Document ID: chunk:federal_register_of_legislation:C2004A00644:clause:1_7:p1
Version: federal_register_of_legislation:C2004A00644
Segment Type: clause
Provision Reference: sch 1 cl 7 (pt 1/2)
Character Range: 9253–11961

7  At the end of section 5C
Add:

 (2) An employer's aggregate fringe benefits amount for the year of tax beginning on 1 April 2000 or a later year of tax is the sum of the employer's type 1 aggregate fringe benefits amount and the employer's type 2 aggregate fringe benefits amount for the year of tax.

 (3) Work out an employer's type 1 aggregate fringe benefits amount for a year of tax as follows.

      Method statement
           Step 1. Identify the fringe benefits in respect of each of the employer's employees that are GST‑creditable benefits (see section 149A), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits.
           Step 2. Add up all the individual fringe benefits amounts worked out under step 1.
           Step 3. Identify the excluded fringe benefits for the year of tax in respect of each of the employer's employees that are GST‑creditable benefits (see section 149A), and add up the taxable values of all those excluded fringe benefits.
                  Note: Subsection 5E(3) explains what is an excluded fringe benefit.
           Step 4. Add the total from step 2 to the total from step 3. The total amount is the employer's type 1 aggregate fringe benefits amount for the year of tax.
 (4) Work out an employer's type 2 aggregate fringe benefits amount for a year of tax as follows.

      Method statement
           Step 1. Identify, in respect of each of the employer's employees, the fringe benefits that are not taken into account under step 1 of the method statement in subsection (3), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits.
           Step 2. Add up all the individual fringe benefits amounts worked out under step 1.
           Step 3. Identify, in respect of each of the employer's employees, the excluded fringe benefits for the year of tax that are not taken into account under step 3 of the method statement in subsection (3), and add up the taxable values of all those excluded fringe benefits.
                  Note: Subsection 5E(3) explains what is an excluded fringe benefit.
           Step 4. Add the total from step 2 to the total from step 3. The total amount is the employer's type 2 aggregate fringe benefits amount for the year of tax.
Note: Other provisions may affect the aggregate fringe benefits amount. For example, see section 67 (about arrangements to avoid or reduce tax), section 135L (about reducing the aggregate fringe benefits amount of an employer who is in business for only part of a year of tax) and section 152B