Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 28

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.".