Fringe Benefits Tax Assessment Act 1986

PART III - FRINGE BENEFITS

Division 11 - Property fringe benefits

[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)

Division 11 of Part III of the Act is modified by repealing the Division.]

Subdivision A - Property benefits

SECTION 41 EXEMPT PROPERTY BENEFITS

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41(1)
Where:

(a) a property benefit is provided to a current employee of an employer in respect of his or her employment; and

(b) the property is provided to, and consumed by, the employee on a working day and on business premises of:

(i) the employer; or

(ii) if the employer is a company, of the employer or of a company that is related to the employer;

the benefit is an exempt benefit.

41(2)

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This section does not apply to food or drink provided to, and consumed by, an employee if the food or drink is provided under a salary packaging arrangement.

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History

S 41(2) substituted by No 84 of 2013, s 3 and Sch 7 item 1, applicable in relation to benefits provided on or after 22 October 2012. However, the amendment does not apply in relation to benefits provided to an employee under an existing salary packaging arrangement to the extent that the benefits are provided before the earlier of:

(a) 1 April 2014; and

(b) the first time on or after 22 October 2012 that the existing salary packaging arrangement is varied in a material way.

For this purpose, an existing salary packaging arrangement is a salary packaging arrangement entered into by the employer and employee before 22 October 2012.

S 41(2) formerly read:

41(2)
This section does not apply to food or drink provided to, and consumed by, an employee if the food or drink is provided:

(a) because of the employee agreeing to receive the food or drink in return for a reduction in the employee ' s salary or wages that would not have happened apart from the agreement; or

(b) as part of the employee ' s remuneration package, in circumstances where it is reasonable to conclude that the employee ' s salary or wages would be greater if the food or drink were not made part of that package.

S 41(2) inserted by No 59 of 2008, s 3 and Sch 1 item 2, applicable to food and drink provided after 7.30pm, by legal time in the Australian Capital Territory, on 13 May 2008. However, the amendment does not apply to an agreement made by an employee before 7.30pm, by legal time in the Australian Capital Territory, on 13 May 2008 to the extent that:

(a) a reduction in salary or wages has already occurred by that time; and

(b) the food or drink is provided before 1 April 2009.

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