Private ruling: Property fringe benefits
Date of advice: 18 February 2026
Published: 7 April 2026
Ruling period: Fringe benefit tax (FBT) year ended 31 March 20XX | FBT year ending 31 March 20XX | FBT year ending 31 March 20XX | FBT year ending 31 March 20XX | FBT year ending 31 March 20XX
Date scheme commenced: 1 April 20XX

Ruling: Q1: Does the provision of a wheelchair by the Employer to an employee under the JobAccess scheme result in a 'property fringe benefit' under subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)? | A1: Yes. | Q2: Is the reimbursement from JobAccess a constructive payment, and therefore a 'recipients contribution' that would reduce the taxable value of the fringe benefit under section 43 of the FBTAA? | A2: Yes.

Relevant facts and circumstances: JobAccess, which is managed and funded by the Department of Social Services, is the national hub for workplace and employment information for people with disabilities. One of the functions of JobAccess is to manage applications for the Employment Assistance Fund ('EAF'). The purpose of the EAF is to provide reimbursements for workplace modifications, equipment, and services necessary for a person with disabilities to perform their employment duties. The Employment Assistance Fund Guidelines ('the EAF Guidelines') provide clarity on the type of assistance available, the eligibility criteria, the application process, and the documentation required to support an application. Pursuant to clause 2.1 of the EAF Guidelines, a person will be eligible for assistance under the EAF when a person with a disability: (a) has an ongoing disability which has lasted (or is likely to last) for a least two years and results in limitation, restriction or impairment that substantially affects that person's ability to perform their employment duties; and (b) requires a modification to their workplace as a result of their disability, and the modification is essential to carrying out their employment duties; and (c) is an Australian resident. Additionally, the person must meet one of the following criteria at a minimum: (d) have an offer of employment; or (e) be employed for a minimum of 8 hours per week, for at least 13 weeks; or (f) be employed for a minimum of 8 hours per week, where that employment is reasonably expected to continue for at least 13 weeks; or (g) be a self-employed worker to has been working at least 8 hours per week over the last 13 weeks and earning an hourly income that is at least equivalent to the National Minimum Wage. There are three categories of funding available under the EAF, which is discussed at clause 3 of the EAF Guidelines: 1. workplace modifications and equipment; 2. Auslan services; and 3. workplace assistance and support services. Pursuant to clause 4.1 of the Guidelines, an EAF application can be submitted by: • an employer of a person with a disability; or • an employee with a disability. • a Self-employed Worker with disability; • a job seeker who requires Auslan Level 2 assistance or who requires work related assistive technology or special work equipment to look for and prepare for a job-noting that applications for Auslan Level 2 can be lodged up to five business days post interview; or • Australian Government funded Employment Service Provider on behalf of their Participant or Participant's Employer. The employee who met the eligibility criteria set out in clauses 2.1 and 4.1 of the EAF Guidelines submitted an EAF application to JobAccess which was approved. In the EAF application, the Employer was identified as a nominee acting on behalf of the employee. The EAF application submitted by the employee and approved, comprised of approval for funding for a wheelchair valued at $XXX (excluding Goods and Services Tax (GST)), and the warehouse assembly, quality assurance checks and delivery of the wheelchair valued at $XXX (including. GST). The approved funding was under the workplace modification and equipment category of the EAF. The approval letter was addressed to the Employer as the nominee acting on behalf of the employee. The EAF Guidelines address the ownership, maintenance and replacement of equipment under the EAF in clauses 3.14 to 3.17. 3.14 - The applicant must identify who will own the equipment once the item or items have been approved for purchase. Ownership must be confirmed in writing between the JobAccess provider and the applicant prior to approval of the EAF application. 3.15 - The owner of the equipment will be responsible for the ongoing maintenance, repair and modification to the equipment and what will happen to the modification or equipment if the person with disability changes jobs. 3.16 - Responsibility for ongoing maintenance, repair or replacement of the modification or equipment, will rest with the ownership of the modification or equipment. The Australian Government and the JobAccess provider are not responsible for the ongoing maintenance, repair or replacement of the modification or equipment. This includes items such as ongoing software licencing or upgrades. 3.17 - If an employee with disability changes employment, modifications or equipment that is portable should move with that employee. If the owner is now the employee with disability and the modifications or equipment is portable, the owner should ensure the modification or equipment: (a) moves with the person with disability to their new job; or (b) is retained in the workplace to be used by another person with similar needs; or (c) where the employee is a participant of an Australian Government funded employment service, is transferred to their service provider. Aligned with clause 3.14 of the Guidelines, the EAF application approval letter confirms the employee is the owner of the wheelchair. As per clause 3.17 of the EAF Guidelines, on termination of the employee's employment with the Employer, no obligation arises for the employee to return the wheelchair, rather the wheelchair is to be retained by the employee. Clauses 7.9 to 7.11 of the EAF Guidelines address the process of reimbursement once an EAF application has been approved and the applicant has purchased the modification. 