Victorian Numbered Acts Victorian Numbered ActsFor section 5C of the Accident Compensation Act 1985 substitute —
For the purposes of this Act, the value of remuneration comprising a fringe benefit is to be determined in accordance with the formula—
where—
TV is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth;
FBT rate is the rate of fringe benefits tax imposed by the Fringe Benefits Tax Assessment Act 1986 of the Commonwealth that applies when the liability to pay premium under the Accident Compensation (WorkCover Insurance) Act 1993 arises.
(1) If the total motor vehicle allowance paid or payable to a worker in respect of a financial year—
(a) does not exceed the exempt component, the motor vehicle allowance is not remuneration for the purposes of the Act;
(b) exceeds the exempt component (if any), only that amount that exceeds the exempt component of the motor vehicle allowance is included as remuneration for the purposes of this Act.
(2) The exempt component of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula—
E = K × R
where—
E is the exempt component;
K is the number of business kilometres travelled during the financial year;
R is the exempt rate.
(3) Unless subsection (5) applies to an employer, the number of business kilometres travelled during the financial year ("K") is to be determined in accordance with one of the following methods selected and used by an employer—
(a) the continuous recording method or the averaging method under Part 5 of Schedule 1 to the Payroll Tax Act 2007 ;
(b) a method approved by the Commissioner of State Revenue under section 29(6) of the Payroll Tax Act 2007 .
(4) The Authority may approve the use, by an employer or class of employer, of another method of determining the number of business kilometres travelled during the financial year (including the use of an estimate).
(5) If the Authority approves a method under subsection (4)—
(a) the approved method must be published in the Government Gazette; and
(b) the employer or class of employers referred to in the approval must determine the number of business kilometres travelled during the financial year in accordance with that approved method.
(6) For the purposes of this section, the exempt rate for the financial year concerned is—
(a) the rate prescribed by the regulations under section 28- 25 of the Income Tax Assessment Act 1997 of the Commonwealth for calculating a deduction for car expenses for a large car using the "cents per kilometre method" in the financial year immediately preceding the financial year in which the allowance is paid or payable; or
(b) if no rate referred to in paragraph (a) is prescribed, the rate prescribed by the regulations under section 29(7)(b) of the Payroll Tax Act 2007 .
(1) If the accommodation allowance paid or payable to a worker in respect of a night's absence from the worker's usual place of residence exceeds the exempt rate, "remuneration" includes that allowance only to the extent that it exceeds the exempt rate.
(2) For the purposes of this section, the exempt rate for the financial year concerned is—
(a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth; or
(b) if no determination referred to in paragraph (a) is in force, the rate prescribed by the regulations under section 30(3)(b) of the Payroll Tax Act 2007 .'.