Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (2011 MEASURES NO. 5) ACT 2011 - SCHEDULE 5

Part   1 -- Amendments commencing on Royal Assent

Fringe Benefits Tax Assessment Act 1986

1   Subsection   9(1) (formula and definitions)

Repeal the formula and definitions, substitute:

Note:   For special rules for the years of tax starting on 1   April 2011, 1   April 2012 and 1   April 2013, see item   9 of Schedule   5 to the Tax Laws Amendment (2011 Measures No.   5) Act 2011 .

2   At the end of subparagraph   9(2)(a)(i)

Add "and".

3   At the end of paragraph   9(2)(b)

Add "and".

4   Paragraphs 9(2)(c) and (d)

Repeal the paragraphs.

5   At the end of subparagraph   9(2)(e)(i)

Add "and".

6   At the end of subsection   9(2)

Add:

  ; and (f)   the holding period is the period in the year of tax when the car was held by the provider.

7   Subsection   136(1)

Insert:

"annualised number of whole kilometres" travelled during an FBT year, by a car in respect of which a car fringe benefit is provided during the FBT year, is the number calculated in accordance with the following formula:

8   Application provision

(1)   The amendments made by this Part apply to a car fringe benefit in relation to a year of tax beginning on or after 1   April 2011, whether the car fringe benefit is provided before, on or after the commencement of this item.

(2)   Despite subitem   ( 1), the amendments do not apply to a car fringe benefit, in relation to an employer in relation to a year of tax, that relates to a car, if:

  (a)   any car fringe benefit, in relation to the employer in relation to the year of tax in respect of employment of an employee by the employer, that relates to the car is constituted by the application or availability of the car for a period; and

  (b)   the last time at which:

  (i)   the employer, or an associate of the employer; or

  (ii)   the employee, or an associate of the employee;

    committed to the application or availability of the car for that period, in respect of the employment, occurred before 7.30 pm Australian Eastern Standard Time on 10   May 2011.

Note:   The effect of subitem   ( 2) is that the amendments will not apply until the first year of tax starting after the employer, employee or associate first commits, after 7.30 pm Australian Eastern Standard Time on 10   May 2011, to the application or availability of the car.

9   Transitional provision

(1)   The following table has effect:

(2)   Subitem   ( 1) applies to a car fringe benefit to which the amendments made by this Schedule apply (see item   8), unless:

  (a)   the employer chooses to have the subitem not apply to car fringe benefits in relation to the employer in relation to the car; and

  (b)   if the car fringe benefit is in respect of employment of an employee by the employer, and the employee would be worse off as a result of the subitem not applying to car fringe benefits in relation to the employer in relation to the car--the employee consents to the employer's choice.

(3)   The way the employer's return under the Fringe Benefits Tax Assessment Act 1986 for the relevant year of tax is prepared is sufficient evidence of the making of the choice.

Part   2 -- Amendments commencing on 1   April 2016

Fringe Benefits Tax Assessment Act 1986

10   Subsection   9(1) (note)

Repeal the note.

11   Subsection   135K(4)

Repeal the subsection.

12   Subsection   136(1) (definition of annualised number of whole kilometres )

Repeal the definition.