Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986

TABLE OF PROVISIONS

           Long Title

   PART I--PRELIMINARY

   1.      Short title  
   2.      Commencement  
   2A.     Application of the Criminal Code  
   2B.     Application  

   PART II--ADMINISTRATION

   3.      General administration of Act  
   4.      Annual report  

   PART IIA--CORE--PROVISIONS

           Division 1--Working out an employer's fringe benefits taxable amount

   5A.     Simplified outline of this Division  
   5B.     Working out an employer's fringe benefits taxable amount  

           Division 2--Working out an employer's aggregate fringe benefits amount

   5C.     Aggregate fringe benefits amount  

           Division 3--Employee's individual fringe benefits amount

   5D.     Simplified outline  
   5E.     Employee's individual fringe benefits amount  
   5F.     Working out the employee's share  

   PART III--FRINGE--BENEFITS

           Division 1--Preliminary

   6.      Part not to limit generality of benefit  

           Division 2--Car fringe benefits

              Subdivision A--Car benefits

   7.      Car benefits  
   8.      Exempt car benefits  
   8A.     Exempt car benefits: cars that are zero or low emissions vehicles  

              Subdivision B--Taxable value of car fringe benefits

   9.      Taxable value of car fringe benefits--statutory formula  
   10.     Taxable value of car fringe benefits--cost basis  
   10A.    No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained  
   10B.    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  
   11.     Calculation of depreciation and interest  
   12.     Depreciated value  
   13.     Expenditure to be increased in certain circumstances  

           Division 3--Debt waiver fringe benefits

              Subdivision A--Debt waiver benefits

   14.     Debt waiver benefits  

              Subdivision B--Taxable value of debt waiver fringe benefits

   15.     Taxable value of debt waiver fringe benefits  

           Division 4--Loan fringe benefits

              Subdivision A--Loan benefits

   16.     Loan benefits  
   17.     Exempt loan benefits  

              Subdivision B--Taxable value of loan fringe benefits

   18.     Taxable value of loan fringe benefits  
   19.     Reduction of taxable value-- otherwise deductible rule  

           Division 5--Expense payment fringe benefits

              Subdivision A--Expense payment benefits

   20.     Expense payment benefits  
   20A.    Exemption--no - private - use declaration  
   21.     Exempt accommodation expense payment benefits  
   22.     Exempt car expense payment benefits  

              Subdivision B--Taxable value of expense payment fringe benefits

   22A.    Taxable value of in - house expense payment fringe benefits  
   23.     Taxable value of external expense payment fringe benefits  
   24.     Reduction of taxable value-- otherwise deductible rule  

           Division 6--Housing fringe benefits

              Subdivision A--Housing benefits

   25.     Housing benefits  

              Subdivision B--Taxable value of housing fringe benefits

   26.     Taxable value of non - remote housing fringe benefits  
   27.     Determination of market value of housing right  
   28.     Indexation factor for valuation purposes--non - remote housing  

           Division 7--Living-away-from-home allowance fringe benefits

              Subdivision A--Living-away-from-home allowance benefits

   30.     Living - away - from - home allowance benefits  

              Subdivision B--Taxable value of living-away-from-home allowance fringe benefits

   31.     Taxable value--employee maintains a home in Australia  
   31A.    Taxable value--fly - in fly - out and drive - in drive - out employees  
   31B.    Taxable value--any other case  

              Subdivision C--Related provisions

   31C.    Maintaining a home in Australia  
   31D.    First 12 months employee is required to live away from home  
   31E.    Fly - in fly - out and drive - in drive - out requirements  
   31F.    Declarations  
   31G.    Substantiating related expenses  
   31H.    Exempt food component  

           Division 9--Board fringe benefits

              Subdivision A--Board benefits

   35.     Board benefits  

              Subdivision B--Taxable value of board fringe benefits

   36.     Taxable value of board fringe benefits  
   37.     Reduction of taxable value-- otherwise deductible rule  

           Division 9A--Meal entertainment

              Subdivision A--Meal entertainment

   37A.    Key principle  
   37AA.   Division only applies if election made  
   37AB.   Employee contributions to be excluded  
   37AC.   Meal entertainment benefits  
   37AD.   Meaning of provision of meal entertainment  
   37AE.   Fringe benefits only arise if employer is provider  
   37AF.   No other fringe benefits arise if election made  
   37AG.   Some benefits still arise  

              Subdivision B--50/50 split method of valuing meal entertainment

   37B.    Key principle  
   37BA.   Taxable value using 50/50 split method  

              Subdivision C--12 week register method

   37C.    Key principle  
   37CA.   Election by employer  
   37CB.   Taxable value using 12 week register method  
   37CC.   Choosing the 12 week period for a register  
   37CD.   FBT years for which register is valid  
   37CE.   Matters to be included in register  
   37CF.   False or misleading entries invalidate register  

