Fringe Benefits Tax Assessment Act 1986

s 57A — Exempt benefits—public benevolent institutions, health promotion charities, some hospitals and public ambulance services

(1) Where the employer of an employee is a registered public benevolent institution endorsed under section 123C, a benefit provided in respect of the employment of the employee is an exempt benefit. (2) Where: (a) the employer of an employee is a government body; and (b) the duties of the employment of the employee are exclusively performed in, or in connection with: (i) a public hospital; or (ii) a hospital carried on by a society or association that is a rebatable employer; a benefit provided in respect of the employment of the employee is an exempt benefit. (3) A benefit provided in respect of the employment of an employee is an exempt benefit if: (a) the employer of the employee is a public hospital; or (b) the employer provides public ambulance services or services that support those services and the employee is predominantly involved in connection with the provision of those services. (4) A benefit provided in respect of the employment of an employee is an exempt benefit if the employer of the employee is a hospital carried on by a society or association that: (a) is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997 ; and (b) is not a company referred to in paragraph 65J(5)(a) or (b); and (c) is not a registered public benevolent institution or registered health promotion charity. (5) A benefit provided in respect of the employment of an employee is an exempt benefit if: (a) the employer of the employee is a registered health promotion charity; and (b) the registered health promotion charity is endorsed under subsection 123D(1).

Amendment history: Repealed and substituted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 52 of 2000, effective Sch 1: 30 May 2000 (s 2) | Amended by No 167 of 2001, effective Sch 1 and Sch 4 (items 1–4): 1 Oct 2001 (s 2(1)) | Amended by No 142 of 2003, effective Sch 5: 17 Dec 2003 (s 2(1) item 7) | Amended by No 83 of 2004, effective Sch 4 and Sch 8 (items 1–3, 5–8): 25 June 2004 (s 2(1) items 1, 18) Sch 8 (item 4): 1 July 2005 (s 2(1) item 19) | Amended by No 95 of 2004, effective Sch 10 (items 18–27, 43, 44(3)): 1 July 2005 (s 2 (1) item 8) | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13) | Amended by No 124 of 2013, effective Sch 11 (items 10–25, 27): 30 June 2013 (s 2(1) item 17) | Amended by No 35 of 2022, effective sch 4 (items 16 ‑ 18): 1 Oct 2022 (s 2(1) item 7)

s 58 — Exempt benefits—live ‑ in residential care workers

(1) Where, during a period: (a) the employer of an employee is: (i) a government body; or (ii) a registered religious institution; or (iii) a company that is registered under the Australian Charities and Not ‑ for ‑ profits Commission Act 2012 and does not meet the description of the subtype of entity in column 2 of item 4 of the table in subsection 25 ‑ 5(5) of that Act; or (iv) a non ‑ profit company that is not an ACNC type of entity; whose activities consist of, or include, caring for elderly persons or disadvantaged persons; and (b) the duties of the employment of the employee consist of, or consist principally of: (i) caring for elderly persons and any children of those elderly persons who reside with those elderly persons; or (ii) caring for disadvantaged persons and any children of those disadvantaged persons who reside with those disadvantaged persons; and (c) in the performance of those duties, the employee lives, together with elderly persons or disadvantaged persons, in residential premises of the employer; and (d) the fact that the person lives in those premises is directly related to the provision, in the course of the performance of the duties of the employment of the employee, of care to the elderly persons or disadvantaged persons living in those premises; any benefit arising from the provision, during that period, of: (e) that accommodation to the employee or to the employee and a spouse or child of the employee who resides in those premises with the employee; or (f) residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; or (g) meals provided on those premises to the employee or to a spouse or child of the employee who resides in those premises with the employee; or (h) food or drink (other than meals) for consumption during that period by the employee or by a spouse or child of the employee who resides in those premises with the employee; is an exempt benefit. (2) In this section: residential premises means a house or hostel used exclusively for the provision of residential accommodation to: (a) elderly persons or disadvantaged persons and children of elderly persons or disadvantaged persons; (b) persons the duties of whose employment consist of, or consist principally of, caring for persons referred to in paragraph (a); and (c) spouses and children of persons referred to in paragraph (b).

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13) | Amended by No 96 of 2013, effective Sch 1 (items 15–18): 1 Jan 2014 (s 2(1))

s 58A — Exempt benefits—employment interviews and selection tests

Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is in respect of an employment interview or selection test; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997

s 58AA — Exempt benefits—engagement of relocation consultant

(1) A benefit is an exempt benefit in relation to a year of tax if: (a) the benefit is an expense payment benefit, or a residual benefit, provided in, or in respect of, the year of tax in respect of the employment of an employee; and (b) the benefit is in respect of, or consists of, the engagement of a relocation consultant; and (c) the engagement of the relocation consultant is required solely for one or more of the following reasons: (i) the employee is required to live away from his or her usual place of residence to perform the duties of the employment mentioned in paragraph (a) (the new employment duties ); (ii) having lived away from his or her usual place of residence to perform the new employment duties, the employee is required to return there to perform them, or because the employee has ceased to perform them; (iii) the employee is required to change his or her usual place of residence to perform those duties; and (d) the relocation consultant is engaged to help a family member: (i) if subparagraph (c)(i) applies—to settle, or to remain, at or near the location where the employee performs the new employment duties while living away from his or her usual place of residence; or (ii) if subparagraph (c)(ii) applies—to settle at the location of the employee’s usual place of residence; or (iii) if subparagraph (c)(iii) applies—to settle, or to remain, at the location of the employee’s new usual place of residence; and (e) the benefit is not provided under a non ‑ arm’s length arrangement; and (f) if the benefit is an expense payment benefit—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date. (2) Without limiting subsection (1), a reference in that subsection to helping a family member to settle, or to remain, at a location includes: (a) a relocation consultant finding, or providing information to the family member about, accommodation for the family member at the location; or (b) a relocation consultant providing information to the family member about education facilities or other community amenities and services at the location; but does not include a reference to a relocation consultant paying expenses on behalf of a family member.

Amendment history: Inserted by No 77 of 2005, effective Sch 1: 29 June 2005 (s 2)

s 58B — Exempt benefits—removals and storage of household effects as a result of relocation

(1) Where: (a) either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee: (i) an expense payment benefit where the recipients expenditure is in respect of the removal or storage of household effects of the employee; (ii) a residual benefit where the recipients benefit consists of the removal or storage of household effects of the employee; (b) the removal or storage is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; (ii) the employee, having lived away from his or her usual place of residence in order to perform the duties of that employment, is required to return to his or her usual place of residence: (A) in order to perform those duties; or (B) because the employee has ceased to perform those duties; or (iii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (c) the removal or storage is required to enable a family member to: (i) if subparagraph (b)(i) applies—take up residence, or to continue to reside, at or near the place where the employee performs the duties of that employment while living away from his or her usual place of residence; (ii) if subparagraph (b)(ii) applies—take up residence at the employee’s usual place of residence; or (iii) if subparagraph (b)(iii) applies—take up residence, or to continue to reside, at the employee’s new usual place of residence; (d) if subparagraph (b)(iii) applies: (i) the removal takes place, or the storage commences to be provided, within 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; and (ii) the benefit is not provided under a non ‑ arm’s length arrangement; (e) if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (f) the removal or storage was not provided in connection with travel undertaken by the employee in the course of performing the duties of that employment; the benefit is an exempt benefit in relation to the year of tax. (2) For the purposes of this section: (a) a reference to the household effects of an employee is a reference to tangible property (whether or not owned by a family member) kept primarily for the personal use of family members; and (b) without limiting the generality of an expression used in subsection (1), the recipients expenditure shall be taken to be in respect of, and the recipients benefit shall be taken to consist of, the removal or storage of household effects if the expenditure or benefit is in respect of, or consists of, the transport, packing, unpacking or insurance of the household effects in connection with the removal or storage of the household effects.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 58C — Exempt benefits—sale or acquisition of dwelling as a result of relocation

(1) Where: (a) during a particular period (in this subsection called the former home holding period ), an employee of an employer, or an associate of an employee of an employer, holds: (i) a prescribed interest in land on which: (A) there is a building constituting or containing a dwelling; (B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing a dwelling; (ii) a prescribed interest in a stratum unit in relation to a dwelling; or (iii) a proprietary right in respect of a dwelling, being a flat or home unit; (b) the employee or associate sells or proposes to sell, the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of his or her employment; (c) the employer first notifies the employee at a time (in this subsection called the notice time ) during the former home holding period that the employee is required to perform the duties of that employment at the employee’s new place of employment; and (d) at the notice time, the employee occupied, or proposed to occupy, the dwelling, or proposed to occupy the proposed dwelling, as his or her usual place of residence; the following subsections have effect. (2) Where: (a) either of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax: (i) an expense payment benefit where the recipients expenditure is incidental to the sale of that interest or right; (ii) a residual benefit where the recipients benefit is incidental to the sale of that interest or right; (aa) the employee or associate entered into a contract for the sale of the interest or right within 2 years after the day (the new employment day ) on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; (b) if, apart from this paragraph, this subsection would apply in relation to 2 or more dwellings or proposed dwellings in relation to the change in the employee’s usual place of residence—the employer of the employee elects that this subsection apply in relation to only one of those dwellings or proposed dwellings; (c) if paragraph (b) applies—the benefit relates to the dwelling or proposed dwelling in respect of which the election is made; (d) if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) the benefit is not provided under a non ‑ arm’s length arrangement; the benefit is an exempt benefit in relation to the year of tax. (3) Where: (a) at a particular time, the employee or an associate of the employee acquires: (i) a prescribed interest in land on which: (A) there is a building constituting or containing another dwelling; (B) the employee or associate proposes to construct, or complete the construction of, a building constituting or containing another dwelling; (ii) a prescribed interest in a stratum unit in relation to another dwelling; or (iii) a proprietary right in respect of another dwelling, being a flat or home unit; (b) the employee or associate acquires the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment at the employee’s new place of employment; (c) the employee or associate entered into a contract for the acquisition of the interest or right on a day (the contract day ) within 4 years after the new employment day; (ca) if, on the contract day, the employee or associate holds an interest or right in another dwelling in a situation where: (i) if that interest or right were sold within 2 years after the new employment day; and (ii) if a benefit of a kind referred to in subsection (2) were provided in relation to that interest or right; the benefit would be an exempt benefit under subsection (2)—not more than 2 years have elapsed since the new employment day; (d) immediately after the completion of the acquisition, the employee occupied the other dwelling, or proposed to occupy the other proposed dwelling, as his or her usual place of residence; (e) any of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax: (i) an expense payment benefit where the recipients expenditure is incidental to the acquisition of that interest or right; (ii) a residual benefit where the recipients benefit is incidental to the acquisition of that interest or right; (iii) an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re ‑ connecting a telephone service to the other dwelling or proposed dwelling; (iv) a residual benefit where the recipients benefit is constituted by the act of connecting or re ‑ connecting a telephone service to the other dwelling or proposed dwelling; (v) an expense payment benefit where the recipients expenditure is in respect of the act of re ‑ connecting gas or electricity to the other dwelling or proposed dwelling; (vi) a residual benefit where the recipients benefit is constituted by the act of re ‑ connecting gas or electricity to the other dwelling or proposed dwelling; (f) if subparagraph (e)(iii) or (iv) applies—immediately before the change, a telephone service was provided to the unit of accommodation that was the employee’s usual place of residence before the change; (g) if subparagraph (e)(i), (iii) or (v) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (h) the benefit is not provided under a non ‑ arm’s length arrangement; the benefit is an exempt benefit in relation to the year of tax. (4) An election by an employer under subsection (2) in relation to a year of tax: (a) shall be made by notice in writing to the Commissioner; and (b) shall be lodged with the Commissioner on or before the declaration date. (5) If: (a) a benefit is an exempt benefit in relation to a year of tax under subsection (3); and (b) paragraph (3)(ca) applied to the employee; and (c) the employee or associate does not enter into a contract for the sale of the interest or right in the other dwelling referred to in that paragraph within 2 years after the new employment day; this Act has effect as if: (d) a benefit equivalent to the exempt benefit were provided in respect of the employment of the employee in, or in respect of, the year of tax in which that period of 2 years expired; and (e) that equivalent benefit were not an exempt benefit.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 23 of 2005, effective Sch 7: 21 Mar 2005 (s 2(1) item 7)

s 58D — Exempt benefits—connection or re ‑ connection of certain utilities as a result of relocation

(1) Where: (a) either of the following 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 benefit where the recipients expenditure is in respect of the act of connecting or re ‑ connecting a telephone service to a unit of accommodation; (ii) a residual benefit where the recipients benefit is constituted by the act of connecting or re ‑ connecting a telephone service to a unit of accommodation; (b) the unit of accommodation is for the accommodation of family members; (c) the accommodation is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or (ii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (d) if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) if subparagraph (c)(ii) applies: (i) the telephone service is connected or re ‑ connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; (ii) immediately before the change, a telephone service was provided to the unit of accommodation that was the employee’s usual place of residence before the change; and (iii) the benefit was not provided under a non ‑ arm’s length arrangement; the benefit is an exempt benefit in relation to the year of tax. (2) Where: (a) either of the following 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 benefit where the recipients expenditure is in respect of the act of re ‑ connecting gas or electricity to a unit of accommodation; (ii) a residual benefit where the recipients benefit is constituted by the act of re ‑ connecting gas or electricity to a unit of accommodation; (b) the unit of accommodation is for the accommodation of family members; (c) the accommodation is required solely because: (i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment; or (ii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (d) if subparagraph (a)(i) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and (e) if subparagraph (c)(ii) applies: (i) the gas or electricity is re ‑ connected not later than 12 months after the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; and (ii) the benefit was not provided under a non ‑ arm’s length arrangement; the benefit is an exempt benefit in relation to the year of tax.

s 58E — Exempt benefits—leasing of household goods while living away from home

Where: (a) either of the following benefits (in this section called a household goods leasing benefit ) is provided in, or in respect of, a year of tax in respect of the employment of an employee: (i) an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of goods; (ii) a residual benefit where the recipients benefit consists of the subsistence of a lease or licence in respect of goods; (b) the goods are primarily for domestic use by, and in connection with accommodation for, family members; (c) either of the following benefits is provided in, or in respect of, the year of tax to the employee in respect of that employment: (i) an expense payment benefit where the recipients expenditure is in respect of a lease or licence in respect of that accommodation; (ii) a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; and (d) by virtue of section 21 or subsection 47(5), the benefit referred to in paragraph (c) is an exempt benefit in relation to the year of tax; the household goods leasing benefit is an exempt benefit in relation to the year of tax.

s 58F — Exempt benefits—relocation transport

Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is in respect of relocation transport; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997

s 58G — Exempt benefits—motor vehicle parking

(1) Each of the following benefits is an exempt benefit: (a) an expense payment benefit, where: (i) the recipients expenditure is in respect of the provision of motor vehicle parking facilities; and (ii) the benefit is not an eligible car parking expense payment benefit; (b) a residual benefit where the recipients benefit consists of motor vehicle parking facilities. (2) If the employer of an employee is: (a) a scientific institution (other than an institution carried on by a company, society or association for the purposes of profit or gain to its individual shareholders or members); or (b) a registered charity; or (d) a public educational institution; the following benefits provided in respect of the employment of the employee are exempt benefits: (e) an eligible car parking expense payment benefit; (f) a car parking benefit. (3) If: (a) the employer of an employee is a government body; and (b) the employee is exclusively employed in, or in connection with, a public educational institution; the following benefits provided in respect of the employment of the employee are exempt benefits: (c) an eligible car parking expense payment benefit; (d) a car parking benefit.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 237 of 1992, effective 24 Dec 1992 | Amended by No 145 of 1995, effective 12 Dec 1995 | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13)

s 58GA — Exempt benefits—small business car parking

Exemption (1) A car parking benefit provided in an FBT year in respect of the employment of an employee is an exempt benefit if: (a) the car is not parked at a commercial parking station; and (b) the employer of the employee is not a public company (see subsection (3)), or a subsidiary of a public company (see subsection (3)), in relation to the day on which the benefit is provided; and (c) the employer is not a government body; and (d) either: (i) the sum of the employer’s ordinary income and statutory income for the year of income ending most recently before the start of the FBT year is less than $10 million; or (ii) the employer is a small business entity, or is an employer covered by subsection (1A), for the year of income ending most recently before the start of the FBT year. (1A) An employer is covered by this subsection for a year of income if: (a) the employer is not a small business entity for the year of income; and (b) the employer would be a small business entity for the year of income if: (i) each reference in Subdivision 328 ‑ C (about what is a small business entity) of the Income Tax Assessment Act 1997 to $10 million were instead a reference to $50 million; and (ii) the reference in paragraph 328 ‑ 110(5)(b) of that Act to a small business entity were instead a reference to an employer covered by this subsection. New employers (2) However, if an employer to which subparagraph (1)(d)(i) applies: (a) in the case of a tax ‑ exempt employer (see subsection (3))—did not start to carry out operations or activities; or (b) in any other case—did not start to carry out business operations; until after the start of the year of income mentioned in subparagraph (1)(d)(i), then: (c) that subparagraph does not apply; and (d) the employer must make a reasonable estimate of the amount that would be the sum of the employer’s ordinary income and statutory income for the year of income (the business start ‑ up year ) in which the employer did start those operations or activities, or those business operations; and (e) that estimate is to be made on the assumption that the employer had started the operations or activities, or the business operations, at the start of the business start ‑ up year; and (f) the benefit is an exempt benefit only if that estimate is less than $10 million. Definitions (3) In this section: ordinary income has the same meaning as in the Income Tax Assessment Act 1997 . public company means a company covered by paragraph 103A(2)(a) of the Income Tax Assessment Act 1936 , but reading the reference in that paragraph to the last day of the year of income as a reference to the day on which the benefit is provided. statutory income has the same meaning as in the Income Tax Assessment Act 1997 . subsidiary of a public company means a subsidiary of a public company within the meaning of subsection 103A(4) of the Income Tax Assessment Act 1936 , but reading: (a) a reference in section 103A of that Act to a year of income as a reference to the day on which the benefit is provided; and (b) a reference in that section to a public company as a reference to a public company within the meaning of this section. tax ‑ exempt employer means an employer all of whose income is wholly exempt from income tax.

