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Act No. 145 of 1995 as made
An Act to amend the law relating to taxation
Date of Assent 12 Dec 1995
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995
- Assented to 12 December 1995

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - TABLE OF PROVISIONS

CONTENTS
Section
1. Short title
2. Commencement
3. Schedules
SCHEDULE 1
MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES
PART 1-AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
PART 2-AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
SCHEDULE 2
CAR PARKING
PART 1-AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
PART 1-Division 1-Additional test to be satisfied in relation to
a car parking benefit
PART 1-Division 2-Valuation of car parking spaces
PART 1-Division 3-Alternative methods of valuing car parking benefits
PART 1-Division 4-Consequential amendments
PART 1-Division 5-Application and transitional
PART 2-AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
PART 1-Division 1-Insertion of new Division dealing with car parking
PART 1-Division 2-Consequential amendments
PART 1-Division 3-Transitional
SCHEDULE 3
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
RELATED TO EXEMPT BENEFITS
SCHEDULE 4
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
RELATED TO DECLARATIONS
SCHEDULE 5
OTHER AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - LONG TITLE

An Act to amend the law relating to taxation

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SECT 1
Short title

1. This Act may be cited as the Taxation Laws Amendment (FBT Cost of Compliance) Act 1995.


(Minister's second reading speech made in-
House of Representatives on 20 September 1995
Senate on 16 October 1995)

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SECT 2
Commencement

2. This Act commences on the day on which it receives the Royal Assent.

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SECT 3
Schedules

3. The Acts specified in the Schedules to this Act are amended in accordance with the applicable items in the Schedules, and the other items in the Schedules have effect according to their terms.

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SCHEDULE 1

SCHEDULE 1 Section 3
MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES
PART 1-AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
1. After Division 9 of Part III:
Insert:
"Division 9A-Meal entertainment
"Subdivision A-Meal entertainment
Key principle
"37A.
An employer may elect that this Division will apply to the employer for
an FBT year. If the employer does this, the taxable value of meal
entertainment fringe benefits provided to the employer's employees and
associates of those employees by the employer will either be half the
expenses incurred for the FBT year by the employer in providing meal
entertainment benefits or, if the employer makes a further election, an
amount worked out based on a 12 week register kept by the employer.
Division only applies if election made
"37AA. An employer may elect that this Division applies to the
employer for an FBT year.
Employee contributions to be excluded
"37AB. For the purposes of this Division any reference to expenses or
expenditure in relation to meal entertainment or meal entertainment
benefits excludes any contribution from an employee or an associate of

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an employee that is not subject to reimbursement by the employer.
Meal entertainment benefits
"37AC. Where at a particular time an employer (the provider) to whom
this Division applies provides meal entertainment to another person
(the recipient) the provision of the meal entertainment is taken to
constitute a meal entertainment benefit provided by the provider to the
recipient at that time.
Meaning of provision of meal entertainment
"37AD. A reference to the provision of meal entertainment is a
reference to the provision of:
(a) entertainment by way of food or drink; or
(b) accommodation or travel in connection with, or for the purpose of
facilitating, entertainment to which paragraph (a) applies; or
(c) the payment or reimbursement of expenses incurred in providing
something covered by paragraph (a) or (b);
whether or not:
(d) business discussions or business transactions occur; or
(e) in connection with the working of overtime or otherwise in
connection with the performance of the duties of any office or
employment; or
(f) for the purposes of promotion or advertising; or
(g) at or in connection with a seminar.
Fringe benefits only arise if employer is provider
"37AE. No meal entertainment fringe benefit arises where the employer
in relation to whom the benefit would otherwise arise is not the
provider of the benefit.
No other fringe benefits arise if election made
"37AF. If a meal entertainment fringe benefit arises in respect of
the provision of meal entertainment, no other fringe benefit arises in
relation to any person in respect of the provision of the meal
entertainment.
Some benefits still arise
"37AG. To avoid doubt, sections 37AE and 37AF do not prevent a fringe
benefit in relation to an employer arising under any provision of this
Act where the employer is not the provider of the benefit.
"Subdivision B-50/50 split method of valuing meal entertainment
Key principle
"37B.
If an employer elects that this Division applies, then (unless the
employer elects that Subdivision C applies) the taxable value of meal
entertainment fringe benefits provided to the employer's employees and
associates of those employees by the employer is half the expenses
incurred for the FBT year by the employer in providing meal
entertainment benefits.
Taxable value using 50/50 split method
"37BA. If this Division applies to an employer for an FBT year then,
unless the employer elects that Subdivision C applies, the total
taxable value of meal entertainment fringe benefits of the employer for
the FBT is 50% of the expenses incurred by the employer in providing
meal entertainment for the FBT year.
Note: This means that the employer's aggregate fringe benefits amount
(see subsection 136(1)) for the FBT year will include 50% of the total
expenses incurred by the employer for the provision of meal
entertainment to all persons in the FBT year.
"Subdivision C-12 week register method
Key principle
"37C.
If an employer elects that this Subdivision applies, the taxable value
of meal entertainment fringe benefits is to be calculated by reference
to a 12 week register kept by the employer.
Election by employer
"37CA. An employer who elects that this Division applies may elect
also that this Subdivision applies to meal entertainment provided by
the employer for an FBT year if the employer has a valid meal
entertainment register for that year.
Taxable value using 12 week register method
"37CB.(1) If the employer elects that this Subdivision applies for an
FBT year then, despite any other provision of this Act, the taxable
value of meal entertainment fringe benefits for the employer for the
FBT year is worked out using the formula:
Total meal entertainment expenditure X Register percentage
Note: This means that the employer's aggregate fringe benefits amount
(see subsection 136(1)) for the FBT year will include a proportion of
the expenses incurred by the employer for the provision of meal
entertainment for all persons in the FBT year. The proportion is
worked out on the basis of the 12 week register.
"(2) The register percentage is the percentage worked out using the
formula:
Total value of meal entertainment fringe benefits
X 100%

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Total value of meal entertainment
where:
total value of meal entertainment fringe benefits means the total value
of meal entertainment fringe benefits that are provided by the employer
in the 12 week period covered by the employer's register.
total value of meal entertainment means the total value of meal
entertainment provided by the employer during the 12 week period
covered by the register.
"(3) The total meal entertainment expenditure is the total of
expenses incurred by the employer in providing meal entertainment for
the FBT year.
Choosing the 12 week period for a register
"37CC.(1) The register must be kept for a continuous period of at
least 12 weeks throughout which meal entertainment is provided by the
employer.
"(2) The period for which the register is kept must be representative
of the first FBT year for which it is valid.
"(3) If the register does not meet these conditions it is not valid.
FBT years for which register is valid
12 week period in one FBT year
"37CD.(1) If the 12 week period begins and ends in the same FBT year,
the register is valid for that FBT year and, subject to subsection (3),
for each of the 4 FBT years immediately following that year.
12 week period over 2 FBT years
"(2) If the 12 week period begins in one FBT year and ends in another
FBT year, the register is only valid for the second FBT year and,
subject to subsection (3), for each of the 4 FBT years immediately
following that year.
When register ceases to be valid
"(3) A register that is valid for an FBT year ceases to be valid at
the end of that FBT year if the total of expenses incurred by the
employer in providing meal entertainment for that FBT year is more than
20% higher than the corresponding total for the first FBT year for
which the register was valid. A register also ceases to be valid for
an FBT year if there is a later valid register for that FBT year.
Matters to be included in register
"37CE.(1) The register must include the details of the following:
(a) the date the employer provided meal entertainment;
(b) for each recipient of meal entertainment-whether the recipient is
an employee of the employer or an associate of the employer;
(c) the cost of the meal entertainment;
(d) the kind of meal entertainment provided;
(e) where the meal entertainment is provided;
(f) if the meal entertainment is provided on the employer's premises-
whether it is provided in an in-house dining facility within the
meaning of subsection 51AE(1) of the Income Tax Assessment Act 1936.
"(2) A person responsible for making entries in the register must
make the entry as soon as practicable after he or she knows the details
required by subsection (1).
Fraudulent entries invalidate register
"37CF. For the purposes of this Act, a register is not valid if the
register contains an entry that is false or misleading in a material
particular.".
2. Subsection 136(1) (definition of business premises):
Omit all the words after "business operations", substitute, "of the
person, but does not include:
(a) premises, or a part of premises, used as a place of residence of
an employee of the person or an employee of an associate of the person;
or
(b) a corporate box; or
(c) boats or planes used primarily for the purpose of providing
entertainment unless the boat or plane is used in the person's business
of providing entertainment; or
(d) other premises used primarily for the purpose of providing
entertainment unless the premises are used in the person's business of
providing entertainment.
In this definition, provision of entertainment has the same meaning as
in section 51AE of the Income Tax Assessment Act 1936.".
3. Subsection 136(1):
Insert:
"entertainment facility leasing expenses, for a person, means
expenses incurred by the person in hiring or leasing:
(a) a corporate box; or
(b) boats, or planes, for the purpose of the provision of
entertainment; or
(c) other premises, or facilities, for the purpose of the provision
of entertainment;
but does not include so much of any of such expenses that is
attributable to:
(d) the provision of food or beverages; or

