Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Some of the definitions in this section are the same as definitions in the Fringe Benefits Tax Assessment Act 1986 . Most of the other definitions in this section are based on definitions in that Act.
(2) In this section and in Parts 2.19, 3.9 and 3.12A, unless the contrary intention appears:
"arm's length loan" means a loan where the parties to the loan are dealing with each other at arm's length in relation to the loan.
"arm's length transaction" means a transaction where the parties to the transaction are dealing with each other at arm's length in relation to the transaction.
"arrangement" means:
(a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and
(b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.
"assessable fringe benefit" means a fringe benefit that is:
(a) a car benefit (see section 1157C); or
(b) a school fees benefit (see section 1157E); or
(c) health insurance benefit (see section 1157F); or
(d) a loan benefit (see section 1157G); or
(e) a housing benefit (see section 1157I); or
(f) an expense benefit (see section 1157JA); or
(g) a financial investment benefit (see section 1157JC);
but does not include a car benefit, loan benefit, housing benefit or expense benefit that is exempt.
Note: For exempt benefits see sections 1157D (car benefits), 1157H (loan benefits), 1157J (housing benefits) and 1157JB (expense benefits).
"associate" has the same meaning as in the Fringe Benefits Tax Assessment Act 1986 .
Note: Subsection 136(1) of the Fringe Benefits Tax Assessment Act adopts the definition of associate in section 318 of the Income Tax Assessment Act. Section 159 of the Fringe Benefits Tax Assessment Act modifies the way in which the income tax definition applies and also extends that definition in other ways.
"Australian Parliament" means:
(a) the Parliament of the Commonwealth of Australia; or
(b) the Parliament of a State; or
(c) the Legislative Assembly for the Australian Capital Territory; or
(d) the Legislative Assembly of the Northern Territory of Australia.
Note: See paragraph (d) of the definition of current employee .
"car" means a motor vehicle that is a road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers but does not include a motor cycle or similar vehicle.
"car benefit" has the meaning given by section 1157C.
"car fringe benefit" means a fringe benefit that is a car benefit.
"census population" , in relation to an urban centre, means the census count on an actual location basis of the population of that urban centre specified in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Statistician in the document entitled "Persons and Dwellings in Local Government Areas and Urban Centres".
"current employee" means:
(a) a person who is an employee within the ordinary meaning of that word; and
(b) a person who holds or performs the duties of an appointment, office or position under the Constitution or under a law of the Commonwealth, a State or a Territory; and
(c) a person who is otherwise in the service of the Commonwealth, a State or a Territory (including service as a member of the Defence Force or as a member of a police force); and
(d) a member of an Australian Parliament.
"current employer" means a person who pays or is liable to pay any salary or wages to an employee, and includes:
(a) in the case of an unincorporated body of persons other than a partnership--the manager or other principal officer of that body; and
(b) in the case of a partnership--each partner; and
(c) a government body.
"disadvantaged person" has the same meaning as in the Fringe Benefits Tax Assessment Act 1986 .
"dwelling" has the meaning given by subsection (7).
"eligible urban area" means:
(a) an area that:
(i) is situated in an area described in Schedule 2 to the Income Tax Assessment Act; and
(ii) is an urban centre with a census population of 28,000 or more; or
(b) any other area that is an urban centre with a census population of 14,000 or more.
Note: See paragraph (c) of the definition of special housing location in subsection (5).
"employee" means:
(a) a current employee; or
(b) a future employee; or
(c) a former employee.
"employer" means:
(a) a current employer; or
(b) a future employer; or
(c) a former employer.
"employment" , in relation to a person, means the holding of any office or appointment, the performance of any functions or duties, the engaging in of any work, or the doing of any acts or things that results, will result or has resulted in the person being treated as an employee.
"expense benefit" has the meaning given by section 1157JA.
"expense fringe benefit" means a fringe benefit that is an expense benefit.
"financial investment benefit" has the meaning given by section 1157JC.
"financial investment fringe benefit" means a fringe benefit that is a financial investment benefit.
"foreign income" , in relation to a person, means:
(a) an income amount earned, derived or received by the person from a source outside Australia for the person's own use or benefit; or
(b) a periodical payment by way of gift or allowance from a source outside Australia; or
(c) a periodical benefit by way of gift or allowance from a source outside Australia.
Note 1: For income amount see subsection 8(1).
Note 2: For earned, derived or received see subsection 8(2).
Note 3: This definition does not make use of the definition of income in subsection 8(1) and, as a result, the exclusions provided for by subsections 8(4), (5) and (8) do not apply to foreign income.
"former employee" means a person who has been a current employee.
"former employer" means a person who has been a current employer.
