The Commonwealth Treasury


Tax Expenditures Statement - 2007

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Fringe Benefits Tax

Tax expenditures for general public services

D1 Exemption for benefits provided by certain international organisations
General public services - Financial and fiscal affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D1
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 55 of the Fringe Benefits Tax Assessment Act 1986

An exemption from fringe benefits tax applies to benefits provided by certain international organisations that are exempt from income tax and other taxes by virtue of the International Organisations (Privileges and Immunities) Act 1963 and by organisations established under international agreements to which Australia is a party and which oblige Australia to grant the organisation a general tax exemption.

Tax expenditures for defence

D2 Exemption for certain benefits provided under the Defence Service Homes Act
Defence ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
9 8 7 6 5 4 4 3
Tax expenditure type:
Exemption
2006 TES code:
D2
Commencement date:
1986
Expiry date:
-
Legislative reference:
Section 6 Fringe Benefits Tax (Application to the Commonwealth) Act 1986

Certain benefits that are provided to certain eligible employees under the Defence Service Homes Act 1918 are exempt from fringe benefits tax.

D3 Exemption for certain benefits received by Australian Government employees in receipt of military compensation payments
Defence ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
30 35 55 50 55 55 55 55
Tax expenditure type:
Exemption
2006 TES code:
D4
Commencement date:
1995
Expiry date:
-
Legislative reference:
Sections 6AA and 6AB Fringe Benefits Tax (Application to the Commonwealth) Act 1986

Certain benefits provided to Australian Government employees are exempt from fringe benefits tax. The exemption applies where the benefit is provided because the employee is a recipient of certain military compensation payments.

D4 Exemption for health care benefits provided to members of the Defence Force
Defence ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D3
Commencement date:
1995
*Category:
4+
Expiry date:
-
Legislative reference:
Section 6AC Fringe Benefits Tax (Application to the Commonwealth) Act 1986

Certain health care benefits provided to Australian Government employees are exempt from fringe benefits tax. The exemption applies where the benefit is provided because the employee is a member of the Defence Force.

Tax expenditures for education

D5 Reduction in taxable value for certain education costs of children of employees posted overseas
Defence ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2006 TES code:
D5
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 65A Fringe Benefits Tax Assessment Act 1986

The taxable value of fringe benefits associated with certain education costs for children of employees posted overseas for not less than 28 days may be reduced. The extent of the amount of the reduction relates to the period of the employee’s service overseas.

Tax expenditures for health

D6 Capped exemption for certain public and non-profit hospitals
Health ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
260 270 260 260 260 260 270 280
Tax expenditure type:
Exemption
2006 TES code:
D6
Commencement date:
2000
Expiry date:
-
Legislative reference:
Section 57A Fringe Benefits Tax Assessment Act 1986

Certain public and non-profit hospitals are provided with an exemption from fringe benefits tax on up to $17,000 of the grossed-up taxable value of fringe benefits per employee.

D7 Exemption for travel costs of employees and their families associated with overseas medical treatment
Health ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D7
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58L Fringe Benefits Tax Assessment Act 1986

Benefits that meet the costs of travel away from a work place located in a foreign country in order to obtain medical treatment are exempt from fringe benefits tax. Accommodation and meals are also exempt if provided en route.

Tax expenditures for social security and welfare

D8 Capped exemption for public benevolent institutions (excluding public hospitals)
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
250 370 440 430 430 440 460 480
Tax expenditure type:
Exemption
2006 TES code:
D11
Commencement date:
2001
Expiry date:
-
Legislative reference:
Subsection 57A(1) Fringe Benefits Tax Assessment Act 1986

Public benevolent institutions are provided with an exemption from fringe benefits tax on up to $30,000 of the grossed-up taxable value of fringe benefits per employee.

D9 Exemption for accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D12
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Sections 58 and 58U Fringe Benefits Tax Assessment Act 1986

An exemption from fringe benefits tax applies to certain benefits that are provided to people employed in caring for elderly or disadvantaged persons and who reside with them in their own homes. The benefits that are exempt are accommodation, residential fuel, meals and other food and drink provided in the home to the employee.

