Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of this Act, where:
(a) any of the following fringe benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:
(i) an expense payment fringe benefit where the recipients expenditure is in respect of the provision of transport, or meals or accommodation in connection with transport;
(ii) a property fringe benefit where the recipients property consists of meals in connection with transport;
(iii) a residual fringe benefit where the recipients benefit consists of the provision of transport or accommodation in connection with transport;
(b) the transport, accommodation or meals is for a family member;
(c) the transport is provided wholly or principally to enable the family member to have a holiday for a period of not less than 3 days;
(d) at the time (in this section called the outbound travel time ) immediately before the commencement of travel undertaken by the family member in connection with that holiday:
(i) the employee was an overseas employee; and
(ii) disregarding days of recreation leave, the employee's overseas posting period was a period of not less than 28 days;
(e) if the transport is for the employee:
(i) the transport is provided while the employee is on recreation leave, being recreation leave of not less than 3 working days; and
(ii) at the completion of that recreation leave, the employee resumes the duties of that employment at the place that was the employee's overseas employment place at the outbound travel time;
(f) either of the following subparagraphs applies:
(i) the transport is between:
(A) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and
(B) another place;
(ii) the transport is for the spouse, or a child, of the employee, being a spouse or a child of the employee who does not live with the employee at the place that was the employee's overseas employment place at the outbound travel time, and the transport is between:
(A) a place where the spouse or child, as the case may be, meets the employee; and
(B) another place;
(g) in the case of an expense payment fringe benefit--the recipients expenditure is not in respect of remote area holiday transport;
(h) in the case of a property fringe benefit--the recipients property is not in respect of remote area holiday transport;
(j) in the case of a residual fringe benefit--the recipients benefit is not in respect of remote area holiday transport;
(k) if the transport is for the spouse, or a child, of the employee--the transport is not provided to enable the spouse or child to accompany the employee:
(i) while the employee is undertaking travel in the course of performing the duties of his or her employment; and
(ii) where the circumstances referred to in subsection 26 - 30(2) of the Income Tax Assessment Act 1997 do not apply; and
(m) either of the following conditions is satisfied:
(i) the benefit is provided pursuant to the provisions of an industrial instrument relating to the employment of the employee;
(ii) it is customary for employers in the industry in which the employee is employed to provide benefits of the same kind as the benefit provided to the recipient and to provide such benefits in similar circumstances to those that applied in relation to the provision of the benefit to the recipient;
the following provisions have effect:
(n) the fringe benefit shall be taken to be in respect of overseas employment holiday transport;
(p) the benchmark travel amount in relation to the family member in relation to the fringe benefit is:
(i) if either of the following sub - subparagraphs apply:
(A) the employee was entitled to be provided with home country holiday transport assistance pursuant to the provisions of an industrial instrument relating to the employment of the employee;
(B) there was a custom in the industry in which the employee was employed such that the employee could have been provided with home country holiday transport assistance by the employer;
the sum of:
(C) the return economy air fare in respect of the air service, or the total of the return economy air fares in respect of the air services, to which that home country holiday transport assistance relates; and
(D) the expenses that could reasonably be expected to have been incurred in respect of the family member (whether by way of airport transfer, meals, accommodation, accident insurance, airport or departure tax, passenger movement charge, or any similar matter or thing) in accordance with the entitlement or custom to which that home country holiday transport assistance relates and in connection with travelling on that return service or those return services;
(ii) if subparagraph (i) does not apply but the following conditions are satisfied in respect of one or more return scheduled passenger air services:
(A) the service was operated, at or about the outbound travel time, between eligible places;
(B) the nature of the service is such that it would not be unreasonable for the family member to travel on the service;
the lowest of the return economy air fares for those services;
(iii) if neither subparagraph (i) nor (ii) applies but the following conditions are satisfied in respect of one or more combinations of return scheduled passenger air services:
(A) the combination was operated at or about the outbound travel time and would have enabled a person to travel between eligible places;
(B) the nature of the combination, and of the services in the combination, is such that it would not be unreasonable for the family member to travel on the services;
the total of the economy return air fares for the combination that has the lowest total of economy return air fares; or
(iv) in any other case--an amount equal to the lowest return fare, or combination of return fares, in respect of travel services in respect of which the following conditions are satisfied:
(A) the service, or combination of services, was operated at or about the outbound travel time and would have enabled a person to travel between eligible places;
(B) the nature of the service, or the nature of the combination and of the services included in the combination, is such that it would not be unreasonable for the family member to travel on the service or services;
(q) if the transport for a particular family member consists wholly of transport:
(i) in respect of a holiday taken by the family member; and
(ii) by the most direct practicable route between:
(A) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and
(B) a place in the country in which the employee's usual place of residence during the overseas posting period was located;
the fringe benefit shall be taken to be a home country fringe benefit in relation to the holiday for the family member.
(2) For the purposes of the application of this section in relation to a benefit provided in respect of the employment of an employee:
(a) a reference in this section to travel, or to the operation of a service or services, between eligible places is a reference to travel, or the operation of a service or services, between:
(i) a place at or near the place that was the employee's overseas employment place at the outbound travel time; and
(ii) a place at or near the usual place of residence of the employee during the overseas posting period; and
(b) a reference in this section to the provision of home country holiday transport assistance to the employee is a reference to:
(i) the making of payments in discharge or reimbursement of expenditure incurred by a person in respect of a return scheduled passenger air service, or combination of return scheduled passenger air services, operated by a carrier or carriers between eligible places; or
(ii) the provision of transport on such a service or services.