Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 24

24. (1) Where-

   (a)  the recipient of an expense payment fringe benefit in relation to an
        employer in relation to a year of tax is an employee of the employer;

   (b)  if the recipient had paid the whole of the recipients expenditure and
        had not been reimbursed in respect of any part of that expenditure-

        (i)    a once-only deduction would, or would but for section 82a, and
               Subdivisions F and G of Division 3 of Part III, of the
               Income Tax Assessment  Act 1936 , have been allowable to the
               recipient under that Act, in respect of a
percentage (in this sub-section referred to as the "deductible percentage") of
the expenditure; and

        (ii)   that deduction would not be-

                (A)  a deduction in respect of rental property loan interest
                     within the meaning of Subdivision G of Division 3 of Part
                     III of that Act; or

                (B)  an eligible rental property deduction within the meaning
                     of Subdivision G of Division 3 of Part III of that Act;

   (c)  in the case of an expense payment fringe benefit that is not an
        eligible incidental travel expense benefit or an eligible overtime
        meal expense benefit-

        (i)    where the fringe benefit is an eligible small expense payment
               benefit-

                (A)  documentary evidence of the recipients expenditure is
                     obtained by the recipient and that documentary evidence,
                     or a copy, is given to the employer before the
                     declaration date; or

                (B)  substitute documentary evidence of the
                     recipients expenditure is maintained by or on behalf of
                     the provider and, if the provider is not the employer,
                     that documentary evidence, or a copy, is given to the
                     employer before the declaration date; or

        (ii)   in any other case-documentary evidence of the recipients
               expenditure is obtained by the recipient and that
               documentary evidence, or a copy, is given to the employer
               before the declaration date;

   (d)  where the expense payment fringe benefit is an extended travel expense
        payment benefit-the recipient gives to the employer, before the
        declaration date, a travel diary in relation to the travel undertaken
        by the recipient to which the fringe benefit relates;

   (e)  except where the expense payment fringe benefit is-

        (i)    an exclusive employee expense payment benefit;

        (ii)   an eligible overtime meal expense payment benefit;

        (iii)  an eligible incidental travel expense payment benefit;

        (iv)   an extended travel expense payment benefit; or

        (v)    a car expense payment benefit,
the recipient gives to the employer, before the declaration date, a
declaration, in a form approved by the Commissioner, in respect of the
recipients expenditure; and

   (f)  where the expense fringe benefit is a car expense payment benefit in
        respect of a car owned by, or leased to, the recipient during a period
        (in
this paragraph referred to as the "holding period") in the year of tax-the
recipient gives to the employer, before the declaration date-

        (i)    a declaration, in a form approved by the Commissioner, that
               purports to set out-

                (A)  the holding period;

                (B)  the number of whole business kilometres travelled by the
                     car during the holding period; and

                (C)  the number of whole kilometres travelled by the car
                     during the holding period; or

        (ii)   where the average number of business kilometres per week
               travelled by the car during the holding period exceeded 96-

                (A)  a declaration referred to in sub-paragraph (i); or

                (B)  a declaration, in a form approved by the Commissioner,
                     that purports to set out the holding period and includes
                     a statement by the recipient that the average number of
                     business kilometres per week travelled by the car during
                     the holding period exceeded 96, the taxable value, but
                     for this sub-section and Division 13, of the
                     expense payment fringe benefit in relation to the
                     year of tax shall be reduced by the amount calculated in
                     accordance with the formula AB, where-
A is-

   (g)  in a case where paragraph (f) does not apply-the deductible
        percentage;

   (h)  where paragraph (f) applies and a declaration referred to in
        sub-paragraph (f) (i) has been given to the employer-

        (i)    in a case to which sub-paragraph (ii) of this paragraph does
               not apply-the deductible percentage or 33 1/3%, whichever is
               the less; or

        (ii)   in a case where the declaration contains a statement that
               relevant car documents were maintained by or on behalf of the
               recipient and the declaration is accompanied by a copy of those
               documents-the deductible percentage; or

   (j)  where sub-paragraph (f) (ii) applies but a declaration referred to in
        sub-paragraph (f) (i) has not been given to the employer-33 1/3%; and
B is the amount of the recipients expenditure.

(2) For the purposes of the application of this section in relation to a
fringe benefit, where the recipient-

   (a)  while undertaking travel referred to in paragraph (1) (d), engages in
        an activity in the course of producing assessable income of the
        recipient; and
(b) does not make, as mentioned in the definition of "travel diary" in
sub-section 136 (1), an entry relating to the activity, being an entry of the
kind referred to in that definition, the activity shall be deemed not to have
been engaged in by the recipient in the course of producing assessable income.

(3) Where the sum of-

   (a)  the recipients expenditure in respect of a
        small expense payment fringe benefit in relation to an employee in
        relation to an employer in relation to a year of tax; and

   (b)  the total of the recipients expenditure in respect of all other small
        expense payment fringe benefits in relation to the employer in
        relation to the employee in relation to the year of tax, being
        fringe benefits provided before the fringe benefit referred to in
        paragraph (a), does not exceed $200, the fringe benefit referred to in
        paragraph (a) is an eligible small expense payment fringe benefit.

(4) For the purposes of paragraph (1) (c), the part of a petty cash book or
similar document-

   (a)  that contains an entry in the English language setting out the
        particulars that would be set out in documentary evidence of the
        recipients expenditure in relation to an
        expense payment fringe benefit (other than particulars of the date on
        which the documentary evidence was made out); and

   (b)  that is signed by or on behalf of the provider of the benefit, shall
        be deemed to be substitute documentary evidence of the
        recipients expenditure.

(5) Where-

   (a)  the recipients expenditure in relation to each of 2 or more expense
        payment fringe benefits (whether or not in relation to the same
        year of tax) is the same expenditure; and

   (b)  paragraph (1) (b) applies in relation to the recipients expenditure,
        this Act applies, and shall be deemed always to have applied, as if
        all the payments or reimbursements to which those fringe benefits
        relate had been made at the time when the first of those payments or
        reimbursements was made and not otherwise, and nothing in section 74
        prevents the amendment of an assessment for the purpose of giving
        effect to this sub-section.