7.9 - If the EAF application has been approved the applicant can then purchase the modification. The applicant must provide an invoice and proof of payment to the JobAccess provider. The invoice and proof of payment must be sent to the JobAccess provider within 21 days of final approval of the EAF application. The JobAccess provider may not pay or reimburse claims that are over 30 days of the final approval of the EAF application. In circumstances where this timeframe may not be met, contact with the JobAccess provider needs to be made. Some applications in these circumstances may be considered by the JobAccess provider on a case-by-case basis. 7.10 - After the JobAccess provider has received the invoice and proof of payment, reimbursement will be made by electronic funds transfer to the applicant. 7.11 - Alternative arrangements are available for employees, self-employed workers and job seekers who may submit a request to the JobAccess provider to pay the supplier directly. These requests will be considered on a case-by-case basis by the JobAccess provider. The EAF application approval letter was addressed to the Employer in the capacity as the nominee acting on behalf of the employee. Upon receipt of the EAF application approval letter, the Employer purchased and provided the wheelchair to the employee within the stipulated timeframe of the EAF Guidelines and sought reimbursement from JobAccess for the approved purchase. Two key transactions have occurred: 1. The purchase and provision of the wheelchair by the Employer to the employee following the receipt of the EAF application approval letter; and 2. The reimbursement to the Employer by JobAccess of the cost of the wheelchair on receipt of the tax invoice and proof of payment.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986 section 40 | Fringe Benefits Tax Assessment Act 1986 section 41 | Fringe Benefits Tax Assessment Act 1986 section 43 | Fringe Benefits Tax Assessment Act 1986 subsection 136(1) | Fringe Benefits Tax Assessment Act 1986 subsection 148(1) | Taxation Administration Act 1953 section 12-35 of Schedule 1

Reasons for decision: Summary: The provision of the wheelchair by the Employer to the employee constitutes a 'property fringe benefit' under section 40 of the FBTAA. | Detailed Reasoning - Detailed reasoning: Subsection 136(1) of the FBTAA defines a 'property fringe benefit' to mean a fringe benefit that is a property benefit . The meaning of a 'fringe benefit' and a 'property benefit' are considered separately below. A 'fringe benefit' is defined in subsection 136(1) of the FBTAA, which holds that the following conditions must be satisfied: 1. A benefit is provided at any time during the year of tax. 2. The benefit is provided to an employee or an associate of the employee. 3. The benefit is provided by: (a) their employer; or (b) an associate of the employer; or (c) a third party other than the employer or an associate under an arrangement between the employer or associate of the employer and the third party; or (d) a third party other than the employer or an associate of the employer, if the employer or an associate of the employer: (i) participates in or facilitates the provision or receipt of the benefit; or (ii) participates in, facilitates or promotes a scheme or plan involving the provision of the benefit; and the employer or associate knows, or ought reasonably to know, the employer or associate is doing so; 4. The benefit is provided in respect of the employment of the employee. 5. The benefit is not one that is specifically excluded as per paragraphs (f) to (s) of the definition of a fringe benefit in subsection 136(1) of the FBTAA. | Detailed Reasoning - Is a benefit provided?: Subsection 136(1) of the FBTAA provides a broad definition of a 'benefit': includes any right (including a right in relation to, and an interest in, real or personal property), privileged, service, or facility and, without limiting the generality of the forgoing, includes a right, benefit, privilege, service or facility that is, or to be, provided under: (a) an arrangement for or in relation to: (i) the performance of work (including work of a professional nature), whether with or without the provision of property; (ii) the provision of, or of the use of facilities for, entertainment, recreation or instruction; or (iii) the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; (b) a contract of insurance; or (c) an arrangement for or in relation to the lending of money. In this case the Employer purchased and provided the wheelchair to the employee. The employee has ownership of the wheelchair; the employee has no obligation to return the wheelchair nor is there a requirement for the employee to leave the wheelchair at their regular place of work. As a result, the employee has the capacity to use the wheelchair for personal purposes. Therefore, a benefit has been provided to the employee in the form of a wheelchair. This condition is therefore satisfied. | Detailed Reasoning - Is the benefit provided to an employee or an associate of the employee?: An 'employee' is defined in subsection 136(1) of the FBTAA to mean a current, future or former employee. Subsection 136(1) defines a 'current employee' to mean a person who receives, or is entitled to receive, salary or wages. 