Amendment history: Inserted by No 16 of 1999, effective Schedule 2, Schedule 3 (items 1–7, 12) and Schedule 12: 9 Apr 1999 (s 2(1)) | Amended by No 80 of 2007, effective Sch 5: 21 June 2007 (s 2) | Amended by No 114 of 2015, effective Sch 3: 26 Aug 2015 (s 2(1) item 1) | Amended by No 92 of 2020, effective Sch 3 (items 13–16, 40): 1 Jan 2021 (s 2(1) item 7)

s 58H — Exempt benefits—newspapers and periodicals used for business purposes

(1) Where: (a) any of the following benefits is provided to an employee in respect of his or her employment: (i) an expense payment benefit where the recipients expenditure is in respect of a newspaper or periodical; (ii) a property benefit where the recipients property is a newspaper or periodical; (iii) a residual benefit where the recipients benefit consists of the making available of a newspaper or periodical; and (b) the newspaper or periodical was for use by the employee for the purpose, or for purposes that included the purpose, of gaining or producing salary or wages of the employee in respect of that employment; the benefit is an exempt benefit. (2) In determining for the purposes of paragraph (1)(b) whether a newspaper or periodical was for use for the purpose of gaining or producing salary or wages, no regard shall be had to a purpose that is a merely incidental purpose.

s 58J — Exempt benefits—compensable work ‑ related trauma

(1) Where: (a) a benefit is provided in respect of the employment of an employee for or in respect of compensable work ‑ related trauma suffered by the employee; and (b) either of the following subparagraphs applies: (i) the benefit is provided under a workers’ compensation law that applies to that employment; (ii) the benefit is not provided under a workers’ compensation law but the provision of the benefit is reasonable having regard to all relevant matters including, but without limiting the generality of the foregoing, the value of the benefit and the nature and effects of the trauma; the benefit is an exempt benefit. (2) Where: (a) a residual benefit provided in, or in respect of, a year of tax in respect of the employment of an employee is constituted by the subsistence, during the year of tax, of a contingent right (whether arising under a contract of insurance or otherwise) to a benefit for or in respect of compensable work ‑ related trauma suffered by the employee; and (b) in the case of a contingent right arising under a contract of insurance—the contract of insurance does not provide for a benefit that is not for or in respect of compensable work ‑ related trauma suffered by any employee; the benefit is an exempt benefit in relation to the year of tax.

s 58K — Exempt benefits—in ‑ house health care facilities

Where: (a) a benefit consisting of the provision of health care is provided in respect of the employment of an employee of an employer; and (b) the health care is provided: (i) in an in ‑ house health care facility of the employer; or (ii) by a member of the staff of an in ‑ house health care facility of the employer in the performance of his or her duties as such a member; the benefit is an exempt benefit.

s 58L — Exempt benefits—certain travel to obtain medical treatment

(1) Where: (a) a person (in this subsection called the traveller ): (i) is provided with transport by another person; or (ii) provides transport for himself or herself; (b) any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of the transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of: (A) the transport; or (B) meals or accommodation for the traveller; (iii) a property benefit where the recipients property consists of meals for the traveller; (iv) a residual benefit where the recipients benefit consists of the provision of: (A) the transport; or (B) accommodation for the traveller; (c) the transport is required solely because a person (in this subsection called the patient ) requires medical treatment; (d) the medical treatment is provided in a particular place (in this subsection called the treatment place ) at a time during a period when the employee is, or would but for that requirement to obtain treatment or any other temporary absence be, performing the duties of that employment in another place (in this subsection called the overseas employment place ), being a place in: (i) a foreign country; (ii) a part of a foreign country; or (iii) a territory, dependency or colony (however described) of a foreign country; (e) the transport is between: (i) a place at or near the overseas employment place; and (ii) a place at or near the treatment place; (f) if the patient is not the employee—the patient is a family member and lives with the employee at or near the overseas employment place; (g) if the traveller is not the patient—either of the following conditions is satisfied: (i) the traveller accompanies the patient because: (A) the patient has not attained the age of 18 years and requires the traveller as an escort; or (B) the patient requires the traveller as an escort for medical reasons; (ii) the traveller is a family member and accompanies or visits the patient where it is customary for family members to accompany or visit patients receiving medical treatment of the same nature and duration as the medical treatment required by the patient; (h) the meals or accommodation: (i) are: (A) in connection with the transport; or (B) required solely in connection with the presence of the traveller at the treatment place for purposes related to the medical treatment of the patient; and (ii) where sub ‑ subparagraph (i)(B) applies and the traveller is the patient—are not provided to the patient in a hospital, clinic or similar place in connection with the medical treatment of the patient; (j) either of the following conditions is satisfied: (i) the treatment place was the place nearest to the overseas employment place at which medical treatment suitable for the patient could be provided; (ii) the total cost associated with obtaining medical treatment at the treatment place was equal to, or less than, the lowest total cost associated with obtaining medical treatment at any of the places at which medical treatment suitable for the patient could have been provided; and (k) if subparagraph (b)(ii) applies—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax. (2) In this section: medical expenses means payments: (a) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation; or (b) to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth; or (c) to a person registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by that person for the supply, alteration or repair of artificial teeth; or (d) for therapeutic treatment administered by direction of a legally qualified medical practitioner; or (e) in respect of an artificial limb (or part of a limb), artificial eye or hearing aid; or (f) in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner; or (g) for: (i) the testing of eyes or the prescribing of spectacles or contact lenses by a person legally qualified to perform those services; or (ii) the supply of spectacles or contact lenses in accordance with any such prescription; or (h) as remuneration of a person for services rendered by him or her as an attendant of a person who is blind or permanently confined to a bed or an invalid chair; or (i) for the maintenance of a dog used for the guidance or assistance of, but not social therapy for, a person with a disability, being a dog that the Commissioner is satisfied is properly trained in the guidance or assistance of persons with disabilities. medical treatment means an act or thing where a payment in respect of the act or thing: (a) is a medical expense; and (b) is not a payment: (i) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service (within the meaning of subsection 3(1) of the Health Insurance Act 1973 ) for which a medicare benefit is payable under Part II of that Act (or for which a medicare benefit would be payable under that Part if section 19AD of that Act were disregarded); or (ii) to a legally qualified dentist for dental services that are, or dental treatment that is, solely cosmetic. (3) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified medical practitioner, nurse or chemist (the qualified person ) in respect of the provision of services or treatment, or the supply of goods, if: (a) the payment is made to an employer (not being a public or private hospital) of the qualified person, or a person with whom the qualified person has entered into a contract for services; and (b) the payment is made in respect of the provision of those services or that treatment, or the supply of those goods, by the qualified person. (4) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified dentist in respect of the provision of dental services or treatment or the supply, alteration or repair of artificial teeth if: (a) the payment is made to an employer of the dentist, or a person with whom the dentist has entered into a contract for services; and (b) the payment is made in respect of the provision of those services or that treatment or the supply, alteration or repair of those artificial teeth, by the dentist. (5) For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a person (a registered dental mechanic ) registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by the registered dental mechanic for the supply, alteration or repair of artificial teeth if: (a) the payment is made to an employer of such a person, or a person with whom such a person has entered into a contract for services; and (b) the charges are made in respect of the supply, alteration or repair of artificial teeth by the dental mechanic.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 56 of 1994, effective s 3–12: 7 Apr 1994(s 2(1)) | Amended by No 11 of 2014, effective Sch 3 (item 2): 18 Mar 2014 (s 2(1) item 5) | Amended by No 8 of 2025, effective sch 2 (item 3): 15 Feb 2025 (s 2(1) item 7)

s 58LA — Exempt benefits—compassionate travel

Where: (a) any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer, being benefits in relation to the transport of a person (in this section called the traveller ) who is the employee or a close relative of the employee: (i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of the transport; (ii) an expense payment benefit where the recipients expenditure is in respect of the provision of: (A) the transport; or (B) meals or accommodation for the traveller in connection with the transport; (iii) a property benefit where the recipients property consists of meals for the traveller in connection with the transport; (iv) a residual benefit where the recipients benefit consists of the provision of: (A) the transport; or (B) accommodation for the traveller in connection with the transport; (b) the sole reason that the transport is required is: (i) if the traveller is the employee: (A) to enable the traveller to attend the funeral of a close relative of the traveller; or (B) to enable the traveller to visit a close relative of the traveller in connection with a serious illness of the close relative or of the traveller; or (ii) if the traveller is a close relative of the employee: (A) to enable the traveller to attend the funeral of the employee; (B) to enable the traveller to visit the employee in connection with a serious illness of the employee or of the traveller; (C) to enable the traveller to attend the funeral of another close relative of the employee; or (D) to enable the traveller to visit another close relative of the employee in connection with a serious illness of the other close relative or of the traveller; (c) the travel to which the transport relates commences during a period in respect of which any of the following conditions is satisfied (or, in a case to which sub ‑ subparagraph (b)(ii)(A) applies, would have been satisfied but for the employee’s death): (i) during that period, the employee is undertaking travel in the course of performing the duties of that employment; (ii) in a case to which subparagraph (i) does not apply—the employee is required, during that period, to live away from his or her usual place of residence in order to perform the duties of that employment; (iii) in a case to which neither subparagraph (i) nor (ii) applies—during that period, the usual place of residence of the employee is at, or the employee is performing duties of that employment at, a place that: (A) is in a State or internal Territory; and (B) is not at a location in, or adjacent to, an eligible urban area; (d) in a case to which sub ‑ subparagraph (b)(ii)(C) or (D) applies—the travel to which the transport relates commences during a period during which the traveller ordinarily resides with the employee; and (e) if subparagraph (a)(ii) applies and the recipients expenditure is incurred after 25 May 1988—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax.

Amendment history: Inserted by No 11 of 1989, effective 16 Mar 1989

s 58M — Exempt benefits—work ‑ related medical examinations, work ‑ related medical screening, work ‑ related preventative health care, work ‑ related counselling, migrant language training

(1) Where any of the following benefits is provided in respect of the employment of an employee: (a) an expense payment benefit where the recipients expenditure is in respect of: (i) a work ‑ related medical examination of the employee; (ii) work ‑ related medical screening of the employee; (iii) work ‑ related preventative health care of the employee; (iv) work ‑ related counselling of the employee or of an associate of the employee; or (v) migrant language training of the employee or of an associate of the employee; (b) a property benefit where the recipients property is required solely for the purposes of: (i) a work ‑ related medical examination of the employee; (ii) work ‑ related medical screening of the employee; (iii) work ‑ related preventative health care of the employee; (iv) work ‑ related counselling of the employee or of an associate of the employee; or (v) migrant language training of the employee or of an associate of the employee; (c) a residual benefit where the recipients benefit consists of the provision of: (i) a work ‑ related medical examination of the employee; (ii) work ‑ related medical screening of the employee; (iii) work ‑ related preventative health care of the employee; (iv) work ‑ related counselling of the employee or of an associate of the employee; or (v) migrant language training of the employee or of an associate of the employee; the benefit is an exempt benefit. (2) Where: (a) a car benefit, an expense payment benefit, a property benefit or a residual benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; (b) the benefit is associated with: (i) a work ‑ related medical examination of the employee; (ii) work ‑ related medical screening of the employee; (iii) work ‑ related preventative health care of the employee; (iv) work ‑ related counselling of the employee or of an associate of the employee; or (v) migrant language training of the employee or of an associate of the employee; and (c) in the case of an expense payment benefit: (i) the benefit is not constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (ii) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; the benefit is an exempt benefit in relation to the year of tax.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997

s 58N — Exempt benefits—emergency assistance

Where: (a) a benefit is provided in respect of the employment of an employee of an employer; (b) the benefit is provided solely by way of the grant of emergency assistance to the recipient; and (c) if the benefit is: (i) an expense payment benefit where the recipients expenditure is wholly or partly in respect of health care; (ii) a property benefit where the recipients property is supplied in connection with the provision of health care; (iii) a residual benefit where the recipients benefit consists of the provision of health care; or (iv) a loan benefit constituted by the making of a loan where the purpose of the making of the loan is wholly or partly to enable the recipient to meet expenses incurred by the recipient in respect of health care; the health care is provided: (v) by an employee of the employer or, if the employer is a company, of the employer or of a company that is related to the employer; (vi) on premises of the employer or, if the employer is a company, of the employer or of a company that is related to the employer; or (vii) at or adjacent to a place where employees of the employer or, if the employer is a company, of the employer or of a company that is related to the employer perform the duties of their employment; the benefit is an exempt benefit.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 58P — Exempt benefits—minor benefits

(1) Where: (a) a benefit (in this section called a minor benefit ) is provided in, or in respect of, a year of tax (in this section called the current year of tax ) in respect of the employment of an employee of an employer; (c) in the case of an expense payment benefit, a property benefit or a residual benefit—if the minor benefit were an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit, as the case may be, in relation to the employer, the expense payment fringe benefit, the property fringe benefit or the residual fringe benefit, as the case requires, would not be an in ‑ house fringe benefit; (d) in the case of a tax ‑ exempt body entertainment benefit where the provider incurs non ‑ deductible exempt entertainment expenditure that is wholly or partly in respect of the provision of entertainment to the employee or an associate of the employee: (i) the provision of entertainment to the employee or the associate of the employee, as the case may be: (A) is incidental to the provision of entertainment to outsiders; and (B) neither consists of, nor is provided in connection with, the provision of a meal (other than a meal consisting of light refreshments) to the employee or the associate of the employee, as the case may be; or (ii) the entertainment is provided to the employee or the associate of the employee, as the case may be: (A) on eligible premises of the employer; and (B) solely as a means of recognising the special achievements of the employee in a matter relating to the employment of the employee; (e) the notional taxable value of the minor benefit in relation to the current year of tax is less than $300; and (f) having regard to: (i) the infrequency and irregularity with which associated benefits, being benefits that are identical or similar to: (A) the minor benefit; or (B) benefits provided in connection with the provision of the minor benefit; have been or can reasonably be expected to be provided; (ii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of the minor benefit and any associated benefits, being benefits that are identical or similar to the minor benefit, in relation to the current year of tax or any other year of tax; (iii) the amount that is, or might reasonably be expected to be, the sum of the notional taxable values of any other associated benefits in relation to the current year of tax or any other year of tax; (iv) the practical difficulty for the employer in determining the notional taxable values in relation to the current year of tax of: (A) if the minor benefit is not a car benefit—the minor benefit; and (B) if there are any associated benefits that are not car benefits—those associated benefits; and (v) the circumstances surrounding the provision of the minor benefit and any associated benefits including, but without limiting the generality of the foregoing: (A) whether the benefit concerned was provided to assist the employee to deal with an unexpected event; and (B) whether the benefit concerned was provided otherwise than wholly or principally by way of a reward for services rendered, or to be rendered, by the employee; it would be concluded that it would be unreasonable to treat the minor benefit as a fringe benefit in relation to the employer in relation to the current year of tax; the minor benefit is an exempt benefit in relation to the current year of tax. (2) For the purposes of this section, a benefit is an associated benefit in relation to a minor benefit if, and only if: (a) any of the following subparagraphs applies: (i) the benefit is identical or similar to the minor benefit; (ii) the benefit is provided in connection with the provision of the minor benefit; (iii) the benefit is identical or similar to a benefit provided in connection with the provision of the minor benefit; (b) the benefit and the minor benefit both relate to the same employment of a particular employee; and (c) the benefit is not an exempt benefit by virtue of a provision of this Act other than this section.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 76 of 1996, effective Sch 5: 18 Dec 1996 (s 2(1)) | Amended by No 110 of 2006, effective Sch 1: 1 Apr 2007 (s 2(1) item 2) | Amended by No 88 of 2013, effective Sch 2 and Sch 7 (item 197): 28 June 2013 (s 2(1) items 4, 21)

s 58PA — Exempt benefits—worker entitlement contributions

If: (a) a person makes a contribution to an approved worker entitlement fund; and (b) the contribution is made under an industrial instrument; and (c) the contribution is either: (i) made for the purposes of ensuring that an obligation under the industrial instrument to make leave payments (including payments in lieu of leave) or payments when an employee ceases employment is met; or (ii) for the reasonable administrative costs of the fund; the contribution is an exempt benefit.