           Division 10--Tax-exempt body entertainment fringe benefits

              Subdivision A--Tax-exempt body entertainment benefits

   38.     Tax - exempt body entertainment benefits  

              Subdivision B--Taxable value of tax-exempt body entertainment fringe benefits

   39.     Taxable value of tax - exempt body entertainment fringe benefits  

           Division 10A--Car parking fringe benefits

              Subdivision A--Car parking benefits

   39A.    Car parking benefits  
   39AA.   Anti - avoidance--fee on first business day not representative  
   39AB.   When fees are not representative  
   39B.    When commercial parking stations are located within a 1 km radius of business premises or associated premises  

              Subdivision B--Taxable value of car parking fringe benefits

   39C.    Taxable value of car parking fringe benefits-- commercial parking station method  
   39D.    Taxable value of car parking fringe benefits-- market value basis  
   39DA.   Taxable value of car parking fringe benefits-- average cost method  
   39E.    Fees charged by commercial parking stations for all - day parking  

              Subdivision C--Statutory formula method--spaces

   39F.    The key principle  
   39FA.   Spaces method of calculating total taxable value of car parking fringe benefits  
   39FB.   Number of spaces exceeds number of employees  
   39FC.   Meaning of daily rate amount  
   39FD.   Meaning of availability period  
   39FE.   Meaning of relevant recipients contribution  

              Subdivision D--12 week record keeping method

   39G.    The key principle  
   39GA.   Employer may elect to use 12 week record keeping method  
   39GB.   Value of fringe benefits for year  
   39GC.   Meaning of total value of car parking benefits (register)  
   39GD.   Meaning of car parking availability period  
   39GE.   Choosing the 12 week period for a register  
   39GF.   FBT years for which register is valid  
   39GG.   Matters to be included in register  
   39GH.   Fraudulent entries invalidate register  

           Division 11--Property fringe benefits

              Subdivision A--Property benefits

   40.     Property benefits  
   41.     Exempt property benefits  

              Subdivision B--Taxable value of property fringe benefits

   42.     Taxable value of in - house property fringe benefits  
   43.     Taxable value of external property fringe benefits  
   44.     Reduction of taxable value-- otherwise deductible rule  

           Division 12--Residual fringe benefits

              Subdivision A--Residual benefits

   45.     Residual benefits  
   46.     Year of tax in which residual benefits taxed  
   47.     Exempt residual benefits  
   47A.    Exemption--no - private - use declaration  

              Subdivision B--Taxable value of residual fringe benefits

   48.     Taxable value of in - house non - period residual fringe benefits  
   49.     Taxable value of in - house period residual fringe benefits  
   50.     Taxable value of external non - period residual fringe benefits  
   51.     Taxable value of external period residual fringe benefits  
   52.     Reduction of taxable value-- otherwise deductible rule  

           Division 13--Miscellaneous exempt benefits

   53.     Motor vehicle fringe benefit fuel etc. to be exempt in certain cases  
   54.     Provision of food or drink to be exempt benefit in certain cases  
   55.     Benefits provided by certain international organisations to be exempt  
   56.     Preservation of diplomatic and consular immunities  
   57.     Exempt benefits--employees of religious institutions  
   57A.    Exempt benefits--public benevolent institutions, health promotion charities, some hospitals and public ambulance services  
   58.     Exempt benefits--live - in residential care workers  
   58A.    Exempt benefits--employment interviews and selection tests  
   58AA.   Exempt benefits--engagement of relocation consultant  
   58B.    Exempt benefits--removals and storage of household effects as a result of relocation  
   58C.    Exempt benefits--sale or acquisition of dwelling as a result of relocation  
   58D.    Exempt benefits--connection or re - connection of certain utilities as a result of relocation  
   58E.    Exempt benefits--leasing of household goods while living away from home  
   58F.    Exempt benefits--relocation transport  
   58G.    Exempt benefits--motor vehicle parking  
   58GA.   Exempt benefits--small business car parking  
   58H.    Exempt benefits--newspapers and periodicals used for business purposes  
   58J.    Exempt benefits--compensable work - related trauma  
   58K.    Exempt benefits--in - house health care facilities  
   58L.    Exempt benefits--certain travel to obtain medical treatment  
   58LA.   Exempt benefits--compassionate travel  
   58M.    Exempt benefits--work - related medical examinations, work - related medical screening, work - related preventative health care, work - related counselling, migrant language training  
   58N.    Exempt benefits--emergency assistance  
   58P.    Exempt benefits--minor benefits  
   58PA.   Exempt benefits--worker entitlement contributions  
   58PB.   Meaning of approved worker entitlement funds  
   58Q.    Exempt benefits--long service awards  
   58R.    Exempt benefits--safety awards  
   58S.    Exempt benefits--trainees engaged under Australian Traineeship System  
   58T.    Exempt benefits--live - in domestic workers employed by religious institutions or by religious practitioners  
   58U.    Exempt benefits--live - in help for elderly and disadvantaged persons  
   58V.    Exempt benefits--food and drink for non - live - in domestic employees  
   58W.    Exempt benefits--deposits under the Small Superannuation Accounts Act 1995  
   58X.    Exempt benefits--provision of certain work related items  
   58Y.    Exempt benefits--membership fees and subscriptions  
   58Z.    Exempt benefits--taxi travel  
   58ZB.   Exempt benefits--approved student exchange programs  
   58ZC.   Exempt benefits--remote area housing benefits  
   58ZD.   Exempt benefits--meals on working days  
   58ZE.   Exempt benefits--provision of certain education or training  

