Document ID: chunk:federal_register_of_legislation:C2025C00120:section:5b:p1
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 5B (pt 1/4)
Character Range: 17204–20092

5B  Working out an employer's fringe benefits taxable amount

Year of tax 2000‑2001 and later years
 (1A) Subject to subsection (1D), an employer's fringe benefits taxable amount for the year of tax beginning on 1 April 2000 or a later year of tax is the sum of the subsection (1B) amount and the subsection (1C) amount.
Note: Other provisions affect the fringe benefits taxable amount. For example, see section 124 (about assessments).

Subsection (1B) amount
 (1B) The subsection (1B) amount is the amount worked out using the formula:

Subsection (1C) amount
 (1C) The subsection (1C) amount is the amount worked out using the formula:

Increase in fringe benefits taxable amount for year of tax 2000‑2001 and later years
 (1D) If any benefits provided in respect of the employment of an employee of an employer are exempt benefits under section 57A, the employer's fringe benefits taxable amount for the year of tax beginning on 1 April 2000 or a later year of tax as worked out under subsection (1A) is increased by the employer's aggregate non‑exempt amount for the year of tax concerned.

How to work out aggregate non‑exempt amount
 (1E) An employer's aggregate non‑exempt amount for the year of tax is worked out as follows.

      Method statement
           Step 1. For each employee, add:

                (a) the individual grossed‑up type 1 non‑exempt amount (see subsection (1F)) in relation to the employer for the year of tax; and
                (b) the individual grossed‑up type 2 non‑exempt amount (see subsection (1G)) in relation to the employer for the year of tax.

            The result is the individual grossed‑up non‑exempt amount for the employee.
           Step 2. If:

                (b) the employer is a government body and the duties of the employment of one or more employees are as described in paragraph 57A(2)(b) (which is about duties of employment being exclusively performed in or in connection with certain hospitals); or
                (c) the employer is a public hospital; or
                (ca) 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; or
                (d) the employer is a hospital described in subsection 57A(4) (which is about hospitals carried on by certain societies and associations that are exempt from income tax);

            subtract $17,000 from the individual grossed‑up non‑exempt amount for each employee of the employer referred to in paragraph (c), (ca) or (d), or each employee referred to in paragraph (b), for the year of tax. However, 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