Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 65

65. (1) Where-

   (a)  the provider of an expense payment fringe benefit, an
        airline transport fringe benefit, a property fringe benefit or a
        residual fringe benefit (other than a residual fringe benefit
        constituted by the use of depreciable property) in relation to a
        year of tax incurs expenditure in respect of the provision of the
        fringe benefit;

   (b)  but for sections 51AB and 51AG of the Income Tax Assessment Act 1936,
        a deduction would be allowable to the provider under that Act
        in respect of a percentage of that expenditure; and

   (c)  a deduction is not so allowable to the provider, the amount that, but
        for this sub-section and section 62, would be the taxable value of the
        fringe benefit referred to in paragraph (a) in relation to the
        year of tax shall be reduced by that percentage of the expenditure.

(2) Where-

   (a)  a residual fringe benefit in relation to a year of tax is constituted
        by the use of depreciable property that is a leisure facility for the
        purposes of section 51AB of the Income Tax Assessment Act 1936;

   (b)  but for sub-section 54 (3) of that Act, a deduction would be allowable
        to the provider under that Act in respect of a percentage of the
        depreciation of the property during the year of tax; and

   (c)  a deduction is not so allowable to the provider, the amount that, but
        for this sub-section and section 62 and the recipients contribution,
        would be the taxable value of the fringe benefit in relation to the
        year of tax, shall be reduced by that percentage.