           Division 14--Reduction of taxable value of miscellaneous fringe benefits

   59.     Reduction of taxable value--remote area residential fuel  
   60.     Reduction of taxable value--remote area housing  
   60AA.   Guideline price for repurchase of remote area residential property  
   60A.    Reduction of taxable value--remote area holiday transport fringe benefits subject to ceiling  
   61.     Reduction of taxable value--remote area holiday transport fringe benefits not subject to ceiling  
   61A.    Reduction of taxable value--overseas employment holiday transport  
   61B.    Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport  
   61C.    Reduction of taxable value--temporary accommodation relating to relocation  
   61D.    Reduction of taxable value of temporary accommodation meal fringe benefits  
   61E.    Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests  
   61F.    Reduction of taxable value of certain expense payment fringe benefits associated with work - related medical examinations, work - related medical screenings, work - related preventative health care, work - related counselling or migrant language training  
   61G.    Reduction of taxable value of fringe benefits if certain deductions relating to payments to associates are not allowed  
   62.     Reduction of aggregate taxable value of in - house fringe benefits  
   63.     Reduction of taxable value of living - away - from - home food fringe benefits  
   63A.    Reduction of taxable value in respect of entertainment component of certain fringe benefits  
   65A.    Reduction of taxable value--education of children of overseas employees  

           Division 14A--Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes

   65CA.   Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes  
   65CB.   Amendment of assessments  

           Division 14B--Reducible fringe benefits relating to remote area home repurchase schemes

   65CC.   Reducible fringe benefits relating to remote area home repurchase schemes  

           Division 15--Car substantiation rules for otherwise deductible provisions

   65D.    Car substantiation rules  
   65E.     No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained  
   65F.    No compliance with substantiation rules in non - log book year of tax unless log book records kept in previous log book year of tax  

   PART IIIA--REBATES--OF TAX

   65J.    Rebate for certain not - for - profit employers etc.  

   PART IV--LIABILITY--TO TAX

   66.     Liability to pay tax  
   67.     Arrangements to avoid or reduce fringe benefits tax  

   PART V--RETURNS--AND ASSESSMENTS

           Division 1--Returns

   68.     Annual returns  
   69.     Further returns  
   70.     Keeping records of indirect tax transactions  
   70D.    Tax agent to give taxpayer copy of notice of assessment  

           Division 2--Assessments

   72.     First return deemed to be an assessment  
   73.     Default assessments  
   74.     Amendment of assessments  
   75.     Refund of amounts overpaid  
   76.     Amended assessment to be an assessment  
   77.     Notice of assessment  
   78.     Validity of assessment  
   78A.    Objections  

   PART VII--COLLECTION--AND RECOVERY OF TAX

           Division 1--General

   90.     When tax payable  
   93.     Unpaid tax  
   100.    Person in receipt or control of money of non - resident  

           Division 2--Collection by instalments

              Subdivision A--General

   101.    Interpretation  
   102.    Liability to pay instalments of tax  
   103.    When instalment of tax payable  
   104.    Notice of the amount of an instalment  
   105.    Credit for instalments payable  

              Subdivision C--Working out the amount of instalments

   109.    Interpretation  
   110.    Notional tax amount  
   111.    Amount of instalment of tax  
   112.    Estimated tax  
   112A.   Credit in certain cases where amount of instalment is nil  
   112B.   Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated tax  
   113.    Notice of alteration of amount of instalment  

   PART X--STATUTORY--EVIDENTIARY DOCUMENTS

   123.    Retention of statutory evidentiary documents  
   123AA.  Alternatives to statutory evidentiary documents  
   123A.   When business use percentage and estimate of business kilometres must be specified  
   123B.   Substantiation requirements not to apply in special circumstances  

   PART XA--ENDORSEMENT--OF REGISTERED CHARITIES ETC.

