Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 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.