Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 18

18. (1) Subject to this Part, the taxable value, in relation to a year of tax,
of a loan fringe benefit provided in respect of the year of tax is the amount
(if any) by which the notional amount of interest in relation to the loan
in respect of the year of tax exceeds the amount of interest that has accrued
on the loan in respect of the year of tax.

(2) In this section-

"eligible pre-commencement loan" means a loan made before 1 July 1986 at a
rate of interest that-

   (a)  is specified in a document in existence at the time when the loan was
        made; and

   (b)  cannot be varied;

"notional amount of interest", in relation to a loan in relation to a year
of tax, means the amount of interest that would have accrued on the loan in
respect of the year of tax if the interest were calculated on the daily
balance of the loan at-

   (a)  where the loan is an eligible pre-commencement loan-

        (i)    the statutory interest rate in relation to the time when the
               loan was made; or

        (ii)   the statutory interest rate in relation to the year of tax,
whichever is the less;

   (b)  where the loan is not an eligible pre-commencement loan, was made
        before 3 April 1986 and is a housing loan relating to a dwelling-

        (i)    the statutory interest rate in relation to the year of tax; or

        (ii)   13.5% per annum,
whichever is the less; or

   (c)  in any other case-the statutory interest rate in relation to the year
        of tax.