Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 7

7. (1) Where-

   (a)  at any time on a day, in respect of the employment of an employee, a
car held by a person (in this sub-section referred to as the "provider")-

        (i)    is applied to a private use by the employee or an associate of
               the employee; or

        (ii)   is taken to be available for the private use of the employee or
               an associate of the employee; and

   (b)  either of the following conditions is satisfied:

        (i)    the provider is the employer, or an associate of the employer,
               of the employee;

        (ii)   the car is so applied or available, as the case may be, under
               an arrangement between-

                (A)  the provider or another person; and

                (B)  the employer, or an associate of the employer, of the
                     employee, that application or availability of the car
                     shall be taken to constitute a benefit provided on that
                     day by the provider to the employee or associate in
                     respect of the employment of the employee.

(2) Where, at a particular time, the following conditions are satisfied in
relation to an employee of an employer:

   (a)  a car is held by a person, being-

        (i)    the employer;

        (ii)   an associate of the employer; or

        (iii)  a person (other than the employer or an associate of the
               employer) with whom, or in respect of whom, the employer or an
               associate of the employer has an arrangement relating to the
               use or availability of the car;

   (b)  the car is garaged or kept at or near a place of residence of the
        employee or of an associate of the employee, the car shall be taken,
        for the purposes of this Act, to be available at that time for the
        private use of the employee or associate, as the case may be.

(3) Where, at a particular time, the following conditions are satisfied in
relation to an employee of an employer:

   (a)  a car is held by a person, being-

        (i)    the employer;

        (ii)   an associate of the employer; or

        (iii)  a person (other than the employer or an associate of the
               employer) with whom, or in respect of whom, the employer or an
               associate of the employer has an arrangement relating to the
               use or availability of the car;

   (b)  the car is not at business premises of-

        (i)    the employer;

        (ii)   an associate of the employer; or

        (iii)  a person (other than the employer or an associate of the
               employer) with whom, or in respect of whom, the employer or an
               associate of the employer has an arrangement relating to the
               use or availability of the car;

   (c)  any of the following conditions is satisfied:

        (i)    the employee is entitled to apply the car to a private use;

        (ii)   the employee is not performing the duties of his or her
               employment and has custody or control of the car;

        (iii)  an associate of the employee is entitled to use, or has custody
               or control of, the car, the car shall be taken, for the
               purposes of this Act, to be available at that time for the
               private use of the employee or associate, as the case may be.

(4) For the purposes of sub-section (3), where a prohibition on the
application of a car, or on the application of a car for a private use, by a
person is not consistently enforced, the person shall be deemed to be entitled
to use the car, or to apply the car to a private use, notwithstanding the
prohibition.

(5) For the purposes of this Act, a car shall be deemed to be applied by a
person if it is applied in accordance with the directions, instructions or
wishes of the person.

(6) For the purposes of this Division, a car that is let on hire to a person
under a hire-purchase agreement shall be deemed-

   (a)  to have been purchased by the person at the time when the person first
        took the car on hire; and

   (b)  to have been owned by the person at all material times.

(7) A reference in this Division to a car held by a person (in this
sub-section referred to as the "provider") does not include a reference to-

   (a)  a taxi let on hire to the provider; or

   (b)  a car let on hire to the provider under an agreement of a kind
        ordinarily entered into by persons taking cars on hire intermittently
        as occasion requires on an hourly, daily, weekly or other short-term
        basis unless the car has been or may reasonably be expected to be on
        hire under successive agreements of a kind that result in substantial
        continuity of the hiring of the car.