Document ID: chunk:federal_register_of_legislation:C2025C00120:section:5b:p2
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 5B (pt 2/4)
Character Range: 19866–22662

if the individual grossed‑up non‑exempt amount for such an employee is equal to or less than $17,000, the amount calculated under this step for the employee is nil.
           Step 3. If step 2 does not apply in respect of one or more employees of the employer, reduce the individual grossed‑up non‑exempt amount for each such employee by $30,000, but not below nil.
           Step 4. If the amount calculated under step 2 or 3 in respect of an employee is positive, reduce that amount (but not below nil) by the lesser of:

                (a) $5,000; and
                (b) so much of the employee's individual grossed‑up non‑exempt amount as relates to benefits covered by subsection (1M) (about salary packaged meal entertainment and entertainment facility leasing benefits).

           Step 5. Add together the amounts calculated under step 4 in relation to the employees of the employer. The total amount is the employer's aggregate non‑exempt amount for the year of tax.

Individual grossed‑up type 1 non‑exempt amount
 (1F) For the purposes of step 1 in the method statement in subsection (1E), the individual grossed‑up type 1 non‑exempt amount of an employee in relation to the employer for the year of tax is:

Individual grossed‑up type 2 non‑exempt amount
 (1G) For the purposes of step 1 in the method statement in subsection (1E), the individual grossed‑up type 2 non‑exempt amount of an employee in relation to the employer for the year of tax is:

Working out the type 1 individual base non‑exempt amount
 (1H) An employee's type 1 individual base non‑exempt 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 (1K) and step 3 of the method statement in subsection (1L).

Working out the type 2 individual base non‑exempt amount
 (1J) An employee's type 2 individual base non‑exempt 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 (1K) and step 4 of the method statement in subsection (1L).

Working out the subsection (1K) amounts
 (1K) An employee's subsection (1K) amounts for the year of tax are worked out as follows.

      Method statement
           Step 1. Work out under subsection 135Q(3) for each of the employer's employees the amount that would be the employee's individual fringe benefit amount for the year of tax in respect of the employee's employment by the employer if subsection 135Q(1) were amended:

                (a) by omitting "or 58"; and
                (b) by omitting "one of those sections" from paragraph (b) and "those sections" from paragraph (c) and substituting in each case "that section".

           Step 2. Identify the