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Fringe Benefits Tax Assessment Act 1986
No. 39, 1986
In force
Administered by
Department of the Treasury
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C2026C00332 C97
01 July 2026
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Volume 1
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Part I—Preliminary
1 Short title
2 Commencement
2A Application of the Criminal Code
2B Application
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Part II—Administration
3 General administration of Act
4 Annual report
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Part IIA—Core provisions
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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
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Division 2—Working out an employer’s aggregate fringe benefits amount
5C Aggregate fringe benefits amount
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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
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Part III—Fringe benefits
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Division 1—Preliminary
6 Part not to limit generality of benefit
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Division 2—Car fringe benefits
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Subdivision A—Car benefits
7 Car benefits
8 Exempt car benefits
8A Exempt car benefits: cars that are zero or low emissions vehicles
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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
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Division 3—Debt waiver fringe benefits
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Subdivision A—Debt waiver benefits
14 Debt waiver benefits
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Subdivision B—Taxable value of debt waiver fringe benefits
15 Taxable value of debt waiver fringe benefits
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Division 4—Loan fringe benefits
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Subdivision A—Loan benefits
16 Loan benefits
17 Exempt loan benefits
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Subdivision B—Taxable value of loan fringe benefits
18 Taxable value of loan fringe benefits
19 Reduction of taxable value—otherwise deductible rule
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Division 5—Expense payment fringe benefits
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Subdivision A—Expense payment benefits
20 Expense payment benefits
20A Exemption—no-private-use declaration
21 Exempt accommodation expense payment benefits
22 Exempt car expense payment benefits
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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
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Division 6—Housing fringe benefits
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Subdivision A—Housing benefits
25 Housing benefits
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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
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Division 7—Living-away-from-home allowance fringe benefits
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Subdivision A—Living-away-from-home allowance benefits
30 Living-away-from-home allowance benefits
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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
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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
31F Declarations
31G Substantiating related expenses
31H Exempt food component
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Division 9—Board fringe benefits
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Subdivision A—Board benefits
35 Board benefits
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Subdivision B—Taxable value of board fringe benefits
36 Taxable value of board fringe benefits
37 Reduction of taxable value—otherwise deductible rule
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Division 9A—Meal entertainment
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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
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Subdivision B—50/50 split method of valuing meal entertainment
37B Key principle
37BA Taxable value using 50/50 split method
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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
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Division 10—Tax-exempt body entertainment fringe benefits
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Subdivision A—Tax-exempt body entertainment benefits
38 Tax-exempt body entertainment benefits
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Subdivision B—Taxable value of tax-exempt body entertainment fringe benefits
39 Taxable value of tax-exempt body entertainment fringe benefits
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Division 10A—Car parking fringe benefits
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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
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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
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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
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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
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Division 11—Property fringe benefits
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Subdivision A—Property benefits
40 Property benefits
41 Exempt property benefits
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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
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Division 12—Residual fringe benefits
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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
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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
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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
58W Exempt benefits—deposits under the Small Superannuation Accounts Act 1995
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
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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
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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
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Division 14B—Reducible fringe benefits relating to remote area home repurchase schemes
65CC Reducible fringe benefits relating to remote area home repurchase schemes
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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
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Part IIIA—Rebates of tax
65J Rebate for certain not-for-profit employers etc.
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Part IV—Liability to tax
66 Liability to pay tax
67 Arrangements to avoid or reduce fringe benefits tax
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Part V—Returns and assessments
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Division 1—Returns
68 Annual returns
69 Further returns
70 Keeping records of indirect tax transactions
70D Tax agent to give taxpayer copy of notice of assessment
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Division 2—Assessments
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
78A Objections
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Volume 2
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Part VII—Collection and recovery of tax
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Division 1—General
90 When tax payable
93 Unpaid tax
100 Person in receipt or control of money of non-resident
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Division 2—Collection by instalments
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Subdivision A—General
101 Interpretation
102 Liability to pay instalments of tax
103 When instalment of tax payable
104 Notice of the amount of an instalment
105 Credit for instalments payable
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Subdivision C—Working out the amount of instalments
109 Interpretation
110 Notional tax amount
111 Amount of instalment of tax
112 Estimated tax
112A Credit in certain cases where amount of instalment is nil
112B Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated tax
113 Notice of alteration of amount of instalment
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Part X—Statutory evidentiary documents
123 Retention of statutory evidentiary documents
123AA Alternatives to statutory evidentiary documents
123A When business use percentage and estimate of business kilometres must be specified
123B Substantiation requirements not to apply in special circumstances
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Part XA—Endorsement of registered charities etc.
