Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (SMALL BUSINESS) ACT 2007 - SCHEDULE 5

Fringe Benefits Tax Assessment Act 1986

1   Paragraph 58GA(1)(d)

Repeal the paragraph, substitute:

  (d)   either:

  (i)   the sum of the employer's ordinary income and statutory income for the year of income ending most recently before the start of the FBT year is less than $10 million; or

  (ii)   the employer is a small business entity for the year of income ending most recently before the start of the FBT year.

2   Subsection 58GA(2)

Omit "if the employer", substitute "if an employer to which subparagraph   (1)(d)(i) applies".

3   Subsection 58GA(2)

Omit "in paragraph   (1)(d)", substitute "in subparagraph   (1)(d)(i)".

4   Paragraph 58GA(2)(c)

Omit "paragraph   (1)(d)", substitute "that subparagraph".

5   Subsection 58GA(3)

Insert:

"small business entity" has the meaning given by subsection 995 - 1(1) of the Income Tax Assessment Act 1997 .

6   Application

The amendments made by this Schedule apply in relation to the FBT year starting on 1   April 2007 and later FBT years.

7   Transitional--being a small business entity for the 2005 - 06 or 2006 - 07 income year

For the purposes of subparagraph 58GA(1)(d)(ii) of the Fringe Benefits Tax Assessment Act 1986 , an employer is taken to be a small business entity for the 2005 - 06 income year or the 2006 - 07 income year (each a relevant income year ) if the employer would have been a small business entity for the relevant income year had the amendments made by Schedule   1 to the Tax Laws Amendment (Small Business) Act 2007 been in force in relation to that year.