D10 Exemption for emergency assistance
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D13
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58N Fringe Benefits Tax Assessment Act 1986

Benefits provided by way of emergency assistance are exempt from fringe benefits tax. Emergency assistance includes certain first aid or other emergency health care; emergency meals, food supplies, clothing, accommodation, transport, or use of household goods; temporary repairs; and any other similar benefit.

D11 Exemption for employer contributions to secure childcare places in certain centres
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D10
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Subsection 47(8) Fringe Benefits Tax Assessment Act 1986

Payments made by employers to obtain priority of access to certain childcare facilities for children of employees are exempt from fringe benefits tax if made under certain programs administered by the Australian Government.

D12 Exemption for recreational or childcare facilities on an employer's business premises
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D9
Commencement date:
1986
*Category:
3+
Expiry date:
-
Legislative reference:
Subsection 47(2) Fringe Benefits Tax Assessment Act 1986

Recreational or childcare facilities are exempt from fringe benefits tax if the facilities are provided on an employer’s business premises for the benefit of employees.

D13 Exemption for safety award benefits up to $200 per year per employee
Social security and welfare ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D8
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58R Fringe Benefits Tax Assessment Act 1986

An award related to occupational health or an occupational safety achievement that is granted to an employee is exempt from fringe benefits tax if its value does not exceed $200 per year.

Tax expenditures for housing and community amenities

D14 Exemption for housing provided by certain employers in regional areas
Housing and community amenities ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D15
Commencement date:
2000
*Category:
2+
Expiry date:
-
Legislative reference:
Section 58ZC Fringe Benefits Tax Assessment Act 1986

Housing benefits provided to employees by police, charities and certain public and non-profit hospitals in ‘regional’ areas are exempt from fringe benefits tax.

D15 Exemption for remote area housing and reduction in taxable value for remote area housing assistance
Housing and community amenities ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
80 85 90 90 95 100 100 100
Tax expenditure type:
Exemption, Reduction in taxable value
2006 TES code:
D14
Commencement date:
2000
Expiry date:
-
Legislative reference:
Sections 58ZC, 59, 60, and 65CC Fringe Benefits Tax Assessment Act 1986

Housing benefits arise where an employer grants an employee the right to occupy or use a unit of accommodation as a usual place of residence. Such benefits provided to employees in remote areas are exempt from fringe benefits tax.

The taxable value of housing assistance provided to employees in remote areas is generally reduced by 50 per cent. Housing assistance includes benefits such as housing loans, provision of residential fuel, provision of a discounted house and land, provision of a residential housing ownership scheme, and the payment or reimbursement of rent, the interest accrued on a housing loan and the cost of acquiring a house and land.

Tax expenditures for transport and communications

D16 Exemption for employee taxi travel arriving at or leaving from place of work
Transport and communication ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D28
Commencement date:
1997
*Category:
2+
Expiry date:
-
Legislative reference:
Section 58Z Fringe Benefits Tax Assessment Act 1986

Any benefit arising from taxi travel by an employee is exempt from fringe benefits tax if the travel is a single trip beginning or ending at the employee’s place of work.

D17 Exemption for free or discounted commuter travel for employees of public transport providers
Transport and communication ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
65 70 60 60 60 60 55 55
Tax expenditure type:
Exemption
2006 TES code:
D27
Commencement date:
1986
Expiry date:
-
Legislative reference:
Subsection 47(1) Fringe Benefits Tax Assessment Act 1986

Where an employer operates a business of providing transport to the public, the provision of free or discounted travel (other than in an aircraft) to employees of that business for the purpose of their travelling to and from work is exempt from fringe benefits tax. Where an employee’s place of work is in a metropolitan area, free or discounted travel on a scheduled service within that area is also exempt from fringe benefits tax.