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(e) is attributable to advertising and is an allowable deduction for
the person under the Income Tax Assessment Act 1936.
meal entertainment benefit means a benefit that is a meal entertainment
benefit because of section 37AC.
meal entertainment fringe benefit means a fringe benefit that is a meal
entertainment benefit.".
4. Before section 153:
Insert:
Employer may elect 50/50 split method for entertainment facility
leasing costs
"152B. If:
(a) the taxable value of one or more fringe benefits of an employer
for an FBT year is attributable, in whole or in part, to entertainment
facility leasing expenses incurred by the employer in the FBT year; and
(b) the employer elects that this section applies for the FBT year;
then:
(c) the aggregate fringe benefit amount for the employer for the FBT
year is to be reduced by so much of the total taxable value of all
fringe benefits as is attributable to entertainment facility leasing
expenses; and
(d) the aggregate fringe benefit amount for the employer for the FBT
year is to then be increased by 50% of the total of entertainment
facility leasing expenses incurred by the employer in the FBT year
(including expenses not taken into account under paragraph (a)).
Note: The effect of this is that the employer's aggregate fringe
benefits amount (see subsection 136(1)) for the FBT year will include
50% of the entertainment facility leasing expenses incurred by the
employer for the FBT year.".
5. Application
The amendments made by this Part apply to assessments of the fringe
benefits taxable amount of an employer of the FBT year beginning on 1
April 1995 and of all later FBT years.


PART 2-AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
6. After section 51AE:
Insert:
Meal entertainment-election under section 37AA of Fringe Benefits Tax
Assessment Act 1986 to use 50/50 split method
"51AEA.(1) If a meal entertainment fringe benefit arises for a
taxpayer for an FBT year and the taxpayer elects that Division 9A of
Part III of the Fringe Benefits Tax Assessment Act 1986 applies to the
taxpayer for the FBT year, and has not elected that Subdivision C of
that Division applies:
(a) for each expense incurred in the FBT year by the taxpayer in
providing meal entertainment, a deduction equal to 50% of that expense
is allowable to the taxpayer for the year of income in which it is
incurred; and
(b) no other deduction under any provision of this Act is allowable
to the taxpayer for the expense.
"(2) Expressions used in this section have the same meaning as in the
Fringe Benefits Tax Assessment Act 1986.
Meal entertainment-election under section 37CA of Fringe Benefits Tax
Assessment Act 1986 to use the 12 week register method
"51AEB.(1) If a taxpayer has made an election under section 37CA of
the Fringe Benefits Tax Assessment Act 1986:
(a) for each expense incurred in the FBT year by the taxpayer in
providing meal entertainment, a deduction equal to the amount worked
out using the following formula is allowable to the taxpayer for the
year of income in which it is incurred:
Amount of expense X Register percentage
(b) no other deduction under any provision of this Act is allowable
to the taxpayer for the expense.
"(2) The register percentage is the percentage worked out using the
formula:
Total deductions for register meal entertainment
X 100%
Total register meal entertainment expenses
where:
Total deductions for register meal entertainment means the total of
deductions that would (but for this section and section 51AEA) be
allowable to the taxpayer for expenses incurred by the taxpayer in
providing meal entertainment in the 12 week period covered by the
register kept by the employer under Subdivision B of Division 9A of the
Fringe Benefits Tax Assessment Act 1986.
Total register meal entertainment expenses means the total of expenses
incurred by the taxpayer in providing meal entertainment during that 12
week period.
"(3) Expressions used in this section have the same meaning as in the
Fringe Benefits Tax Assessment Act 1986.
Entertainment facility-election under section 152B of Fringe Benefits

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Tax Assessment Act 1986 to use 50/50 split method
"51AEC.(1) If a taxpayer has made an election under section 152B of
the Fringe Benefits Tax Assessment Act 1986:
(a) for each entertainment facility leasing expense incurred in the
FBT year by the taxpayer, a deduction equal to 50% of that expense is
allowable to the taxpayer for the year of income in which it is
incurred; and
(b) no other deduction under any provision of this Act is allowable
to the taxpayer for entertainment facility leasing expenses incurred in
the FBT year.
"(2) Expressions used in this section have the same meaning as in the
Fringe Benefits Tax Assessment Act 1986.".

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SCHEDULE 2

SCHEDULE 2 Section 3
CAR PARKING
PART 1-AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
Division 1-Additional test to be satisfied in relation to a car parking
benefit
1. Paragraph 39A(a):
Add at the end:
"and (iii) the lowest fee charged by the operator of any such
commercial parking station in the ordinary course of business to
members of the public for all-day parking on the first business day of
the FBT year is more than the car parking threshold;".
2. Section 39A:
Add at the end:
"(2) For the purposes of this section:
(a) the carparking threshold for the FBT year beginning on 1 April
1995 is $5.00; and
(b) for later years the carparking threshold is the threshold for the
previous FBT year as adjusted on the first business day of the later
FBT year by a factor equivalent to the movement in the preceding twelve
months in the All Groups Consumer Price Index number (being the
weighted average of the 8 capital cities) published by the Australian
Statistician.
"(3) Subject to subsection (4), if at any time, whether before or
after the commencement of this Act, the Australian Statistician has
published or publishes an index number in respect of a quarter in
substitution for an index number previously published by the Australian
Statistician in respect of that quarter, the publication of the later
index number is to be disregarded for the purposes of this section.
"(4) If at any time, whether before or after the commencement of this
section, the Australian Statistician has changed or changes the
reference base for the Consumer Price Index, then, for the purposes of
the application of this section after the change, regard is to be had
only to the index numbers published in terms of the new reference
base.".
3. After section 39A:
Insert:
Anti-avoidance-fee on first business day not representative
"39AA. For the purposes of subparagraph 39A(a)(iii), any fee charged
on the first business day of an FBT year that is not representative is
to be disregarded.
When fees are not representative
"39AB. A fee charged by an operator of a commercial parking station
on a particular day is not representative if the fee is substantially
greater or less than the average of the lowest fee charged by the
operator in the ordinary course of business to members of the public
for all-day parking on each of the days in whichever of the following
periods is chosen by the employer:
(a) the 4 week period beginning on the day; or
(b) the 4 week period ending on the day.".
Division 2-Valuation of car parking benefits
4. After section 39D:
Insert:
Taxable value of car parking fringe benefits-average cost method
Election
"39DA.(1) An employer may elect that this section applies to any or
all of the employer's car parking fringe benefits for a particular FBT
year.
Taxable value
"(2) Subject to this Part, if an election covers a car parking fringe
benefit, the taxable value of the fringe benefit is the average cost
worked out under subsection (3) reduced by the recipients contribution.
Method of working out average cost
"(3) The average cost is:
A + B
2
where:

