer to an employee for the principal purpose of enabling the employee to incur such expenses as is paid or payable for that purpose; but does not include any part of any payment by way of a travel allowance; 'transport expense' means an outgoing incurred in connection with transport and includes depreciation in respect of property used in connection with transport, but does not include an outgoing in respect of accommodation, in respect of the purchase of food or drink or in respect of expenditure incidental to transport;"; (d) by inserting after subsection (1) the following subsection: "(1A) For the purposes of the definition of 'eligible transport payment' in subsection (1): (a) where an industrial instrument (in this paragraph called the 'substituted instrument') has come into force in substitution for another industrial instrument (in this paragraph called the 'original instrument'), the substituted instrument shall be taken to be a continuation of the original instrument; (b) alterations made to an industrial instrument after 29 October 1986 shall be taken to have been made on 29 October 1986 if: (i) the alterations were made pursuant to an application made on or before 29 October 1986 that sought increases in transport allowance payments or car expense reimbursement payments; and (ii) if the application was amended after 29 October 1986-the alterations made to the industrial instrument did not result in increases in transport allowance payments or car expense reimbursement payments that were greater than increases in those payments sought by the application as at 29 October 1986; and (c) where, as a result of alterations after 29 October 1986 to an industrial instrument (not being alterations that are deemed by paragraph (b) to have been made on 29 October 1986), an additional amount is paid to an employee under the instrument as a transport allowance payment or car expense reimbursement payment in respect of travel undertaken before the date on which the alterations were made: (i) the additional amount is not an eligible transport payment; and (ii) the question of whether any other transport allowance payment or car expense reimbursement payment in respect of that travel is an eligible transport payment shall be determined as if the additional amount had not been paid or payable in respect of the travel."; (e) by omitting from subsection (3) "or an employment-related expense" and substituting ", an employment-related expense or a transport expense"; and (f) by inserting after subsection (5) the following subsection: "(5A) A reference in this Subdivision to section 82KUD being applied includes a reference to that section being applied by virtue of subparagraph 82KZBA (1) (e) (iii).". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 68 68. After section 82KT of the Principal Act the following section is inserted: Definition of ''eligible expense''-extent to which transport expenses relate to eligible transport payments "82KTAA. For the purposes of the definition of 'eligible expense' in subsection 82KT (1), where: (a) a taxpayer incurs a transport expense in a year of income; and (b) the transport expense relates partly to the travel to which a particular eligible transport payment relates and partly to other travel; the transport expense shall be taken to relate to the eligible transport payment to the same extent to which it would, apart from this Subdivision, have been allowable to the taxpayer as a deduction in respect of the year of income if none of that other travel had been travel in the course of producing assessable income of the taxpayer.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 69 Log book year of income 69. Section 82KTG of the Principal Act is amended: (a) by omitting from paragraph (g) "or" (last occurring); and (b) by adding at the end the following word and paragraph: "; or (j) both of the following conditions are satisfied: (i) the whole or a part of at least one car expense incurred by the taxpayer in the preceding year of income in relation to the deductible car is an eligible expense in relation to which subsection 82KZBA (1) applies or has applied; (ii) section 82KUD was not applied for the purpose of determining the amount of any deduction allowable under this Act in respect of car expenses incurred by the taxpayer in relation to the deductible car in the preceding year of income.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 70 Deduction for car expenses where income-producing use does not exceed 5,000 kilometres-statutory formula 70. Section 82KX of the Principal Act is amended: (a) by inserting in paragraph (1) (b) "the whole or a part of" after "in respect of"; and (b) by adding at the end of paragraph (1) (b) "unless the whole, or the part, of the car expense is or was an eligible expense in relation to which subsection 82KZBA (1) applies or has applied". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 71 Elections 71. Section 82KY of the Principal Act is amended by omitting from subparagraph (2) (b) (i) "those car expenses" and substituting "car expenses relating to the car incurred by the taxpayer in the year of income". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 72 Aggregate claims not exceeding a certain amount 72. Section 82KZB of the Principal Act is amended by omitting from subsection (2) "sections 82KV" and substituting "sections 82KUA, 82KUB, 82KUC, 82KUD". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 73 73. After section 82KZB of the Principal Act the following sections are inserted in Subdivision F of Division 3 of Part III: No substantiation required for eligible expenses relating to eligible transport payments in certain circumstances "82KZBA. (1) Where: (a) one or more eligible transport payments are paid to a taxpayer in a year of income; and (b) the total of the eligible expenses in relation to the eligible transport payment or payments incurred by the taxpayer during any year of income and claimed by the taxpayer as deductions in respect of any year of income does not exceed the amount of the eligible transport payment, or the total of the amounts of the eligible transport payments, as the case may be; then, unless the taxpayer elects that this section not apply in relation to the eligible transport payment or eligible transport payments, the following provisions have effect: (c) subject to subparagraph (e) (iii), the substantiation sections do not apply, and shall be deemed never to have applied, in relation to the taxpayer in relation to any of those eligible expenses; (d) those eligible expenses shall not be treated as relevant expenses for the purposes of section 82KZB; (e) if those eligible expenses consist of, or include, car expenses, or parts of car expenses, incurred in a year of income that relate to a car: (i) nothing in this section prevents the taxpayer making an election that section 82KX apply in relation to the car in relation to the year of income; (ii) the taxpayer is not entitled to elect that subsection 82KW (2) or (3) apply in relation to the car in relation to the year of income; (iii) if: (A) the taxpayer does not elect that section 82KX apply in relation to the car in relation to the year of income; and (B) a part (in this paragraph called the 'eligible expense part') of a car expense incurred by the taxpayer in the year of income relating to the car is one of those eligible expenses; the amount of a deduction allowable under this Act to the taxpayer in respect of the car expense is the sum of: (C) if, apart from this paragraph, section 82KUD would be applied for the purpose of determining the amount of a deduction allowable under this Act in respect of so much of that car expense as is not an eligible expense-the amount of the deduction that would have been calculated under section 82KUD if that section had applied to the whole of the car expense; and (D) the amount of the deduction that, apart from this Subdivision, would have been allowable under this Act to the taxpayer in respect of the eligible expense part of that car expense; and (iv) for the purposes of this Subdivision (including section 82KUD as applied by subparagraph (iii) of this paragraph), the number of kilometres travelled by the car during the year of income in the course of travel to which the eligible transport payment or eligible transport payments relate shall not be counted as travel by the car in the course of producing assessable income of the taxpayer. "(2) Where: (a) a taxpayer has incurred a transport expense during a year of income; and (b) at the time of making an assessment in respect of income of the person of the year of income, the Commissioner is of the opinion that, at a later time, circumstances will exist because of which subsection (1) will apply in relation to the whole or a part of the transport expense; the Commissioner may, in making the assessment, apply this Act as if those circumstances existed at the time of making the assessment. "(3) Where this Act has, because of subsection (2), been applied on the basis that a circumstance that did not exist at the time of making the assessment would exist at a later time and the Commissioner, after making the assessment, becomes satisfied that the circumstance will not exist, then, notwithstanding section 170, the Commissioner may amend the assessment at any time for the purposes of ensuring that this Act shall be taken always to have applied on the basis that that circumstance did not exist. Relief from certain substantiation requirements where taxpayer had a reasonable expectation that substantiation would not be required "82KZBB. (1) Where: (a) any of the following subparagraphs applies in relation to an expense incurred by a taxpayer in a year of income: (i) documentary evidence of the expense was not obtained by, or on behalf of, the taxpayer; (ii) the taxpayer did not make, as mentioned in subsection 82KZ (2), an entry in a travel diary in relation to the expense; (iii) the taxpayer did not retain, for the retention period: (A) documentary evidence of the expense; or (B) a travel diary relating to the travel to which the expense relates; (b) the failure to obtain or retain the documentary evidence, to make the entry, or to retain the travel diary, occurred only because: (i) if the expense is a car expense-the taxpayer, at the time the expense was incurred, had a reasonable expectation that he or she would be entitled to claim a deduction under section 82KX in relation to the car to which the expense relates in relation to the year of income; (ii) if the expense is a relevant expense within the meaning of section 82KZB-the taxpayer, at the time the expense was incurred, had a reasonable expectation that the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB, incurred by the taxpayer during the year of income would not exceed $300 or such higher amount as is prescribed for the purposes of subsection 82KZB (2); or (iii) if the expense is a transport expense-the taxpayer, at the time the expense was incurred, had a reasonable expectation that subsection 82KZBA (1) would apply in relation to the whole or a part of the expense; (c) all of the following conditions are satisfied: (i) a special circumstance occurred: (A) after the expense was incurred; and (B) during the year of income; (ii) at the time the expense was incurred, the taxpayer did not know, and could not reasonably have been expected to have known, that the special circumstance would occur; (iii) it is reasonable to assume that, if the special circumstance had not occurred: (A) if subparagraph (b) (i) applies-the taxpayer would have been entitled to claim a deduction under section 82KX as mentioned in that subparagraph; (B) if subparagraph (b) (ii) applies-the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB, incurred by the taxpayer during the year of income would not have exceeded $300 or such higher amount as is prescribed for the