Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FRINGE BENEFITS AND SUBSTANTIATION) ACT 1987 No. 139 of 1987 - SECT 4

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.".