Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 141

141. (1) For the purposes of this Act, where-

   (a)  a loan is made to, and used by, a person (whether in his or her own
        right or jointly with his or her spouse) wholly-

        (i)    to enable the person to acquire a prescribed interest in land
               on which a building constituting or containing a dwelling was
               subsequently to be constructed or to acquire a prescribed
               interest in land and construct, or complete the construction
               of, such a building on the land;

        (ii)   to enable the person to construct, or complete the construction
               of, a building constituting or containing a dwelling on land in
               which the taxpayer held a prescribed interest;

        (iii)  to enable the person to acquire a prescribed interest in land
               on which there was a building constituting or containing a
               dwelling;

        (iv)   to enable the person to acquire a prescribed interest in a
               stratum unit in relation to a dwelling;

        (v)    to enable the person to extend a building constituting or
               containing a dwelling, being a building constructed on land in
               which the taxpayer held a prescribed interest, by adding a room
               or part of a room to the building or the part of the building
               containing the dwelling, as the case may be;

        (vi)   in a case where the person held a prescribed interest in a
               stratum unit in relation to a dwelling-to enable the person to
               extend the dwelling by adding a room or part of a room to the
               dwelling;

        (vii)  to enable the person to acquire a proprietary right
               in respect of a dwelling, being a flat or a home unit; or

        (viii) to enable the person to repay a loan that was made to, and used
               by, the person wholly for a purpose mentioned in a preceding
               sub-paragraph of this paragraph; and

   (b)  at the time the loan was made, the dwelling was used or proposed to be
        used as the person's usual place of residence, the loan shall be taken
        to be a housing loan relating to the dwelling.

(2) For the purposes of this section-

   (a)  where-

        (i)    a person acquires, holds or held an estate in fee simple in
               land or in a stratum unit or 2 or more persons acquire, hold or
               held such an estate in land or in a stratum unit as joint
               tenants or tenants in common;

        (ii)   a person acquires, holds or held an interest in land or in a
               stratum unit as lessee or licensee, or 2 or more persons
               acquire, hold or held jointly an interest in land or in a
               stratum unit as lessees or licensees, under a lease or licence,
               and the Commissioner is satisfied that the lease or licence
               gives or gave reasonable security of tenure to the lessee or
               licensee, or to the lessees or licensees, for a period of, or
               for periods aggregating, not less than 10 years;

        (iii)  a person acquires, holds or held an interest in land or in a
               stratum unit as purchaser of an estate in fee simple in the
               land or in the stratum unit, or 2 or more persons acquired,
               hold or held an interest in land or in a stratum unit as
               purchasers of such an estate in the land or in the stratum unit
               as joint tenants or tenants in common, under an agreement that
               provides or provided for payment of the purchase price, or a
               part of the purchase price, to be made at a future time or by
               instalments; or

        (iv)   a person acquires, holds or held an interest in land or in a
               stratum unit as purchaser, or 2 or more persons acquire, hold
               or held jointly an interest in land or in a stratum unit as
               purchasers, of the right to be granted a lease of the land or
               of the stratum unit under an agreement that provides or
               provided for payment of the purchase price, or a part of the
               purchase price, for the lease to be made at a future time or by
               instalments and the Commissioner is satisfied that the lease
               will give or gave reasonable security of tenure, to the lessee
               or lessees for a period of, or for periods aggregating, not
               less than 10 years,
that person or those persons shall be taken to acquire or hold, or to have
held, as the case may be, a prescribed interest in that land or in that
stratum unit, as the case requires; and

   (b)  where a person acquires, holds or held, or 2 or more persons acquire,
        hold or held jointly, a right of occupancy of a dwelling, being a flat
        or a home unit, arising by virtue of the acquiring or holding of
        shares, or by virtue of a contract to purchase shares, in a company
        that owns or owned the building that contains the flat or home unit,
        that person, or those persons, as the case requires, shall be taken to
        acquire or hold, or to have held, as the case may be, a proprietary
        right in respect of the dwelling;

   (c)  where-

        (i)    a loan that but for this paragraph would be a housing loan
               relating
to a dwelling is made by a person (in this paragraph referred to as "the
lender") to another person (in this paragraph referred to as " the borrower");

        (ii)   the lender does not maintain an account in relation to the loan
               that is separate and apart-

                (A)  from any account kept by the lender in relation to any
                     moneys deposited with the lender or applied by the lender
                     on behalf of the borrower otherwise than for the purpose
                     of repaying the loan, in whole or in part, or of paying,
                     in whole or in part, interest that has accrued or will
                     accrue in respect of the loan; and

                (B)  from any account kept by the lender in relation to any
                     other loan made by the lender to the borrower,
the loan referred to in sub-paragraph (i) is not a housing loan relating to a
dwelling.

(3) For the purposes of this Act, a loan shall not be taken to be a housing
loan relating to a dwelling except as provided in this section.