Amendment history: Inserted by No 66 of 2003, effective Sch 7 (items 1–5): 30 June 2003 (s 2(1) item 8) | Amended by No 78 of 2005, effective Sch 8: 29 June 2005 (s 2)

s 58PB — Meaning of approved worker entitlement funds

(1) A fund is an approved worker entitlement fund if the fund: (a) is established by or under a law of the Commonwealth, a State or a Territory for the purpose of ensuring that long service leave is paid; and (b) is operating under that law. Endorsed funds (2) A fund is also an approved worker entitlement fund if: (a) the fund is endorsed as an approved worker entitlement fund under subsection (3); or (b) the entity that operates the fund is endorsed for the operation of the fund under subsection (3A). (3) The Commissioner must endorse a fund as an approved worker entitlement fund if: (a) the fund is entitled to be endorsed as an approved worker entitlement fund (see subsection (4)); and (b) the fund has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 . (3A) The Commissioner must endorse an entity for the operation of a fund as an approved worker entitlement fund if: (a) the entity is entitled to be endorsed for the operation of the fund as an approved worker entitlement fund (see subsection (4A)); and (b) the entity has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953 . (4) A fund is entitled to be endorsed as an approved worker entitlement fund if: (a) the management of the fund (including the management of the investments of the fund) is carried out at arm’s length from the contributors to the fund and their associates; and (b) under the fund’s constituting documents: (i) no more than 5% of the total assets of the fund are to be invested in an entity controlled by a contributor or an associate of a contributor; and (ii) the assets of the fund are not to be used to provide or facilitate any form of financial assistance, including a loan, to a contributor, a person in respect of whom contributions are made or an associate of a contributor or an associate of a person in respect of whom contributions are made; and (c) under the fund’s constituting documents, payments from contributions to the fund are to be made only for the following purposes: (i) to pay worker entitlements to persons in respect of whom contributions are made, or to death benefits dependants (within the meaning of the Income Tax Assessment Act 1997 ) or legal personal representatives (within the meaning of that Act) of those persons; (ii) to make investments to generate income from the assets of the fund; (iii) to reimburse contributors who have paid entitlements directly to persons in respect of whom contributions are made; (iv) to return contributions to contributors; (v) to pay, for the benefit of a person in respect of whom contributions are made, an employment termination payment (within the meaning of the Income Tax Assessment Act 1997 ) into a complying superannuation fund (within the meaning of section 45 of the Superannuation Industry (Supervision) Act 1993 ), a complying approved deposit fund (within the meaning of section 47 of the Superannuation Industry (Supervision) Act 1993 ) or a retirement savings account (within the meaning of the Retirement Savings Accounts Act 1997 ); (vi) to transfer contributions to another approved worker entitlement fund; (vii) to pay the reasonable administrative expenses of the fund; (viii) to pay amounts to a contributor’s external administrator that would otherwise be payable as mentioned in subparagraph (iii) or (iv) to the contributor; (ix) to pay interest on, or to repay, money lent to the fund; and (d) under the fund’s constituting documents, payments from the income of the fund are to be made only for the following purposes: (i) a purpose mentioned in subparagraphs (c)(ii) to (ix); (ii) to make payments to contributors to the fund; (iii) to make payments to other persons where the payment is specified in subsection (5); and (e) under the fund’s constituting documents: (i) an account must be kept for each person in respect of whom contributions to the fund are made; and (ii) the account must be kept in a manner that enables entitlements in respect of the person to be calculated; and (f) the fund, or the entity that operates the fund, has an ABN. (4A) An entity is entitled to be endorsed for the operation of a fund as an approved worker entitlement fund if the fund is entitled to be endorsed as an approved worker entitlement fund. (5) A payment made by a fund to a person in the following circumstances is specified for the purposes of subparagraph (4)(d)(iii): (a) a contribution has been made to the fund in respect of the person; and (b) the contribution would be an exempt benefit under section 58PA if the fund were an approved worker entitlement fund; and (c) either: (i) the payment is of a worker entitlement the contribution for which would be an exempt benefit under section 58PA if the fund were an approved worker entitlement fund; or (ii) the payment is of some kind other than a worker entitlement.

Amendment history: Inserted by No 66 of 2003, effective Sch 7 (items 1–5): 30 June 2003 (s 2(1) item 8) | Amended by No 58 of 2006, effective Sch 7 (items 32–34, 239, 240): 22 June 2006 (s 2(6), (24)) | Amended by No 8 of 2007, effective Sch 1 (item 14): 30 June 2003 (s 2(1) item 11) Sch 4 (item 16): 15 Mar 2007 (s 2(1) item 44) | Amended by No 15 of 2007, effective Sch 1 (items 17–21, 406(1)–(3)): 15 Mar 2007 (s 2(1) item 2) | Amended by No 14 of 2009, effective Sch 4 (items 2–5): 26 Mar 2009 (s 2(1) item 2) | Amended by No 41 of 2011, effective Sch 5 (items 4–8, 13): 28 June 2011 (s 2(1) item 10) Sch 5 (item 375): 27 June 2011 (s 2(1) item 23)

s 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: 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: 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.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 41 of 2005, effective Sch 4 and Sch 10 (items 16–18): 1 Apr 2005 (s 2(1) item 5) Sch 10 (item 246): 1 Apr 2001 (s 2(1) item 8)

s 58R — Exempt benefits—safety awards

Where: (a) one or more safety award benefits are provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; and (b) the notional taxable value of that safety award benefit, or the sum of the notional taxable values of those safety award benefits, in relation to that year of tax, does not exceed $200; the safety award benefit, or the safety award benefits, as the case may be, are exempt benefits in relation to that year of tax.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 58S — Exempt benefits—trainees engaged under Australian Traineeship System

Where: (a) an employee is a trainee employed under a training agreement as part of the scheme known as the Australian Traineeship System; (b) any of the following benefits is provided in, or in respect of, a year of tax in respect of that employment of the employee: (i) an expense payment benefit where the recipients expenditure is in respect of accommodation, or food or drink, for the employee; (ii) a housing benefit where the housing right is in respect of accommodation for the employee; (iii) a board benefit in respect of a meal for the employee; (iv) a property benefit where the recipients property consists of food or drink for the employee; (v) a residual benefit where the recipients benefit consists of the subsistence of a lease or licence in respect of a unit of accommodation for the accommodation of the employee; (c) in a case where the benefit relates to food or drink—the food or drink is not provided at a party, reception or other social function; and (d) either of the following conditions are 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 benefit is an exempt benefit in relation to the year of tax.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 58T — Exempt benefits—live ‑ in domestic workers employed by religious institutions or by religious practitioners

Where, during a particular period: (a) the employer of an employee is: (i) a registered religious institution; or (ii) a religious practitioner of a registered religious institution; and (b) the duties of the employment of the employee consist of, or consist principally of, rendering domestic services or personal services, or both, for: (i) one or more religious practitioners who reside in one or more units of accommodation located on a particular parcel of land; and (ii) any relatives of that religious practitioner, or of those religious practitioners, who reside in the unit of accommodation with the religious practitioner concerned; and (c) the employee resides in a unit of accommodation located on the same parcel of land; and (d) the fact that the employee resides in the unit of accommodation is directly related to the rendering, in the course of the performance of the duties of the employment of the employee, of those domestic services or of those personal services; any benefit arising from the provision, during that period, of: (e) that accommodation to the employee or to the employee and a spouse or child of the employee who resides in that unit of accommodation with the employee; or (f) residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; or (g) meals provided on the parcel of land to the employee or to a spouse or child of the employee who resides in that unit of accommodation with the employee; or (h) food or drink (other than meals) for consumption, during that period, by the employee or by a spouse or child of the employee who resides in that unit of accommodation with the employee; is an exempt benefit.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13)

s 58U — Exempt benefits—live ‑ in help for elderly and disadvantaged persons

Where, during a particular period: (a) the employer of an employee is a natural person; (b) the duties of the employment of the employee consist of, or consist principally of: (i) caring for one or more elderly persons and any child or children of that elderly person, or those elderly persons, who reside with the elderly person concerned; or (ii) caring for one or more disadvantaged persons and any child or children of that disadvantaged person, or those disadvantaged persons, who reside with the disadvantaged person concerned; (c) in the performance of those duties, the employee resides in the same unit of accommodation as the person or persons being cared for; and (d) the fact that the employee resides in that unit of accommodation is directly related to the provision, in the course of the performance of the duties of the employment of the employee, of care to the elderly person or elderly persons or to the disadvantaged person or disadvantaged persons; any benefit arising from the provision, during that period, of: (e) that accommodation to the employee or to the employee and a spouse or child of the employee who resides in that unit of accommodation with the employee; (f) residential fuel in connection with that accommodation for use by the employee or by the employee and a spouse or child of the employee; (g) meals provided in that unit of accommodation to the employee or to a spouse or child of the employee who resides in that unit of accommodation with the employee; or (h) food or drink (other than meals) for consumption, during that period, by the employee or by a spouse or child of the employee who resides in that unit of accommodation with the employee; is an exempt benefit.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 58V — Exempt benefits—food and drink for non ‑ live ‑ in domestic employees

Where: (a) the employer of an employee is: (i) a natural person; or (ii) a registered religious institution; and (b) if the employer is a natural person—the duties of the employment of the employee consist of, or consist principally of, rendering domestic services for the employer or one or more relatives of the employer at a place of residence of the employer; and (c) if the employer is a registered religious institution—the duties of the employment of the employee consist of, or consist principally of, rendering domestic services for one or more religious practitioners or one or more relatives of religious practitioners at a place of residence of the religious practitioner concerned; and (d) the employee is not provided with residential accommodation in respect of that employment; any benefit arising from the provision of food or drink consumed by the employee at that place of residence at or about the time the employee was engaged in the performance of the duties of that employment is an exempt benefit. Note: Section 960 ‑ 255 of the Income Tax Assessment Act 1997 may be relevant to determining who a person’s relatives are for the purposes of paragraphs (b) and (c).

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 144 of 2008, effective Sch 14 (items 3–6): 10 Dec 2008 (s 2(1) item 36) | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13)

s 58W — Exempt benefits—deposits under the Small Superannuation Accounts Act 1995

When section applies (1) This section applies if: (a) a benefit is provided in respect of the employment of an employee; and (b) the benefit consists of the making of a deposit, or purported deposit, under the Small Superannuation Accounts Act 1995. Exempt benefit (2) The benefit is an exempt benefit. Definition (3) In this section: deposit has the same meaning as in th e Small Superannuation Accounts Act 1995 .

Amendment history: Inserted by No 53 of 1995, effective 1 July 1995

s 58X — Exempt benefits—provision of certain work related items

(1) Any of the following benefits provided by an employer to an employee of the employer in respect of the employee’s employment is an exempt benefit: (a) an expense payment benefit where the recipients expenditure is in respect of an eligible work related item; (b) a property benefit where the recipients property is an eligible work related item; (c) a residual benefit where the recipients benefit consists of the making available of an eligible work related item. (2) Each of the following is an eligible work related item if it is primarily for use in the employee’s employment and it is not provided to the employee under a salary packaging arrangement: (a) a portable electronic device; (b) an item of computer software; (c) an item of protective clothing; (d) a briefcase; (e) a tool of trade.

Amendment history: Inserted by No 145 of 1995, effective 12 Dec 1995 | Amended by No 77 of 2005, effective Sch 1: 29 June 2005 (s 2) | Amended by No 59 of 2008, effective Sch 1 (items 1–5): 30 June 2008 (s 2) | Amended by No 114 of 2015, effective Sch 3: 26 Aug 2015 (s 2(1) item 1) | Amended by No 92 of 2020, effective Sch 3 (items 13–16, 40): 1 Jan 2021 (s 2(1) item 7) | Amended by No 49 of 2026, effective sch 4 (items 18 ‑ 20): 1 July 2026 (s 2(1) item 6)

s 58Y — Exempt benefits—membership fees and subscriptions

(1) Either of the following benefits provided by an employer to an employee of the employer in respect of the employee’s employment is an exempt benefit: (a) an expense payment benefit where the recipients expenditure is in respect of an eligible membership or subscription; (b) a property benefit where the recipients property is an eligible membership or subscription. (2) Each of the following is an eligible membership or subscription : (a) a subscription to a trade or professional journal; (b) an entitlement to use a corporate credit card; (c) an entitlement to use an airport lounge membership.

Amendment history: Inserted by No 145 of 1995, effective 12 Dec 1995

s 58Z — Exempt benefits—taxi travel

(1) Any benefit arising from taxi travel (otherwise than by limousine) by an employee is an exempt benefit if the travel is a single taxi trip beginning or ending at the employee’s place of work. (2) Any benefit arising from taxi travel (otherwise than by limousine) by an employee is an exempt benefit if the travel: (a) is as a result of sickness of, or injury to, the employee; and (b) is the whole or a part of the journey directly between any of the following: (i) the employee’s place of work; or (ii) the employee’s place of residence; or (iii) any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.

Amendment history: Inserted by No 145 of 1995, effective 12 Dec 1995 | Amended by No 16 of 1999, effective Schedule 2, Schedule 3 (items 1–7, 12) and Schedule 12: 9 Apr 1999 (s 2(1)) | Amended by No 64 of 2020, effective Sch 3 (items 63–71): 1 July 2020 (s 2(1) item 5) Sch 3 (items 202, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 58ZB — Exempt benefits—approved student exchange programs

(1) Where: (a) a benefit is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer; and (b) the benefit is in respect of participation in an approved student exchange program by the employee or an associate of the employee; and (c) the employer or an associate of the employer did not select, or take part in the selection of, the employee or associate as a participant in the program; the benefit is an exempt benefit in relation to the year of tax. (2) An approved student exchange program is a student exchange program run by a body that is registered as a student exchange body with the relevant State or Territory body in accordance with the National Guidelines for Student Exchange that are published by the National Co ‑ ordinating Committee for International Secondary Student Exchange.

