Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)

Schedule 12  

Part 2   Application and transitional

5   Transitional - first base year

(1) For the purposes of Part XIA of the Fringe Benefits Tax Assessment Act 1986 (as inserted by this Schedule), an employer may use the FBT year beginning on 1 April 1996, or any later FBT year, as the employer's first base year.

(2) If the employer uses the FBT year beginning on 1 April 1996 as the first base year, then, in determining whether the conditions in Division 2 of that Part are satisfied for any later FBT year:

(a) section 135B of that Act is taken to require that the employer's aggregate fringe benefits amount for the FBT year beginning on 1 April 1997 was no more than 20% greater than it was for that base year (unless the difference is $100 or less); and

(b) that section is taken not to require anything else to be true of the FBT year beginning on 1 April 1997; and

(c) the test in paragraph (a) of this subitem is to be applied using the rules in subsections 135K(3) to (6) of that Act.

[Minister's second reading speech made in -

House of Representatives on 12 November 1998

Senate on 30 November 1998]

(154/98)