D18 Exemption for free or discounted travel to and from duty by police officers on public transport
Transport and communication ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
5 5 5 5 5 5 5 5
Tax expenditure type:
Exemption
2006 TES code:
D29
Commencement date:
2000
Expiry date:
-
Legislative reference:
Subsection 47(1A) Fringe Benefits Tax Assessment Act 1986

The provision of travel on public transport to police officers for the purpose of travel between the officer’s place of residence and their primary place of employment is exempt from fringe benefits tax.

Tax expenditures for other economic affairs

D19 Discounted valuation of stand-by travel for airline employees and travel agents
Other economic affairs - Tourism and area promotion ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
25 20 20 18 18 18 17 17
Tax expenditure type:
Discounted valuation
2006 TES code:
D16
Commencement date:
1986
Expiry date:
-
Legislative reference:
Sections 32 and 33 Fringe Benefits Tax Assessment Act 1986

The taxable value of an airline transport fringe benefit for airline employees and travel agents is the stand-by value less the employee contribution. For domestic travel, the stand-by value is 37.5 per cent of the lowest publicly advertised, economy airfare charged by the provider, at or about the time of travel, over that route. For international travel, the stand by value is 37.5 per cent of the lowest fare published in Australia as charged by the carrier for travel over that route in the 12 months preceding the end of the year of tax.

D20 Exemption for certain benefits provided to employees training under the Australian Traineeship System
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D18
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58S Fringe Benefits Tax Assessment Act 1986

Food, drink and accommodation provided to people training under the Australian Traineeship System may be exempt from fringe benefits tax. To be exempt, the benefits must be provided in accordance with an award or an industry custom and must not be provided at a party, reception or other social function.

D21 Exemption for certain long service awards for more than 15 years of service
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D17
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58Q Fringe Benefits Tax Assessment Act 1986

Long service awards granted in recognition of 15 years or more service, up to a specified maximum amount, are exempt from fringe benefits tax.

From 1 April 2005, the specified maximum amount increased from $500 to $1,000 where the period of service being recognised by the award is 15 years. Also from 1 April 2005, the maximum additional amount increased from $50 to $100 for each additional year served where an award recognises a period of service greater than 15 years.

D22 Exemption for certain relocation and recruitment expenses
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D19
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Sections 58A to 58D and 58F Fringe Benefits Tax Assessment Act 1986

Certain benefits associated with relocation and recruitment expenses are exempt from fringe benefits tax. The exemption applies to benefits associated with the cost of travelling to attend an interview or selection test, the cost of removal and storage of household effects, costs associated with the sale and/or purchase of a dwelling, costs associated with connecting or reconnecting certain utilities and the costs of providing relocation transport and any meals and accommodation en route.

D23 Exemption for compensation-related benefits, occupational health and counselling services and some training courses
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D21
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Sections 58J, 58K and 58M Fringe Benefits Tax Assessment Act 1986

Certain benefits in relation to compensable work related trauma, medical services and other forms of health care provided in work site first aid posts and medical clinics, work related medical examinations, work related medical screening, work related preventative health care, work related counselling and migrant language training are exempt from fringe benefits tax.

D24 Reduction in taxable value for reimbursements of car expenses incurred for occupational health and counselling services and some training courses
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2006 TES code:
D22
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 61F Fringe Benefits Tax Assessment Act 1986

The taxable value of a fringe benefit may be reduced where an employee travels in their own car for the purpose of attending a work related medical examination, screening, preventative health care or counselling session, or for migrant language training and is reimbursed on a cents per kilometre basis for the car expenses incurred.

D25 Reduction in taxable value of certain relocation and recruitment expenses
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2006 TES code:
D20
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Sections 61B to 61E Fringe Benefits Tax Assessment Act 1986

Reductions in taxable value are provided for fringe benefits associated with certain relocation and recruitment expenses. This includes benefits associated with cents per kilometre reimbursements for transport in an employee’s car for relocation travel or travel to attend an interview or selection test, the provision of temporary accommodation, and meals provided to an employee (or family member) while staying in a hotel, motel, hostel or guesthouse which is used for temporary accommodation while relocating.