Amendment history: Inserted by No 16 of 1999, effective Schedule 2, Schedule 3 (items 1–7, 12) and Schedule 12: 9 Apr 1999 (s 2(1))

s 58ZC — Exempt benefits—remote area housing benefits

Remote area housing benefit to be exempt (1) A housing benefit that is a remote area housing benefit is an exempt benefit. What constitutes remote area housing benefit (2) A housing benefit in relation to an employer for a year of tax and for a unit of accommodation, being a benefit provided to an employee of the employer in respect of the employee’s employment, is a remote area housing benefit if: (a) during the whole of the tenancy period, the unit of accommodation was located in a State or internal Territory and was not at a location in, or adjacent to, an eligible urban area; and (b) during the whole of the tenancy period, the recipient was a current employee of the employer and the usual place of employment of the recipient was not at a location in, or adjacent to, an eligible urban area; and (d) it would be concluded that it was necessary for the employer, during the year of tax, to provide, or to arrange for the provision of, residential accommodation for employees of the employer because: (i) the nature of the employer’s business was such that employees of the employer were liable to be frequently required to change their places of residence; or (ii) there was not, at or near the place or places at which the employees of the employer were employed, sufficient suitable residential accommodation for those employees (other than residential accommodation provided by or on behalf of the employer); or (iii) it is customary for employers in the industry in which the recipient was employed during the tenancy period to provide residential accommodation for their employees free of charge or for a rent or other consideration that is less than the market value of the right to occupy or use the accommodation concerned; and (e) the recipients overall housing right was not granted to the recipient under: (i) a non ‑ arm’s length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section. Discretion to treat accommodation or place of employment as being remote (3) For the purposes of subsection (2): (a) if a unit of accommodation: (i) is at a location in, or adjacent to, an eligible urban area; and (ii) is adjacent to, or in close proximity to, another unit of accommodation that is occupied or used and is not at a location in, or adjacent to, an eligible urban area; the Commissioner may, if the Commissioner considers that it is appropriate to do so having regard to all the circumstances, treat the first ‑ mentioned unit of accommodation as not being at a location in, or adjacent to, an eligible urban area; and (b) if the usual place of employment of a person: (i) is at a location in, or adjacent to, an eligible urban area; and (ii) is adjacent to, or in close proximity to, another location at which people are employed, being another location that is not in, or adjacent to, an eligible urban area; the Commissioner may, if the Commissioner considers that it is appropriate to do so having regard to all the circumstances, treat that place of employment of the first ‑ mentioned person as not being at a location in, or adjacent to, an eligible urban area.

Amendment history: Inserted by No 52 of 2000, effective Sch 1: 30 May 2000 (s 2) | Amended by No 41 of 2005, effective Sch 4 and Sch 10 (items 16–18): 1 Apr 2005 (s 2(1) item 5) Sch 10 (item 246): 1 Apr 2001 (s 2(1) item 8) | Amended by No 77 of 2005, effective Sch 1: 29 June 2005 (s 2)

s 58ZD — Exempt benefits—meals on working days

If: (a) an employer is carrying on a business of primary production for the purposes of the Income Tax Assessment Act 1997 ; and (b) the business is carried on at a location in a State or internal Territory that is not in, or adjacent to, an eligible urban area; and (c) a benefit consisting of a meal that is ready for consumption is provided on a working day to a person; and (d) the benefit is not, or does not include, the provision of meal entertainment as defined in section 37AD; and (e) the benefit is: (i) a board benefit; or (ii) a property benefit; or (iii) an expense payment benefit; or (iv) a residual benefit; and (f) the person to whom the benefit is provided is: (i) an employee of the employer, being an employee who is employed in the business and is primarily so employed at a location referred to in paragraph (b); or (ii) if the benefit is a board benefit—an associate of an employee referred to in subparagraph (i); and (g) the benefit is provided in respect of the employment of an employee referred to in subparagraph (f)(i); the benefit is an exempt benefit.

Amendment history: Inserted by No 52 of 2000, effective Sch 1: 30 May 2000 (s 2)

s 58ZE — Exempt benefits—provision of certain education or training

(1) Subject to subsection (2), a benefit is an exempt benefit in relation to a year of tax if: (a) the benefit is provided in, or in respect of, the year of tax in respect of education or training undertaken by an employee of an employer; and (b) the employee is redundant; and (c) the employer has complied with any obligation under the Fair Work Act 2009 that applies in relation to the redundancy; and (d) the education or training is for the primary purpose of enabling the employee to gain or produce salary or wages in respect of any employment to which the education or training relates. (2) For the purposes of paragraph (1)(b), an employee is redundant if the employee’s employer no longer requires, or reasonably expects to no longer require, the employee’s job to be performed by anyone because of changes in the operational requirements of the employer’s business or undertaking. (3) This section does not apply to a benefit provided to an employee of an employer if: (a) the benefit is provided under a salary packaging arrangement; or (b) the benefit is a payment or other amount covered by subsection 26 ‑ 20(1) of the Income Tax Assessment Act 1997 ; or (c) the education or training in respect of which the benefit is provided is undertaken as part of a primary course (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 ) or a secondary course (within the meaning of that Act); or (d) if the employer is an individual—the employee is a relative of the employer; or (e) if the employer is a partnership—the employee is a relative of a partner in the partnership; or (f) if the employer is a company (other than a widely held company within the meaning of the Income Tax Assessment Act 1997 )—the employee is: (i) a shareholder in, or a relative of a shareholder in, the company; or (ii) a director of, or a relative of a director of, the company.

Amendment history: Inserted by No 72 of 2021, effective Sch 1: 1 July 2021 (s 2(1) item 2)

s 59 — Reduction of taxable value—remote area residential fuel

(1) If: (a) residential fuel is for use: (i) in connection with the recipients unit of accommodation; and (ii) during the subsistence of the recipients overall housing right; in relation to a remote area housing benefit, in relation to an employer in relation to a year of tax; and (b) any of the following conditions are satisfied: (i) the recipients expenditure in relation to an expense payment fringe benefit in relation to the employer in relation to the year of tax or a subsequent year of tax is in respect of the supply of that residential fuel; (ii) the recipients property in relation to a property fringe benefit in relation to the employer in relation to the year of tax is that residential fuel; (iii) the recipients benefit in relation to a residual fringe benefit in relation to the employer in relation to the year of tax is the benefit of the consumption of that residential fuel; the amount that, apart from this subsection and section 62, would be the taxable value of the fringe benefit referred to in paragraph (b) in relation to the year of tax is reduced by 50%. (2) Where: (a) any of the following conditions are satisfied: (i) the recipients expenditure in relation to an expense payment fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is in respect of the supply of residential fuel; (ii) the recipients property in relation to a property fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is residential fuel; (iii) the recipients benefit in relation to a residual fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is the benefit of the consumption of residential fuel; (b) the residential fuel is for use in connection with a dwelling during a period in the year of tax or, in a case to which subparagraph (a)(i) applies, a preceding year of tax, when the recipient of the fringe benefit occupied or used the dwelling as his or her usual place of residence and was under an obligation to repay the whole or a part of a remote area housing loan connected with the dwelling; and (c) the fringe benefit was not provided under: (i) a non ‑ arm’s length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (3) Where: (a) any of the following conditions are satisfied: (i) the recipients expenditure in relation to an expense payment fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is in respect of the supply of residential fuel; (ii) the recipients property in relation to a property fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is residential fuel; (iii) the recipients benefit in relation to a residual fringe benefit in relation to an employer in relation to an employee in relation to a year of tax is the benefit of the consumption of residential fuel; (b) the residential fuel is for use in connection with a unit of accommodation during a period in the year of tax or, in a case to which subparagraph (a)(i) applies, in a preceding year of tax, during which: (i) the recipient of the fringe benefit occupied or used the unit of accommodation as his or her usual place of residence; and (ii) remote area housing rent connected with the unit of accommodation accrued; and (c) the fringe benefit was not provided under: (i) a non ‑ arm’s length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%.

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1988, effective Part IX (ss. 49, 50): 18 Dec 1987 (c) | Amended by No 147 of 1997, effective Sch 7: 14 Oct 1997 (s 2(1)) | Amended by No 52 of 2000, effective Sch 1: 30 May 2000 (s 2)

s 60 — Reduction of taxable value—remote area housing

(1) Where: (a) the recipient of a loan fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; (b) the loan is a remote area housing loan connected with a dwelling; and (c) the recipient occupied or used the dwelling as his or her usual place of residence during a period in the year of tax (in this section referred to as the occupation period ) during which the recipient was under an obligation to repay the whole or a part of the loan; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50% of so much of that amount as relates to the occupation period. (2) Where: (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; (b) the recipients expenditure is in respect of interest in respect of a remote area housing loan connected with a dwelling; (c) the recipient occupied or used the dwelling as his or her usual place of residence during a period (in this section referred to as the occupation period ) during which the interest accrued; and (d) the fringe benefit was not provided under: (i) a non ‑ arm’s length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50% of so much of that amount as relates to the occupation period. (2A) Where: (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; (b) the recipients expenditure is in respect of remote area housing rent connected with a unit of accommodation; (c) the recipient occupied or used the unit of accommodation as his or her usual place of residence during a period (in this subsection called the occupation period ) during which the rent accrued; and (d) the fringe benefit was not provided under: (i) a non ‑ arm’s length arrangement; or (ii) an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50% of so much of the recipients expenditure as relates to the occupation period. (3) Where: (a) the recipient of a property fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and (b) the recipients property is remote area residential property; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (4) Where: (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and (b) the recipients expenditure is in respect of remote area residential property; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (5) Where: (a) the recipient of a property fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and (b) the recipients property is a remote area residential property option fee; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (6) Where: (a) the recipient of a property fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and (b) the recipients property is remote area residential property repurchase consideration; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (7) Where: (a) subsection (6) applies to a property fringe benefit; and (b) the amount paid by the provider of the fringe benefit by way of consideration for the purchase of the estate or interest concerned exceeds both: (i) the market value of the estate or interest at the time of the purchase; and (ii) the guideline price of the estate or interest at the time of the purchase; a reference in subsection (6) to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the guideline price.

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 95 of 1988, effective ss. 44(a) and 54(11): (e) Remainder: Royal Assent

s 60AA — Guideline price for repurchase of remote area residential property

(1) In this section: index number , in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter. (2) Subject to subsection (3), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this section. (3) If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to index numbers published in terms of the new index reference period. (4) A reference in subsection 60(7) to the guideline price of an estate or interest in land is a reference to: (a) if the factor ascertained in accordance with subsections (5) and (6) in relation to the market value of the estate or interest as at the time the estate or interest was acquired by the employee is greater than 1—the market value as at that time multiplied by that factor; or (b) in any other case—the market value as at that time. (5) The factor to be ascertained for the purposes of subsection (4) in relation to the market value of the estate or interest in land as at the time of the acquisition of the estate or interest by the employee is the number (calculated to 3 decimal places) ascertained by dividing the index number in respect of the quarter of the year in which the employee sold the estate or interest to the provider by the index number in respect of the quarter of the year in which the estate or interest was acquired by the employee. (6) Where the factor ascertained in accordance with subsection (5) would, if it were calculated to 4 decimal places, end with a number greater than 4, that factor shall be taken to be the factor calculated to 3 decimal places in accordance with that subsection and increased by 0.001.

Amendment history: Inserted by No 95 of 1988, effective ss. 44(a) and 54(11): (e) Remainder: Royal Assent | Amended by No 145 of 2015, effective Sch 4 (items 11–15): 10 Dec 2015 (s 2(1) item 7)

s 60A — Reduction of taxable value—remote area holiday transport fringe benefits subject to ceiling

(1) Where one or more remote area holiday transport fringe benefits in relation to an employer in relation to a year of tax relate to a particular employee of the employer and to a particular holiday for a particular family member, the amount (in this subsection called the gross taxable value ) that, but for this subsection and section 62, would be: (a) so much of the taxable value of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or (b) so much of the sum of the taxable values of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member; as the case requires, in relation to that year of tax, shall be reduced by: (c) 50% of the gross taxable value; or (d) 50% of the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member; whichever is the less. (2) Subsection (1) does not apply in relation to a remote area holiday transport fringe benefit unless: (a) subsection 143(3) applies to the fringe benefit; and (b) if the fringe benefit is an expense payment fringe benefit: (i) in the case of an expense payment fringe benefit where: (A) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient; and (B) the reimbursement is calculated by reference to the distance travelled by the car; the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; or (ii) in the case of an expense payment fringe benefit where subparagraph (i) does not apply: (A) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or (B) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure. (3) Where subsection (1) applies, in relation to 2 or more years of tax, in relation to 2 or more fringe benefits relating to a particular holiday for a particular family member, subsection (1) has effect, in relation to each of those years of tax, as if the reference in paragraph (1)(d) to the benchmark travel amount in relation to that fringe benefit, or those fringe benefits, in relation to the holiday for the family member were a reference to the amount calculated in accordance with the formula: where: BTA is the amount that, but for this subsection, would be the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member; TV is the amount that, but for this section and section 62, would be: (a) so much of the taxable value, in relation to the year of tax concerned, of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or (b) so much of the sum of the taxable values, in relation to the year of tax concerned, of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member; and TTV is the amount that, but for this section and section 62, would be so much of the sum of the taxable values, in relation to all of those years of tax, of all of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member. (4) Where: (a) subparagraph (2)(b)(i) applies to an expense payment fringe benefit; and (b) the amount of the reimbursement concerned exceeds the reimbursement (in this subsection called the statutory reimbursement ) that would have been paid if it had been calculated on the basis of the sum of the following rates: (i) the basic car rate; (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the expense payment fringe benefit is a remote area holiday transport fringe benefit—the supplementary car rate; a reference in subsection (1) or (3) of this section to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the statutory reimbursement. (5) Where: (a) a remote area holiday transport fringe benefit in relation to an employee consists of the provision of an allowance to the spouse or a child of the employee; and (b) the whole or a part of the allowance has been expended by the recipient in obtaining the transport, meals or accommodation in respect of which the allowance was paid; this section applies in relation to the fringe benefit as follows: (c) the fringe benefit shall be treated as if it were an expense payment fringe benefit; (d) the amount expended as mentioned in paragraph (b) shall be treated as if it were the recipients expenditure; (e) so much of the allowance as does not exceed the recipients expenditure shall be treated as if it were a reimbursement of the recipients expenditure.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997

s 61 — Reduction of taxable value—remote area holiday transport fringe benefits not subject to ceiling

(1A) This section does not apply in relation to a fringe benefit in respect of remote area holiday transport if subsection 143(3) applies in relation to the fringe benefit. (1) Where: (a) the recipients expenditure in relation to an expense payment fringe benefit in relation to a year of tax is in respect of remote area holiday transport; (c) in a case where: (i) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient; and (ii) the reimbursement is calculated by reference to the distance travelled by the car; the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; and (d) if paragraph (c) does not apply: (i) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or (ii) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; the amount that, but for this subsection, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by: (e) where paragraph (c) does not apply—50%; and (f) where paragraph (c) applies—50% of so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the following rates: (i) the basic car rate; (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the recipients expenditure is in respect of remote area holiday transport—the supplementary car rate. (1AA) Where the recipients property in relation to a property fringe benefit in relation to a year of tax is in respect of remote area holiday transport, the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by 50%. (2) Where the recipients benefit in relation to a residual fringe benefit in relation to a year of tax is in respect of remote area holiday transport, the amount that, but for this subsection and section 62, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by 50%. (3) Where: (a) a remote area holiday transport fringe benefit in relation to an employee consists of the provision of an allowance to the spouse or a child of the employee; and (b) the whole or a part of the allowance has been expended by the recipient in obtaining the transport, meals or accommodation in respect of which the allowance was paid; this section applies in relation to the fringe benefit as follows: (c) the fringe benefit shall be treated as if it were an expense payment fringe benefit; (d) the amount expended as mentioned in paragraph (b) shall be treated as if it were the recipients expenditure; (e) so much of the allowance as does not exceed the recipients expenditure shall be treated as if it were a reimbursement of the recipients expenditure.