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A is the lowest fee charged in the ordinary course of business to
members of the public for all-day parking by any operator of a
commercial parking station located within a 1 km radius of any of the
relevant parking premises on the day on which a car parking benefit is
first provided in that FBT year in relation to the employer in
connection with any of those premises.
B is the lowest fee charged in the ordinary course of business to
members of the public for all-day parking by any operator of a
commercial parking station located within a 1 km radius of any of the
relevant parking premises on the day on which a car parking benefit is
last provided in that FBT year in relation to the employer in
connection with any of those premises.
relevant parking premises means the premises referred to in paragraph
39A(a).
Fees must be representative
"(4) An election is of no effect if the fees referred to in
subsection (3) are not representative (see section 39AB).".
Division 3-Alternative methods of valuing car parking benefits
5. After Subdivision B of Division 10A of Part III:
Insert in Division 10A:
"Subdivision C-Statutory formula method-spaces
The key principle
"39F. Under this Subdivision, an employer may elect to calculate the
value of certain car parking fringe benefits by using a statutory
formula based on the number and value of spaces available to employees
covered by the election.
Spaces method of calculating total taxable value of car parking fringe
benefits
Election
"39FA.(1) If a provider provides one or more car parking benefits in
respect of one or more employees of an employer in a particular FBT
year, the employer may elect that this Subdivision applies to the
employer's car parking fringe benefits for some or all of the employees
for that FBT year.
Employer must specify employees covered by election
"(2) The employer must specify that the election covers:
(a) all the employees; or
(b) all employees of a particular class; or
(c) particular employees.
Total value of car parking fringe benefits
"(3) Despite any other provision of this Act (other than section
39FB) the total taxable value of the employer's car parking fringe
benefits for employees covered by the election for the FBT year is the
amount worked out using the spaces method under subsection (4).
Note: Section 39FB covers the situation where the number of spaces
available to employees exceeds the number of employees.
Method
"(4) The spaces method is:
Step 1: Work out an amount using the following formula, for each space
for which there is, in the FBT year, at least one car parking benefit
for an employee covered by the election:
Number of days in
availability periods in
relation to space
Daily rate amount X X 228
366
Step 2: Work out the total of all the amounts calculated under Step 1
(the total statutory benefit).
Step 3: Subtract from the total statutory benefit the sum of all
relevant recipients contributions.
Note 1: Section 39FC defines daily rate amount.
Note 2: Section 39FD defines availability period.
Note 3: Section 39FE defines relevant recipients contribution.
"(5) The election is of no effect if, in working out the daily rate
for a space, the fees referred to in subsection 39DA(3) are not
representative (see section 39AB).
Number of spaces exceeds number of employees
"39FB.(1) This section applies if, throughout the parking period (see
subsection (5)), the average number of employees covered by the
election is less than the average number of spaces (eligible spaces)
for which there is an availability period.
Formula to reduce total statutory benefits
"(2) If this section applies, the total statutory benefit (see Step 2
in subsection 39FA(4)) is multiplied by the following fraction:
Average number of employees
Average number of eligible spaces
"(3) The average number of employees is:
Number of employees covered Number of employees
by election at the beginning + covered by election at the end
of the parking period of the parking period

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2
"(4) The average number of eligible spaces is:
Number of eligible spaces at
the beginning of the parking + Number of eligible spaces at
period the end of the parking period
2
"(5) The parking period is the period:
(a) beginning on the first day in the FBT year on which the parking
of a car in any space referred to in subsection 39FA(4) gives rise to a
car parking fringe benefit of the employer for an employee covered by
the election; and
(b) ending on the last day in the FBT year on which the parking of a
car in any space referred to in subsection 39FA(4) gives rise to a car
parking fringe benefit of the employer for an employee covered by the
election.
Number of employees and number of spaces must be representative
"(6) This section does not apply if the number of employees or the
number of eligible spaces referred to in subsections (3) and (4) are
not representative (see subsection (7)).
Meaning of not representative
"(7) A number of employees, or a number of eligible spaces, as the
case requires, is not representative if the number of employees, or
eligible spaces, as the case requires, is substantially greater or less
than the average number throughout whichever of the following periods
is chosen by the employer:
(a) the 4 week period ending on the first day of the parking period;
or
(b) the 4 week period beginning on the last day of the parking
period.
Meaning of daily rate amount
"39FC. The daily rate amount for a space is the amount that would be
worked out using whichever of the following methods that the taxpayer
chooses:
(a) the commercial parking station method;
(b) the market value method;
(c) the average cost method;
as the taxable value of the car parking fringe benefit for the space,
if there were no recipients contribution.
Meaning of availability period
"39FD. An availability period for a space begins on the first day in
the FBT year on which there is a car parking benefit for the space for
an employee covered by the election and ends on the last day in the FBT
year on which there is a car parking benefit for the space for an
employee covered by the election.
Meaning of relevant recipients contribution
"39FE. A relevant recipients contribution is a recipients
contribution in respect of any car parking fringe benefit provided in
respect of the employment of an employee covered by the election for
the FBT year.
"Subdivision D-12 week record keeping method The key principle
"39G.
Under this Subdivision, an employer may keep a 12 week register of car
parking provided to employees. An employer who keeps such a register
may elect that the total value of certain car parking fringe benefits
for an FBT year for which the register is valid is to be determined in
accordance with the register.
Employer may elect to use 12 week record keeping method
"39GA.(1) An employer may elect that this Subdivision applies to the
employer's car parking fringe benefits for some or all of the
employer's employees for that FBT year if the employer has a valid
register for that FBT year covering those employees.
"(2) The employer must specify that the election covers:
(a) all the employees; or
(b) all employees of a particular class; or
(c) particular employees.
Value of fringe benefits for year
"39GB. Despite any other provision of this Act (other than this
section), the total taxable value of the employer's car parking fringe
benefits for employees covered by the election for the FBT year is the
amount worked out using the formula:
((Total value of car ) Number of days
((parking benefits (register) X 52) car parking
( 12) availability periods
X 366
Meaning of total value of car parking benefits (register)
"39GC. The total value of car parking benefits (register), in
relation to the FBT year, means the amount that would be the total
taxable value of car parking fringe benefits for employees covered by
the election for the 12 week period for which a register is kept,
assuming that:

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(a) the register had been kept in that FBT year; and
(b) the value of the benefits were calculated in accordance with the
information in the register; and
(c) the value of the benefits were calculated using whichever of the
following methods that the taxpayer chooses:
(i) the commercial parking station method;
(ii) the market value method;
(iii) the average cost method.
Meaning of car parking availability period
"39GD. The car parking availability period is the period:
(a) beginning on the first day in the FBT year on which there is a
car parking benefit for an employee covered by the election; and
(b) ending on the last day in the FBT year on which there is a car
parking benefit for an employee covered by the election.
Choosing the 12 week period for a register
"39GE.(1) The register must be kept for a continuous period of at
least 12 weeks throughout which car parking benefits are provided to
employees covered by the election.
"(2) The period for which the register is kept must be representative
of usage for the first FBT year for which it is valid.
"(3) If subsection (1) or (2) is not satisfied, the register is not
valid.
FBT years for which register is valid
12 week period in one FBT year
"39GF.(1) If the 12 week period begins and ends in the one FBT year,
the register is valid for that FBT year and, subject to subsections (3)
and (4), for each of the 4 FBT years immediately following that year.
12 week period over 2 FBT years
"(2) If the 12 week period begins in one FBT year and ends in another
FBT year, the register is only valid for the second FBT year and,
subject to subsections (3) and (4), for each of the 4 years immediately
following that year.

When register ceases to be valid-increase in benefits
"(3) A register that is valid for an FBT year ceases to be valid at
the end of that FBT year if the number of car parking fringe benefits
for the employer for employees covered by the election increases by
more than 10% on any day in that FBT year.
Note: This means that if the number of car parking fringe benefits
increases by more than 10%, the employer will have to keep a new
register in the FBT year following the year of the increase if the
employer wants to use the method in this Subdivision for that following
year.
When a register ceases to be valid-later register
"(4) A register that is valid for an FBT year ceases to be valid if
there is a later valid register for that FBT year that covers the same
employee.
Matters to be included in register
"39GG.(1) The register must include details of the following:
(a) the date on which each car covered by subsection (4) was parked;
(b) whether the car was parked for a total that exceeds 4 hours;
(c) whether the car travelled between the place of residence of an
employee covered by the election and his or her primary place of
employment on that day;
(d) the place where the car was parked.
"(2) The person responsible for making entries in the register must
make the entry as soon as practicable after he or she knows the details
required by subsection (1).
"(3) If subsection (1) or (2) is not satisfied, the register is not
valid.
"(4) A car is covered by this subsection if:
(a) a car benefit relating to the car is provided on a day during the
12 week period to an employee covered by the election in respect of the
employee's employment; or
(b) the car is owned by, or leased to, an employee covered by the
election at any time during the 12 week period; or
(c) the car is made available by another person to an employee
covered by the election at any time during the 12 week period where:
(i) the other person is not the employee's employer; and
(ii) the other person did not make the car available under an
arrangement to which the employee's employer is a party.
Fraudulent entries invalidate register
"39GH. For the purposes of this Act, a register is not valid if the
register contains an entry that is false or misleading in a material
particular.".
Division 4-Consequential amendments
6. Sections 39C and 39D:
Omit "a year of tax", substitute "an FBT year".
7. Sections 39C and 39D:
Omit "the year of tax" (wherever occurring), substitute "the FBT year".
8. Subsection 39D(1):

