Document ID: chunk:federal_register_of_legislation:C2025C00120:section:19:p3
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 19 (pt 3/3)
Character Range: 82545–84557

on the loan in respect of the loan period would have been the same even if the loan fringe benefit were not applied or used in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the loan fringe benefit in relation to the year of tax;
 (v) if subparagraph (iv) does not apply—33⅓% of the notional amount of interest in relation to the loan in relation to the year of tax; or
 (i) if, under subsection 138(3), the loan fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (5).
 (2) Where a part of a loan to which a loan fringe benefit relates is used by an employee to:
 (a) purchase a particular car; or
 (b) pay a Division 28 car expense;
subsection (1) and the definition of car loan benefit in subsection 136(1) apply as if that part of the loan had been a separate loan.
 (5) For the purposes of paragraph (1)(i) (which applies to a loan fringe benefit that, under subsection 138(3), is deemed to have been provided to an employee only), the amount is calculated in accordance with the formula:

where:
employee's percentage of interest:
 (a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing that:
 (i) is purchased or paid for using all or part of the loan to which the loan fringe benefit relates; and
 (ii) is applied or used for the purpose of producing assessable income of the employee; and
 (b) does not include the percentage of the interest held in that asset or other thing by the employee's associate or associates during the holding period.
unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(i) did not apply in relation to the loan fringe benefit.

Division 5—Expense payment fringe benefits

Subdivision A—Expense payment benefits