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997

s 61A — Reduction of taxable value—overseas employment holiday transport

(1) Where one or more fringe benefits, being fringe benefits in respect of overseas employment holiday transport, in relation to an employer in relation to a year of tax relate to a particular employee of the employer, the amount (in this subsection called the gross taxable value ) that, but for this subsection and section 62, would be: (a) so much of the taxable value of that fringe benefit as is attributable to transport, meals or accommodation for a particular family member; or (b) so much of the sum of the taxable values of those fringe benefits as is attributable to transport, meals or accommodation for a particular family member; as the case requires, in relation to that year of tax, shall be reduced by: (c) 50% of the gross taxable value; or (d) 50% of the benchmark travel amount in relation to that fringe benefit in relation to the family member or 50% of the greatest benchmark travel amount in relation to those fringe benefits in relation to the family member, as the case requires; whichever is the less. (2) Subsection (1) does not apply in relation to a fringe benefit in respect of overseas employment holiday transport, being an expense payment fringe benefit, unless: (a) in the case of an expense payment fringe benefit where: (i) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient; and (ii) the reimbursement is calculated by reference to the distance travelled by the car; the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out the number of whole kilometres travelled by the car in providing transport by virtue of which the recipients expenditure is in respect of overseas employment holiday transport; or (b) in the case of an expense payment fringe benefit where paragraph (a) does not apply—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date. (3) Where: (a) subsection (1) applies in relation to one or more fringe benefits (in this subsection called the overseas holiday transport fringe benefits ) in relation to an employer in relation to a year of tax, being fringe benefits that relate to a particular employee of the employer; (b) one or more of the overseas holiday transport fringe benefits are home country fringe benefits in relation to a particular holiday or holidays for a particular family member; (c) if the home country fringe benefit, or home country fringe benefits, referred to in paragraph (b) relate to only one holiday for the family member—the home country holiday amount in relation to the holiday in relation to the family member exceeds the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1)(d) in relation to the overseas holiday transport fringe benefits in relation to the family member; and (d) if the home country fringe benefit, or home country fringe benefits, referred to in paragraph (b) relate to 2 or more holidays for the family member—the greatest of the home country holiday amounts in relation to the holidays in relation to the family member exceeds the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1)(d) in relation to the overseas holiday transport fringe benefits in relation to the family member; the benchmark travel amount, or the greatest benchmark travel amount, as the case requires, that, apart from this subsection, would be applicable under paragraph (1)(d) in relation to the overseas holiday transport fringe benefits in relation to the family member shall be increased by the amount of the excess referred to in whichever of paragraph (c) or (d) of this subsection is applicable. (4) For the purposes of subsection (3), where the whole or a part (which whole or part is in this subsection called the attributable portion ) of the amount that, but for subsection (1) and section 62, would be the taxable value, or of the sum of the taxable values, in relation to the year of tax, of one or more home country fringe benefits in relation to a particular holiday for a particular family member is attributable to transport, meals or accommodation in relation to the holiday for the family member, the home country holiday amount, in relation to the holiday, in relation to the family member, is an amount equal to the attributable portion. (5) Where: (a) paragraph (2)(a) applies to an expense payment fringe benefit; and (b) the amount of the reimbursement concerned exceeds the reimbursement (in this subsection called the statutory reimbursement ) that would have been paid if it had been calculated on the basis of the sum of the following rates: (i) the basic car rate; (ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the expense payment fringe benefit is in respect of overseas employment holiday transport—the supplementary car rate; a reference in subsection (1) or (4) of this section to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the statutory reimbursement.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997 | Amended by No 69 of 2023, effective sch 4 (items 16, 42 ‑ 47): 15 Sept 2023 (s 2(1) item 5)

s 61B — Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport

Where: (a) an expense payment fringe benefit in respect of relocation transport is provided in a year of tax to an employee of an employer, or to an associate of the employee, in respect of the employment of the employee; and (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is in respect of relocation transport; the amount that, but for this section, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the following rates: (d) the basic car rate; (e) where 2 or more family members travelled in the car when it provided the transport by virtue of which the benefit is in respect of relocation transport—the supplementary car rate.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997 | Amended by No 69 of 2023, effective sch 4 (items 16, 42 ‑ 47): 15 Sept 2023 (s 2(1) item 5)

s 61C — Reduction of taxable value—temporary accommodation relating to relocation

(1) 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: (A) a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or (B) a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members; (ii) a housing fringe benefit where the housing right is in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; (iii) a residual fringe benefit where the recipients benefit: (A) is constituted by the subsistence of a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or (B) is constituted by the subsistence of a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members; (b) the temporary accommodation is required solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment; (c) if the unit of accommodation is located at or near the employee’s former usual place of residence—the temporary accommodation was required because the unit of accommodation that was the employee’s former usual place of residence became unavailable, or unsuitable, for residential use by family members due to removal, storage or other arrangements relating to the change in the usual place of residence of the employee; (d) if the unit of accommodation is located at or near the employee’s new place of employment—the employee, or an associate of the employee, either before, on, or as soon as reasonably practicable after, the day (in this section called the relocation day ) on which the employee commenced to perform the duties of that employment at the employee’s new place of employment, commenced sustained reasonable efforts to acquire, or to acquire the right to occupy or use, a unit of accommodation intended by the employee or associate, as the case may be, to provide a long ‑ term place of residence for the employee; and (e) the fringe benefit is not provided under a non ‑ arm’s length arrangement; the following provisions have effect. (2) Where: (a) paragraph (1)(c) applies; and (b) a percentage (in this subsection called the attributable percentage ) of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1)(a) during the whole or a part of the period of 21 days that ended on the day on which the employee commenced to perform the duties of that employment at the employee’s new place of employment; the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage. (3) Where: (a) paragraph (1)(d) applies; (b) any of the following subparagraphs applies: (ii) the employee, not later than 4 months after the relocation day, pursuant to a contract entered into by the employee or an associate of the employee, commences or commenced to occupy or use a unit of accommodation intended by the employee or associate, as the case may be, to provide a long ‑ term place of residence for the employee; (iii) the employee gives to the employer, before the declaration date, a declaration in a form approved by the Commissioner, in respect of the application of this section in relation to the employee; and (c) a percentage (in this subsection called the attributable percentage ) of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1)(a) during the whole or a part of the period commencing 7 days before the relocation day and ending on the earlier or earliest of whichever of the following days is applicable: (i) if, during the initial accommodation search period, a contract is or was entered into by the employee or an associate of the employee for the acquisition of, or of the right to occupy or use, a unit of accommodation intended by the employee or associate to provide a long ‑ term place of residence for the employee—the day on which the employee could reasonably be or have been expected to commence, or to have commenced, to occupy or use that unit of accommodation pursuant to that contract; (ii) if the initial accommodation search period ends or ended before any contract of a kind referred to in subparagraph (i) of this paragraph is or was entered into by the employee or an associate—the day on which that period ends or ended; (iii) if: (A) the unit of accommodation that was the employee’s former usual place of residence was a dwelling in which the employee, or an associate of the employee, held a relevant proprietary interest; (B) within 6 months after the relocation day, a contract for the sale of that relevant proprietary interest is or was entered into; and (C) the efforts referred to in paragraph (1)(d), and the efforts of that kind that continue or continued to be made during the initial accommodation search period are, or were, efforts to acquire a relevant proprietary interest in a unit of accommodation, being a dwelling; the day occurring 12 months after the relocation day; (iv) except in a case where subparagraph (iii) applies—the day occurring 6 months after the relocation day; the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage. (4) A reference in this section to the acquisition of a unit of accommodation includes a reference to the acquisition of a relevant proprietary interest in a unit of accommodation, being a dwelling. (5) In this section: initial accommodation search period , in relation to a case to which paragraph (1)(d) applies, means the period commencing on the commencement, or the first commencement, as the case requires, of the efforts referred to in that paragraph and ending when efforts of that kind first cease or ceased to be made. relevant proprietary interest , in relation to a unit of accommodation, being a dwelling, means: (a) in any case—a prescribed interest in land on which a building constituting, or containing, the dwelling is located; (b) in any case—a prescribed interest in a stratum unit in relation to the dwelling; or (c) if the dwelling is a flat or home unit—a proprietary right in respect of the dwelling.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1))

s 61D — Reduction of taxable value of temporary accommodation meal fringe benefits

(1) Where: (a) either of the following fringe benefits (in this section called a temporary accommodation meal fringe benefit ) is provided in a year of tax to an employee of an employer, or to an associate of the employee, in respect of the employment of the employee: (i) an expense payment fringe benefit where the recipients expenditure is in respect of a meal; (ii) a property fringe benefit where the recipients property is a meal; and (b) the meal was for consumption by a family member at a time when the family member was accommodated in a hotel, motel, hostel or guest ‑ house; (c) any of the following fringe benefits is provided in, or in respect of, the year of tax in respect of that employment: (i) an expense payment benefit where the recipients expenditure is in respect of that accommodation; (ii) a housing benefit where the housing right is in respect of that accommodation; (iii) a residual benefit where the recipients benefit is constituted by the subsistence of a lease or licence in respect of that accommodation; (d) both of the following conditions are satisfied: (i) under section 61C, the taxable value of the fringe benefit referred to in paragraph (c) in relation to the year of tax is reduced by the extent to which that taxable value is attributable to the subsistence of a lease or licence, or a housing right, in respect of the accommodation during a particular period in the year of tax; (ii) the meal was for consumption by a family member at a time during that period; and (e) the amount that, but for this section and section 62 and the recipients contribution, would be the taxable value of the temporary accommodation meal fringe benefit exceeds: (i) in a case where the recipient had attained the age of 12 years before the beginning of the year of tax—$2.00; or (ii) in any other case—$1.00; the amount that, but for this section and section 62 and the recipients contribution, would be the taxable value of that temporary accommodation meal fringe benefit shall be reduced by the amount of the excess referred to in paragraph (e). (2) For the purposes of the application of this section to an in ‑ house property expense payment fringe benefit, a reference in this section to the recipients contribution in relation to the fringe benefit is a reference to the amount ascertained under paragraph 22A(1)(b).

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993

s 61E — Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests

Where: (a) an expense payment fringe benefit in respect of an employment interview or selection test is provided in a year of tax to an employee of an employer in respect of the employment of the employee; (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is in respect of an employment interview or selection test; the amount that, but for this section, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the basic car rate.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997 | Amended by No 69 of 2023, effective sch 4 (items 16, 42 ‑ 47): 15 Sept 2023 (s 2(1) item 5)

s 61F — Reduction of taxable value of certain expense payment fringe benefits associated with work ‑ related medical examinations, work ‑ related medical screenings, work ‑ related preventative health care, work ‑ related counselling or migrant language training

Where: (a) an expense payment fringe benefit associated with: (i) a work ‑ related medical examination of an employee of an employer; (ii) work ‑ related medical screening of an employee of an employer; (iii) work ‑ related preventative health care of an employee of an employer; (iv) work ‑ related counselling of an employee of an employer or of an associate of an employee of an employer; or (v) migrant language training of an employee of an employer or of an associate of an employee of an employer; is provided in a year of tax to the employee, or to an associate of the employee, in respect of the employment of the employee; (b) the fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient, being a reimbursement calculated by reference to the distance travelled by the car; and (c) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out the number of whole kilometres travelled by the car in providing transport by virtue of which the benefit is associated with: (i) a work ‑ related medical examination of the employee; or (ii) work ‑ related medical screening of the employee; or (iii) work ‑ related preventative health care of the employee; or (iv) work ‑ related counselling of the employee or of an associate of the employee; or (v) migrant language training of the employee or of an associate of the employee; the amount that, but for this section, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by so much of the amount of the reimbursement as does not exceed the reimbursement that would have been paid if it had been calculated on the basis of the sum of the following rates: (d) the basic car rate; (e) where: (i) the benefit is associated with work ‑ related counselling of the employee or of an associate of the employee or with migrant language training of the employee or of an associate of the employee; and (ii) 2 or more family members travelled in the car when it provided the transport by virtue of which the benefit is associated with work ‑ related counselling of the employee or of an associate of the employee or with migrant language training of the employee or of an associate of the employee; the supplementary car rate.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 30 of 1995, effective 7 Apr 1995 | Amended by No 39 of 1997, effective 1 July 1997 | Amended by No 69 of 2023, effective sch 4 (items 16, 42 ‑ 47): 15 Sept 2023 (s 2(1) item 5)

s 61G — Reduction of taxable value of fringe benefits if certain deductions relating to payments to associates are not allowed

If: (a) a fringe benefit is provided in the year of tax in respect of the employment of a current employee; and (b) the person providing the benefit cannot deduct an amount under the Income Tax Assessment Act 1997 for providing the benefit because of section 85 ‑ 15, 85 ‑ 20 or 86 ‑ 60 of that Act; the amount that, but for this section, would be the taxable value of the fringe benefit in relation to the year of tax is reduced by the amount mentioned in paragraph (b). Note: Sections 85 ‑ 15, 85 ‑ 20 and 86 ‑ 60 of the Income Tax Assessment Act 1997 limit the extent to which a person can deduct payments to associates that relate to personal services income.

Amendment history: Inserted by No 20 of 2004, effective Sch 3 (items 1, 5): 23 Mar 2004 (s 2(1) item 2)

s 62 — Reduction of aggregate taxable value of in ‑ house fringe benefits

(1) Where one or more in ‑ house fringe benefits in relation to an employer in relation to a year of tax relate to a particular employee of the employer, the taxable value of that fringe benefit, or the sum of the taxable values of those fringe benefits, as the case may be, in relation to that year shall be reduced by: (a) if the taxable value or the sum of the taxable values does not exceed $1,000—an amount equal to the taxable value or the sum of the taxable values; or (b) in any other case—$1,000. (2) Subsection (1) does not apply to an in ‑ house fringe benefit provided under a salary packaging arrangement.

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 110 of 2006, effective Sch 1: 1 Apr 2007 (s 2(1) item 2) | Amended by No 84 of 2013, effective Sch 7 and Sch 8 (items 20–26): 28 June 2013 (s 2(1) items 2, 4) | Amended by No 88 of 2013, effective Sch 2 and Sch 7 (item 197): 28 June 2013 (s 2(1) items 4, 21)

s 63 — Reduction of taxable value of living ‑ away ‑ from ‑ home food fringe benefits

(1) Where: (a) a living ‑ away ‑ from ‑ home food fringe benefit, or 2 or more living ‑ away ‑ from ‑ home food fringe benefits, in relation to an employer in relation to a year of tax relates or relate to a particular employee; and (b) the fringe benefit or fringe benefits are equivalent to the food component of a living ‑ away ‑ from ‑ home allowance fringe benefit in respect of a particular period in the year of tax; and (c) that food component exceeds the sum of the statutory food amounts in respect of eligible family members in respect of that period; and (d) the employee satisfies: (i) sections 31C (about maintaining an Australian home) and 31D (about the first 12 months); or (ii) section 31E (about fly ‑ in fly ‑ out and drive ‑ in drive ‑ out requirements); and (da) the employee gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, purporting to set out: (i) if the employee satisfies sections 31C and 31D—the matters in subparagraphs 31F(1)(a)(i) to (iii); or (ii) if the employee satisfies section 31E—the matters in subparagraphs 31F(1)(b)(i) to (iii); the following provisions apply: (e) if there is only one living ‑ away ‑ from ‑ home food fringe benefit—the amount that, but for this section and section 62, and the recipients contribution, would be the taxable value of that fringe benefit, shall be reduced by the amount of the excess referred to in paragraph (c); (f) if there are 2 or more living ‑ away ‑ from ‑ home food fringe benefits—the amounts that, but for this section and section 62, and the recipients contribution, would be the taxable values of those fringe benefits shall be reduced by amounts proportionate to those taxable values and equal in total to the amount of the excess referred to in paragraph (c). (2) For the purposes of the application of this section to an in ‑ house property expense payment fringe benefit, a reference in this section to the recipients contribution in relation to the fringe benefit is a reference to the amount ascertained under paragraph 22A(1)(b).

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993 | Amended by No 142 of 2012, effective Sch 1: 28 Sept 2012 (s 2(1) item 2)

s 63A — Reduction of taxable value in respect of entertainment component of certain fringe benefits

Taxable value reduced by entertainment percentage (1) If: (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and (b) a percentage of the recipients expenditure is in respect of the provision of entertainment other than to the recipient or an associate of the recipient; the amount that, apart from this subsection, would be the taxable value of the expense payment fringe benefit in relation to the year of tax is reduced by that percentage. Avoidance of double reduction (2) If the taxable value of the expense payment fringe benefit has been reduced under Division 5 by reason of a particular matter or thing, the taxable value of the fringe benefit is not reduced under this section in respect of the same matter or thing.

