Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 5E

Overview

  (1)   This section explains how to work out an employee's individual fringe benefits amount for a year of tax in respect of the employee's employment by an employer.

General rule

  (2)   The individual fringe benefits amount is the sum of the employee's share of the taxable value of each fringe benefit that relates to the year of tax and is provided in respect of the employment other than an excluded fringe benefit.

What is an excluded fringe benefit ?

  (3)   An excluded fringe benefit is a fringe benefit:

  (a)   that is:

  (i)   constituted by the provision of meal entertainment (as defined in section   37AD, whether or not the employer has elected that Division   9A of Part   III apply to the employer); and

  (ii)   not provided under a salary packaging arrangement; or

  (b)   that is a car parking fringe benefit (see subsection   136(1)); or

  (c)   that is:

  (i)   a benefit whose taxable value is wholly or partly attributable to entertainment facility leasing expenses; and

  (ii)   not provided under a salary packaging arrangement; or

  (e)   whose taxable value is worked out under section   59 (about remote area residential fuel); or

  (f)   whose taxable value is reduced under section   60 (about remote area housing); or

  (g)   that is an amortised fringe benefit (see subsection   136(1)); or

  (h)   that is a reducible fringe benefit (see subsection   136(1)); or

  (i)   that is a benefit prescribed by the regulations for the purposes of this paragraph; or

  (j)   that relates to occasional travel to a major population centre in Australia provided to employees and family members resident in a location that is not in or adjacent to an eligible urban area; or

  (k)   that relates to freight costs for foodstuffs provided to employees resident in a location that is not in or adjacent to an eligible urban area; or

  (l)   that is provided to address a security concern:

  (i)   relating to the personal safety of an employee, or an associate of an employee; and

  (ii)   that arises in respect of the employee's employment.

If section   135G applies to the employer

  (4)   If:

  (a)   section   135G applies for working out the employer's liability to pay tax for the year of tax; and

  (b)   one or more fringe benefits are provided in relation to the year of tax in respect of the employee's employment by the employer;

the employee's individual fringe benefits amount is the amount determined by the employer in writing. This subsection has effect despite subsection   (2).

Note:   Section   135G allows use of the employer's aggregate fringe benefits amount for an earlier year of tax in working out the employer's liability for tax for the current year of tax.

Determining individual fringe benefits amounts

  (5)   In making a determination under subsection   (4), the employer must:

  (a)   ensure that the total of the amount or amounts determined by the employer under that subsection for the year of tax equals the aggregate fringe benefits amount used for working out the employer's liability to pay tax for the year of tax; and

  (b)   if that subsection applies to 2 or more of the employer's employees for the year of tax--act reasonably, having regard to the fringe benefit or fringe benefits provided in relation to the year of tax in respect of each employee's employment.

Security concerns relating to employees or associates

  (6)   A fringe benefit referred to in paragraph   (3)(l) is an excluded fringe benefit only to the extent that its provision is consistent with a threat assessment in relation to the employee or associate made by a person who is recognised by:

  (a)   a relevant industry body or government body; or

  (b)   the Commissioner;

as competent to make threat assessments.