C fringe benefits tax assessment act

Compilation No. 93

Compilation date: 15 September 2023

Includes amendments up to: Act No. 69, 2023

Registered: 23 September 2023

This compilation is in 2 volumes

Volume 1: sections 1-78A

Each volume has its own contents

This is a compilation of the Fringe Benefits Tax Assessment Act 1986 that shows the text of the law as amended and in force on 15 September 2023 (the compilation date ).

The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

For more information about any editorial changes made in this compilation, see the endnotes.

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

2A Application of the Criminal Code

3 General administration of Act

4 Annual report

Part IIA--Core provisions

Division 1--Working out an employer's fringe benefits taxable amount

5A Simplified outline of this Division

5B Working out an employer's fringe benefits taxable amount

Division 2--Working out an employer's aggregate fringe benefits amount

5C Aggregate fringe benefits amount

Division 3--Employee's individual fringe benefits amount

5D Simplified outline

5E Employee's individual fringe benefits amount

5F Working out the employee's share

Part III--Fringe benefits

6 Part not to limit generality of benefit

Division 2--Car fringe benefits

Subdivision A--Car benefits

8 Exempt car benefits

8A Exempt car benefits: cars that are zero or low emissions vehicles

Subdivision B--Taxable value of car fringe benefits

9 Taxable value of car fringe benefits--statutory formula

10 Taxable value of car fringe benefits--cost basis

10A No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained

10B No reduction of operating cost in a non - log book year of tax unless log book records and odometer records are maintained in log book year of tax

11 Calculation of depreciation and interest

12 Depreciated value

13 Expenditure to be increased in certain circumstances

Division 3--Debt waiver fringe benefits

Subdivision A--Debt waiver benefits

14 Debt waiver benefits

Subdivision B--Taxable value of debt waiver fringe benefits

15 Taxable value of debt waiver fringe benefits

Division 4--Loan fringe benefits

Subdivision A--Loan benefits

16 Loan benefits

17 Exempt loan benefits

Subdivision B--Taxable value of loan fringe benefits

18 Taxable value of loan fringe benefits

19 Reduction of taxable value-- otherwise deductible rule

Division 5--Expense payment fringe benefits

Subdivision A--Expense payment benefits

20 Expense payment benefits

20A Exemption--no - private - use declaration

21 Exempt accommodation expense payment benefits

Subdivision B--Taxable value of expense payment fringe benefits

22A Taxable value of in - house expense payment fringe benefits

23 Taxable value of external expense payment fringe benefits

24 Reduction of taxable value-- otherwise deductible rule

Division 6--Housing fringe benefits

Subdivision A--Housing benefits

25 Housing benefits

Subdivision B--Taxable value of housing fringe benefits

26 Taxable value of non - remote housing fringe benefits

27 Determination of market value of housing right

28 Indexation factor for valuation purposes--non - remote housing

Division 7--Living - away - from - home allowance fringe benefits

Subdivision A--Living - away - from - home allowance benefits

30 Living - away - from - home allowance benefits

Subdivision B--Taxable value of living - away - from - home allowance fringe benefits

31 Taxable value--employee maintains a home in Australia

31A Taxable value--fly - in fly - out and drive - in drive - out employees

31B Taxable value--any other case

Subdivision C--Related provisions

31C Maintaining a home in Australia

31D First 12 months employee is required to live away from home

31E Fly - in fly - out and drive - in drive - out requirements

31G Substantiating related expenses

31H Exempt food component

Division 9--Board fringe benefits

Subdivision A--Board benefits

35 Board benefits

Subdivision B--Taxable value of board fringe benefits

36 Taxable value of board fringe benefits

37 Reduction of taxable value-- otherwise deductible rule

Division 9A--Meal entertainment

Subdivision A--Meal entertainment

37A Key principle

37AA Division only applies if election made

37AB Employee contributions to be excluded

37AC Meal entertainment benefits

37AD Meaning of provision of meal entertainment

37AE Fringe benefits only arise if employer is provider

37AF No other fringe benefits arise if election made

37AG Some benefits still arise

Subdivision B--50/50 split method of valuing meal entertainment

37B Key principle

37BA Taxable value using 50/50 split method

Subdivision C--12 week register method

37C Key principle

37CA Election by employer

37CB Taxable value using 12 week register method

37CC Choosing the 12 week period for a register

37CD FBT years for which register is valid

37CE Matters to be included in register

37CF False or misleading entries invalidate register

Division 10--Tax - exempt body entertainment fringe benefits

Subdivision A--Tax - exempt body entertainment benefits

38 Tax - exempt body entertainment benefits

Subdivision B--Taxable value of tax - exempt body entertainment fringe benefits

39 Taxable value of tax - exempt body entertainment fringe benefits

Division 10A--Car parking fringe benefits

Subdivision A--Car parking benefits

39A Car parking benefits

39AA Anti - avoidance--fee on first business day not representative

39AB When fees are not representative

39B When commercial parking stations are located within a 1 km radius of business premises or associated premises

Subdivision B--Taxable value of car parking fringe benefits

39C Taxable value of car parking fringe benefits-- commercial parking station method

39D Taxable value of car parking fringe benefits-- market value basis

39DA Taxable value of car parking fringe benefits-- average cost method

39E Fees charged by commercial parking stations for all - day parking

Subdivision C--Statutory formula method--spaces

39F The key principle

39FA Spaces method of calculating total taxable value of car parking fringe benefits

39FB Number of spaces exceeds number of employees

39FC Meaning of daily rate amount

39FD Meaning of availability period

39FE Meaning of relevant recipients contribution

Subdivision D--12 week record keeping method

39G The key principle

39GA Employer may elect to use 12 week record keeping method

39GB Value of fringe benefits for year

39GC Meaning of total value of car parking benefits (register)