D26 Application of statutory formula to value car benefits
Other economic affairs - Other economic affairs, nec ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
1820 1920 1730 1500 1490 1600 2010 2120
Tax expenditure type:
Discounted valuation
2006 TES code:
D24
Commencement date:
1986
Expiry date:
-
Legislative reference:
Section 9 Fringe Benefits Tax Assessment Act 1986

Under the fringe benefits tax benchmark, the value of a car fringe benefit is the cost of providing the vehicle (for instance, where the vehicle is provided under a lease, the value of the lease payments) plus the associated vehicle running costs. The statutory formula method for valuing car fringe benefits values the benefit as a proportion of the acquisition cost of the vehicle, which declines as distance travelled by the vehicle each year increases. This approach may result in the undervaluation of the benefit when calculating fringe benefits tax with the result that less tax is paid on car fringe benefits than would be if the cost of the benefit were paid by the employee out of after tax cash remuneration.

D27 Exemption for certain loan benefits
Other economic affairs - Other economic affairs, nec ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D23
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 17 Fringe Benefits Tax Assessment Act 1986

Certain in-house loan benefits and certain loans to employees to meet employment-related expenses are exempt from fringe benefits tax.

D28 Exemption for small business employee car parking
Other economic affairs - Other economic affairs, nec ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
13 13 14 16 17 18 18 18
Tax expenditure type:
Exemption
2006 TES code:
D26
Commencement date:
1997
Expiry date:
-
Legislative reference:
Section 58GA Fringe Benefits Tax Assessment Act 1986

Car parking benefits provided by small business employers are exempt from fringe benefits tax if the parking is not provided in a commercial car park, the employer is neither a government body, nor a listed public company, nor a subsidiary of a listed public company and the employer’s total income is less than $10 million.

D29 Record keeping exemption
Other economic affairs - Other economic affairs, nec ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
.. .. .. .. .. .. .. ..
Tax expenditure type:
Record keeping exemption
2006 TES code:
D25
Commencement date:
1998
Expiry date:
-
Legislative reference:
Section 135A Fringe Benefits Tax Assessment Act 1986

If certain conditions are satisfied, an employer need not keep or retain full fringe benefits tax records. Employers’ liability to pay tax is based on their liability in their most recent base year instead of the current year.

From 1 July 2007, small businesses with average turnover of less than $2 million will be able to access this concession under the Small Business Framework without having to satisfy any other eligibility criteria.

Miscellaneous tax expenditures

D30 Capped exemption for charities promoting the prevention or control of disease in human beings
Health ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
19 25 35 35 35 35 35 35
Tax expenditure type:
Exemption
2006 TES code:
D45
Commencement date:
2001
Expiry date:
-
Legislative reference:
Section 5B and subsection 57A(5) Fringe Benefits Tax Assessment Act 1986

Charitable institutions whose principal activity is to promote the prevention or control of diseases in human beings are provided with an exemption from fringe benefits tax on up to $30,000 of the grossed-up taxable value of fringe benefits per employee. These institutions were provided with an uncapped exemption from 1 April 1998 to 1 April 2001 and a capped exemption thereafter.

D31 Exemption for certain benefits provided to live-in employees who provide domestic services and are employed by religious institutions or religious practitioners
Recreation and culture ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D33
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Section 58T Fringe Benefits Tax Assessment Act 1986

Accommodation, household fuel, meals and other food and drink provided to live-in employees who provide domestic services and are employed by religious institutions or religious practitioners are exempt from fringe benefits tax.

D32 Exemption for certain fringe benefits provided to religious practitioners
Recreation and culture ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
130 140 140 135 140 145 140 140
Tax expenditure type:
Exemption
2006 TES code:
D32
Commencement date:
1986
Expiry date:
-
Legislative reference:
Section 57 Fringe Benefits Tax Assessment Act 1986

Benefits provided to an employee of a religious institution are exempt from fringe benefits tax if the employee is a religious practitioner and the benefit is provided principally in respect of pastoral duties or any other duties that are directly related to the practice, study, teaching or propagation of religious beliefs.

