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

Schedule 3   Fringe benefits tax

Part 1   Amendment of the Fringe Benefits Tax Assessment Act 1986

1   After section 58G

Insert:

58GA Exempt benefits - small business car parking

Exemption

(1) A car parking benefit provided in an FBT year in respect of the employment of an employee is an exempt benefit if:

(a) the car is not parked at a commercial parking station; and

(b) the employer of the employee is not a public company (see subsection (3)), or a subsidiary of a public company (see subsection (3)), in relation to the day on which the benefit is provided; and

(c) the employer is not a government body; and

(d) the sum of the employer's ordinary income and statutory income for the year of income ending most recently before the start of the FBT year is less than $10 million.

New employers

(2) However, if the employer:

(a) in the case of a tax-exempt employer (see subsection (3)) - did not start to carry out operations or activities; or

(b) in any other case - did not start to carry out business operations;

until after the start of the year of income mentioned in paragraph (1)(d), then:

(c) paragraph (1)(d) does not apply; and

(d) the employer must make a reasonable estimate of the amount that would be the sum of the employer's ordinary income and statutory income for the year of income (the business start-up year ) in which the employer did start those operations or activities, or those business operations; and

(e) that estimate is to be made on the assumption that the employer had started the operations or activities, or the business operations, at the start of the business start-up year; and

(f) the benefit is an exempt benefit only if that estimate is less than $10 million.

Definitions

(3) In this section:

ordinary income has the same meaning as in the Income Tax Assessment Act 1997.

public company means a company covered by paragraph 103A(2)(a) of the Income Tax Assessment Act 1936, but reading the reference in that paragraph to the last day of the year of income as a reference to the day on which the benefit is provided.

statutory income has the same meaning as in the Income Tax Assessment Act 1997.

subsidiary of a public company means a subsidiary of a public company within the meaning of subsection 103A(4) of the Income Tax Assessment Act 1936, but reading:

(a) a reference in section 103A of that Act to a year of income as a reference to the day on which the benefit is provided; and

(b) a reference in that section to a public company as a reference to a public company within the meaning of this section.

tax-exempt employer means an employer all of whose income is wholly exempt from income tax.