'Salary or wages', as defined in subsection 136(1) of the FBTAA, means payments from which an amount must be withheld under section 12-35 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It is assumed that the employee is paid salary or wages from which an amount is withheld by the Employer under section 12-35 of Schedule 1 to the TAA. The Employee is therefore considered to be a 'current employee' of the Employer as that term is defined in subsection 136(1) of the FBTAA. This condition is satisfied. | Detailed Reasoning - Is the benefit provided by an employer, an associate of the employer or a third party?: 'Employer' is defined in subsection 136(1) of the FBTAA to mean a current, future or former employer. Subsection 136(1) of the FBTAA defines a 'current employer' to mean a person who pays, or is liable to pay, salary or wages.The Employer pays salary or wages to the Employee and thus meets the definition of an 'employer' in subsection 136(1) of the FBTAA. The wheelchair was purchased and provided to the employee by the Employer in their capacity as the Employer. Therefore, as the benefit is provided by the Employer (the Employee's employer), this condition is satisfied. | Detailed Reasoning - Is the benefit provided in respect of the employment of the employee?: "In respect of" is defined in subsection 136(1) of the FBTAA as: in relation to the employment of an employee, including by reason of, by virtue of, or for or in relation directly or indirectly to, that employment. Subsection 148(1) of the FBTAA stipulates that a benefit will be provided in respect of the employment of an employee: • whether or not the benefit also relates to some other matter or thing • whether the employment is past, present or future • whether or not the benefit is surplus to the recipient's requirements • whether or not the benefit is also provided to another person • whether or not the benefit is offset by any inconvenience or disadvantage • whether or not the benefit is provided or used, or required to be provided or used, in connection with any employment • whether or not the provision of the benefit is in the nature of income, and • whether or not the benefit is provided as a reward for services rendered, or to be rendered, by the employee. In J & G Knowles & Associates Pty Ltd v Federal Commissioner of Taxation (2000) 96 FCR 402; 2000 ATC 4151; (2000) 44 ATR 22, the full Federal Court - in examining the meaning of 'in respect of' an employee's employment - held that the phrase required a 'nexus, some discernible and rational link, between the benefit and employment', though noted that 'what must be established is whether there is a sufficient or material, rather than a causal, connection or relationship between the benefit and the employment'. In this case, the eligibility criteria under clause 2.1 of the EAF Guidelines require the equipment (being the wheelchair) be essential to the employee's employment duties, thereby satisfying subs 148(1)(f) of the FBTAA, and supporting that the benefit is a product of the employment. Therefore, the relationship between the provision of the wheelchair and the employee's employment with the Employer is not merely casual and is material and sufficient. As such, the provision of the wheelchair by the Employer to the employee will be "in respect of" the employee's employment with the Employer. Is the benefit specifically excluded from the definition of a fringe benefit? With respect to paragraphs (f) to (s) of the definition of a 'fringe benefit' in subsection 136(1) of the FBTAA, the relevant paragraph to consider is paragraph (g) which provides that an exempt benefit will not be a fringe benefit. In considering whether the provision of the wheelchair provided by the Employer to the Employees falls within any of the exempt benefits listed in Part III of the FBTAA, it is necessary to initially determine the types of fringe benefits that may be applicable under the FBTAA. In the present circumstances, the relevant benefit is considered to be a 'property benefit'. | Detailed Reasoning - Property benefit: A 'property benefit' is defined in subsection 136(1) of the FBTAA to mean: a benefit referred to in section 40 but does not include a benefit that is a benefit by virtue of a provision of Subdivision A of Divisions 2 to 10 (inclusive) of Part III. Section 40 of the FBTAA states: Where, at a particular time, a person (in this section referred to as the provider) provides property to another person (in this section referred to as the recipient), the provision of the property shall be taken to constitute a benefit provided by the provider to the recipient at that time. 'Property' is defined in subsection 136(1) of the FBTAA to include tangible and intangible property. The word 'provide', in relation to property, is defined in subsection 136(1) of the FBTAA to mean dispose of (whether by sale, gift, declaration of trust or otherwise), or to have beneficial or legal ownership of the property. In this case, a wheelchair is provided by the Employer to the employee. This is because the employee has legal ownership of the wheelchair, the employee has no obligation to return the wheelchair on termination of employment with the Employer, nor is there a requirement for the employee to leave the wheelchair at their regular place of work. As such, it is considered that a 'property benefit' is provided by the Employer to the employee. Having established that the relevant benefit that would apply in the current circumstances is a 'property benefit', it needs to be considered if this is an exempt property benefit. The relevant provision in respect of exempt property fringe benefits is section 41 