D33 Discounted valuation for board fringe benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
1 2 2 2 2 2 2 2
Tax expenditure type:
Discounted valuation
2006 TES code:
D49
Commencement date:
1986
Expiry date:
-
Legislative reference:
Section 36 Fringe Benefits Tax Assessment Act 1986

Certain meals provided to employees under an industrial award or employment arrangement (known as board fringe benefits) are valued at concessional rates for the purposes of fringe benefits tax.

The taxable value of a board fringe benefit is $2 per meal per person, or $1 per meal per person if the person is under the age of 12. Any amount paid for the meal is deducted.

D34 Discounted valuation for car parking fringe benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
14 16 19 20 22 24 24 25
Tax expenditure type:
Discounted valuation
2006 TES code:
D36
Commencement date:
1993
Expiry date:
-
Legislative reference:
Section 39A Fringe Benefits Tax Assessment Act 1986

A car parking fringe benefit only arises if within a one kilometre radius of the premises on which the car is parked there is a commercial parking station that charges a fee for all day parking that is more than a specified car parking threshold. The value of the car parking fringe benefit can be calculated by one of five methods.

D35 Discounted valuation of arm's length transaction price for in-house property and residual fringe benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Discounted valuation
2006 TES code:
D34
Commencement date:
1986
*Category:
na
Expiry date:
-
Legislative reference:
Sections 42, 48 and 49 Fringe Benefits Tax Assessment Act 1986

The taxable value of in-house property fringe benefits and in-house residual fringe benefits is 75 per cent of the lowest retail price charged to the public in the ordinary course of business.

D36 Exemption for airline transport fringe benefits and certain in-house benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D35
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Section 62 Fringe Benefits Tax Assessment Act 1986

A rule applies to certain in-house and airline transport fringe benefits to reduce the taxable value by up to $500 per employee. This increased to $1,000 from 1 April 2007.

D37 Exemption for benefits in relation to certain compassionate travel
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D31
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 58LA Fringe Benefits Tax Assessment Act 1986

Certain benefits provided in connection with compassionate travel are exempt from fringe benefits tax. The exemption applies to the cost of transport, meals and accommodation for the person travelling.

D38 Exemption for certain allowances and accommodation and food benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D43
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Sections 21, 31, 47(5), 58E, 58ZD and 63 Fringe Benefits Tax Assessment Act 1986

Certain allowances, accommodation and food benefits provided to employees living away from their usual place of residence in order to perform their duties of employment are exempt from fringe benefits tax.

D39 Exemption for certain payments to approved worker entitlement funds
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
- 300 305 290 300 310 295 290
Tax expenditure type:
Exemption
2006 TES code:
D46
Commencement date:
2003
Expiry date:
-
Legislative reference:
Sections 58PA, 58PB and 58PC Fringe Benefits Tax Assessment Act 1986

Payments to approved worker entitlement funds for the purposes of providing for entitlements such as redundancy and long service leave are exempt from fringe benefits tax. The funds must be either prescribed by regulation or be a long service leave fund established under a Commonwealth, state or territory law.

D40 Exemption for eligible work-related items
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
200 210 220 210 200 210 220 230
Tax expenditure type:
Exemption
2006 TES code:
D48
Commencement date:
1995
Expiry date:
-
Legislative reference:
Section 58X Fringe Benefits Tax Assessment Act 1986

Eligible work-related items (such as mobile phones, laptop computers, protective clothing and tools of trade) provided by an employer to an employee are exempt from fringe benefits tax.

D41 Exemption for engagement of a relocation consultant
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
- - - * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D47
Commencement date:
2006
*Category:
1+
Expiry date:
-
Legislative reference:
58AA Fringe Benefits Tax Assessment Act 1986

Costs associated with the engagement of a relocation consultant where an employee moves residence as part of their employment are exempt from fringe benefits tax if certain criteria are met. A relocation consultant is a person who assists an employee, or his or her family members, to move and settle into a new location.

