Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Fringe Benefits Tax Assessment Act 1986
1 Subsection 41(2)
Repeal the subsection, substitute:
(2) This section does not apply to food or drink provided to, and consumed by, an employee if the food or drink is provided under a salary packaging arrangement.
2 Before paragraph 42(1)(a)
Insert:
(aa) if the recipient's property was provided to the recipient under a salary packaging arrangement--an amount equal to the notional value of the recipient's property at the provision time; or
3 Paragraph 42(1)(a)
Omit "if the recipient's property", substitute "if paragraph ( aa) does not apply and the recipient's property".
4 Paragraph 42(1)(b)
Omit "if paragraph ( a) does not apply", substitute "if neither paragraph ( aa) nor (a) applies".
5 At the end of paragraphs 47(1)(a), (b), (c) and (e)
Add "and".
6 After paragraph 47(1)(e)
Insert:
(f) the benefit is not provided under a salary packaging arrangement;
7 Before paragraph 48(a)
Insert:
(aa) if the benefit was provided to the recipient under a salary packaging arrangement--an amount equal to the notional value of the benefit at the comparison time; or
8 Paragraph 48(a)
Omit "where", substitute "if paragraph ( aa) does not apply and".
9 Before paragraph 49(a)
Insert:
(aa) if the benefit was provided to the recipient under a salary packaging arrangement--an amount equal to the notional value of the benefit at the comparison time; or
10 Paragraph 49(a)
Omit "where", substitute "if paragraph ( aa) does not apply and".
11 Paragraph 62(2)(a)
After "in - house fringe benefit", insert "not provided under a salary packaging arrangement".
12 Subsection 136(1)
Insert:
"salary packaging arrangement" means an arrangement under which a benefit is provided to an employee if:
(a) the benefit is provided in return for the employee agreeing to a reduction in the employee's salary or wages that would not have happened apart from the arrangement; or
(b) the arrangement is part of the employee's remuneration package, and the benefit is provided in circumstances where it is reasonable to conclude that the employee's salary or wages would be greater if the benefit were not provided.
13 Application of amendments
(1) The amendments made by this Schedule apply in relation to benefits provided on or after 22 October 2012.
(2) However, the amendments made by items 1 to 1 1 do not apply in relation to benefits provided to an employee under an existing salary packaging arrangement to the extent that the benefits are provided before the earlier of:
(a) 1 April 2014; and
(b) the first time on or after 22 October 2012 that the existing salary packaging arrangement is varied in a material way.
(3) For the
purposes of subitem ( 2), an existing salary packaging arrangement is a
salary packaging arrangement entered into by the employer and employee before
22 October 2012.