Tax Laws Amendment (2008 Measures No. 5) Act 2008 (145 of 2008)

Schedule 4   Fringe benefits tax

Part 1   Main amendments

Fringe Benefits Tax Assessment Act 1986

40   At the end of section 52

Add:

(5) For the purposes of paragraph (1)(k) (which applies to a residual fringe benefit that, under subsection 138(3), is deemed to have been provided to an employee only), the amount is calculated in accordance with the formula:

Unadjusted ND x Employee's percentage of interest

where:

employee's percentage of interest :

(a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period ) in the year of tax, in the asset or other thing:

(i) to which the residual fringe benefit relates; and

(ii) that is applied or used for the purpose of producing assessable income of the employee; and

(b) does not include the percentage of the interest held in that asset or other thing by the employee's associate or associates during the holding period.

unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(k) did not apply in relation to the residual fringe benefit.