Commonwealth Consolidated Acts Commonwealth Consolidated ActsAn employer who is dissatisfied with an assessment may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .
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 or more employees of the employer, reduce the individual grossed - up non - exempt amount for each such employee by $30,000, but not below nil.
Step 4. If the amount calculated under step 2 or 3 in respect of an employee is positive, reduce that amount (but not below nil) by the lesser of:
(a) $5,000; and
(b) so much of the employee's individual grossed - up non - exempt amount as relates to benefits covered by subsection (1M) (about salary packaged meal entertainment and entertainment facility leasing benefits).
Step 5. Add together the amounts calculated under step 4 in relation to the employees of the employer. The total amount is the employer's aggregate non - exempt amount for the year of tax.
Method statement
Step 1. Work out under subsection 135Q(3) for each of the employer's employees the amount that would be the employee's individual fringe benefit amount for the year of tax in respect of the employee's employment by the employer if subsection 135Q(1) were amended:
(b) by omitting "one of those sections" from paragraph (b) and "those sections" from paragraph (c) and substituting in each case "that section".
Step 2. Identify the benefits taken into account in step 1 that are GST - creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1K) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (1K) amount for the individual.
Method statement
Step 1. Work out for each employee his or her share (if any) of the amounts that, if section 57A did not apply, would be the taxable values of the excluded fringe benefits for the year of tax in respect of the employee's employment by the employer if those benefits were not excluded fringe benefits, but disregarding benefits:
(a) that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or
(b) that are car parking fringe benefits; or
(c) whose taxable values are wholly or partly attributable to entertainment facility leasing expenses.
Step 2. Identify the benefits taken into account in step 1 that are GST - creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1L) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (1L) amount for the individual.
Method statement
Step 1. Work out under Division 3 for each of the employer's employees the individual fringe benefits amount for the year of tax in respect of the employment of the employee by the employer.
Step 2. Add up all the individual fringe benefits amounts worked out under Step 1.
Step 3. Add up the taxable value of every excluded fringe benefit (other than an amortised fringe benefit) relating to an employee of the employer, the employer and the year of tax.
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.
Note: The result of Step 4 is the employer's aggregate fringe benefits amount if there are no amortised fringe benefits or reducible fringe benefits in relation to the employer.
Step 5. Add to the total from Step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax.
Step 6. Subtract from the total from Step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax.
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 (other than an amortised fringe benefit) for the year of tax in respect of each of the employer's employees that are GST - creditable benefits, and add up the taxable values of all those excluded fringe benefits.
Note 1: Subsection 5E(3) explains what is an excluded fringe benefit.
Note 2: Section 149A explains what is a GST - creditable benefit.
Step 4. Add the total from step 2 to the total from step 3.
Note: The result of step 4 is the employer's type 1 aggregate fringe benefits amount if there are no amortised amounts in relation to the employer.
Step 5. Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that are GST - creditable benefits. The total amount is the employer's type 1 aggregate fringe benefits amount for the year of tax.
Note: Section 65CA explains what is an amortised fringe benefit.
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 (other than an amortised fringe benefit) 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.
Note: The result of step 4 is the employer's type 2 aggregate fringe benefits amount if there are no amortised amounts or reducible fringe benefits in relation to the employer.
Step 5. Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that is not taken into account under step 5 of the method statement in subsection (3).
Note 1: The result of step 5 is the employer's type 2 aggregate fringe benefits amount if there are no reducible fringe benefits in relation to the employer.
Note 2: Section 65CA explains what is an amortised fringe benefit.
Step 6. Subtract from the total from step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax. The total amount is the employer's type 2 aggregate fringe benefits amount for the year of tax.
Method statement
Step 1. For each employee, add:
(a) the individual grossed - up type 1 non - rebatable amount (see subsection (2C)) in relation to the employer for the year of tax; and
(b) the individual grossed - up type 2 non - rebatable amount (see subsection (2D)) in relation to the employer for the year of tax.
The result is the individual grossed - up non - rebatable amount for the employee.
Step 2. Reduce the individual grossed - up non - rebatable amount for each employee of the employer by $30,000, but not below zero.
Step 2A. If the amount calculated under step 2 in relation to an employee is positive, reduce that amount (but not below zero) by the lesser of:
(a) $5,000; and
(b) so much of the employee's individual grossed - up non - rebatable amount as relates to benefits covered by subsection (2J) (about salary packaged meal entertainment and entertainment facility leasing benefits).
Step 3. Add up the results of step 2A for all the employer's employees.
Step 4. Multiply the sum from step 3 by the FBT rate. The result is the employer's aggregate non - rebatable amount for the year of tax.
Method statement
Step 1. Work out under section 5E for each of the employer's employees the employee's individual fringe benefits amount (if any) for the year of tax in respect of the employee's employment by the employer.
Step 2. Identify the benefits taken into account in step 1 that are GST - creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2G) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (2G) amount for the individual.
