Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 135U

Change in employer

  (1)   Subject to subsection   (4), a nominated State or Territory body, instead of the governing body otherwise applicable, is taken, for the purposes of the Act, to be the employer of each employee of the State or Territory that has a sufficient connection with the body.

Meaning of sufficient connection

  (2)   An employee of the State or Territory has a sufficient connection with the body if the employee performs his or her duties of employment wholly or principally in the body.

  (3)   An employee of the State or Territory is taken to have a sufficient connection with the body if:

  (a)   the employee does not perform his or her duties of employment wholly or principally in any other nominated State or Territory body; and

  (b)   the employee is of a class of employees that the State or Territory has specified under paragraph   135S(2)(c) is to be taken to have a sufficient connection with the body.

Obligations etc. still fall on State or Territory

  (4)   Any right that would be conferred, or obligation that would be imposed, on the nominated State or Territory body as a consequence of subsection   (1) is instead conferred or imposed on the State or the Territory.

Other consequences

  (5)   Also, for the purposes of this Act:

  (a)   the nominated State or Territory body is taken to be a company; and

  (b)   the following are taken to be companies related to the nominated State or Territory body:

  (i)   each other nominated State or Territory body of the State or Territory concerned; and

  (ii)   the State or Territory concerned; and

  (iii)   each authority of the State or Territory that is not a related company of the nominated State or Territory body under subparagraph   (i) or (ii); and

  (c)   the nominated State or Territory body is taken to be a government body.

Where nominated State or Territory body ceases to exist

  (6)   If the nominated State or Territory body ceases to exist during a year of tax:

  (a)   the State or Territory is taken, from the time the body ceases to exist, to be the employer of all employees who had a sufficient connection with the body immediately before it ceased to exist; and

  (b)   the State or Territory is taken to have revoked the nomination of the body, with effect from the start of the next year of tax.