Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FRINGE BENEFITS TAX MEASURES) ACT 1992 No. 223 of 1992 - SCHEDULE

                            SCHEDULE                      Section 3

AMENDMENTS RELATING TO FRINGE BENEFITS TAX
Income Tax Assessment Act 1936 Section 23M:
Repeal the section. Subsection 51(4A):
Omit the subsection.
Fringe Benefits Tax (Application to the Commonwealth) Act 1986 After section
6:
Insert the following section: No entitlement to rebate of tax

"6A. For the purposes of the application of the Assessment Act in accordance
with this Act, it is to be assumed that section 65J of that Act (which deals
with rebates) had not been enacted.". Fringe Benefits Tax Assessment Act 1986
After section 65H:
Insert the following Part:

"PART IIIA - REBATES OF TAX Rebate for certain non-profit employers etc.
(Rebatable employer)

"65J.(1) For the purposes of this section, an employer is a rebatable employer
for a year of tax if the employer is covered by any of the following
paragraphs at any time during the year of tax:

   (a)  a religious institution;

   (b)  a scientific, charitable or public educational institution (other than
        an institution of the Commonwealth, a State or a Territory);

   (c)  a public hospital (other than a hospital of the Commonwealth, a State
        or a Territory);

   (d)  a hospital which is carried on by a non-profit society or a non-profit
        association;

   (e)  a trade union;

   (f)  an association of employers or employees registered under a law of the
        Commonwealth, a State or a Territory relating to the settlement of
        industrial disputes;

   (g)  a non-profit society, non-profit association, or non-profit club,
        established for musical purposes, or for the encouragement of music,
        art, science or literature;

   (h)  a non-profit society, non-profit association, or non-profit club,
        established for the encouragement or promotion of a game or sport;

   (i)  a non-profit society, non-profit association, or non-profit club,
        established for the encouragement or promotion of animal races;

   (j)  a non-profit society, non-profit association, or non-profit club,
        established for community service purposes (not being political
        purposes or lobbying purposes);

   (k)  a non-profit society, or non-profit association, established for the
        purpose of promoting the development of aviation;

   (l)  a non-profit society, or non-profit association, established for the
        purpose of promoting the development of the agricultural, pastoral,
        horticultural, viticultural, manufacturing or industrial resources of
        Australia. (Entitlement to rebate)

"(2) If an employer is a rebatable employer for a year of tax, the employer is
entitled to a rebate of tax in the employer's assessment for the year of tax
equal to the amount worked out using the formula:
0.48   X    Gross   X      Rebatable days in year

             tax           ______________________

Total days in year where:
'Gross tax' means the amount of tax payable on the fringe benefits taxable
amount of the employer of the year of tax (assuming that this section had not
been enacted);
'Rebatable days in year' means the number of whole days in the year of tax
when the employer was covered by any of paragraphs (1)(a) to (1) (inclusive);
'Total days in year' means the number of days in the year of tax. (Extended
meaning of 'institution of the Commonwealth, a State or a Territory')

"(3) For the purposes of this section, an institution established by a law of
the Commonwealth, a State or a Territory is taken to be an institution of the
Commonwealth, the State or the Territory, as the case requires. (Extended
meaning of 'hospital of the Commonwealth, a State or a Territory')

"(4) For the purposes of this section, a hospital established by a law of the
Commonwealth, a State or a Territory is taken to be a hospital of the
Commonwealth, the State or the Territory, as the case requires. (Meanings of
'non-profit society', 'non-profit association' and non-profit club')

"(5) For the purposes of this section, a society, association or club is a
non-profit society, non-profit association or non-profit club, as the case may
be, if, and only if:

   (a)  the society, association or club is carried on otherwise than for the
        purposes of profit or gain to its individual members; and

   (b)  the society, association or club is neither:

        (i)    an incorporated company where all the stock or shares in the
               capital of the company is or are beneficially owned by:

                (A)  the Commonwealth, a State or a Territory; or

                (B)  an authority or institution of the Commonwealth, a State
                     or a Territory; nor

        (ii)   an incorporated company where the company is limited by
               guarantee and the interests and rights of the members in or in
               relation to the company are beneficially owned by:

                (A)  the Commonwealth, a State or a Territory; or

                (B)  an authority or institution of the Commonwealth, a State
                     or a Territory.". Subsections 67(1), (2) and (3):
Omit "fringe benefits taxable amount" (wherever occurring), substitute
"aggregate fringe benefits amount". Paragraph 110(1)(b):
Omit the paragraph, substitute:

"(b) in the case of a subsequent year of tax (other than the year of tax
commencing on 1 April 1994) - the amount of the tax that was assessed in
respect of the employer in respect of the immediately preceding year of tax;
and

   (c)  in the case of the year of tax commencing on 1 April 1994:

        (i)    if the employer is a rebatable employer for the year of tax
               (within the meaning of section 65J) - the amount worked out
               using the formula:
(1.93 X Previous year's tax) - Notional rebate where:
'Previous year's tax' means the tax that was assessed in respect of the
employer in respect of the immediately preceding year of tax;
'Notional rebate' means the rebate (if any) that would have been allowable to
the employer under section 65J for the immediately preceding year of tax if
the amendments of this Act made by the
Taxation Laws Amendment (Fringe Benefits Tax Measures) Act 1992 had applied in
relation to tax for the immediately preceding year of tax; or

        (ii)   in any other case - the amount worked out using the formula:
1.93 X Previous year's tax where:
'Previous year's tax' means the tax that was assessed in respect of the
employer in respect of the immediately preceding year of tax.". Subsection
136(1) (definition of "fringe benefits taxable amount"):
Omit the definition, substitute:

" 'fringe benefits taxable amount' has the meaning given by section 136AA;".
Subsection 136(1):
Insert:

" 'aggregate fringe benefits amount', in relation to an employer in relation
to a year of tax (the 'current year of tax'), means the sum of the following
amounts:

   (a)  the sum of the taxable values, in relation to the current year of tax,
        of all the fringe benefits (other than amortised fringe benefits) in
        relation to the employer in relation to the current year of tax;

   (b)  the sum of the amortised amounts, in relation to the current
        year of tax, of all the amortised fringe benefits in relation to the
        employer in relation to the current year of tax and any other year of
        tax; reduced by the sum of the reduction amounts, in relation to the
        current year of tax, of all the reducible fringe benefits in relation
        to the employer in relation to the current year of tax;". After
        section 136:
Insert: Fringe benefits taxable amount

"136AA. A reference in this Act to the fringe benefits taxable amount in
relation to an employer in relation to a year of tax is a reference to the
amount worked out using the formula:
Aggregate fringe    X               1

benefits amount          _____________________

1-FBT rate where:
'Aggregate fringe benefits amount' means the aggregate fringe benefits amount
in relation to the employer in relation to the year of tax;
'FBT rate' means the rate of tax applicable for the year of tax.".