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FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 58Q

Exempt benefits--long service awards

  (1)   Where:

  (a)   a long service award benefit (in this section called the current long service award benefit ) is provided in, or in respect of, a year of tax in respect of the employment of an employee;

  (b)   the current long service award benefit is in recognition of a particular recognised long service period (in this section called the current recognised long service period ) of the employee;

  (c)   if there is no other long service award benefit provided in, or in respect of, any year of tax in respect of that employment in recognition of a different recognised long service period of the employee that is shorter than the current recognised long service period--the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula:

    Start formula $1,000 plus open large bracket $100 times open small bracket RLS minus 15 close small bracket close large bracket end formula

    where RLS is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and

  (d)   if paragraph   (c) does not apply--the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula:

    Start formula $100 times open bracket RLS minus ERLS close bracket end formula

    where:

"RLS" is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and

"ERLS" is the number of whole years in the longest recognised long service period of the employee that:

  (i)   is shorter than the current recognised long service period; and

  (ii)   was recognised by the provision of one or more long service award benefits in, or in respect of, any year of tax, in respect of the employment of the employee;

the current long service award benefit is an exempt benefit in relation to the year of tax.

  (2)   Nothing in section   74 prevents the amendment of an assessment for the purpose of giving effect to this section.


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