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Omit "a particular year of tax", substitute "a particular FBT year".
9. Subsection 39E(1):
Omit "Subdivision", substitute "Division".
Division 5-Application and Transitional
10. Application
The amendments made by this Part apply to assessments of the fringe
benefits taxable amount of an employer of the FBT year beginning on 1
April 1995 and of all later FBT years.
11. Transitional
A register is taken to have been kept under Subdivision D of Division
10A of Part III of the Fringe Benefits Tax Assessment Act 1986 if:
(a) before the commencement of this item, an employer kept the
register; and
(b) the register satisfies subsections 39GE(1) and (2) and 39GG(1)
and (2) of that Act.


PART 2-AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Division 1-Insertion of new Division dealing with car parking
12. After Division 4 of Part III:
Insert:
"Division 4A-Car parking for certain self-employed persons,
partnerships and trusts
"Subdivision A-Key principle, overview and coverage of Division
The key principle
"89A.
No deduction is allowable under this Act to a self-employed person, a
partnership or a trust for certain parking expenditure unless the
amount that would otherwise be deductible is reduced by the amount
calculated using one of the approved valuation methods.
Overview of Division
"89AA. The following table summarises the contents of this Division:
OVERVIEW
Subdivision Coverage
A Key principle, overview and coverage of Division
B The basic requirement that the deduction must be
calculated using an approved valuation method
C The commercial parking station method
D The market value method
E The average cost method
F The statutory formula (spaces) method
G The 12 week record keeping method
H Special provisions-2 anti-avoidance provisions
J Definitions (many terms have the same meaning as in
the Fringe Benefits Tax Assessment Act 1986)
Deductions to which Division applies
"89AB.(1) This Division applies to any deduction that would otherwise
be allowable to a taxpayer who is a natural person (including a person
in the capacity of trustee) or a partnership if all of the conditions
set out in this section are satisfied.
The first condition
"(2) The first condition is that the deduction (the gross deduction)
would, apart from this Division, be allowable to the taxpayer under
this Act in respect of expenditure to the extent to which it is
incurred in respect of the provision of car parking facilities for a
car on a day (the parking day) on or after 1 July 1995.
The second condition
"(3) The second condition is that, on the parking day, the taxpayer
or a partner in the taxpayer (if the taxpayer is a partnership) has a
primary place of self-employment and the car is used in connection with
travel by the taxpayer or partner between his or her place of residence
and that primary place of self-employment.
The third condition
"(4) The third condition is that:
(a) on the parking day, the car is parked on particular premises (the
parking premises) for one or more daylight periods exceeding 4 hours in
total; and
(b) the parking premises are at, or in the vicinity of, the primary
place of self-employment; and
(c) a commercial parking station is located within a 1 km radius of
the parking premises; and
(d) the lowest fee charged by the operator of any such commercial
parking station in the ordinary course of business to members of the
public for all-day parking on the first business day of the year of
income is more than $5.00.
Note: An anti-avoidance provision applies to paragraph (4)(d)-see
section 89HA.
The final condition
"(5) The final condition is that the expenditure is in respect of the
provision of the parking facilities to which that parking relates.
Regulations may exclude certain cases

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"89AC. This Division does not apply to a deduction if the provision
of parking facilities for the car during the period or periods to which
the deduction relates is taken, under the regulations, to be excluded
from this Division.
"Subdivision B-Deduction to be calculated using an
approved valuation method
Deduction to be calculated using an approved valuation method
"89B.(1) If this Division applies to a gross deduction, the gross
deduction is not allowable to the taxpayer, unless the taxpayer elects
to use an approved valuation method in calculating the amount of the
deduction.
"(2) The following are the approved valuation methods:
(a) the commercial parking station method;
(b) the market value method;
(c) the average cost method;
(d) the statutory formula (spaces);
(e) the 12 week record keeping method.
"Subdivision C-The commercial parking station method
What an election to use this method covers
"89C. A taxpayer may elect to use the commercial parking station
method to cover all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
Amount of deduction using this method
"89CA.(1) The amount of the deduction worked out using this method
is:
Gross deduction amount - Commercial parking station amount.
"(2) The gross deduction amount is:
(a) if only one gross deduction is covered by the election-the amount
of that gross deduction; or
(b) if more than one gross deduction is covered by the election-the
sum of the amounts of those gross deductions.
"(3) The commercial parking station amount is equal to the lowest fee
charged by any operator of commercial parking stations within a 1 km
radius of the parking premises in the ordinary course of business to
members of the public for all-day parking on the parking day.
"Subdivision D-The market value method
What an election to use this method covers
"89D. A taxpayer may elect to use the market value method to cover
all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
Amount of deduction using this method
"89DA.(1) The amount of the deduction worked out using this method
is:
Gross deduction amount - Market value amount.
"(2) The gross deduction amount is:
(a) if only one gross deduction is covered by the election-the amount
of that gross deduction; or
(b) if more than one gross deduction is covered by the election-the
sum of the amounts of those gross deductions.
"(3) The market value amount is the amount that the taxpayer could
reasonably be expected to have been required to pay in respect of the
provision of the parking facilities for the car on the parking day if:
(a) those facilities had been provided by another person; and
(b) the parties to the transaction were dealing with each other at
arm's length.
Valuer's report needed if method is used
"89DB. An election to use the market value method in relation to one
or more days in a year of income has no effect unless:
(a) a suitably qualified valuer gives to the taxpayer a report, in a
form approved by the Commissioner, about the valuation of the provision
of the car parking facilities; and
(b) the valuer is at arm's length in relation to the valuation; and
(c) the taxpayer's return for the year of income, in so far as it
relates to the market value method, is based on the report.
"Subdivision E-The average cost method
What an election to use this method covers
"89E. A taxpayer may elect to use the average cost method to cover
all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
Amount of deduction using this method
"89EA.(1) The amount of the deduction worked out using this method
is:
Gross deduction amount - Average cost amount.
"(2) The gross deduction amount is:

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(a) if only one gross deduction is covered by the election-the amount
of that gross deduction; or
(b) if more than one gross deduction is covered by the election-the
sum of the amounts of those gross deductions.
"(3) The average cost amount is equal to:
A + B
2
where:
A is the lowest fee charged in the ordinary course of business to
members of the public for all-day parking by any operator of a
commercial parking station located within a 1 km radius of the parking
premises on the first parking day for the taxpayer or the partner (as
the case requires) for those premises in that year of income.
B is the lowest fee charged in the ordinary course of business to
members of the public for all-day parking by any operator of a
commercial parking station located within a 1 km radius of any of the
parking premises on the last parking day for the taxpayer or the
partner (as the case requires) for those premises in that year of
income.
Fees must be representative if method is used
"89EB. An election to use the average cost method is of no effect if
the fees referred to in subsection 89EA(3) are not representative.
"Subdivision F-Statutory formula (spaces) method
The key principle
"89F. Under this Subdivision, a taxpayer may elect to reduce the
amount of certain deductions by an amount calculated using a statutory
formula based on the number and value of spaces available to the
taxpayer, or, if the taxpayer is a partnership, to partners in the
taxpayer who are covered by the election.
Spaces method of calculating total deduction for car parking expenses
Election
"89FA.(1) A taxpayer, other than a partnership, may elect to use the
statutory formula (spaces) method to cover all of the gross deductions
for the taxpayer for a year of income.
Election-partnerships
"(2) A partnership may elect to use the statutory formula (spaces)
method to cover all of the gross deductions for the taxpayer for a year
of income that relate to one or more partners in the taxpayer.
Partnership must specify partners covered by election
"(3) The partnership must specify that the election covers gross
deductions that relate to:
(a) all the partners; or
(b) all partners of a particular class; or
(c) particular partners.
Total value of deductions
"(4) Despite any other provision of this Act (other than section
89FB) the total amount of deductions covered by the election for the
year of income is the amount worked out using the spaces method under
subsection (5).
Note: Section 89FB covers the situation where the number of spaces
available to partners exceeds the number of partners.
Method
"(5) The spaces method is:
Step 1: Work out an amount using the following formula, for each space
for which there is, in the year of income, at least one gross deduction
for the taxpayer, or for a partner covered by the election (as the case
requires):
Number of days in
availability periods in
Daily rate amount X relation to space X 240
366
Step 2: Work out the total of all the amounts calculated under Step 1
(the total statutory deduction).
Step 3: Subtract the total statutory deduction from the gross deduction
amount.
Note 1: Section 89FC defines daily rate amount.
Note 2: Section 89FD defines availability period.
Note 3: Subsection (6) defines gross deduction amount.
"(6) The gross deduction amount is:
(a) if only one gross deduction is covered by the election-the amount
of that gross deduction; or
(b) if more than one gross deduction is covered by the election-the
sum of the amounts of those gross deductions.
"(7) The election is of no effect if, in working out the daily rate
for a space, the fees referred to in subsection 89EA(3) are not
representative (see section 89JB).
Number of spaces exceeds number of partners
"89FB.(1) This section applies if the taxpayer is a partnership and,
throughout the parking period (see subsection (5)), the average number
of partners covered by the election is less than the average number of