Amendment history: Inserted by No 82 of 1994, effective s 3–6, 128–131: 23 June 1994 (s 2(1)) | Amended by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 4 (items 139, 140) and Sch 10 (items 16–23): 1 July 1997 (s 2(3))

s 65A — Reduction of taxable value—education of children of overseas employees

Where: (a) any of the following fringe benefits in relation to a year of tax is provided in respect of the employment of an employee: (i) a car fringe benefit where the application or availability of the car is in respect of the full ‑ time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided; (ii) an expense payment fringe benefit where the recipients expenditure is in respect of the full ‑ time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided; (iii) a property fringe benefit where the recipients property is required solely for the purposes of the full ‑ time education of a child of the employee, not being a child who had attained the age of 25 years before the provision time; (iv) a residual fringe benefit where the recipients benefit consists of, or is required solely for the purposes of, the full ‑ time education of a child of the employee, not being a child who had attained the age of 25 years before the comparison time; (b) the full ‑ time education is: (i) at an educational institution; or (ii) by a tutor; (c) the whole or any part of the full ‑ time education is undertaken by the child when the employee is an overseas employee; (d) 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; (e) in the case of an expense payment fringe benefit—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer of the employee before the declaration date; and (f) a percentage (in this section called the attributable percentage ) of the taxable value, in relation to the year of tax, of the fringe benefit is attributable to the full ‑ time education of the child in the period commencing on whichever of the following days is applicable: (i) if: (A) the full ‑ time education is at an educational institution; (B) the overseas posting period is a period of not less than 28 days; and (C) the overseas posting period commenced during an academic period of the educational institution; the day on which that academic period commenced; or (ii) in any other case—the day on which the overseas posting period commenced; and ending on whichever of the following days is applicable: (iii) if: (A) the full ‑ time education is at an educational institution; (B) the overseas posting period is a period of not less than 28 days; and (C) the overseas posting period ended during an academic period of the educational institution; the day on which that academic period ended; (iv) in any other case—the day on which the overseas posting period ended; the amount that, but for this section and section 62, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the attributable percentage.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 100 of 1991, effective s 3, 5, 7, 10, 12, 13, sch 1: 27 June 1991 (s 2(1)) s 4, 6, 8, 9, 11: 28 June 1991 (s 2(2)) | Amended by No 57 of 1993, effective 27 Oct 1993

s 65CA — Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes

(1) Where: (a) the recipient of any of the following fringe benefits in relation to an employer in relation to a year of tax (in this section called the benefit year of tax ) is an employee of the employer: (i) a property fringe benefit where the recipients property is remote area residential property; (ii) a property fringe benefit where the recipients property is a remote area residential property option fee; (iii) an expense payment fringe benefit where the recipients expenditure is in respect of remote area residential property; (b) in the case of a property fringe benefit where the recipients property is remote area residential property—at or before the provision time, the employee entered into a recognised remote area housing obligation restricting the disposal of the estate or interest concerned; (c) in the case of an expense payment fringe benefit—at or before the time when the employee acquired the estate or interest concerned, the employee entered into a recognised remote area housing obligation restricting the disposal of the estate or interest concerned; and (d) in all cases—the period (in this section called the overall amortisation period ) commencing at whichever of the following times is applicable: (i) if subparagraph (a)(i) or (ii) applies—the provision time; (ii) if subparagraph (a)(iii) applies—the time when the recipients expenditure was incurred; (which time is in this section called the benefit time ) and ending at the earliest of the following later times: (iii) the time when the employee ceases or first ceases to be subject to the recognised remote area housing obligation referred to in paragraph (b) or (c) of this subsection or in paragraph 142(2A)(e), as the case requires; (iv) the time when the employee ceases or first ceases to be employed by the employer; (v) the time when the employee ceases or first ceases to occupy or use the dwelling concerned as his or her usual place of residence; (vi) the time of the death of the employee; (vii) the end of the period of 7 years after the benefit time; commences and ends in different years of tax; the fringe benefit is an amortised fringe benefit. (2) The notional amortisation period in relation to the amortised fringe benefit is the period commencing at the benefit time and ending at the earlier of the following times: (a) the end of the period specified in the contract to which the recognised remote area housing obligation concerned relates, being the period during which the employee is to be subject to that obligation; (b) the end of the period of 7 years after the benefit time. (3) If the overall amortisation period has not come to an end before the end of a particular year of tax (in this subsection called the current year of tax ), the amortised amount, in relation to the current year of tax, of the amortised fringe benefit is the amount calculated in accordance with the formula: where: Taxable value is the taxable value, in relation to the benefit year of tax, of the fringe benefit. Current amortisation period is the whole number of months (or part months) in the current year of tax that are included in the notional amortisation period. Notional amortisation period is the whole number of months (or part months) that are included in the notional amortisation period. (4) If the overall amortisation period comes to an end during a particular year of tax (in this subsection called the current year of tax ), the amortised amount, in relation to the current year of tax, of the amortised fringe benefit is the amount calculated in accordance with the formula: where: Taxable value is the taxable value, in relation to the benefit year of tax, of the fringe benefit. Previously amortised amounts is the sum of the amortised amounts, in relation to each year of tax preceding the current year of tax, of the fringe benefit. (5) Where the recipients expenditure in relation to an expense payment fringe benefit was incurred before 1 July 1986, paragraph (1)(d) applies in relation to the fringe benefit as if the recipients expenditure had been incurred on 1 July 1986. (6) Where the following paragraphs apply in relation to a fringe benefit in relation to an employer in relation to a year of tax: (a) the fringe benefit would have been an amortised fringe benefit if the reference in subsection 142(2D) to 5 years were a reference to 7 years; (b) the benefit time occurred before 31 August 1988; the employer is eligible for extended amortisation treatment. (7) Where: (a) an employer is eligible for extended amortisation treatment; and (b) a fringe benefit in relation to the employer in relation to a year of tax would have been an amortised fringe benefit if the reference in subsection 142(2D) to a contractual obligation were a reference to a contractual obligation entered into before the end of the period of 6 months after the commencement of this subsection; the following provisions have effect: (c) a reference in subsection (3) or (4) of this section to the overall amortisation period in relation to the fringe benefit is to be read as a reference to the period that would have been the overall amortisation period in relation to the fringe benefit if the reference in subparagraph (1)(d)(vii) of this section to 7 years were a reference to 15 years; (d) for the purpose of determining the notional amortisation period in relation to the fringe benefit, the reference in paragraph (2)(b) of this section to 7 years is to be read as a reference to 15 years.

Amendment history: Inserted by No 95 of 1988, effective ss. 44(a) and 54(11): (e) Remainder: Royal Assent | Amended by No 58 of 1990, effective s. 11: 16 June 1990 ( see s. 2(2)) s. 23: 4 Dec 1989 Part 5 (ss. 36–38): 11 May 1989 Remainder: Royal Assent

s 65CB — Amendment of assessments

Nothing in section 74 prevents the amendment at any time of an assessment for the purposes of giving effect to this Division.

Amendment history: Inserted by No 95 of 1988, effective ss. 44(a) and 54(11): (e) Remainder: Royal Assent

s 65CC — Reducible fringe benefits relating to remote area home repurchase schemes

(1) Where: (a) the recipient of a property fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; (b) the recipients property is remote area residential property repurchase consideration; (c) the taxable value of the fringe benefit in relation to the year of tax is nil; and (d) the market value of the estate or interest purchased by the provider of the fringe benefit exceeds the amount paid by the provider by way of consideration for the purchase of the estate or interest; the fringe benefit is a reducible fringe benefit. (2) The reduction amount, in relation to the year of tax, of the reducible fringe benefit is 50% of the amount of the excess referred to in paragraph (1)(d).

Amendment history: Inserted by No 95 of 1988, effective ss. 44(a) and 54(11): (e) Remainder: Royal Assent

s 65D — Car substantiation rules

The object of this Division is to set out the substantiation rules that apply for the purposes of sections 19, 24, 44 and 52 in relation to cars held by recipients of fringe benefits.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987

s 65E — No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained

Where a car is held by the recipient of a loan fringe benefit, expense payment fringe benefit, property fringe benefit or residual fringe benefit in relation to an employer during a period (in this section called the holding period ) in a year of tax that is a log book year of tax of the recipient in relation to the car, the substantiation rules shall be taken to have been complied with in relation to the car in relation to the holding period if, and only if: (a) log book records and odometer records have been maintained by or on behalf of the recipient for an applicable log book period in relation to the car; and (b) odometer records are maintained by or on behalf of the provider for the holding period; and (c) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car during the holding period; and (d) the employer specifies a percentage as the business use percentage applicable to the car in relation to the recipient for the holding period.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 145 of 1995, effective 12 Dec 1995 | Amended by No 41 of 1998, effective Schedule 5 (items 1–15, 20): Royal Assent

s 65F — No compliance with substantiation rules in non ‑ log book year of tax unless log book records kept in previous log book year of tax

Where a car is held by the recipient of a loan fringe benefit, an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit during a period (in this section called the holding period ) in a year of tax that is not a log book year of tax of the recipient in relation to the car, the substantiation rules shall be taken to be complied with in relation to the car if, and only if: (a) odometer records are maintained by or on behalf of the recipient in relation to the car for the holding period; and (b) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car in the holding period; and (c) the employer specifies a percentage as the business use percentage applicable to the car in relation to the recipient for the holding period.

Amendment history: Inserted by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1989, effective 16 Mar 1989 | Amended by No 145 of 1995, effective 12 Dec 1995

s 65J — Rebate for certain not ‑ for ‑ profit employers etc.

Rebatable employer (1) An employer is a rebatable employer for a year of tax if the employer: (a) is exempt from income tax at any time during the year of tax under any of the provisions set out in the following table; and (b) satisfies the special conditions (if any) set out in the following table. Rebatable employer Item Column 1 Type of employer Column 2 Special conditions 1 a registered charity covered by item 1.1 of the table in section 50 ‑ 5 of the Income Tax Assessment Act 1997 The registered charity is not a rebatable employer for the year of tax if it: (a) is a registered public benevolent institution; or (b) is a registered health promotion charity; or (c) is an institution of the Commonwealth, a State or a Territory; or (d) has not been endorsed under subsection 123E(1); or (e) is not an institution. 2 a scientific institution covered by item 1.3 of the table in section 50 ‑ 5 of the Income Tax Assessment Act 1997 The institution is not an institution of the Commonwealth, a State or a Territory unless it: (a) is an institution established by a law of the Commonwealth, a State or a Territory; and (b) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and (c) is engaged solely in research into the causes, prevention or cure of diseases in humans. 3 a public educational institution covered by item 1.4 of the table in section 50 ‑ 5 of the Income Tax Assessment Act 1997 The institution is not an institution established by a law of the Commonwealth, a State or a Territory unless it: (a) is not conducted by or on behalf of the Commonwealth, a State or a Territory; and (b) is a preschool or school (other than a tertiary institution). 4 a society, association or club: (a) established for the encouragement of science; and (b) covered by item 1.7 of the table in section 50 ‑ 5 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 5 a society, association or club: (a) established for community service purposes (except political or lobbying purposes); and (b) covered by item 2.1 of the table in section 50 ‑ 10 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 6 an employer association or an employee association covered by item 3.1 of the table in section 50 ‑ 15 of the Income Tax Assessment Act 1997 None. 7 a trade union covered by item 3.2 of the table in section 50 ‑ 15 of the Income Tax Assessment Act 1997 None. 8 a society or association: (a) established for the purpose of promoting the development of: (i) aviation; or (ii) tourism; and (b) covered by item 8.1 of the table in section 50 ‑ 40 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 9 a society or association: (a) established for the purpose of promoting the development of any of the following Australian resources: (i) agricultural resources; (ii) horticultural resources; (iii) industrial resources; (iv) manufacturing resources; (v) pastoral resources; (vi) viticultural resources; (vii) aquacultural resources; (viii) fishing resources; and (b) covered by item 8.2 of the table in section 50 ‑ 40 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 10 a society or association: (a) established for the purpose of promoting the development of Australian information and communications technology resources; and (b) covered by item 8.3 of the table in section 50 ‑ 40 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 11 a society, association or club: (a) established for the encouragement of any of the following: (i) animal racing; (ii) art; (iii) a game or sport; (iv) literature; (v) music; and (b) covered by item 9.1 of the table in section 50 ‑ 45 of the Income Tax Assessment Act 1997 See subsection (5) of this section. 12 a society, association or club: (a) established for musical purposes; and (b) covered by item 9.2 of the table in section 50 ‑ 45 of the Income Tax Assessment Act 1997 See subsection (5) of this section. Note: Subsection (3) affects the kind of employers that may be considered to be an institution of government. Rebate for year of tax 2000 ‑ 2001 and later years (2A) If an employer is a rebatable employer for the year of tax beginning on 1 April 2000 or a later year of tax, the employer is entitled to a rebate of tax in the employer’s assessment for the year of tax concerned equal to the amount worked out using the formula: where: gross tax means the amount of tax payable on the fringe benefits taxable amount of the employer of the year of tax (assuming that this section had not been enacted). rebatable days in year means the number of whole days in the year of tax when the employer engaged in activities as an employer covered by any of the table items in subsection (1). total days in year means the number of days in the year of tax excluding the days on which the employer did not engage in activities as an employer. How to work out aggregate non ‑ rebatable amount (2B) An employer’s aggregate non ‑ rebatable amount for the year of tax is the amount worked out as follows. Method statement Step 1. For each employee, add: (a) the individual grossed ‑ up type 1 non ‑ rebatable amount (see subsection (2C)) in relation to the employer for the year of tax; and (b) the individual grossed ‑ up type 2 non ‑ rebatable amount (see subsection (2D)) in relation to the employer for the year of tax. The result is the individual grossed ‑ up non ‑ rebatable amount for the employee. Step 2. Reduce the individual grossed ‑ up non ‑ rebatable amount for each employee of the employer by $30,000, but not below zero. Step 2A. If the amount calculated under step 2 in relation to an employee is positive, reduce that amount (but not below zero) by the lesser of: (a) $5,000; and (b) so much of the employee’s individual grossed ‑ up non ‑ rebatable amount as relates to benefits covered by subsection (2J) (about salary packaged meal entertainment and entertainment facility leasing benefits). Step 3. Add up the results of step 2A for all the employer’s employees. Step 4. Multiply the sum from step 3 by the FBT rate. The result is the employer’s aggregate non ‑ rebatable amount for the year of tax. Individual grossed ‑ up type 1 non ‑ rebatable amount (2C) For the purposes of step 1 in the method statement in subsection (2B), the individual grossed ‑ up type 1 non ‑ rebatable amount of an employee in relation to the employer for the year of tax is: Individual grossed ‑ up type 2 non ‑ rebatable amount (2D) For the purposes of step 1 in the method statement in subsection (2B), the individual grossed ‑ up type 2 non ‑ rebatable amount of an employee in relation to the employer for the year of tax is: Working out the type 1 individual base non ‑ rebatable amount (2E) An employee’s type 1 individual base non ‑ rebatable amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 3 of the method statement in subsection (2G) and step 3 of the method statement in subsection (2H). Working out the type 2 individual base non ‑ rebatable amount (2F) An employee’s type 2 individual base non ‑ rebatable amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 4 of the method statement in subsection (2G) and step 4 of the method statement in subsection (2H). Working out the subsection (2G) amounts (2G) An employee’s subsection (2G) amounts for the year of tax are worked out as follows. Method statement Step 1. Work out under section 5E for each of the employer’s employees the employee’s individual fringe benefits amount (if any) for the year of tax in respect of the employee’s employment by the employer. Step 2. Identify the benefits taken into account in step 1 that are GST ‑ creditable benefits (see section 149A). Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2G) amount for the individual. Step 4. The remainder of the amount is the step 4 of subsection (2G) amount for the individual. Working out the subsection (2H) amounts (2H) An employee’s subsection (2H) amounts for the year of tax are worked out as follows. Method statement Step 1. Work out for each employee his or her share (if any) of the taxable values of the excluded fringe benefits for the year of tax in respect of the employee’s employment by the employer, but disregarding benefits: (a) that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or (b) that are car parking fringe benefits; or (c) whose taxable values are wholly or partly attributable to entertainment facility leasing expenses. Step 2. Identify the benefits taken into account in step 1 that are GST ‑ creditable benefits (see section 149A). Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2H) amount for the individual. Step 4. The remainder of the amount is the step 4 of subsection (2H) amount for the individual. Salary packaged meal entertainment and entertainment facility leasing benefits (2J) This subsection covers a benefit that is provided under a salary packaging arrangement if: (a) the benefit is constituted by the provision of meal entertainment (as defined in section 37AD, whether or not the employer has elected that Division 9A of Part III apply to the employer); or (b) the benefit is wholly or partly attributable to entertainment facility leasing expenses. Extended meaning of “institution of the Commonwealth, a State or a Territory” (3) For the purposes of this section, an institution established by a law of the Commonwealth, a State or a Territory is taken to be an institution of the Commonwealth, the State or the Territory, as the case requires. Meanings of “non ‑ profit society”, “non ‑ profit association” and “non ‑ profit club” (5) A society, association or club is not covered by table item 4, 5, 8, 9, 10, 11 or 12 in subsection (1) for a year of tax if it is: (a) an incorporated company where all the stock or shares in the capital of the company is or are beneficially owned by: (i) the Commonwealth, a State or a Territory; or (ii) an authority or institution of the Commonwealth, a State or a Territory; or (b) an incorporated company where the company is limited by guarantee and the interests and rights of the members in or in relation to the company are beneficially owned by: (i) the Commonwealth, a State or a Territory; or (ii) an authority or institution of the Commonwealth, a State or a Territory. Definitions (6) In this section: FBT rate means the rate of fringe benefits tax for the year of tax. GST rate means the rate of goods and services tax payable under the A New Tax System (Goods and Services Tax) Act 1999 for the year of tax.