of the FBTAA. Subsection 41(1) of the FBTAA states: Where: (a) a property benefit is provided to a current employee of an employer in respect of his or her employment; and (b) (b) the property is provided to, and consumed by, the employee on a working day and on business premises of: (i) the employer; or (ii) if the employer is a company, of the employer or of a company that is related to the employer; the benefit is an exempt benefit. A wheelchair would not meet the criteria in section 41(1) and therefore it is not an exempt benefit. There are no other exemptions for property benefits under which the benefit could qualify. Therefore, the provision of a wheelchair by the Employer to the employee is not specifically excluded from the definition of a 'fringe benefit'. This means that the fifth condition (i.e. the benefit provided is not specifically excluded from the definition of a fringe benefit) is satisfied. As all of the above conditions in the definition of a 'fringe benefit' are satisfied, the benefit provided to the Employees constitutes a 'fringe benefit' as per the definition of that term in subsection 136(1) of the FBTAA. It has also been established above that the benefit provided to the Employee constitutes a 'property benefit' as defined in subsection 136(1) of the FBTAA. As such, given the benefit provided to the employee is both a 'fringe benefit' and a 'property benefit', the provision of the wheelchair to the employee constitutes a 'property fringe benefit' as defined in subsection 136(1) of the FBTAA | Detailed Reasoning - Question 2: Is the reimbursement from JobAccess a constructive payment, and therefore a 'recipients contribution' that would reduce the taxable value of the fringe benefit under section 43 of the FBTAA? | Summary: Yes, the reimbursement from JobAccess is a constructive payment and therefore a 'recipient's contribution' that can be used to reduce the taxable value of the property fringe benefit. | Detailed Reasoning - Detailed reasoning: The taxable value of an external property benefit is determined in accordance with section 43 of the FBTAA which states: Subject to this Part, the taxable value of an external property fringe benefit in relation to an employer in relation to a year of tax is: (a) where the provider was the employer or an associate of the employer and the recipients property was purchased by the provider under an arm's length transaction at or about the provision time - the cost price of the recipients property to the provider; (b) (b) where the provider was not the employer or an associate of the employer and the employer, or an associate of the employer, incurred expenditure to the provider under an arm's length transaction in respect of the provision of the property - the amount of that expenditure; or (c) (c) in any other case - the notional value of the recipients property at the provision time; reduced by the amount of the recipients contribution. Recipients contribution is defined in section 136 of the FBTAA as: (a) in relation to a car parking fringe benefit, a property fringe benefit, a residual fringe benefit or a board fringe benefit, being a fringe benefit provided in respect of the employment of an employee of an employer, means the amount of any consideration paid to the provider or to the employer by the recipient or by the employee in respect of the provision of the recipients parking, the recipients property, the recipients benefit or the recipients meal, as the case may be, reduced by the amount of any reimbursement paid to the recipient in respect of that consideration; An 'arms length transaction' is defined is subsection 136(1) of the FBTAA to mean a transaction in which the parties are dealing with each other at arm's length in relation to the transaction. A constructive payment will arise if a payer does not actually pay an amount to a recipient but applies that amount on the recipients behalf or as the recipient directs. Per clauses 7.9 and 7.10 of the EAF Guidelines, a reimbursement will be made by electronic funds transfer to the applicant once the JobAccess provider has received the invoice and proof of payment within 21 days of final approval of the EAF application, indicating the obligation to spend the approved funds rests with the applicant. The Employer is listed on the application as the contact and nominee. As per clause 4.1 an application can be submitted by • an Employer of a person with disability; • an Employee with disability; • a Self-employed Worker with disability; • a job seeker who requires Auslan Level 2 assistance or who requires work related assistive technology or special work equipment to look for and prepare for a job-noting that applications for Auslan Level 2 can be lodged up to five business days post interview; or • Australian Government funded Employment Service Provider on behalf of their Participant or Participant's Employer. Therefore, had the employee seeking assistance not elected the Employer as nominee to act on their behalf, the responsibility for purchasing the wheelchair and seeking reimbursement from JobAccess in accordance with clauses 7.9 and 7.10 of the EAF Guidelines, would have been the employee's. As the reimbursement from JobAccess was not paid to the employee but to the Employer on the employee's behalf, the reimbursement for the wheelchair constitutes a constructive payment. The employee is considered to have paid the amount to the Employer. As, such the amount can be characterised as an employee contribution made by the employee to the Employer for the wheelchair. As a result, the reimbursement is considered a recipient's contribution and will reduce the taxable value of the external property fringe benefit.