"fringe benefit" means a benefit that is provided to an employee or to an associate of the employee by:
(a) the employer of the employee; or
(b) an associate of the employer; or
(c) a person (the arranger ) other than the employer or an associate of the employer under an arrangement between:
(i) the employer or an associate of the employer; and
(ii) the arranger or another person;
and that is provided in respect of the employment of the employee.
"future employee" means a person who will become a current employee.
"future employer" means a person who will become a current employer.
"government body" means the Commonwealth, a State, a Territory or an authority of the Commonwealth or a State or Territory.
Note: See paragraph (c) of the definition of current employer .
"health insurance benefit" has the meaning given by section 1157F.
"health insurance fringe benefit" means a fringe benefit that is a health insurance benefit.
"housing benefit" has the meaning given by section 1157I.
"housing fringe benefit" means a fringe benefit that is a housing benefit.
"housing loan" has the meaning given by subsection (9).
"housing right" , in relation to a person, means a lease or licence granted to the person to occupy or use a unit of accommodation, in so far as that lease or licence subsists at a time when the unit of accommodation is the person's usual place of residence.
"in respect of" , in relation to the employment of an employee, includes by reason of, by virtue of, or for or in relation directly or indirectly to, that employment.
Note: See definition of fringe benefit .
"lease" includes a sub - lease.
"loan" includes:
(a) an advance of money; and
(b) the provision of credit or any other form of financial accommodation; and
(c) the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation (whether expressed or implied) to repay the amount; and
(d) a transaction (whatever its terms or form) which in substance effects a loan of money.
"loan benefit" has the meaning given by section 1157G.
"loan fringe benefit" means a fringe benefit that is a loan benefit.
"mature person" means a person who has reached the age of 60 years.
"metropolitan location" has the meaning given by subsection (3).
"non-arm's length arrangement" means an arrangement other than an arm's length arrangement.
"non-metropolitan location" has the meaning given by subsection (4).
"obligation" , in relation to the payment or repayment of an amount, includes an obligation that is not enforceable by legal proceedings.
"place of residence" , in relation to a person, means:
(a) a place at which the person resides; or
(b) a place at which the person has sleeping accommodation;
whether on a permanent or temporary basis and whether or not on a shared basis.
"private use" , in relation to a car and in relation to an employee or an associate of an employee, means any use of the car by the employee or associate that is not exclusively within the employee's employment.
"provide" , in relation to a benefit, includes allow, confer, give, grant or perform.
"provider" , in relation to a benefit, means the person who provides the benefit.
"recipient" , in relation to a benefit, means the person to whom the benefit is provided.
"salary or wages" means salary, wages, commission, bonuses or allowances paid (whether at piece - work rates or otherwise) to an employee as such.
"school" means a school, college or other educational institution that provides primary or secondary level education.
"school fees benefit" has the meaning given by section 1157E.
"school fees fringe benefit" means a fringe benefit that is a school fees benefit.
"special housing location" has the meaning given by subsections (5) and (6).
"stratum unit" has the meaning given by subsection (8).
"surface route" means a route other than an air route.
"target foreign income" means foreign income that is not:
(a) taxable income; or
(b) received in the form of a fringe benefit.
"taxi" means a motor vehicle that is licensed to operate as a taxi.
"unit of accommodation" includes:
(a) a house, flat or home unit; and
(b) accommodation in a house, flat or home unit; and
(c) accommodation in a hotel, hostel, motel or guesthouse; and
(d) accommodation in a bunkhouse or any living quarters; and
(e) accommodation in a ship, vessel or floating structure; and
(f) a caravan or other mobile home.
"urban centre" means an area that is described as an urban centre or bounded locality in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981 and that were published by the Australian Statistician in the document entitled "Persons and Dwellings in Local Government Areas and Urban Centres".
"work-related travel" , in relation to an employee, means:
(a) travel by the employee between:
(i) the employee's place of residence; and
(ii) the employee's place of employment or any other place from which or at which the employee performs duties of his or her employment; or
(b) travel by the employee that is incidental to travel in the course of performing the duties of his or her employment.
(3) The following cities are metropolitan locations :
(a) Adelaide;
(b) Brisbane;
(c) Canberra;
(d) Darwin;
(e) Hobart;
(f) Melbourne;
(g) Perth;
(h) Sydney.
Non - metropolitan location
(4) A unit of accommodation is in a non - metropolitan location if the unit of accommodation:
(a) is in Australia; and
(b) is not in a metropolitan location; and
(c) is not in a special housing location.
(5) A unit of accommodation is in a special housing location if the unit of accommodation is at a location that is in Australia and one of the following paragraphs applies to the unit of accommodation:
(a) the unit of accommodation is at a location that is in an area that:
(i) is described in Schedule 2 to the Income Tax Assessment Act; and
(ii) is an urban centre with a census population of less than 28,000;
(b) the unit of accommodation is at a location that is in an area that:
(i) is not described in Schedule 2 to the Income Tax Assessment Act; and
(ii) is an urban centre with a census population of less than 14,000;
(c) at the date of commencement of this section, the unit of accommodation is at a location that is:
(i) 40 kilometres or more, by the shortest practicable surface route, from the centre point of an eligible urban area with a census population of less than 130,000; or
(ii) 100 kilometres or more, by the shortest practicable surface route, from the centre point of an eligible urban area with a census population of more than 130,000.