Amendment history: Inserted by No 223 of 1992, effective 1 Apr 1994 | Amended by No 118 of 1993, effective s 7–12, 176: 24 Dec 1993 (s 2(1)) s 180–182: 1 Apr 1994 (s 2(5)) | Amended by No 56 of 1994, effective s 3–12: 7 Apr 1994(s 2(1)) | Amended by No 145 of 1995, effective 12 Dec 1995 | Amended by No 52 of 2000, effective Sch 1: 30 May 2000 (s 2) | Amended by No 167 of 2001, effective Sch 1 and Sch 4 (items 1–4): 1 Oct 2001 (s 2(1)) | Amended by No 168 of 2001, effective Sch 1 (items 7–9) and Sch 5 (item 3): 1 Oct 2001 (s 2(1)) | Amended by No 95 of 2004, effective Sch 10 (items 18–27, 43, 44(3)): 1 July 2005 (s 2 (1) item 8) | Amended by No 63 of 2005, effective Sch 4: 1 July 2005 (s 2(1) item 3) | Amended by No 54 of 2009, effective Sch 18 (item 5): 1 July 2009 (s 2(1) item 41) | Amended by No 169 of 2012, effective Sch 2 (items 42–58, 60–67) and Sch 4 (items 1–3): 3 Dec 2012 (s 2(1) items 3, 12) Sch 4 (items 16–20): never commenced (s 2(1) item 13) | Amended by No 124 of 2013, effective Sch 11 (items 10–25, 27): 30 June 2013 (s 2(1) item 17) | Amended by No 48 of 2014, effective Sch 2: 25 June 2014 (s 2(1)) | Amended by No 162 of 2015, effective Sch 1 (items 4–20) and Sch 3: 30 Nov 2015 (s 2(1) item 2)

s 66 — Liability to pay tax

(1) Subject to this Act, tax imposed in respect of the fringe benefits taxable amount of an employer of a year of tax is payable by the employer. (2) A law, or a provision of a law, passed before the commencement of this Act that purports to exempt a person from liability to pay fringe benefits tax or to pay taxes that include that tax does not exempt that person from liability to pay that tax. (3) A law, or a provision of a law, passed after the commencement of this Act that purports to exempt a person from liability to pay taxes under the laws of the Commonwealth or to pay certain taxes under those laws that include fringe benefits tax, other than a law or a provision that expressly exempts a person from liability to pay that tax, shall not be construed as exempting the person from liability to pay that tax.

s 67 — Arrangements to avoid or reduce fringe benefits tax

(1) Where: (a) an employer (in this subsection referred to as the eligible employer ) has obtained or, but for this section, would obtain, a tax benefit in respect of a year of tax in connection with an arrangement under which a benefit is or was provided to a person, being an arrangement that was entered into, or commenced to be carried out, on or after 19 September 1985; and (b) it would be concluded that the person, or one of the persons, who entered into or carried out the arrangement or any part of the arrangement did so for the sole or dominant purpose of enabling the eligible employer to obtain a tax benefit in connection with the arrangement or of enabling the eligible employer and another employer or other employers each to obtain a tax benefit in connection with the arrangement (whether or not that person who entered into or carried out the arrangement or any part of the arrangement is the eligible employer or is the other employer or one of the other employers); the Commissioner: (c) may determine that the aggregate fringe benefits amount (if any) of the eligible employer of the year of tax be increased by the amount of the tax benefit; and (d) may determine that appropriate adjustments (if any) be made to the aggregate fringe benefits amount of the eligible employer in respect of another year of tax or of another employer in respect of any year of tax; and any such determination has effect accordingly. (2) A reference in this section to the obtaining by an employer of a tax benefit in respect of a year of tax in connection with an arrangement under which a benefit is provided to a person is a reference to an amount not being included in the aggregate fringe benefits amount of the employer of the year of tax in respect of that benefit where the amount would have been included, or could reasonably be expected to have been included, in that aggregate fringe benefits amount if the arrangement had not been entered into or carried out. (3) A reference in this section to the obtaining by an employer of a tax benefit in respect of a year of tax in connection with an arrangement under which a benefit is provided to a person does not include a reference to an amount not being included in the aggregate fringe benefits amount of the employer of the year of tax in respect of that benefit, being an amount that would have been included, or could reasonably be expected to have been included, in that aggregate fringe benefits amount if the arrangement had not been entered into or carried out, where the non ‑ inclusion of the amount in that aggregate fringe benefits amount is attributable to the payment or provision by a person of consideration in respect of the provision of the benefit. (4) Where, at any time, an employer considers that the Commissioner ought to make a determination under paragraph (1)(d) in relation to the employer in relation to a year of tax, the employer may post to or lodge with the Commissioner a request in writing for the making by the Commissioner of a determination under that paragraph. (5) The Commissioner shall consider the request and serve on the employer a written notice of the Commissioner’s decision on the request. (6) If the employer is dissatisfied with the Commissioner’s decision on the request, the employer may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 . (8) Nothing in section 74 prevents the amendment of an assessment at any time before the end of 6 years after the original assessment date if the amendment is for the purposes of giving effect to subsection (1) of this section as it applies by virtue of paragraph (1)(c). (9) Nothing in section 74 prevents the amendment of an assessment at any time if the amendment is for the purpose of giving effect to subsection (1) of this section as it applies by virtue of paragraph (1)(d). (10) In this section, a reference to an employer, in relation to an arrangement, includes a reference to a person who would be, or might reasonably be expected to be, an employer but for the arrangement. (11) A reference in this section to the carrying out of an arrangement by a person shall be read as including a reference to the carrying out of an arrangement by a person together with another person or other persons. (12) Nothing in the provisions of this Act other than this section or in the International Tax Agreements Act 1953 shall be taken to limit the operation of this section.

Amendment history: Amended by No 48 of 1986, effective s. 31 and Parts VII, VIII (ss. 45–56): (a) Remainder: 1 July 1986 | Amended by No 37 of 1990, effective 18 Feb 1991 ( see s. 2 and Gazette 1991, No. S47) | Amended by No 216 of 1991, effective s 5–8, 88, 123, 124: 24 Dec 1991 (s 2(1)) s 113, 114: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) | Amended by No 223 of 1992, effective 1 Apr 1994 | Amended by No 22 of 1995, effective 29 Mar 1995 | Amended by No 25 of 2000, effective s 4–6 and Sch 2 (item 33): 1:23 am (Australian Central Standard Time) 26 Oct 1999 (s 2(2), 4) | Amended by No 10 of 2003, effective Sch 1 (item 33): 20 May 2002 (s 2(1) item 2) | Amended by No 59 of 2019, effective Sch 2 (item 3): 30 Aug 2019 (s 2(1) item 2)

s 68 — Annual returns

Where there is a fringe benefits taxable amount of an employer of a year of tax, the employer shall, unless the employer has furnished a return or returns under section 69 in relation to the fringe benefits taxable amount of the year of tax, furnish to the Commissioner a return not later than 21 May in the next year of tax or such later date as the Commissioner allows.

Amendment history: Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1))

s 69 — Further returns

Where the Commissioner, by notice in writing served on a person, requires the person, whether an employer or not, to furnish to the Commissioner a return in relation to a year of tax, the person shall furnish the return in the manner and within the time specified in the notice, whether or not the person has furnished, or is or was required to furnish, a return under section 68 or this section in respect of that year of tax.

s 70 — Keeping records of indirect tax transactions

A return under section 68 or 69 must: (a) be in the approved form; and (b) specify: (i) the fringe benefits taxable amount of the employer of the year of tax concerned; and (ii) the amount of tax payable on that amount.

Amendment history: Amended by No 174 of 1997, effective Sch 7 (items 19–32): 21 Nov 1997 (s 2(1)) | Repealed and substituted by No 91 of 2000, effective Sch 2 (items 8, 8A, 9–12): 1 July 2000 (s 3(1)) Sch 2 (items 148–157): 1 Apr 2001 (s 3(3))

s 70D — Tax agent to give taxpayer copy of notice of assessment

(1) Where a taxpayer has given the address of a registered tax agent as the taxpayer’s address for service, the registered tax agent must give the taxpayer the original of, or a copy of, any notice of assessment in respect of that taxpayer that is delivered to that address. Penalty: 30 penalty units. (2) An offence under subsection (1) is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code .

Amendment history: Inserted by No 174 of 1997, effective Sch 7 (items 19–32): 21 Nov 1997 (s 2(1)) | Amended by No 146 of 2001, effective s 4 and Sch 4 (items 33–40): 15 Dec 2001 (s 2(1))

s 72 — First return deemed to be an assessment

Where: (a) at a particular time, a return under this Act in relation to an employer in relation to a year of tax is furnished; and (b) before that time, no return has been furnished, and no assessment has been made, in relation to the employer in relation to the year of tax; the following provisions have effect: (c) the Commissioner shall be deemed at that time to have made an assessment (in this section referred to as the deemed assessment ) of: (i) the fringe benefits taxable amount (including a nil amount) of the employer of the year of tax; and (ii) the amount (including a nil amount) of tax payable on that fringe benefits taxable amount; being those respective amounts as specified in the return referred to in paragraph (a); (d) the return referred to in paragraph (a) shall be deemed to be a notice of the deemed assessment and to be under the hand of the Commissioner; (e) the notice referred to in paragraph (d) shall be deemed to have been served at that time on the person liable to pay the tax.

s 73 — Default assessments

Where: (a) an employer has not furnished a return in respect of a year of tax; and (b) the Commissioner is of the opinion that the employer is liable to pay tax in respect of that year; the Commissioner may, whether during that year or after the end of that year, make an assessment of: (c) the fringe benefits taxable amount of the employer of the year of tax; and (d) the amount of tax payable on that fringe benefits taxable amount.

s 74 — Amendment of assessments

(1) The Commissioner may, at any time within a period of 3 years after the original assessment date in relation to an assessment, amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary. (2) Subject to this section, the Commissioner may, after the end of 3 years after the original assessment date in relation to an assessment, amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary. (3) Where: (a) an employer does not make a full and true disclosure of all the material facts necessary for an assessment of the tax payable by the employer; (b) the Commissioner makes an assessment; and (c) there is an avoidance of tax; the Commissioner may: (d) where the Commissioner is of the opinion that the avoidance of tax is due to fraud or evasion—at any time; and (e) in any other case—within 6 years after the original assessment date in relation to the assessment; amend the assessment by making such alterations or additions to it as the Commissioner thinks necessary. (4) No amendment effecting a reduction in the liability of an employer under an assessment shall be made after the end of 3 years after the original assessment date. (5) Where an assessment has been amended under this section in any particular, the Commissioner may, within 3 years after the date on which the amended assessment is made, make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner’s opinion, is necessary to effect such reduction in the liability of the employer liable to pay tax under the assessment as is just. (6) Where an employer: (a) applies, within 3 years after the original assessment date in relation to an assessment, for an amendment of an assessment; and (b) supplies to the Commissioner within that period all information needed by the Commissioner for the purposes of determining the application made by the employer; the Commissioner may amend the assessment, notwithstanding that that period has expired. (6A) An application for amendment must be in the approved form. (7) Nothing in this section prevents the amendment of an assessment: (a) in order to give effect to a decision on a review or appeal; or (b) by way of reduction in any particular pursuant to an objection made under this Act or pending an appeal or review.

Amendment history: Amended by No 174 of 1997, effective Sch 7 (items 19–32): 21 Nov 1997 (s 2(1)) | Amended by No 91 of 2000, effective Sch 2 (items 8, 8A, 9–12): 1 July 2000 (s 3(1)) Sch 2 (items 148–157): 1 Apr 2001 (s 3(3)) | Amended by No 2 of 2015, effective Sch 2 (item 22): 1 July 2015 (s 2(1) item 4) Sch 2 (items 73, 76–87, 95–99) and Sch 4 (items 67–69, 79): 25 Feb 2015 (s 2(1) items 5, 6)

s 75 — Refund of amounts overpaid

(1) Where, by reason of an amendment of an assessment, a person’s liability to tax is reduced: (a) the amount by which the tax is so reduced shall be taken, for the purposes of section 93, never to have been payable; and (b) the Commissioner shall: (i) refund the amount of any tax overpaid; or (ii) apply the amount of any tax overpaid against any liability of the person to the Commonwealth and refund any part of the amount that is not so applied. (2) In subsection (1), unless the contrary intention appears, tax includes additional tax under section 93.

Amendment history: Amended by No 2 of 2015, effective Sch 2 (item 22): 1 July 2015 (s 2(1) item 4) Sch 2 (items 73, 76–87, 95–99) and Sch 4 (items 67–69, 79): 25 Feb 2015 (s 2(1) items 5, 6)

s 76 — Amended assessment to be an assessment

Except as otherwise provided, an amended assessment is an assessment for all the purposes of this Act.

s 77 — Notice of assessment

As soon as practicable after an assessment is made, the Commissioner shall serve notice of the assessment in writing on the person liable to pay the tax.

s 78 — Validity of assessment

The validity of any assessment is not affected by reason that any provision of this Act has not been complied with.

s 78A — Objections

An employer who is dissatisfied with an assessment may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 . Fringe Benefits Tax Assessment Act 1986 No. 39, 1986 Compilation No. 97 Compilation date: 1 July 2026 Includes amendments: Act No. 49, 2026 This compilation is in 2 volumes Volume 1: Parts I to V sections 1 to 78A Volume 2: Parts VII to XII sections 90 to 167 Schedule Endnotes Each volume has its own contents About this compilation This compilation This is a compilation of the Fringe Benefits Tax Assessment Act 1986 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date ). The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). Application, saving and transitional provisions If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Presentational changes The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register. Self ‑ repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents

Amendment history: Inserted by No 216 of 1991, effective s 5–8, 88, 123, 124: 24 Dec 1991 (s 2(1)) s 113, 114: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7)

s 90 — When tax payable

Subject to this Part, tax assessed in respect of a year of tax becomes due and payable, or shall be deemed to have become due and payable, as the case requires, on 21 May in the next year of tax. Note: For provisions about collection and recovery of tax, see Part 4 ‑ 15 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 179 of 1999, effective Sch 2 (items 9–19, 130–136): 22 Dec 1999 (s 2(1)) | Amended by No 2 of 2015, effective Sch 2 (item 22): 1 July 2015 (s 2(1) item 4) Sch 2 (items 73, 76–87, 95–99) and Sch 4 (items 67–69, 79): 25 Feb 2015 (s 2(1) items 5, 6)

s 93 — Unpaid tax

(1) If any of the tax (including additional tax) which a person is liable to pay remains unpaid after the time by which the tax is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) started at the beginning of the day by which the tax was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the tax; (ii) general interest charge on any of the tax. (2) The amount of the general interest charge is taken to be additional tax payable under this section. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

Amendment history: Amended by No 191 of 1992, effective 21 Dec 1992 | Amended by No 181 of 1994, effective Schedule 1 (items 22–85): 13 Oct 1994 Remainder: Royal Assent | Amended by No 120 of 1995, effective Sch 2 (item 5): 25 Oct 1995 (s 2(1)) | Amended by No 11 of 1999, effective Schedule 1 (items 1–11, 398, 399, 404, 405): 1 July 1999 | Amended by No 101 of 2006, effective Sch 1 (items 1, 4), Sch 2 (items 81–112, 1017, 1020, 1021), Sch 5 (items 119–123) and Sch 6 (items 1, 5–11): 14 Sept 2006 (s 2(1) items 2, 4) | Amended by No 2 of 2015, effective Sch 2 (item 22): 1 July 2015 (s 2(1) item 4) Sch 2 (items 73, 76–87, 95–99) and Sch 4 (items 67–69, 79): 25 Feb 2015 (s 2(1) items 5, 6)

s 100 — Person in receipt or control of money of non ‑ resident

(1) A person who has authority to receive, control or dispose of money belonging to a non ‑ resident who is liable to an amount of tax shall, when required by the Commissioner by notice in writing served on the person, pay the amount of tax and, by force of this section, is, when so required: (a) authorised and required to retain from time to time any money that comes to the person on behalf of the non ‑ resident or so much of it as is sufficient to pay the amount of tax payable by the non ‑ resident; (b) made personally liable for the amount of tax after it becomes payable to the extent of any amount so retained, or which should have been so retained, under paragraph (a); and (c) indemnified for all payments that the person makes pursuant to this section. (2) For the purposes of subsection (1), a person who is liable to pay money to a non ‑ resident shall be deemed to be a person who has the control of money belonging to the non ‑ resident, and all money due by the person to the non ‑ resident shall be deemed to be money that comes to the person on behalf of the non ‑ resident. (3) Where the Commonwealth, a State or Territory, or an authority of the Commonwealth, a State or Territory has the receipt, control or disposal of money belonging to a non ‑ resident, this section (other than paragraph (1)(b)) applies to and in relation to the Commonwealth, the State or the Territory, or the authority of the Commonwealth, of the State or of the Territory, as the case may be, in the same manner as it applies to and in relation to any other person. (4) In this section, tax includes additional tax under section 93.