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spaces (eligible spaces) for which there is an availability period.
Formula to reduce total statutory benefits
"(2) If this section applies, the total statutory deduction (see Step
2 in subsection 89FA(5)) is multiplied by the following fraction:
Average number of partners
Average number of eligible spaces
"(3) The average number of partners is:
Number of partners covered Number of partners
by election at the beginning + covered by election at the
of the parking period end of the parking period
2
"(4) The average number of eligible spaces is:
Number of eligible spaces at Number of eligible spaces at
the beginning of the parking + the end of the parking
period period
2
"(5) The parking period is the period:
(a) beginning on the first day in the year of income on which the
parking of a car in any space referred to in subsection 89FA(5) gives
rise to a gross deduction of the taxpayer that relates to a partner
covered by the election; and
(b) ending on the last day in the year of income on which the parking
of a car in any space referred to in subsection 89FA(5) gives rise to a
such a gross deduction.
Number of partners and number of spaces must be representative
"(6) This section does not apply if the number of partners or the
number of eligible spaces referred to in subsections (3) and (4) are
not representative (see subsection (7)).
Meaning of not representative
"(7) A number of partners, or a number of eligible spaces, as the
case requires, is not representative if the number of partners, or
eligible spaces, as the case requires, is substantially greater or less
than the average number throughout whichever of the following periods
is chosen by the employer:
(a) the 4 week period ending on the first day of the parking period;
or
(b) the 4 week period beginning on the last day of the parking
period.
Meaning of daily rate amount
"89FC. The daily rate amount for a space is the amount that would be
worked out under section 89EA as the gross deduction amount for the
space.
Meaning of availability period
"89FD. An availability period for a space:
(a) begins:
(i) in the case of a taxpayer other than a partnership-on the first
day in the year of income on which the parking of a car in the space
gives rise to a gross deduction of the taxpayer; or
(ii) in the case of a partnership-on the first day in the year of
income on which the parking of a car in the space gives rise to a gross
deduction of the taxpayer that relates to a partner covered by the
election; and
(b) ends on the last day in the year of income on which the parking
of a car in the space gives rise to such a gross deduction.
"Subdivision G-The 12 week record keeping method
The key principle
"89G.
Under this Subdivision, a taxpayer may keep a 12 week register of car
parking. A taxpayer who keeps such a register may elect that the total
amount of gross deductions for years of income for which the register
is valid is to be determined in accordance with the register.
What an election to use this method covers
"89GA.(1) A taxpayer may elect to use the 12 week record keeping
method to cover all gross deductions for the taxpayer for a year of
income.
"(2) A partnership may, alternatively, elect to use the 12 week
record keeping method to cover all gross deductions for the partnership
that relate to a particular partner, or particular partners, for a year
of income.

Amount of deduction using this method
"89GB. The total amount of the deductions covered by the election is:
( Allowable ) Number of days in
(deductions (register) X 52) X car parking
( 12) availability periods
366
Meaning of allowable deductions (register)
"89GC.(1) The allowable deductions (register), in relation to a year
of income, means the amount that would be the total allowable
deductions for the taxpayer for the 12 week period for which a register
is kept, assuming that:

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(a) the register had been kept in that year of income; and
(b) the amount of the deductions were calculated in accordance with
the information in the register; and
(c) the allowable deductions were calculated using whichever of the
following methods that the taxpayer chooses:
(i) the commercial parking station method;
(ii) the market value method;
(iii) the average cost method.
"(2) In working out the allowable deductions (register) for a
partnership, only those deductions that are attributable to the
partners covered by the election are to be taken into account.
Meaning of car parking availability period
"89GD. The car parking availability period is the period:
(a) beginning on the first parking day for the taxpayer or a partner
covered by the election (as the case requires) in that year of income;
and
(b) ending on the last parking day for the taxpayer or a partner
covered by the election (as the case requires) in that year of income.
Choosing the 12 week period for a register
"89GE.(1) The register must be kept for a continuous period of at
least 12 weeks.
"(2) The period over which the register is kept must be
representative of usage for the first year of income for which it is
valid.
"(3) If subsection (1) or (2) is not satisfied, the register is not
valid.
Years of income for which register is valid
12 week period in one year of income
"89GF.(1) If the 12 week period begins and ends in the one year of
income, the register is valid for that year of income and, subject to
subsections (3), (4) and (5), for each of the 4 years of income
immediately following that year.
12 week period over two years of income
"(2) If the 12 week period begins in one year of income and ends in
another year of income, the register is only valid for the second year
of income and, subject to subsections (3), (4) and (5), for each of the
4 years of income immediately following that year.
When register ceases to be valid
"(3) A register that is valid for a year of income ceases to be valid
at the end of that year if before the end of that year of income, the
Commissioner gives the taxpayer a notice advising the taxpayer that the
register will cease to be valid at the end of the year of income.
Note: This means that if the Commissioner notifies the taxpayer, the
taxpayer will have to keep a new register in the following year of
income if the taxpayer wants to use this method.
"(4) A register kept by a taxpayer other than a partnership that is
valid for a year of income ceases to be valid if there is a later valid
register for that year.
"(5) A register kept by a taxpayer that is a partnership that is
valid for a year of income ceases to be valid if there is a later valid
register for that year of income that covers the same partners.
Matters to be included in register
"89GG.(1) The register must include the following details:
(a) the date on which each car covered by subsection (4) was parked;
(b) whether the car was parked for a total that exceeds 4 hours;
(c) whether the car was used in connection with travel by a person
between his or her place of residence and his or her primary place of
self-employment on that day;
(d) the place where the car was parked.
"(2) The person responsible for making entries in the register must
make the entry as soon as practicable after he or she knows the details
required by subsection (1).
"(3) If subsection (1) or (2) is not satisfied, the register is not
valid.
"(4) A car is covered by this subsection if the car was used in
connection with travel by the taxpayer, or a partner covered by the
election, between his or her place of residence and his or her primary
place of self-employment on any day in the 12 week period.
Fraudulent entries invalidate register
"89GH. For the purposes of this Act, a register is not valid if the
register contains an entry that is false or misleading in a material
particular.
"Subdivision H-Special provisions
Anti-avoidance-commercial parking stations
"89H. If either or both of the following apply:
(a) a transaction between the operator of a commercial parking
station and a customer is not at arm's length;
(b) the operator of a commercial parking station sets the level of a
fee for the sole or dominant purpose of enabling one or more taxpayers
to avoid, in whole or in part, the application of this Division;