39GD Meaning of car parking availability period

39GE Choosing the 12 week period for a register

39GF FBT years for which register is valid

39GG Matters to be included in register

39GH Fraudulent entries invalidate register

Division 11--Property fringe benefits

Subdivision A--Property benefits

40 Property benefits

41 Exempt property benefits

Subdivision B--Taxable value of property fringe benefits

42 Taxable value of in - house property fringe benefits

43 Taxable value of external property fringe benefits

44 Reduction of taxable value-- otherwise deductible rule

Division 12--Residual fringe benefits

Subdivision A--Residual benefits

45 Residual benefits

46 Year of tax in which residual benefits taxed

47 Exempt residual benefits

47A Exemption--no - private - use declaration

Subdivision B--Taxable value of residual fringe benefits

48 Taxable value of in - house non - period residual fringe benefits

49 Taxable value of in - house period residual fringe benefits

50 Taxable value of external non - period residual fringe benefits

51 Taxable value of external period residual fringe benefits

52 Reduction of taxable value-- otherwise deductible rule

Division 13--Miscellaneous exempt benefits

53 Motor vehicle fringe benefit fuel etc. to be exempt in certain cases

54 Provision of food or drink to be exempt benefit in certain cases

55 Benefits provided by certain international organisations to be exempt

56 Preservation of diplomatic and consular immunities

57 Exempt benefits--employees of religious institutions

57A Exempt benefits--public benevolent institutions, health promotion charities, some hospitals and public ambulance services

58 Exempt benefits--live - in residential care workers

58A Exempt benefits--employment interviews and selection tests

58AA Exempt benefits--engagement of relocation consultant

58B Exempt benefits--removals and storage of household effects as a result of relocation

58C Exempt benefits--sale or acquisition of dwelling as a result of relocation

58D Exempt benefits--connection or re - connection of certain utilities as a result of relocation

58E Exempt benefits--leasing of household goods while living away from home

58F Exempt benefits--relocation transport

58G Exempt benefits--motor vehicle parking

58GA Exempt benefits--small business car parking

58H Exempt benefits--newspapers and periodicals used for business purposes

58J Exempt benefits--compensable work - related trauma

58K Exempt benefits--in - house health care facilities

58L Exempt benefits--certain travel to obtain medical treatment

58LA Exempt benefits--compassionate travel

58M Exempt benefits--work - related medical examinations, work - related medical screening, work - related preventative health care, work - related counselling, migrant language training

58N Exempt benefits--emergency assistance

58P Exempt benefits--minor benefits

58PA Exempt benefits--worker entitlement contributions

58PB Meaning of approved worker entitlement funds

58Q Exempt benefits--long service awards

58R Exempt benefits--safety awards

58S Exempt benefits--trainees engaged under Australian Traineeship System

58T Exempt benefits--live - in domestic workers employed by religious institutions or by religious practitioners

58U Exempt benefits--live - in help for elderly and disadvantaged persons

58V Exempt benefits--food and drink for non - live - in domestic employees

58X Exempt benefits--provision of certain work related items

58Y Exempt benefits--membership fees and subscriptions

58Z Exempt benefits--taxi travel

58ZB Exempt benefits--approved student exchange programs

58ZC Exempt benefits--remote area housing benefits

58ZD Exempt benefits--meals on working days

58ZE Exempt benefits--provision of certain education or training

Division 14--Reduction of taxable value of miscellaneous fringe benefits

59 Reduction of taxable value--remote area residential fuel

60 Reduction of taxable value--remote area housing

60AA Guideline price for repurchase of remote area residential property

60A Reduction of taxable value--remote area holiday transport fringe benefits subject to ceiling

61 Reduction of taxable value--remote area holiday transport fringe benefits not subject to ceiling

61A Reduction of taxable value--overseas employment holiday transport

61B Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport

61C Reduction of taxable value--temporary accommodation relating to relocation

61D Reduction of taxable value of temporary accommodation meal fringe benefits

61E Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests

61F Reduction of taxable value of certain expense payment fringe benefits associated with work - related medical examinations, work - related medical screenings, work - related preventative health care, work - related counselling or migrant language training

61G Reduction of taxable value of fringe benefits if certain deductions relating to payments to associates are not allowed

62 Reduction of aggregate taxable value of in - house fringe benefits

63 Reduction of taxable value of living - away - from - home food fringe benefits

63A Reduction of taxable value in respect of entertainment component of certain fringe benefits

65A Reduction of taxable value--education of children of overseas employees

Division 14A--Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes

65CA Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes

65CB Amendment of assessments

Division 14B--Reducible fringe benefits relating to remote area home repurchase schemes

65CC Reducible fringe benefits relating to remote area home repurchase schemes

Division 15--Car substantiation rules for otherwise deductible provisions

65D Car substantiation rules

65E No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained

65F No compliance with substantiation rules in non - log book year of tax unless log book records kept in previous log book year of tax

Part IIIA--Rebates of tax

65J Rebate for certain not - for - profit employers etc.

Part IV--Liability to tax

66 Liability to pay tax

67 Arrangements to avoid or reduce fringe benefits tax

Part V--Returns and assessments

68 Annual returns

69 Further returns

70 Keeping records of indirect tax transactions

70D Tax agent to give taxpayer copy of notice of assessment

72 First return deemed to be an assessment

73 Default assessments

74 Amendment of assessments

75 Refund of amounts overpaid

76 Amended assessment to be an assessment

77 Notice of assessment

78 Validity of assessment

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Abbreviation key--Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history--Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003 .

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and "(md not incorp)" is added to the amendment history.