Amendment history: Amended by No 2 of 2015, effective Sch 2 (item 22): 1 July 2015 (s 2(1) item 4) Sch 2 (items 73, 76–87, 95–99) and Sch 4 (items 67–69, 79): 25 Feb 2015 (s 2(1) items 5, 6)

s 101 — Interpretation

(1) In sections 93, 100 and 129, but not in any other section of this Act, tax includes an instalment of tax payable under this Division. (2) In sections 100 and 129, but not in any other section of this Act, tax includes additional tax payable under subsection 112(4). (3) The ascertainment of the notional tax amount, or the amount of any instalment of tax, in accordance with this Division shall not be deemed to be an assessment within the meaning of any of the provisions of this Act.

Amendment history: Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 91 of 2000, effective Sch 2 (items 8, 8A, 9–12): 1 July 2000 (s 3(1)) Sch 2 (items 148–157): 1 Apr 2001 (s 3(3))

s 102 — Liability to pay instalments of tax

For the purpose of securing generally the more expeditious collection of tax, an employer is liable to pay, in accordance with this Division, 4 instalments of tax in respect of each year of tax.

Amendment history: Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1))

s 103 — When instalment of tax payable

(1) Subject to this Division, the 4 instalments of tax payable in respect of a year of tax are due and payable as follows: When instalments of tax are due and payable Item This instalment ... is due and payable on: 1 first instalment 21 July in that year of tax 2 second instalment 21 October in that year of tax 3 third instalment 21 January in that year of tax 4 fourth instalment 21 April in the next year of tax (2) Despite subsection (1), and subject to this Division, if an employer is a deferred BAS payer on the day specified as the day on which an instalment is due and payable under subsection (1), that instalment is instead due and payable as specified in the following table: When instalments of tax are due and payable Item If subsection (2) applies to this instalment: the instalment is due and payable on: 1 first instalment 28 July in that year of tax 2 second instalment 28 October in that year of tax 3 third instalment 28 February in that year of tax 4 fourth instalment 28 April in the next year of tax Note: For provisions about collection and recovery of instalments of fringe benefits tax, see Part 4 ‑ 15 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Repealed and substituted by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective Sch 3 (items 1–8): 30 June 2001 (s 2(1))

s 104 — Notice of the amount of an instalment

An employer must notify the Commissioner, in the approved form, of the amount of an instalment on or before the day on which the instalment is due and payable.

Amendment history: Amended by No 139 of 1987, effective 18 Dec 1987 | Amended by No 11 of 1999, effective Schedule 1 (items 1–11, 398, 399, 404, 405): 1 July 1999 | Repealed and substituted by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1))

s 105 — Credit for instalments payable

(1) An employer is entitled to a credit when the Commissioner: (a) makes an assessment of the tax payable by the employer for a year of tax; or (b) determines that no tax is payable. Note: The employer’s first return for the year of tax is treated as an assessment: see section 72. (2) The credit is equal to: • the total of each instalment (if any) payable by the employer for the year of tax; reduced by: • the total of any credits the employer has claimed under section 112A because of one or more instalments of tax for the year of tax. Note: An employer can claim a credit under section 112A in some cases where the amount by reference to which an instalment is worked out reduces during the year of tax. (3) The making of the assessment or determination, and the resulting credit entitlement, do not affect the liability to pay an instalment. Note: How the credit is applied is set out in Division 3 of Part IIB of the Taxation Administration Act 1953 .

Amendment history: Repealed and substituted by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Repealed and substituted by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1))

s 109 — Interpretation

In this Subdivision: employer’s estimate , in relation to an employer, in relation to an instalment of tax in relation to a year of tax, means the amount shown in a statement by the employer under subsection 112(1) in relation to the instalment as the employer’s estimate of the tax that will be payable by the employer in respect of the year of tax. estimated tax , in relation to an employer in relation to a year of tax, means the amount determined, or last determined, as the case requires, under subsection 112(2) or (3) as the estimated tax of the employer in respect of the year of tax. GIC period , in relation to an instalment in relation to a year of tax, has the meaning given by the following table: GIC period Item For this instalment in that year of tax: GIC period is this period if this instalment is due and payable under subsection 103(1): GIC period is this period if this instalment is due and payable under subsection 103(2): 1 first instalment the period starting at the beginning of 21 July, and finishing at the end of 20 October, in the year of tax the period starting at the beginning of 28 July, and finishing at the end of 27 October, in the year of tax 2 second instalment the period starting at the beginning of 21 October, and finishing at the end of 20 January, in the year of tax the period starting at the beginning of 28 October, and finishing at the end of 27 February, in the year of tax 3 third instalment the period starting at the beginning of 21 January in the year of tax and finishing at the end of 20 April in the next year of tax the period starting at the beginning of 28 February in the year of tax and finishing at the end of 27 April in the next year of tax 4 fourth instalment the period starting at the beginning of 21 April, and finishing at the end of 20 May, in the next year of tax the period starting at the beginning of 28 April, and finishing at the end of 20 May, in the next year of tax relevant fraction , in relation to an instalment, means: (a) 0.25 for a first instalment; or (b) 0.50 for a second instalment; or (c) 0.75 for a third instalment; or (d) 1.00 for a fourth instalment.

Amendment history: Amended by No 11 of 1999, effective Schedule 1 (items 1–11, 398, 399, 404, 405): 1 July 1999 | Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective Sch 3 (items 1–8): 30 June 2001 (s 2(1))

s 110 — Notional tax amount

(1) An employer’s notional tax amount for a year of tax (the current year ) as at a particular time (the test time ) is worked out using the table, except as provided in subsections (3), (4) and (5). Working out an employer’s notional tax amount Item In this case: The notional tax amount is: 1 No other item applies the amount of the employer’s tax for the most recent year of tax (the base year ) for which the Commissioner has made an assessment before the test time. 2 Before the test time, the Commissioner has determined that no tax is payable by the employer for a year of tax, and there is no later year of tax for which the Commissioner has made an assessment of the employer’s tax before the test time nil 3 There is no year of tax for which the Commissioner has, before the test time, made an assessment of the employer’s tax or determined that no tax is payable by the employer nil 4 The notional tax amount would otherwise be worked out under item 1 and: (a) the rate of tax declared by the Parliament for the current year is different from the rate declared for the base year; and (b) the regulations provide for varying the notional tax amount of employers for the current year if the test time is before the prescribed day—the notional tax amount worked out under item 1; or if the test time is on and after the prescribed day—that amount as varied in accordance with the regulations. Note: The employer’s first return for the year of tax is treated as an assessment: see section 72. (3) The Commissioner may determine that the employer’s notional tax amount for the current year is such amount as the Commissioner estimates will be the tax payable by the employer for that year, if the Commissioner has reason to believe that that tax will exceed: (a) if the notional tax amount would otherwise be worked out under item 1 or 4 of the table in subsection (1)—the amount of the employer’s tax for the base year; or (b) if the notional tax amount would otherwise be worked out under item 2 or 3 of the table in subsection (1)—nil. (4) Where the Commissioner makes a determination under subsection (3): (a) the Commissioner shall cause a notice in writing to be served on the employer specifying: (i) the notional tax amount determined by the Commissioner; and (ii) the date on which the determination takes effect, being a date not less than 30 days after the date of service of the notice; and (b) subject to subsection (5), the notional tax amount of the employer in respect of the year of tax is, on and after the date specified in the notice, the amount determined by the Commissioner. (5) Where, in relation to an instalment of tax in respect of a year of tax, being an instalment that becomes due and payable after the end of a quarter, an employer has estimated pursuant to subsection 112(1) the amount of tax that will be payable in respect of that year of tax and has furnished to the Commissioner a statement in accordance with that subsection, then, on and after the last day of the quarter and until such time as there is a further application of this subsection in relation to a subsequent instalment of tax payable by the employer, the notional tax amount of the employer in respect of the year of tax is, or shall be deemed to have been, as the case requires, an amount equal to the estimated tax.

Amendment history: Amended by No 223 of 1992, effective 1 Apr 1994 | Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective Sch 3 (items 1–8): 30 June 2001 (s 2(1))

s 111 — Amount of instalment of tax

(1) The amount of an instalment of tax of an employer for a year of tax that becomes due and payable after the end of a quarter is the amount worked out using this formula, if the amount is positive: Otherwise, the amount of the instalment is nil. Note: If the notional tax amount is too small, the instalment may not be payable: see subsection (2). (1A) For the purposes of the formula in subsection (1): notional tax amount means the employer’s notional tax amount for the year of tax, as at the end of the last day of that quarter. previous credits means the total of any credits the employer has claimed under section 112A because of one or more instalments of tax for the same year of tax that became due and payable before that day. previous instalments means the total of any instalments of tax for the same year of tax that became due and payable by the employer before that day. (2) An instalment of tax in respect of a year of tax that would otherwise become due and payable by an employer after the end of a quarter is not payable if: (a) the instalment is calculated by reference to a notional tax amount ascertained under subsection 110(1); and (b) the notional tax amount by reference to which the instalment was calculated is less than: (i) if a determination of an amount is in force under subsection (3) in respect of the year of tax—that amount; or (ii) in any other case—$1,000; and (c) unless that quarter is the first quarter in the year of tax—because of one or more previous applications of this subsection, the instalment that would otherwise have become due and payable by the employer after the end of the previous quarter is not payable. (3) The Commissioner may, by legislative instrument, determine an amount other than $1,000 as the amount applicable for the purposes of subsection (2) in respect of a year or years of tax specified in the determination.

Amendment history: Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective Sch 3 (items 1–8): 30 June 2001 (s 2(1)) | Amended by No 64 of 2020, effective Sch 3 (items 63–71): 1 July 2020 (s 2(1) item 5) Sch 3 (items 202, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 112 — Estimated tax

(1) An employer may, not later than the date on which an instalment of tax in respect of a year of tax is due and payable or within such further period as the Commissioner allows: (a) make an estimate of the amount of the tax (if any) that will be payable by the employer in respect of that year of tax; and (b) furnish to the Commissioner a written statement, in the approved form, showing: (i) the amount so estimated; and (ii) the basis on which the estimate has been made; unless the employer has previously furnished a statement under this subsection in relation to the instalment of tax. (2) Where an employer furnishes to the Commissioner, in relation to an instalment of tax, a statement under subsection (1), the estimated tax is, subject to subsection (3), an amount equal to the employer’s estimate. (3) Where, having regard to information in returns furnished by the employer and any other information in the Commissioner’s possession, the Commissioner has reason to believe that the amount of tax that will be payable by the employer in respect of the year of tax is greater than the employer’s estimate: (a) the Commissioner may estimate the amount that, in the Commissioner’s opinion, should have been the amount estimated by the employer pursuant to subsection (1) in respect of that year of tax; and (b) the estimated tax is: (i) an amount equal to the amount of tax so estimated by the Commissioner; or (ii) the amount that would be the notional tax amount of the employer in respect of the year of tax if the employer had not furnished a statement under subsection (1); whichever is the less.

Amendment history: Amended by No 191 of 1992, effective 21 Dec 1992 | Amended by No 11 of 1999, effective Schedule 1 (items 1–11, 398, 399, 404, 405): 1 July 1999 | Amended by No 178 of 1999, effective Sch 1 (items 79–84) and Sch 2 (items 94–140): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1))

s 112A — Credit in certain cases where amount of instalment is nil

(1) If an amount worked out using the formula in subsection 111(1) is negative, the employer is entitled to claim a credit equal to that amount, expressed as a positive amount. Note: This will happen if the notional tax amount has reduced since the end of an earlier quarter because, for example: the employer has made an estimate under section 112 of its tax for the current year; or an assessment has been made for a more recent year of tax before the current year. (2) A claim for a credit must be made in the approved form after the end of the quarter. Note: How the credit is applied is set out in Division 3 of Part IIB of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective Sch 3 (items 1–8): 30 June 2001 (s 2(1))

s 112B — Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated tax

(1) An employer is liable to pay the general interest charge under this section if: (a) in order to determine the amount of an instalment of tax (the underpaid instalment ) of the employer for a year of tax, an amount (whether positive, negative or nil) (the actual amount ) was worked out using the formula in subsection 111(1); and (b) because of subsection 110(5), the notional tax amount used in working out the actual amount was an estimate by the employer under subsection 112(1); and (c) that notional tax amount is less than 90% of the employer’s tax assessed for the year of tax; and (d) that assessed tax has become due and payable. Note: Paragraph (1)(b) is not satisfied if the notional tax amount used in working out the actual amount was estimated tax worked out under subsection 112(3) because the Commissioner disagrees with the employer’s estimate. (2) The employer is liable to pay the charge, for each day in the GIC period, on the amount (if any) by which the actual amount is less than the amount (whether positive, negative or nil) worked out using the formula: (3) For the purposes of the formula in subsection (2): minimum tax amount means the lesser of: (a) the amount that, apart from subsection 110(5), would have been the notional tax amount used in working out the actual amount; and (b) the employer’s tax assessed for the year of tax. previous credits means the total of any credits the employer has claimed under section 112A because of one or more instalments of tax for the same year of tax that became due and payable before that day. previous instalments means the total of any instalments of tax for the same year of tax that became due and payable by the employer before the day on which the underpaid instalment became due and payable (or would have become due and payable if the actual amount had been positive). (4) The amount of the general interest charge is taken to be additional tax payable under this section.

Amendment history: Inserted by No 44 of 2000, effective Sch 2 (items 1, 3, 4, 6–8, 11(1)): 1 Apr 2000 (s 2(2)) Sch 2 (items 2, 5, 9, 10, 11(2)): 1 Apr 2001 (s 2(3)) Sch 3 (items 7–10): 22 Dec 1999 (s 2(1))

s 113 — Notice of alteration of amount of instalment

Where, by reason of the operation of subsection 112(3), the amount payable by an employer as an instalment of tax is greater than the instalment that would have been payable if it had been ascertained by reference to the employer’s estimate, the Commissioner shall cause to be served on the employer a notice in writing specifying: (a) the amount of the increase in the instalment of tax that became payable by reason of subsection 112(3); and (b) a date as the due date for payment of that amount, being a date not less than 14 days after the date of service of the notice; and the amount of the increase in the instalment of tax so specified is, notwithstanding section 103, due and payable on the date so specified.