You may provide a residual fringe benefit when you provide an employee with either of the following:
- any right, privilege, service or facility
- any other benefit that is not one of the specific categories of fringe benefits included at other categories in item 23.
If you choose to value entertainment facility leasing benefits that are not provided under a salary packaging arrangement under the 50–50 method, you must write the value of these benefits at item M.
Example 20: Taxable value of other benefits (residual fringe benefits)
You run a construction business and own a one-tonne utility with $8,000 in total operating costs for the year ending 31 March 2017. Your employee uses the utility for both business and private purposes. On 1 May 2017, your employee provides you with a declaration stating that they used the utility 25% of the time for private purposes. Your employee has not made any contributions during the year towards the use of the utility.
The calculation of the taxable value for the utility is:
($8,000 x 25%) – $0 = $2,000
Value of reduction is $8,000 x 75% = $6,000 (business usage).
You would write at item 23: