Fringe Benefits Tax Assessment Act 1986

PART III - FRINGE BENEFITS  

Division 14 - Reduction of taxable value of miscellaneous fringe benefits  

SECTION 60A   REDUCTION OF TAXABLE VALUE - REMOTE AREA HOLIDAY TRANSPORT FRINGE BENEFITS SUBJECT TO CEILING  

60A(1)    
Where one or more remote area holiday transport fringe benefits in relation to an employer in relation to a year of tax relate to a particular employee of the employer and to a particular holiday for a particular family member, the amount (in this subsection called the " gross taxable value " ) that, but for this subsection and section 62 , would be:

(a)    so much of the taxable value of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or

(b)    so much of the sum of the taxable values of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member;

as the case requires, in relation to that year of tax, shall be reduced by:

(c)    50% of the gross taxable value; or

(d)    50% of the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member;

whichever is the less.

60A(2)    
Subsection (1) does not apply in relation to a remote area holiday transport fringe benefit unless:

(a)    subsection 143(3) applies to the fringe benefit; and

(b)    

if the fringe benefit is an expense payment fringe benefit:

(i) in the case of an expense payment fringe benefit where:

(A) the expense payment fringe benefit is constituted by the reimbursement of the recipient, in whole or in part, in respect of an amount of a Division 28 car expense incurred by the recipient in relation to a car owned by, or leased to, the recipient; and

(B) the reimbursement is calculated by reference to the distance travelled by the car;

the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure; or

(ii) in the case of an expense payment fringe benefit where subparagraph (i) does not apply:

(A) documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; or

(B) the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients expenditure.

60A(3)    
Where subsection (1) applies, in relation to 2 or more years of tax, in relation to 2 or more fringe benefits relating to a particular holiday for a particular family member, subsection (1) has effect, in relation to each of those years of tax, as if the reference in paragraph (1)(d) to the benchmark travel amount in relation to that fringe benefit, or those fringe benefits, in relation to the holiday for the family member were a reference to the amount calculated in accordance with the formula:

BTA

×

TV TTV

where:

BTA is the amount that, but for this subsection, would be the benchmark travel amount in relation to that fringe benefit, or in relation to those fringe benefits, in relation to the holiday for the family member;

TV is the amount that, but for this section and section 62 , would be:

(a) so much of the taxable value, in relation to the year of tax concerned, of that fringe benefit as is attributable to transport, meals or accommodation in relation to the holiday for the family member; or

(b) so much of the sum of the taxable values, in relation to the year of tax concerned, of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member; and

TTV is the amount that, but for this section and section 62 , would be so much of the sum of the taxable values, in relation to all of those years of tax, of all of those fringe benefits as is attributable to transport, meals or accommodation in relation to the holiday for the family member.

60A(4)    
Where:

(a) subparagraph (2)(b)(i) applies to an expense payment fringe benefit; and

(b) the amount of the reimbursement concerned exceeds the reimbursement (in this subsection called the " statutory reimbursement " ) that would have been paid if it had been calculated on the basis of the sum of the following rates:

(i) the basic car rate;

(ii) where 2 or more family members travelled in the car when it provided the transport by virtue of which the expense payment fringe benefit is a remote area holiday transport fringe benefit - the supplementary car rate;

a reference in subsection (1) or (3) of this section to the taxable value of the fringe benefit is a reference to so much of the taxable value as is attributable to the amount of the statutory reimbursement.

60A(5)    

Where:

(a)    a remote area holiday transport fringe benefit in relation to an employee consists of the provision of an allowance to the spouse or a child of the employee; and

(b)    the whole or a part of the allowance has been expended by the recipient in obtaining the transport, meals or accommodation in respect of which the allowance was paid;

this section applies in relation to the fringe benefit as follows:

(c)    the fringe benefit shall be treated as if it were an expense payment fringe benefit;

(d)    the amount expended as mentioned in paragraph (b) shall be treated as if it were the recipients expenditure;

(e)    so much of the allowance as does not exceed the recipients expenditure shall be treated as if it were a reimbursement of the recipients expenditure.