   123C.   Endorsement by Commissioner as public benevolent institution  
   123D.   Endorsement by Commissioner as health promotion charity  
   123E.   Endorsement by Commissioner as registered charity (other than public benevolent institution or health promotion charity)  

   PART XI--MISCELLANEOUS

   124.    Assessments  
   124A.   Assessment on assumption  
   129.    Agents and trustees  
   132.    Records to be kept and preserved  
   132A.   Written evidence not available when return lodged  
   134.    Service on partnerships and associations  
   135.    Regulations  

   PART XIA--RECORD--KEEPING EXEMPTION

           Division 1--Overview of Part

   135A.   Overview of Part  

           Division 2--Conditions

   135B.   Conditions that must be satisfied  
   135C.   What is a base year?  

           Division 3--Consequences if conditions in Division 2 are satisfied

   135D.   Consequences  
   135E.   Exemption from keeping records  
   135F.   Keeping records for 5 years after they are last relied on  
   135G.   Way to work out liability  
   135H.   Exception if employer chooses to use current year aggregate fringe benefits amount  
   135J.   Exception if employer is government body or tax - exempt  
   135K.   Exception if aggregate fringe benefits amount increases too much  
   135L.   Employer not in business throughout current year  

   PART XIB--REPORTABLE--FRINGE BENEFITS TOTALS

   135M.   Simplified outline of this Part  
   135N.   Employee's reportable fringe benefits total  
   135P.   Employee's reportable fringe benefits amount --general rule  
   135Q.    Reportable fringe benefits amount for some employees of certain institutions  

   PART XIC--APPLICATION--OF THE ACT TO NOMINATED STATE OR TERRITORY BODIES

   135R.   Application of this Part  
   135S.   Nomination of eligible State or Territory bodies  
   135T.   Eligible State or Territory bodies  
   135U.   Consequences of nomination  
   135V.   Working out the notional tax amount where nominations have been made, varied or revoked  
   135W.   Notional tax amount where a nominated State or Territory body ceases to exist  
   135X.   Application of certain provisions by agreement with the Commissioner  

   PART XID--TEMPORARY--BUDGET REPAIR LEVY

   135Y.   Temporary budget repair levy  

   PART XII--INTERPRETATION

   136.    Interpretation  
   136AB.  What constitutes reasonable belief that a superannuation fund is a complying superannuation fund  
   136A.   Reimbursement etc. of tax not to be regarded as consideration in respect of benefit etc.  
   137.    Salary or wages  
   138.    Double counting of fringe benefits  
   138A.   Benefit provided in respect of a year of tax  
   138B.   Benefit provided in respect of the employment of an employee  
   138C.   Application or use of benefit  
   139.    Date on which return furnished  
   140.    Eligible urban areas  
   141.    Housing loans, prescribed interests in land or stratum units and proprietary rights in respect of dwellings  
   141A.   Benefits incidental to acquisition or sale of prescribed interests in land or stratum units and proprietary rights in respect of dwellings  
   142.    Remote area housing  
   142A.   Benefits relating to transport  
   142B.   Employee's new place of employment  
   142C.   Eligible shared accommodation in a house, flat or home unit  
   142D.   Eligible accommodation in an employees hostel  
   143.    Remote area holiday transport  
   143A.   Relocation transport  
   143B.   Overseas employees  
   143C.   Overseas employment holiday transport  
   143D.   Employment interviews and selection tests  
   143E.   Work - related medical examinations, work - related medical screening, work - related preventative health care, work - related counselling, migrant language training  
   144.    Deemed payment  
   145.    Consideration not in cash  
   146.    Amounts to be expressed in Australian currency  
   147.    Obligation to pay or repay an amount  
   148.    Provision of benefits  
   149.    Provision of benefit during a period  
   149A.   What is a GST - creditable benefit ?  
   150.    Credit cards  
   151.    Employee performing services for person other than employer  
   152A.   Recurring fringe benefit declaration  
   152B.   Employer may elect 50/50 split method for entertainment facility leasing costs  
   153.    Residual benefits to include provision of property in certain circumstances  
   154.    Creation of property  
   155.    Use of property before title passes  
   156.    Supply of electricity or gas through reticulation system  
   157.    Christmas Island and Cocos (Keeling) Islands  
   158.    Related companies  
   159.    Associates and relatives  
   160.    Continuity of employment where business disposed of etc.  
   161.    Business journeys in car  
   162.    Holding of car  
   162B.   When car used for the purpose of producing assessable income  
   162C.   Holding period of car  
   162F.   Reasonable estimate of number of business kilometres  
   162G.   Log book year of tax  
   162H.   Applicable log book period  
   162K.   Replacement cars--car fringe benefits  
   162L.   Replacement cars--otherwise deductible provisions  
   162N.   Registration of motor vehicle  
   164.    Residence  
   165.    Partnerships  
   166.    Unincorporated companies  
   167.    Offences by government bodies  
           SCHEDULE Statutory interest rates for periods between 1 January 1946 and 2 April 1986