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then, for the purposes of this Division:
(c) if only paragraph (a) applies-it is to be assumed that the fee is
the fee that would have been payable if the operator and the customer
had been dealing with each other at arm's length in relation to the
transaction; and
(d) if only paragraph (b) applies-it is to be assumed that the fee is
the fee that would have been payable if it had been set without that
purpose in mind; and
(e) if both paragraphs (a) and (b) apply-it is to be assumed that the
fee is the fee that would have been payable if:
(i) the operator and the customer had been dealing with each other
at arm's length in relation to the transaction; and
(ii) it had been set without that purpose in mind.
Anti-avoidance-fee on first business day after 31 March not
representative
"89HA. For the purposes of paragraph 89AB(4)(d), any fee on the first
business day after 31 March in a year that is not representative is
taken to be more than $5.00.
"Subdivision J-Interpretation
When a commercial parking station is within 1 km
"89J. A commercial parking station is taken to be located within a 1
km radius of particular parking premises if, and only if, a car
entrance to the commercial parking station is situated less than 1 km,
by the shortest practicable route, from a car entrance to those
premises.
Daily rate equivalent for periodic parking arrangements
"89JA. If the operator of a commercial parking station provides
all-day parking in the ordinary course of business to members of the
public on a weekly, monthly, yearly or other periodic basis, the
operator is taken to charge a fee for all-day parking on a particular
day during the period equal to the amount worked out using the formula:
Total fee
Number of business days in period
where:
Total fee is the total fee charged by the operator in respect of
all-day parking on days in that period.
When fees are not representative
"89JB. A fee charged by an operator of a commercial parking station
on a particular day is not representative if the fee is substantially
greater or less than the average of the lowest fee charged by the
operator in the ordinary course of business to members of the public
for all-day parking on each of the days in whichever of the following
periods is chosen by the taxpayer:
(a) the 4 week period beginning on the day; or
(b) the 4 week period ending on the day.
Definitions
"89JC. In this Division:
all-day parking has the same meaning as in the Fringe Benefits Tax
Assessment Act 1986.
business day has the same meaning as in the Fringe Benefits Tax
Assessment Act 1986.
car has the same meaning as in the Fringe Benefits Tax Assessment Act
1986.
commercial parking station has the same meaning as in the Fringe
Benefits Tax Assessment Act 1986.
daylight period has the same meaning as in the Fringe Benefits Tax
Assessment Act 1986.
expenditure does not include expenditure of a capital nature.
income-producing activity, for a person, means an activity (including
an investment activity) carried on for the purpose, or purposes that
include the purpose, of producing:
(a) in any case-assessable income (other than salary or wages) of the
person of any year of income; or
(b) if the person is a partner in a partnership-assessable income of
the partnership of any year of income; or
(c) if the person is the trustee of a trust estate-assessable income
of the trust estate of any year of income.
place of residence has the same meaning as in the Fringe Benefits Tax
Assessment Act 1986.
primary place of self-employment, for a person on a day, means premises
where:
(a) if the person carried on income-producing activities on that day-
on that day; or
(b) in any other case-on the most recent day before that day on which
the person carried on income-producing activities;
those premises are or were the sole or primary place from which, or at
which, the person carried on income-producing activities.
salary or wages has the same meaning as in section 221A.".


Division 2-Consequential amendments

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13. Paragraph 51AGB(1)(i):
Add at the end "and before 1 July 1995.".
14. Subsection 262A(4AK):
After "subsection 51AGB(7)" insert "or section 89DB".
Division 3-Transitional
15. Transitional


(1) A register is taken to have been kept under Subdivision G of
Division 4A of Part III of the Income Tax Assessment Act 1936 if:
(a) before the commencement of this item, a taxpayer kept a register;
and
(b) the register satisfies sections 89GE and 89GG of that Act.


(2) Regulations made for the purposes of paragraph 51AGB(1)(h) of the
Income Tax Assessment Act 1936 are taken to have been made also for the
purposes of section 89AC of that Act.

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SCHEDULE 3

SCHEDULE 3 Section 3
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
RELATED TO EXEMPT BENEFITS
1. Section 58G:
Add at the end:
"(3) If:
(a) the employer of an employee is a government body; and
(b) the employee is exclusively employed in, or in connection with, a
public educational institution;
the following benefits provided in respect of the employment of the
employee are exempt benefits:
(c) an eligible car parking expense payment benefit;
(d) a car parking benefit.".
2. After section 58W:
Insert in Division 13:
Exempt benefits-provision of certain work related items
"58X.(1) Any of the following benefits provided by an employer to an
employee of the employer in respect of the employee's employment is an
exempt benefit:
(a) an expense payment benefit where the recipients expenditure is in
respect of an eligible work related item;
(b) a property benefit where the recipients property is an eligible
work related item;
(c) a residual benefit where the recipients benefit consists of the
making available of an eligible work related item.
"(2) Subject to subsections (3) and (4), each of the following is an
eligible work related item:
(a) a mobile phone or a car phone;
(b) an item of protective clothing that is required for the
employment of the employee;
(c) a briefcase;
(d) a calculator;
(e) a tool of trade;
(f) an item of computer software for use in the employee's
employment;
(g) an electronic diary or similar item;
(h) a notebook computer, a laptop computer or a similar portable
computer.
"(3) A mobile phone or a car phone is only an eligible work related
item if the phone is primarily for use in the employee's employment.
"(4) A notebook computer, a laptop computer or a similar portable
computer is not an eligible work related item if, earlier in the FBT
year, an expense payment benefit or a property benefit of the employee
has arisen in relation to another notebook computer, laptop computer or
similar portable computer.
Exempt benefits-membership fees and subscriptions
"58Y.(1) Either of the following benefits provided by an employer to
an employee of the employer in respect of the employee's employment is
an exempt benefit:
(a) an expense payment benefit where the recipients expenditure is in
respect of an eligible membership or subscription;
(b) a property benefit where the recipients property is an eligible
membership or subscription.
"(2) Each of the following is an eligible membership or subscription:
(a) a subscription to a trade or professional journal;
(b) an entitlement to use a corporate credit card;
(c) an entitlement to use an airport lounge membership.
Exempt benefits-taxi travel
"58Z.(1) Any benefit arising from taxi travel by an employee is an
exempt benefit if the travel:
(a) is the whole or a part of the journey directly between the
employee's place of residence and the employee's place of work; and

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(b) commences between 7.00 p.m. and 7.00 a.m.
"(2) Any benefit arising from taxi travel by an employee is an exempt
benefit if the travel:
(a) is as a result of sickness of, or injury to, the employee; and
(b) is the whole or a part of the journey directly between any of the
following:
(i) the employee's place of work; or
(ii) the employee's place of residence; or
(iii) any other place that it is necessary, or appropriate, for
the employee to go as a result of the sickness or injury.".
3. After paragraph 65J(1)(a):
Insert:
"(aa) a non-profit scientific institution that:
(i) is engaged solely in research into the causes, prevention or
cure of diseases in humans; and
(ii) is established by a law of the Commonwealth, a State or a
Territory; and
(iii) is not conducted by or on behalf of the Commonwealth, a State
or a Territory;".
4. Application


(1) The amendments made by item 1 of this Schedule apply to
assessments of the fringe benefits taxable amount of an employer of the
FBT year beginning on 1 April 1993 and of all later FBT years.


(2) The amendments made by item 2 of this Schedule apply:
(a) in relation to expense payment fringe benefits where the
recipients expenditure in relation to the benefit was incurred on or
after 1 April 1995; and
(b) in relation to any other fringe benefit where the benefit is in
relation to the FBT year beginning on 1 April 1995 or a later FBT year.


(3) The amendments made by item 3 of this Schedule apply to
assessments of the fringe benefits taxable amount of an employer of the
FBT year beginning on 1 April 1994 and of all later FBT years.

