Fringe Benefits Tax Assessment Act 1986

PART III - FRINGE BENEFITS  

Division 14 - Reduction of taxable value of miscellaneous fringe benefits  

SECTION 65A  

65A   REDUCTION OF TAXABLE VALUE - EDUCATION OF CHILDREN OF OVERSEAS EMPLOYEES  

Where:

(a) any of the following fringe benefits in relation to a year of tax is provided in respect of the employment of an employee:

(i) a car fringe benefit where the application or availability of the car is in respect of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided;

(ii) an expense payment fringe benefit where the recipients expenditure is in respect of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the day on which the benefit was provided;

(iii) a property fringe benefit where the recipients property is required solely for the purposes of the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the provision time;

(iv) a residual fringe benefit where the recipients benefit consists of, or is required solely for the purposes of, the full-time education of a child of the employee, not being a child who had attained the age of 25 years before the comparison time;

(b) the full-time education is:

(i) at an educational institution; or

(ii) by a tutor;

(c) the whole or any part of the full-time education is undertaken by the child when the employee is an overseas employee;

(d) either of the following conditions is satisfied:

(i) the benefit is provided pursuant to the provisions of an industrial instrument relating to the employment of the employee;

(ii) it is customary for employers in the industry in which the employee is employed to provide benefits of the same kind as the benefit provided to the recipient and to provide such benefits in similar circumstances to those that applied in relation to the provision of the benefit to the recipient;

(e) in the case of an expense payment fringe benefit - documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer of the employee before the declaration date; and

(f) a percentage (in this section called the " attributable percentage " ) of the taxable value, in relation to the year of tax, of the fringe benefit is attributable to the full-time education of the child in the period commencing on whichever of the following days is applicable:

(i) if:

(A) the full-time education is at an educational institution;

(B) the overseas posting period is a period of not less than 28 days; and

(C) the overseas posting period commenced during an academic period of the educational institution;

the day on which that academic period commenced; or

(ii) in any other case - the day on which the overseas posting period commenced;

and ending on whichever of the following days is applicable:

(iii) if:

(A) the full-time education is at an educational institution;

(B) the overseas posting period is a period of not less than 28 days; and

(C) the overseas posting period ended during an academic period of the educational institution;

the day on which that academic period ended;

(iv) in any other case - the day on which the overseas posting period ended;

the amount that, but for this section and section 62 , would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the attributable percentage.