Fringe Benefits Tax Assessment Act 1986
Subject to this Part, where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a particular car held by a particular person (in this section referred to as the provider ), the taxable value of that fringe benefit, or the aggregate of the taxable values of those fringe benefits, as the case may be, in relation to that year of tax, is the amount calculated in accordance with the formula:
View history note
Hide history note9(2)
For the purposes of this section: (a) the base value of the car is the sum of:
(i) where, at the earliest holding time, the car was owned by the provider or an associate of the provider, the amount calculated in accordance with the formula AB,
where:
A is the cost price of the car to the provider or associate, as the case may be; and B is:
(A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time - ⅔ ; or
(B) in any other case - 1; and
(ii) in a case to which subparagraph (i) does not apply - the amount calculated in accordance with the formula AB,
where:
A is the leased car value of the car at the earliest holding time; and B is:
(A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time - ⅔ ; or
(B) in any other case - 1; and
(b) the earliest holding time, in relation to a car held by the provider at a particular time (in this paragraph referred to as the current time ), is the earliest time before the current time when the car was held by the provider or an associate of the provider; and
(iii) the cost price of each non-business accessory that:
(A) was fitted to the car after the earliest holding time and before the end of the year of tax; and
(B) remained fitted to the car at a time during the year of tax when the car was held by the provider;
(c) (Repealed by No 62 of 2011)
(d) (Repealed by No 62 of 2011) (e) the amount of the recipient ' s payment is the sum of:
(i) in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits - the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and:
(A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; orthe amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;
(f) the holding period is the period in the year of tax when the car was held by the provider.
(ii) in a case where:
(A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; andthe amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;
[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Section 9 of the Act is modified by substituting the section:
Christopher was declared bankrupt on 1 July 2020. In June 2021 Christopher
'
s employer acquires a car for Christopher
'
s use. The purchase price, and base value, of the car is $20,000. As part of his employment arrangement, the car is made available to Christopher for the entire period 1 July 2021 to 30 June 2022 during which time he travels 10,000 kilometres. During the period Christopher makes a $300 contribution to expenses in the form of unreimbursed expenditure on petrol. It is necessary to assess the value of a car fringe benefit provided to Christopher by his employer for the contribution assessment period 1 July 2021 to 30 June 2022. Applying the formula in subsection (1), the value of the car fringe benefit is calculated as follows:
SECTION 9 TAXABLE VALUE OF CAR FRINGE BENEFITS
-
STATUTORY FORMULA
9(1)
Subject to this Part, where one or more car fringe benefits in relation to an employer in relation to a contribution assessment period relate to a particular car held by a particular person (the
provider
), the taxable value of that fringe benefit, or the aggregate of the taxable values of those fringe benefits, as the case may be, in relation to that contribution assessment period, is the amount calculated in accordance with the formula:
9(2)
For the purposes of this section:
(a)
the
base value
of the car is the sum of:
(i)
where, at the earliest holding time, the car was owned by the provider or an associate of the provider, the amount calculated in accordance with the formula
AB
, where:
(A)
in a case where the commencement of the contribution assessment period is later than the fourth anniversary of the earliest holding time
-
⅔
; or
(B)
in any other case
-
1; and
(ii)
in a case to which subparagraph (i) does not apply
-
the amount calculated in accordance with the formula
AB
, where:
(A)
in a case where the commencement of the contribution assessment period is later than the fourth anniversary of the earliest holding time
-
⅔
; or
(B)
in any other case
-
1; and
(iii)
the cost price of each non-business accessory that:
(A)
was fitted to the car after the earliest holding time and before the end of the contribution assessment period; and
(B)
remained fitted to the car at a time during the contribution assessment period when the car was held by the provider;
(b)
the earliest holding time, in relation to a car held by the provider at a particular time (the
current time
), is the earliest time before the current time when the car was held by the provider or an associate of the provider; and
(c)
the amount of the recipient
'
s payment is the sum of:
(i)
in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits
-
the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(ii)
in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Inspector-General under section
6D
of the
Bankruptcy Act 1966
, in respect of those expenses
-
the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(iii)
in a case where:
(A)
car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and
the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and
(B)
documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;
(d)
the holding period is the period in the contribution assessment period when the car was held by the provider.
Example:
9(3)
In this section:
declaration date
means the date occurring 21 days after the end of a contribution assessment period in relation to a bankrupt.
taxable value of a fringe benefit
means the value, for the purposes of the
Bankruptcy Act 1966
, of the benefit.
]
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