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SCHEDULE 4

SCHEDULE 4 Section 3
AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
RELATED TO DECLARATIONS
1. After section 20:
Insert:
Exemption-no-private-use declaration
"20A.(1) An expense payment fringe benefit that is covered by a
no-private-use declaration is an exempt benefit.
"(2) An employer may make a no-private-use declaration that covers
all the employer's expense payment fringe benefits for an FBT year for
which the employer will only pay or reimburse so much of the expense
that is the subject of the benefit as would result in the taxable value
of the benefit being nil.
"(3) The declaration must be in a form approved in writing by the
Commissioner and be made by the declaration date.".
2. After subparagraph 24(1)(e)(i):
Insert:
"(ia) covered by a recurring fringe benefit declaration (see section
152A);".
3. After subparagraph 44(1)(c)(i):
Insert:
"(ia) covered by a recurring fringe benefit declaration (see section
152A);".
4. After section 47:
Insert in Subdivision A of Division 12 of Part III:
Exemption-no-private-use declaration
"47A.(1) A residual fringe benefit that is covered by a no-private-
use declaration is an exempt benefit.
"(2) An employer may make a no-private-use declaration that covers
all the employer's residual fringe benefits for an FBT year that are
covered by a consistently enforced policy in relation to the use of the
property that is the subject of the benefit that would result in the
taxable value of the benefit being nil.
"(3) The declaration must be in a form approved in writing by the
Commissioner and be made by the declaration date.".
5. After subparagraph 52(1)(c)(i):
Insert:
"(ia) covered by a recurring fringe benefit declaration (see section
152A);".
6. Subsection 136(1) (definition of statutory evidentiary document):
Add at the end:
"and (d) a no-private-use declaration or a recurring fringe benefit
declaration that covers benefits provided in the current year of tax.".

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7. After section 152:
Insert:
Recurring fringe benefit declaration
Recipient may make recurring fringe benefit declaration
"152A.(1) If a person is provided with a benefit (the declaration
benefit), the person may make a recurring fringe benefit declaration in
relation to the declaration benefit.
Expense payment fringe benefits covered by declaration
"(2) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is an expense payment fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 24(1)(e) in respect of the recipients expenditure
for that benefit; and
(b) the gross deduction in subparagraph 24(1)(b)(iii) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 24(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration benefit as worked out under subsection
(9).
Note: The gross deduction is used as component GD in the formula in
paragraph 24(1)(ba).
Property fringe benefits covered by declaration
"(3) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is a property fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 44(1)(c) in respect of the recipients property for
that benefit; and
(b) the gross deduction in subparagraph 44(1)(b)(i) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 44(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration as worked out under subsection (9).
Note: The gross deduction is used as component GD in the formula in
paragraph 44(1)(ba).
Residual fringe benefits covered by declaration
"(4) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is a residual fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 52(1)(c) in respect of the recipients benefit for
that benefit; and
(b) the gross deduction in subparagraph 52(1)(b)(i) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 52(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration benefit as worked out under subsection
(9).
Note: The gross deduction is used as component GD in the formula in
paragraph 52(1)(ba).
"(5) The declaration must be in a form approved in writing by the
Commissioner and be made, and given to the employer, by the declaration
date for the employer for the FBT year in which the declaration benefit
is provided.
What benefit declaration covers
"(6) The declaration covers all benefits that are identical to the
declaration benefit received by the person before the earlier of:
(a) the time when the person revokes the declaration; and
(b) the end of 5 years starting when the declaration is made.
"(7) The declaration does not cover a benefit if the deductible
proportion of the benefit is more than 10 percentage points less than
the deductible proportion of the declaration benefit.
"(8) If a taxpayer makes a declaration for a benefit that is an
identical benefit to a benefit covered by an earlier declaration, the
earlier declaration is revoked.
Meaning of deductible proportion
"(9) The deductible proportion of a benefit is the percentage worked

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out using the formula:
Gross Deduction X 100%
Gross Expenditure
where:
gross deduction means the gross deduction mentioned in whichever of
subparagraph 24(1)(b)(iii), 44(1)(b)(i) or 52(1)(b)(i) applied to the
benefit.
gross expenditure means the gross expenditure mentioned in whichever of
paragraph 24(1)(b), 44(1)(b) or 52(1)(b) applied to the benefit.".
Meaning of identical
"(10) A benefit is identical to another benefit if the benefits are
the same in all respects except for any differences:
(a) that are minimal or insignificant; or
(b) that relate to the value of the benefits; or
(c) in the deductible proportion of the benefits.".
8. Application
The amendments made by this Schedule apply to assessments of the fringe
benefits taxable amount of an employer of the FBT year beginning on 1
April 1995 and of all later FBT years.

TAXATION LAWS AMENDMENT (FBT COST OF COMPLIANCE) ACT 1995 No. 145 of 1995 - SCHEDULE 5

SCHEDULE 5 Section 3
OTHER AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
1. Subparagraph 8(2)(a)(i):
After "truck" insert ", designed to carry a load of less than 1 tonne".
2. Sub-subparagraph 9(2)(c)(ii)(A):
Omit "0.06", substitute "0.07".
3. Sub-subparagraph 9(2)(c)(ii)(B):
Omit "0.1", substitute "0.11".
4. Sub-subparagraph 9(2)(c)(ii)(C):
Omit "0.18", substitute "0.20".
5. Sub-subparagraph 9(2)(c)(ii)(D):
Omit "0.24", substitute "0.26".
6. Subsection 10(2) (paragraph (a) of the definition of BP):
Add at the end "or".
7. Subsection 10(2) (paragraph (b) of the definition of BP):
Omit the paragraph.
8. Subsection 10(2) (paragraph (c) of the definition of BP):
Omit all the words after "case -", substitute "the business use
percentage applicable to the car for the holding period; and".
9. Paragraphs 10A(a) and (b):
Omit the paragraphs, substitute:
"(a) log books and odometer records are maintained by or on behalf of
the provider for an applicable log period in relation to the car; and
(b) odometer records are maintained by or on behalf of the provider
for the holding period; and
(c) if the provider is not the employer-those log books and odometer
records are given to the employer before the declaration date; and
(d) the employer specifies the employer's estimate of the number of
business kilometres travelled by the car during the holding period; and
(e) the employer specifies a percentage as the business use
percentage applicable to the car in relation to the provider for the
holding period.".
10. Paragraph 10B(b):
Omit the paragraph, substitute:
"(b) the employer specifies the employer's estimate of the number of
business kilometres travelled by the car in the holding period; and
(c) the employer specifies the business use percentage applicable to
the car in relation to the provider for the holding period.".
11. Section 10C:
Repeal the section.
12. Subparagraphs 19(1)(f)(i) and (ii):
Omit "car deduction percentage, ascertained under section 65G,"
substitute "business use percentage".
13. Subparagraph 24(1)(h)(i):
Omit "car deduction percentage, ascertained under section 65G,"
substitute "business use percentage".
14. Sub-subparagraphs 24(1)(h)(ii)(A) and (B):
Omit "car deduction percentage, ascertained under section 65G,"
substitute "business use percentage".
15. Subsection 24(4):
Omit the subsection, substitute:
"(4) For the purposes of paragraph (1)(c), the part of a petty cash
book or similar document that sets out the particulars that would be
set out in documentary evidence of the recipients expenditure (other
than particulars of the date on which the documentary evidence was made
out) is taken to be substitute documentary evidence of the recipients
expenditure. The entry must be in English.".
16. Subparagraphs 44(1)(g)(i) and (ii):
Omit "car deduction percentage, ascertained under section 65G,"