Method statement
Step 1. Work out for each employee his or her share (if any) of the taxable values of the excluded fringe benefits for the year of tax in respect of the employee's employment by the employer, but disregarding benefits:
(a) that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or
(b) that are car parking fringe benefits; or
(c) whose taxable values are wholly or partly attributable to entertainment facility leasing expenses.
Step 2. Identify the benefits taken into account in step 1 that are GST - creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2H) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (2H) amount for the individual.
Fringe Benefits Tax Assessment Act 1986
No. 39, 1986
Compilation No. 93
Compilation date: 15 September 2023
Includes amendments up to: Act No. 69, 2023
Registered: 23 September 2023
This compilation is in 2 volumes
Schedule
Endnotes
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Fringe Benefits Tax Assessment Act 1986 that shows the text of the law as amended and in force on 15 September 2023 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Part VII--Collection and recovery of tax
100 Person in receipt or control of money of non - resident
Division 2--Collection by instalments
102 Liability to pay instalments of tax
103 When instalment of tax payable
104 Notice of the amount of an instalment
105 Credit for instalments payable
Subdivision C--Working out the amount of instalments
111 Amount of instalment of tax
112 Estimated tax
112A Credit in certain cases where amount of instalment is nil
112B Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated tax
113 Notice of alteration of amount of instalment
Part X--Statutory evidentiary documents
123 Retention of statutory evidentiary documents
123AA Alternatives to statutory evidentiary documents
123A When business use percentage and estimate of business kilometres must be specified
123B Substantiation requirements not to apply in special circumstances
Part XA--Endorsement of registered charities etc.
123C Endorsement by Commissioner as public benevolent institution
123D Endorsement by Commissioner as health promotion charity
123E Endorsement by Commissioner as registered charity (other than public benevolent institution or health promotion charity)
132 Records to be kept and preserved
132A Written evidence not available when return lodged
134 Service on partnerships and associations
Part XIA--Record keeping exemption
135B Conditions that must be satisfied
Division 3--Consequences if conditions in Division 2 are satisfied
135E Exemption from keeping records
135F Keeping records for 5 years after they are last relied on
135G Way to work out liability
135H Exception if employer chooses to use current year aggregate fringe benefits amount
135J Exception if employer is government body or tax - exempt
135K Exception if aggregate fringe benefits amount increases too much
135L Employer not in business throughout current year
Part XIB--Reportable fringe benefits totals
135M Simplified outline of this Part
135N Employee's reportable fringe benefits total
135P Employee's reportable fringe benefits amount --general rule
135Q Reportable fringe benefits amount for some employees of certain institutions
Part XIC--Application of the Act to nominated State or Territory bodies
135S Nomination of eligible State or Territory bodies
135T Eligible State or Territory bodies
135U Consequences of nomination
135V Working out the notional tax amount where nominations have been made, varied or revoked
135W Notional tax amount where a nominated State or Territory body ceases to exist
135X Application of certain provisions by agreement with the Commissioner
Part XID--Temporary budget repair levy
135Y Temporary budget repair levy
136AB What constitutes reasonable belief that a superannuation fund is a complying superannuation fund
136A Reimbursement etc. of tax not to be regarded as consideration in respect of benefit etc.
138 Double counting of fringe benefits
138A Benefit provided in respect of a year of tax
138B Benefit provided in respect of the employment of an employee
138C Application or use of benefit
139 Date on which return furnished
141 Housing loans, prescribed interests in land or stratum units and proprietary rights in respect of dwellings
141A Benefits incidental to acquisition or sale of prescribed interests in land or stratum units and proprietary rights in respect of dwellings
142A Benefits relating to transport
142B Employee's new place of employment
142C Eligible shared accommodation in a house, flat or home unit
142D Eligible accommodation in an employees hostel
143 Remote area holiday transport
143C Overseas employment holiday transport
143D Employment interviews and selection tests
143E Work - related medical examinations, work - related medical screening, work - related preventative health care, work - related counselling, migrant language training
146 Amounts to be expressed in Australian currency
147 Obligation to pay or repay an amount
149 Provision of benefit during a period
149A What is a GST - creditable benefit ?
151 Employee performing services for person other than employer
152A Recurring fringe benefit declaration
152B Employer may elect 50/50 split method for entertainment facility leasing costs
153 Residual benefits to include provision of property in certain circumstances
155 Use of property before title passes
156 Supply of electricity or gas through reticulation system
157 Christmas Island and Cocos (Keeling) Islands
160 Continuity of employment where business disposed of etc.
162B When car used for the purpose of producing assessable income
162F Reasonable estimate of number of business kilometres
162H Applicable log book period
162K Replacement cars--car fringe benefits
162L Replacement cars--otherwise deductible provisions
162N Registration of motor vehicle
167 Offences by government bodies
Schedule--Statutory interest rates for periods between 1 January 1946 and 2 April 1986
Endnote 3--Legislation history
Endnote 4--Amendment history
