Document ID: chunk:federal_register_of_legislation:C2004A04616:section:2:p11
Version: federal_register_of_legislation:C2004A04616
Segment Type: section
Provision Reference: s 2 (pt 11/32)
Character Range: 66111–68663

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 by applying the formula in Step 10 is the value of the loan fringe benefit.

Note: If the person is a member of a couple, the value of the loan fringe benefit is to be halved in certain circumstances (see subsection (7)).

  "(2) The notional rate of interest for the tax year ending 30 June 1993 is:

  (a) 10% for a housing loan; and

  (b) 13.5% for any other loan.

  "(3) The notional rate of interest for the tax year ending 30 June 1994 is:

  (a) 6.95% for a housing loan; and

  (b) 11.75% for any other loan.

  "(4) The notional rate of interest for any subsequent tax year is:

  (a) 6.95% for a housing loan; and

  (b) 11.75% for any other loan.

  "(5) The actual rate of interest for the loan is:

     (a) if the loan starts after 1 July in the appropriate tax year—the rate of interest that is payable under the loan on the day on which the loan starts; and

     (b) in any other case—the rate of interest that is payable under the loan on 1 July in the appropriate tax year.

  "(6) The amount of the loan that is outstanding is:

     (a) if the loan starts after 1 July in the appropriate tax year—the amount that is outstanding on the day on which the loan starts; and

     (b) in any other case—the amount that is outstanding on 1 July in the appropriate tax year.

  "(7) If:

  (a) the person is a member of a couple; and

     (b) the person's partner receives a loan fringe benefit in the appropriate tax year; and

     (c) the person's and the partner's loan fringe benefits relate to the same loan;

the value of the loan fringe benefit obtained in Step 11 of the Method statement is to be halved.

Minister may determine alternative method of valuing loan fringe benefits

"1157R.(1) The Minister may determine an alternative method for valuing loan fringe benefits.

"(2) A determination under subsection (1) is a disallowable instrument for the purposes of 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 7—Value of housing fringe benefits

Method of valuing housing fringe benefits

"1157S.(1)