Document ID: chunk:federal_register_of_legislation:C2012C00919:clause:1_109ca:p1
Version: federal_register_of_legislation:C2012C00919
Segment Type: clause
Provision Reference: sch 1 cl 109CA (pt 1/3)
Character Range: 17117–19667

109CA  Payment includes provision of asset
 (1) In this Division, payment to an entity includes the provision of an asset for use by the entity.
Note: This includes provision under a lease or licence.
Example: Yacht builder Mainbrace Enterprises Pty Ltd owns a yacht for the purpose of sales demonstrations. With the private company's permission, one of its shareholders uses the yacht on weekends. The company has made a payment to the shareholder, unless one of the exceptions to subsection (1) applies.
 (2) The time the payment is made is the time the entity first:
 (a) uses the asset with the permission of the provider of the asset; or
 (b) has a right to use the asset (whether alone or together with other entities), at a time when the provider of the asset does not have a right:
 (i) to use the asset; or
 (ii) to provide the asset for use by another entity.
Example: Paragraph (a) could apply if a shareholder were driving a company car with the company's permission. Paragraph (b) could apply if the shareholder had the car parked at his or her house or at another place of his or her choosing.
 (3) However, if the use or right continues into another income year of the entity, treat the provision of the asset for use in the other income year as being a separate payment made at the start of that year.

Exceptions
 (4) Subsection (1) does not apply if the provision of the asset would, if done in respect of the employment of an employee, be a minor benefit under section 58P of the Fringe Benefits Tax Assessment Act 1986.
 (5) Subsection (1) does not apply to the extent that, if the entity had incurred and paid expenditure in respect of the provision of the asset, a once‑only deduction would have been allowable to the entity in respect of the expenditure, ignoring:
 (a) section 82A (Deductions for expenses of self‑education); and
 (b) Divisions 28 (Car expenses) and 900 (Substantiation rules) of the Income Tax Assessment Act 1997.
 (6) Subsection (1) does not apply to the provision of a dwelling, if:
 (a) the entity, or an associate of the entity, carries on a business; and
 (b) the entity or associate:
 (i) uses; or
 (ii) is granted or has a lease, licence or other right to use;
  land, water or a building for the purpose of carrying on the business; and
 (c) the provision of the dwelling to the entity is connected with that use or with that lease, licence or other right.
Note: For the meaning of land, see paragraph 22(1)(c) of the Acts Interpretation Act 1901.
 (7) Subsection (1) does not apply to the provision