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substitute "business use percentage".
17. Subparagraphs 52(1)(g)(i) and (ii):
Omit "car deduction percentage, ascertained under section 65G,"
substitute "business use percentage".
18. Paragraphs 65E(a) and (b):
Omit the paragraphs, substitute:
"(a) log books and odometer records have been maintained by or on
behalf of the recipient for an applicable log period in relation to the
car; and
(b) odometer records are maintained by or on behalf of the provider
for the holding period; and
(c) the employer specifies the employer's estimate of the number of
business kilometres travelled by the car during the holding period; and
(d) the employer specifies a percentage as the business use
percentage applicable to the car in relation to the recipient for the
holding period.".
19. Paragraph 65F(b):
Omit the paragraph, substitute:
"(b) the employer specifies the employer's estimate of the number of
business kilometres travelled by the car in the holding period; and
(c) the employer specifies a percentage as the business use
percentage applicable to the car in relation to the recipient for the
holding period.".
20. Section 65G:
Repeal the section.
21. Section 65H:
Repeal the section.
22. Section 115A:
Repeal the section, substitute:
Penalty tax for making unreasonable estimate of business kilometres
"115A. If:
(a) the number of kilometres specified by an employer as the
employer's estimate of the number of business kilometres travelled by a
car during a period in an FBT year is not a reasonable estimate of the
number of business kilometres travelled in that period; and
(b) the tax that would be payable by the employer if a reasonable
estimate of the number of business kilometres was substituted for the
employer's estimate exceeds the tax that would be payable if the
employer's estimate was used;
then:
(c) the Commissioner may make a reasonable estimate of the number of
business kilometres; and
(d) the Commissioner's estimate is to be used in calculating the
business use percentage applicable to the car for the period; and
(e) the employer is liable to pay, by way of penalty, additional tax
equal to double the amount of the excess referred to in paragraph
(b).".
23. Paragraph 123(4)(b):
Omit the paragraph, substitute:
"(b) the employer has a document (the substitute document) that:
(i) is a copy of the original document; or
(ii) properly records all of the matters as set out in the original
document and was in existence when the original document was lost or
destroyed;".
24. Subparagraph 123(5)(b)(i):
Add at the end "and".
25. Subparagraphs 123(5)(b)(ii) and (iv):
Omit the subparagraphs.
26. Subparagraph 123(6)(c)(i):
Add at the end "and".
27. Subparagraphs 123(6)(c)(ii) and (iv):
Omit the subparagraphs.
28. Section 123A:
Repeal the section, substitute:
When business use percentage and estimate of business kilometres must
be specified
"123A. If a provision requires a business use percentage or an
estimate of the number of business kilometres to be specified, it must
be specified in writing on or before the declaration date for the FBT
year.".
29. Subsections 123B(1) and (2):
Omit the subsections, substitute:
"(1) The substantiation rules do not apply in relation to a benefit
if the nature and quality of evidence that a person has satisfies the
Commissioner that the taxable value of the benefit is not greater than
the amount specified in the taxpayer's return for the FBT year as the
taxable value of that benefit.".
30. Paragraph 132(1)(b):
Omit "7 years", substitute "5 years".
31. Paragraph 132(2)(c):

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Omit "7 years", substitute "5 years".
32. After section 132:
Insert:
Written evidence not available when return lodged
"132A.(1) This section applies if:
(a) a provision of this Act requires documentary evidence of an
expense to be given to, or obtained by, an employer before the
declaration date for an employer for an FBT year; and
(b) at the date of lodgment of the employer's return of the fringe
benefits taxable amount for the FBT year:
(i) the employer has not been given, or has not obtained, the
documentary evidence;
but:
(ii) the employer has good reason to expect that he or she will be
given, or will obtain, that evidence within a reasonable time.
"(2) If this section applies:
(a) the employer may complete his or her return as if the documentary
evidence had been given to, or obtained by, him or her by the date of
lodgment; and
(b) if the evidence is given to, or obtained by, the employer within
a reasonable time-this Act applies as if the documentary evidence had
been given to, or obtained by, the employer before the declaration
date; and
(c) if the evidence is not given to, or obtained by, the employer
within a reasonable time-the employer must notify the Commissioner in
writing that the evidence has not been obtained.".
33. Subsection 136(1):
Insert:
"business use percentage, for a car held by a person during a period
(the holding period) in an FBT year, means the percentage worked out
using the formula:
Number of business kilometres travelled by
the car during the holding period
X 100%
Total number of kilometres travelled by the
car during the holding period ".
34. Subsection 136(1) (paragraph (a) of the definition of car):
After "vehicle", insert, ", designed to carry a load of less than 1
tonne".
35. Subsection 136(1) (definition of car records):
Omit the definition.
36. Subsection 136(1) (paragraph (a) of the definition of extended
travel airline transport benefit):
After "route" insert "and involves the recipient being away from the
recipient's usual place of residence for a continuous period including
more than 5 nights".
37. Subsection 136(1) (paragraph (a) of the definition of extended
travel expense payment benefit):
After "Australia" insert "and involves the recipient being away from
the recipient's usual place of residence for a continuous period
including more than 5 nights".
38. Subsection 136(1) (paragraph (a) of the definition of extended
travel property benefit):
After "Australia" insert "and involves the recipient being away from
the recipient's usual place of residence for a continuous period
including more than 5 nights".
39. Subsection 136(1) (paragraph (a) of the definition of extended
travel residual benefit):
After "Australia" insert "and involves the recipient being away from
the recipient's usual place of residence for a continuous period
including more than 5 nights".
40. Subsection 136(1):
Insert:
"FBT year means a year beginning on 1 April.".
41. Subsection 136(1) (paragraphs (c), (d), and (e) of the definition
of log book records):
Add at the end "and".
42. Subsection 136(1) (paragraphs (g), (h) and (j) of the definition of
log book records):
Omit the paragraphs.
43. Subsection 136(1) (definition of log book records):
Omit all the words after "end of the journey".
44. Subsection 136(1) (definition of low business kilometre car):
Omit the definition.
45. Subsection 136(1) (definition of nominated business percentage):
Omit the definition.
46. Subsection 136(1) (paragraphs (a) and (b) of the definition of
odometer records):
Omit all the words after "period" (first occurring), substitute ";
and".

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47. Subsection 136(1) (paragraphs (d) and (e) of the definition of
odometer records):
Omit the paragraphs.
48. Subsection 136(1) (definition of odometer records):
Omit ", and that is signed by the person or persons referred to in
paragraph (e)".
49. Subsection 136(1) (subparagraph (b)(ii) of the definition of
retention period):
Omit "6", substitute "5".
50. Subsection 136(1) (paragraph (a) of the definition of statutory
evidentiary document):
Add at the end "and".
51. Subsection 136(1) (paragraph (aa) of the definition of statutory
evidentiary document):
Omit "car records", substitute "records of a nomination under section
162K or 162L".
52. Subsection 136(1) (after paragraph (aa) of the definition of
statutory evidentiary document):
Insert:
"(ab) a record of the business use percentage specified by the
employer for the current year of tax; and".
53. Subsection 136(1) (paragraph (b) of the definition of statutory
evidentiary document):
Omit "paragraph 10A(b) or", substitute "section 10A or paragraph".
54. Subsection 136(1) (paragraph (c) of the definition of travel
diary):
Omit the paragraph.
55. Subsection 136(1) (definition of underlying business percentage):
Omit the definition.
56. Sections 162D and 162E:
Repeal the sections.
57. Section 162F:
Omit "the percentage that represents a reasonable estimate underlying
business percentage", substitute " the number of kilometres that
represents a reasonable estimate of the number of business kilometres".
Note: The heading to section 162F is altered by omitting "underlying
business percentage" and substituting "number of business kilometres".
58. Paragraph 162G(1)(a):
Omit the paragraph, substitute:
"(a) none of the previous 4 years was a log book year of tax of the
employer in relation to the car;
Note: This paragraph will apply if it is the first year that the
employer uses the cost basis Note: method.".
59. Paragraph 162G(1)(b):
Add at the end "or".
60. Paragraphs 162G(1)(c), (d), (e), (f) and (g):
Omit the paragraphs.
61. Paragraph 162G(2)(a):
Omit the paragraph, substitute:
"(a) none of the previous 4 years was a log book year of tax of the
employer in relation to the car;".
62. Paragraph 162G(2)(b):
Add at the end "or".
63. Paragraphs 162G(2)(c), (d), (e), (f) and (g):
Omit the paragraphs.
64. Subsection 162G(3):
Omit the subsection, substitute:
"(3) An election under this section is to be in writing.".
65. Section 162H:
Add at the end:
"(3) The applicable log book period must be specified in the log book
records for the period at, or as soon as possible after, the end of the
period.".
66. Subsections 162H(1) and (2):
Before "in a year of tax" insert "starting or ending".
67. Paragraphs 162H(1)(b) and (2)(b):
Omit the paragraphs, substitute:
"(b) in any other case-a continuous period of not less than 12 weeks
that begins and ends during the holding period.".
68. Section 162J:
Repeal the section.
69. Subsection 162K(2):
Omit ", in the employer's car records for the current year of tax,".
70. After subsection 162K(2):
Insert:
"(2A) A nomination shall be made in writing on or before the
declaration date for the current year of tax.".
71. Subsection 162L(2):
Omit ", in the employer's car records for the current year of tax,".
72. After subsection 162L(2):
Insert:
"(2A) A nomination shall be made in writing on or before the
declaration date for the current year of tax.".
73. Section 162M:
Repeal the section.
74. Application
The amendments made by this Schedule apply to assessments of the fringe
benefits taxable amount of an employer of the FBT year beginning on 1
April 1995 and of all later FBT years.