(6) For the purposes of paragraph (5)(c), the distance, by the shortest practicable surface route, between a location (the tested location ) and the centre point of an eligible urban area is:
(a) if there is only one location within the eligible urban area from which distances between the eligible urban area and other places are usually measured--the distance, by the shortest practicable surface route, between the tested location and that location; and
(b) if there are 2 or more locations within the eligible urban area from which distances between parts of the eligible urban area and other places are usually measured--the distance, by the shortest practicable surface route, between the tested location and the location that is the principal location of those parts.
(7) A unit of accommodation is a dwelling if:
(a) the unit of accommodation is constituted by, or contained in, a building; and
(b) the unit consists, in whole or in substantial part, of residential accommodation.
(8) A unit is a stratum unit in relation to a dwelling if:
(a) the unit is a unit on a unit plan registered under a law of a State or Territory that provides for the registration of titles of a kind known as unit titles or strata titles; and
(b) the unit comprises:
(i) a part of a building that contains the dwelling and consists of a flat or home unit; or
(ii) a part of a parcel of land and the building containing the dwelling is constructed on that part.
(9) A loan is taken to be a housing loan if:
(a) the loan is made to, or used by, a person (whether in his or her own right or jointly with his or her partner) wholly:
(i) to enable the person to acquire a prescribed interest in land on which a dwelling or a building containing a dwelling was subsequently to be constructed; or
(ii) to enable the person to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling or a building containing a dwelling on the land; or
(iii) to enable the person to construct, or complete the construction of, a dwelling or a building containing a dwelling on land in which the person held a prescribed interest; or
(iv) to enable the person to acquire a prescribed interest in land on which there was a dwelling or a building containing a dwelling; or
(v) to enable the person to acquire a prescribed interest in a stratum unit in relation to a dwelling; or
(vi) to enable the person to extend a building that:
(A) is a dwelling or contains a dwelling; and
(B) is constructed on land in which the person held a prescribed interest;
by adding a room or part of a room to the building or the part of the building containing the dwelling, as the case may be; or
(vii) in a case where the person held a prescribed interest in a stratum unit in relation to a dwelling--to enable the person to extend the dwelling by adding a room or part of a room to the dwelling; or
(viii) to enable the person to repay a loan that was made to, and used by, the person wholly for a purpose mentioned in subparagraphs (i) to (vii); and
(b) at the time the loan was made, the dwelling was used or proposed to be used as the person's usual place of residence.
Note: For prescribed interest see subsections (10) to (14).
Freehold interest
(10) If:
(a) a person; or
(b) 2 or more persons as joint tenants or tenants in common;
acquire, hold or held an estate in fee simple in land or in a stratum unit, the person or those persons are taken to acquire or hold, or to have held, a prescribed interest in that land or stratum unit.
Leasehold interest
(11) If:
(a) a person acquires, holds or held an interest in land or in a stratum unit as lessee or licensee under a lease or licence; and
(b) the Secretary is satisfied that the lease or licence gives or gave reasonable security of tenure to the lessee or licensee, for a period of, or for periods aggregating, 10 years or more;
the person is taken to acquire or hold, or to have held, a prescribed interest in that land or stratum unit.
Instalment contract
(12) If:
(a) a person acquires, holds or held interest in land or in a stratum unit as purchaser of an estate in fee simple in the land or in the stratum unit under an agreement; and
(b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, to be made at a future time or by instalments;
the person is taken to acquire or hold, or to have held, a prescribed interest in that land or stratum unit.
Right to acquire leasehold
(13) If:
(a) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of a right to be granted a lease of the land or of the stratum unit under an agreement; and
(b) the agreement provides or provided for payment of the purchase price, or a part of the purchase price, for the lease to be made at a future time or by instalments; and
(c) the Secretary is satisfied that the lease will give reasonable security of tenure, to the lessee for a period of, or for periods aggregating, 10 years or more;
the person is taken to acquire or hold, or to have held, a prescribed interest in that land or stratum unit.
Two or more persons acquiring or holding interest under subsection (11), (12) or (13)
(14) If:
(a) 2 or more persons acquire, hold or held an interest referred to in paragraph (11)(a), (12)(a) or (13)(a) in land or in a stratum unit as joint tenants or tenants in common; and
(b) paragraph (11)(b) or (12)(b) or paragraphs (13)(b) and (c) are satisfied;
those persons are taken to acquire or hold, or to have held, a prescribed interest in that land or stratum unit.