Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 142

142. (1) In this Act, a reference, in relation to a year of tax in relation to
an employee of an employer, to a remote area housing loan connected with a
dwelling is a reference to a housing loan relating to the dwelling where-

   (a)  during the whole of the period (in this sub-section referred to as the

"occupation period") in the year of tax when the employee occupied or used the
dwelling as his or her usual place of residence-

        (i)    the dwelling was situated in a State or internal Territory and
               was not at a location in, or adjacent to, an eligible urban
               area; and

        (ii)   the employee was a current employee of the employer and the
               usual place of employment of the employee was not at a location
               in, or adjacent to, an eligible urban area;

   (b)  it is customary for employers in the industry in which the employee
        was employed during the occupation period to provide housing
        assistance for their employees;

   (c)  it would be concluded that it was necessary for the employer, during
        the year of tax, to provide or arrange for the provision of housing
        assistance for employees of the employer by reason that-

        (i)    the nature of the employer's business was such that employees
               of the employer were liable to be frequently required to change
               their places of residence;

        (ii)   there was not, at or near the place or places at which the
               employees of the employer were employed, sufficient suitable
               residential accommodation for those employees (other than
               residential accommodation provided by or on behalf of the
               employer); or

        (iii)  it is customary for employers in the industry in which the
               employee was employed during the occupation period to provide
               housing assistance for their employees; and

   (d)  the loan was not made to the employee pursuant to-

        (i)    an arrangement other than an arm's length arrangement; or

        (ii)   an arrangement that was entered into by any of the parties to
               the arrangement for the purpose, or for purposes that included
               the purpose, of enabling the employer to obtain the benefit of
               the application of section 60.

(2) In this Act, a reference, in relation to a property fringe benefit in
relation to a year of tax in relation to an employee of an employer, to remote
area residential property is a reference to property that consists of an
estate or interest in land on which is situated a dwelling occupied or used by
the employee immediately after the provision time as his or her usual place of
residence where-

   (a)  at the provision time-

        (i)    the dwelling was situated in a State or internal Territory and
               was not at a location in, or adjacent to, an eligible urban
               area; and

        (ii)   the employee was a current employee of the employer and the
               usual place of employment of the employee was not at a location
               in, or adjacent to, an eligible urban area;

   (b)  it is customary for employers in the industry in which the employee
        was employed at the provision time to provide housing assistance for
        their employees;

   (c)  it would be concluded that it was necessary for the employer, during
        the year of tax, to provide or arrange for the provision of housing
        assistance for employees of the employer by reason that-

        (i)    the nature of the employer's business was such that employees
               of the employer were liable to be frequently required to change
               their places of residence;

        (ii)   there was not, at or near the place or places at which the
               employees of the employer were employed, sufficient suitable
               residential accommodation for those employees (other than
               residential accommodation provided by or on behalf of the
               employer); or

        (iii)  it is customary for employers in the industry in which the
               employee was employed at the provision time to provide housing
               assistance for their employees; and

   (d)  the property was not provided to the employee pursuant to-

        (i)    an arrangement other than an arm's length arrangement; or

        (ii)   an arrangement that was entered into by any of the parties to
               the arrangement for the purpose, or for purposes that included
               the purpose, of enabling the employer to obtain the benefit of
               the application of section 60.

(3) A reference in this section to housing assistance is a reference to-

   (a)  the provision of residential accommodation without charge or for a
        rent or other consideration that is less than the market value of the
        right to occupy or use the accommodation concerned;

   (b)  the making of a housing loan relating to a dwelling, being a loan in
        respect of which the rate of interest payable is less than the market
        rate of interest in respect of the loan concerned;

   (c)  the making of payments in discharge or reimbursement of expenditure
        incurred by a person in respect of interest incurred in respect of a
        housing loan relating to a dwelling; or

   (d)  the provision of residential property without charge or for
        consideration that is less than the market value of the property at
        the provision time.