Document ID: chunk:federal_register_of_legislation:C2006C00496:clause:5_5a
Version: federal_register_of_legislation:C2006C00496
Segment Type: clause
Provision Reference: sch 5 cl 5A
Character Range: 41926–43489

5A  After Division 70
Insert:

Division 71—Financial supplies (acquisitions and importations to provide fringe benefits)

71‑1  What this Division is about

      Financial suppliers may not be entitled to input tax credits for acquisitions or importations they make to provide fringe benefits to their employees.

Note: Under the Fringe Benefits Tax Assessment Act 1986, a lower rate of fringe benefits tax is payable for providing fringe benefits without entitlement to input tax credits.

71‑5  Acquisitions by financial suppliers to provide fringe benefits

 (1) An acquisition that solely or partly relates to making *financial supplies is not a *creditable acquisition to the extent that the acquisition would (but for this section) be a *GST‑creditable benefit on the provision of which *fringe benefits tax is payable.

 (2) However, this section applies only if you *exceed the financial acquisitions threshold.

 (3) This section has effect despite section 11‑5 (which is about what is a creditable acquisition).

71‑10  Importations by financial suppliers to provide fringe benefits

 (1) An importation that solely or partly relates to making *financial supplies is not a *creditable importation to the extent that the importation would (but for this section) be a *GST‑creditable benefit on the provision of which *fringe benefits tax is payable.

 (2) However, this section applies only if you *exceed the financial acquisitions threshold.

 (3) This section has effect despite section 15‑5 (which is about what is a creditable importation).