Document ID: chunk:federal_register_of_legislation:C2004A04616:section:2:p10
Version: federal_register_of_legislation:C2004A04616
Segment Type: section
Provision Reference: s 2 (pt 10/32)
Character Range: 63743–66340

section 46A of the Acts Interpretation Act 1901.

  "(3) A determination in subsection (1):

     (a) starts to have effect on the day on which it is notified in the Gazette; and

     (b) ceases to have effect at the end of 6 months after the day on which it is notified in the Gazette if it has not been revoked before then.

"Division 4—Value of school fees fringe benefits

Value of school fees fringe benefits

"1157N. The value of a school fees fringe benefit is the amount of the payment that constitutes the school fees benefit.

"Division 5—Value of health insurance fringe benefits

Value of health insurance fringe benefits

"11570. The value of a health insurance fringe benefit is the amount of the payment that constitutes the health insurance benefit.

"Division 6—Value of loan fringe benefits

Method of valuing loan fringe benefits

"1157P.(1) Subject to subsection (2), the value of a loan fringe benefit is to be worked out in accordance with section 1157Q.

"(2) If a determination is in force under section 1157R, the value of a loan fringe benefit is to be worked out in accordance with the determination.

Value of loan fringe benefits

  "1157Q.(1) This is how to work out the value of a loan fringe benefit:

Method statement

      Step 1. Work out whether the loan is a housing loan or another type of loan.

      Step 2. Work out the notional rate of interest for the loan using subsection (2) or (3).

      Step 3. Work out the actual rate of interest for the loan in the appropriate tax year using subsection (5).

      Step 4. Work out whether the actual rate of interest exceeds the notional rate of interest.

      Step 5. If the actual rate of interest is equal to or exceeds the notional rate of interest, the value of the loan fringe benefit is nil.

         Note: If the value of the loan fringe benefit is nil, you do not have to go any further in the Method statement.

      Step 6. If the actual rate of interest is less than the notional rate of interest, take the actual rate of interest away from the notional rate of interest.

      Step 7. Work out the amount of the loan (both the principal and interest) that is outstanding in the appropriate tax year using subsection (6).

      Step 8. Multiply the rate of interest obtained in Step 6 and the amount obtained in Step 7: the result is the interim value of the loan.

      Step 9. Work out how many complete weeks in the appropriate tax year the person had or will have the loan: the result is the number of allowable weeks.

Step 10. Apply the formula:

      Step 11. The amount obtained