Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 17

17. (1) Where-

   (a)  a loan is made by a person who carries on a business that consists of
        or includes making loans to members of the public; and

   (b)  the rate of interest payable in respect of the loan-

        (i)    is specified in a document in existence at the time the loan is
               made;

        (ii)   is not less than the rate of interest in respect of a similar
               arm's length loan made by the person, at or about that time, to
               a member of the public in the ordinary course of carrying on
               that business; and

        (iii)  cannot be varied, the making of the loan is an exempt benefit.

(2) Where-

   (a)  a loan is made by a person who carries on a business that consists of
        or includes making loans to members of the public; and

   (b)  the rate of interest from time to time payable in respect of the loan
        in respect of a year of tax is not less than the rate of interest
        applicable at the time concerned in respect of a similar arm's length
        loan made by the person, at or about the time the loan referred to in
        paragraph (a) is made, to a member of the public in the ordinary
        course of carrying on that business, the making of the loan is an
        exempt benefit in relation to that year of tax.

(3) Where-

   (a)  a loan consists of an advance by an employer to a current employee of
        the employer in respect of his or her employment;

   (b)  the sole purpose of the making of the loan is to enable the employee
        to meet expenses incurred by the employee-

        (i)    in the course of performing the duties of his or her
               employment; and

        (ii)   not later than 6 months after the loan is made;

   (c)  the amount of the loan does not substantially exceed the amount of
        those expenses that could reasonably be expected to be incurred by the
        employee; and

   (d)  the employee is required-

        (i)    to account to the employer, not later than 6 months after the
               loan is made, for expenses met from the loan; and

        (ii)   to repay (whether by set-off or otherwise) any amount not so
               accounted for, the making of the loan is an exempt benefit.