Fringe Benefits Tax Assessment Act 1986

PART XII - INTERPRETATION  

SECTION 141A   BENEFITS INCIDENTAL TO ACQUISITION OR SALE OF PRESCRIBED INTERESTS IN LAND OR STRATUM UNITS AND PROPRIETARY RIGHTS IN RESPECT OF DWELLINGS  

141A(1)   [Recipients expenditure]  

For the purposes of this Act, recipients expenditure shall be taken to be incidental to the acquisition or sale of a prescribed interest in land or a stratum unit or of a proprietary right in respect of a dwelling if, and only if:

(a) in the case of an acquisition of a prescribed interest in land on which the employee or associate concerned proposes to construct, or complete the construction of, a building constituting or containing a dwelling - the recipients expenditure is in respect of any of the following matters:

(i) stamp duty;

(ii) legal services;

(iii) agent's services;

(iv) discharge of a mortgage;

(v) expenses of borrowing;

(vi) any similar matter;

being a matter of a capital nature that is incidental to the construction, or the completion of the construction, of that building;

(b) in all cases - the recipients expenditure is in respect of any of the following matters:

(i) stamp duty;

(ii) advertising;

(iii) legal services;

(iv) agent's services;

(v) discharge of a mortgage;

(vi) expenses of borrowing;

(vii) any similar matter;

being a matter of a capital nature that is incidental to the acquisition or sale of the interest or right; and

(c) in all cases - the recipients expenditure is not in respect of:

(i) interest;

(ii) repayments of principal;

(iii) loan service fees;

(iv) the discharge of a mortgage, or expenses of borrowing, where the money borrowed was not applied wholly in respect of the land, stratum unit or proprietary right or in respect of a building on the land;

(v) insurance; or

(vi) rates.

141A(2)   [Recipients benefit]  

For the purposes of this Act, a recipients benefit shall be taken to be incidental to the acquisition or sale of a prescribed interest in land or a stratum unit or of a proprietary right in respect of a dwelling if, and only if:

(a) the recipients benefit consists of any of the following matters:

(i) advertising;

(ii) legal services;

(iii) agent's services;

(iv) services related to borrowing;

(v) any similar matter;

being a matter of a capital nature that is incidental to the acquisition or sale of the interest or right; and

(b) the recipients benefit does not consist of or relate to:

(i) insurance; or

(ii) services related to borrowing where the money borrowed was not applied wholly in respect of the land, stratum unit or proprietary right or in respect of a building on the land.