Document ID: chunk:federal_register_of_legislation:C2025C00120:section:24:p1
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 24 (pt 1/6)
Character Range: 92158–94939

24  Reduction of taxable value—otherwise deductible rule
 (1) Where:
 (a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and
 (b) if the recipient had, at the time when the recipients expenditure was incurred, incurred and paid unreimbursed expenditure (in this subsection called the gross expenditure), in respect of the same matter in respect of which the recipients expenditure was incurred, equal to:
 (i) in the case of an in‑house expense payment fringe benefit—the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the expense payment fringe benefit in relation to the year of tax; or
 (ii) in the case of an external expense payment fringe benefit—the amount of the recipients expenditure;
  a once‑only deduction (in this subsection called the gross deduction) would, or would if not for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the gross expenditure; and
 (ba) the amount (in this subsection called the notional deduction) calculated in accordance with the formula:

             where:
           GD is the gross deduction; and
           RD is:
 (i) if there is no recipients portion in relation to the expense payment fringe benefit—nil; or
 (ii) if there is a recipients portion in relation to the expense payment fringe benefit—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable as a once‑only deduction to the recipient under that Act or the Income Tax Assessment Act 1936 in respect of the recipients expenditure (assuming that any payment of that expenditure by the recipient had been paid by the recipient at the time when the recipients expenditure was incurred);
  exceeds nil; and
 (c) in the case of an expense payment fringe benefit that is not an eligible incidental travel expense payment benefit or an eligible overtime meal expense payment benefit:
 (ia) where the recipients expenditure is in respect of fuel or oil for a motor vehicle owned by, or leased to, the recipient:
 (A) where the fringe benefit is an eligible small expense payment fringe benefit or an undocumentable expense payment fringe benefit—substitute documentary evidence of the recipients expenditure is maintained by or on behalf of the provider and, if the provider is not the employer, that documentary evidence, or a copy, is given to the employer before the declaration date; or
 (B) in any case—documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a