purposes of subsection 82KZB (2); or (C) if subparagraph (b) (iii) applies-subsection 82KZBA (1) would have applied in relation to the whole or a part of the expense referred to in that subparagraph; (d) if subparagraph (b) (i) applies-the taxpayer is not entitled to claim a deduction under section 82KX in relation to the car to which the expense relates in relation to the year of income; and (e) the Commissioner is satisfied that, because of the circumstances referred to in paragraphs (b) and (c), it would be unreasonable to expect the taxpayer: (i) to have obtained or retained documentary evidence in relation to the expense; or (ii) to have made an entry in a travel diary in relation to the expense or to have retained the travel diary relating to the travel to which the expense relates; as the case may be; the following provisions have effect: (f) if the expense is a car expense-section 82KUA and paragraphs 82KW (2) (b) and (ba) and 82KZA (1) (aa) and (a) and (3) (ba), (c) and (d) do not apply, and shall be deemed never to have applied, in relation to the expense; (g) if the expense is an expense other than a car expense-section 82KZ and paragraphs 82KZA (1) (a) and (c) and (3) (c), (d) and (f) do not apply, and shall be deemed never to have applied, in relation to the expense. "(2) For the purposes of this Subdivision, where: (a) odometer records maintained by or on behalf of a taxpayer in relation to a car in relation to a period during a year of income would, apart from this subsection, be incomplete because of a failure to enter particulars of the odometer reading at the commencement of the period or, if the first use of the car in the course of producing assessable income of the taxpayer occurred during that period, at the commencement of that use; (b) the failure occurred only because: (i) the taxpayer, at the commencement of that period or use, had a reasonable expectation that the taxpayer would be entitled to claim a deduction under section 82KX in relation to the car in relation to the year of income; (ii) the taxpayer, at the commencement of that period or use, had a reasonable expectation that the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB, incurred by the taxpayer during the year of income would not exceed $300 or such higher amount as is prescribed for the purposes of subsection 82KZB (2); or (iii) the taxpayer, at the commencement of that period or use, had a reasonable expectation that subsection 82KZBA (1) would apply in relation to the whole or a part of all of the car expenses incurred, in gaining or producing assessable income of the taxpayer, in relation to the car after the commencement of that period or use and during the year of income; (c) all of the following conditions are satisfied: (i) a special circumstance occurred: (A) after the commencement of that period or use; and (B) during the year of income; (ii) at the time the expense was incurred, the taxpayer did not know, and could not reasonably have been expected to have known, that the special circumstance would occur; (iii) it is reasonable to assume that, if the special circumstance had not occurred: (A) if subparagraph (b) (i) applies-the taxpayer would have been entitled to claim a deduction under section 82KX as mentioned in that subparagraph; (B) if subparagraph (b) (ii) applies-the total amount that would be allowable as deductions under this Act in respect of relevant expenses, within the meaning of section 82KZB, incurred by the taxpayer during the year of income would not have exceeded $300 or such higher amount as is prescribed for the purposes of subsection 82KZB (2); or (C) if subparagraph (b) (iii) applies-subsection 82KZBA (1) would have applied as mentioned in that subparagraph; (d) if subparagraph (b) (i) applies-the taxpayer is not entitled to claim a deduction under section 82KX in relation to the car in relation to the year of income; (e) the Commissioner is satisfied that, because of the circumstances referred to in paragraphs (b) and (c), it would be unreasonable to expect the taxpayer to have recorded the odometer reading at the commencement of that period or use; and (f) before the date of lodgment of the taxpayer's return for the year of income, or within such further time as the Commissioner allows, the taxpayer sets out in the odometer records: (i) a reasonable estimate of the odometer reading; and (ii) a declaration signed by the taxpayer that, to the best of his or her knowledge and belief, the estimate is reasonable; the following provisions have effect: (g) the odometer records shall be deemed to be, and to have been, at all times after the commencement of that period, complete odometer records maintained by or on behalf of the taxpayer in relation to the car for that period; (h) the retention period in relation to the odometer records shall be deemed to commence at the time the first entry was made in the odometer records. "(3) In this section, a reference to the time a taxpayer incurred an expense, being an expense constituted by depreciation in respect of property is, notwithstanding subsection 82KT (3), a reference to the time when the taxpayer acquired the property.". TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 74 Application of amendments 74. (1) The amendments made by section 64 apply to assessments in respect of income of the year of income in which 20 September 1985 occurred and of all subsequent years of income. (2) The amendments made by sections 65 and 66 apply to assessments in respect of income of the year of income commencing on 1 July 1986 and of all subsequent years of income. (3) The amendments made by sections 67 to 73 (inclusive) apply in relation to an expense incurred by a taxpayer in a year of income commencing on or after 1 July 1986. TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 75 Amendment of assessments 75. Nothing in section 170 of the Principal Act prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to this Act.