123C Endorsement by Commissioner as public benevolent institution
123D Endorsement by Commissioner as health promotion charity
123E Endorsement by Commissioner as registered charity (other than public benevolent institution or health promotion charity)
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Part XI—Miscellaneous
124 Assessments
124A Assessment on assumption
129 Agents and trustees
132 Records to be kept and preserved
132A Written evidence not available when return lodged
134 Service on partnerships and associations
135 Regulations
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Part XIA—Record keeping exemption
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Division 1—Overview of Part
135A Overview of Part
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Division 2—Conditions
135B Conditions that must be satisfied
135C What is a base year?
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Division 3—Consequences if conditions in Division 2 are satisfied
135D Consequences
135E Exemption from keeping records
135F Keeping records for 5 years after they are last relied on
135G Way to work out liability
135H Exception if employer chooses to use current year aggregate fringe benefits amount
135J Exception if employer is government body or tax-exempt
135K Exception if aggregate fringe benefits amount increases too much
135L Employer not in business throughout current year
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Part XIB—Reportable fringe benefits totals
135M Simplified outline of this Part
135N Employee’s reportable fringe benefits total
135P Employee’s reportable fringe benefits amount—general rule
135Q Reportable fringe benefits amount for some employees of certain institutions
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Part XIC—Application of the Act to nominated State or Territory bodies
135R Application of this Part
135S Nomination of eligible State or Territory bodies
135T Eligible State or Territory bodies
135U Consequences of nomination
135V Working out the notional tax amount where nominations have been made, varied or revoked
135W Notional tax amount where a nominated State or Territory body ceases to exist
135X Application of certain provisions by agreement with the Commissioner
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Part XID—Temporary budget repair levy
135Y Temporary budget repair levy
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Part XII—Interpretation
136 Interpretation
136AB What constitutes reasonable belief that a superannuation fund is a complying superannuation fund
136A Reimbursement etc. of tax not to be regarded as consideration in respect of benefit etc.
137 Salary or wages
138 Double counting of fringe benefits
138A Benefit provided in respect of a year of tax
138B Benefit provided in respect of the employment of an employee
138C Application or use of benefit
139 Date on which return furnished
140 Eligible urban areas
141 Housing loans, prescribed interests in land or stratum units and proprietary rights in respect of dwellings
141A Benefits incidental to acquisition or sale of prescribed interests in land or stratum units and proprietary rights in respect of dwellings
142 Remote area housing
142A Benefits relating to transport
142B Employee’s new place of employment
142C Eligible shared accommodation in a house, flat or home unit
142D Eligible accommodation in an employees hostel
143 Remote area holiday transport
143A Relocation transport
143B Overseas employees
143C Overseas employment holiday transport
143D Employment interviews and selection tests
143E Work-related medical examinations, work-related medical screening, work-related preventative health care, work-related counselling, migrant language training
144 Deemed payment
145 Consideration not in cash
146 Amounts to be expressed in Australian currency
147 Obligation to pay or repay an amount
148 Provision of benefits
149 Provision of benefit during a period
149A What is a GST-creditable benefit?
150 Credit cards
151 Employee performing services for person other than employer
152A Recurring fringe benefit declaration
152B Employer may elect 50/50 split method for entertainment facility leasing costs
153 Residual benefits to include provision of property in certain circumstances
154 Creation of property
155 Use of property before title passes
156 Supply of electricity or gas through reticulation system
157 Christmas Island and Cocos (Keeling) Islands
158 Related companies
159 Associates and relatives
160 Continuity of employment where business disposed of etc.
161 Business journeys in car
162 Holding of car
162B When car used for the purpose of producing assessable income
162C Holding period of car
162F Reasonable estimate of number of business kilometres
162G Log book year of tax
162H Applicable log book period
162K Replacement cars—car fringe benefits
162L Replacement cars—otherwise deductible provisions
162N Registration of motor vehicle
164 Residence
165 Partnerships
166 Unincorporated companies
167 Offences by government bodies
Schedule—Statutory interest rates for periods between 1 January 1946 and 2 April 1986
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