D42 Exemption for minor benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D41
Commencement date:
1986
*Category:
2+
Expiry date:
-
Legislative reference:
Section 58P Fringe Benefits Tax Assessment Act 1986

Minor benefits may be exempt from fringe benefits tax. Minor benefits are currently benefits that are less than $300 in value infrequently provided and/or are difficult to record and value. It must also be unreasonable to treat the minor benefit as a fringe benefit.

D43 Exemption for minor private use of company motor vehicle
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D44
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Subsection 47(6) Fringe Benefits Tax Assessment Act 1986

Where an employee is provided with the use of a motor vehicle that is not a car, such use is exempt from fringe benefits tax if any private use is restricted to travel to and from work, use which is incidental to travel in the course of duties of employment, and non-work-related use that is minor, infrequent and irregular.

D44 Exemption for motor vehicle parking and car parking fringe benefits provided by certain employers
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D37
Commencement date:
1986, 1993
*Category:
2+
Expiry date:
-
Legislative reference:
Section 58G Fringe Benefits Tax Assessment Act 1986
Regulation 13A Fringe Benefits Tax Regulations 1992

Motor vehicle parking, which is employer-provided parking that is not a car parking fringe benefit, is exempt from fringe benefits tax. Car parking fringe benefits provided by scientific, religious, charitable or public education institutions and car parking fringe benefits provided for certain disabled employees are also exempt from fringe benefits tax.

D45 Exemption for private use of business property
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D42
Commencement date:
1986
*Category:
3+
Expiry date:
-
Legislative reference:
Sections 41 and 47(3) Fringe Benefits Tax Assessment Act 1986

Property provided on the employer’s business premises and consumed by the employee on a working day may be exempt from fringe benefits tax. The use of property (other than a motor vehicle) that is ordinarily located on the employer’s business premises and is principally used directly in connection with business operations is also exempt from fringe benefits tax.

D46 Exemption for the provision of food and drink in certain circumstances
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D50
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Sections 54 and 58V Fringe Benefits Tax Assessment Act 1986

Where employees receive meals that are board fringe benefits, any additional food and drink supplied to them, such as morning and afternoon teas, is exempt from fringe benefits tax. Food and drink provided to domestic employees who do not ‘live-in’ may be exempt from fringe benefits tax if consumed by the employee at the place of employment and the employer is a religious institution or natural person. See the tax expenditure Discounted valuation for board fringe benefits for the description of board fringe benefits.

D47 Exemption for transport for oil rig and remote area employees in certain circumstances
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Exemption
2006 TES code:
D39
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Subsection 47(7) Fringe Benefits Tax Assessment Act 1986

Transport provided to employees in remote areas or who work on oil rigs or other installations at sea may be exempt from fringe benefits tax. The exemption applies where the employees are provided with accommodation at or near the work site on working days and it would be unreasonable to expect the employees to travel to and from work on a daily basis.

D48 Reduction in taxable value for holiday transport for employees posted overseas
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2006 TES code:
D38
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Section 61A Fringe Benefits Tax Assessment Act 1986

The taxable value of certain fringe benefits in relation to holiday transport for employees posted overseas may be reduced. The reduction in taxable value depends on whether the travel is to the employee’s home country or to some other destination.

D49 Reduction in taxable value for remote area holiday benefits
Other economic affairs - Total labour and employment affairs ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2006 TES code:
D40
Commencement date:
1986
*Category:
1+
Expiry date:
-
Legislative reference:
Sections 60A and 61 Fringe Benefits Tax Assessment Act 1986

The value of holiday related transport benefits (including the cost of appropriate meals and accommodation en route) provided to employees working in a remote area (and any family members living with them in the remote area) are generally reduced by 50 per cent.

D50 Partial rebate for certain non-profit, non-government bodies
Other economic affairs - Other economic affairs, nec ($m)
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
55 55 50 50 45 40 45 45
Tax expenditure type:
Rebate
2006 TES code:
D30
Commencement date:
1994
Expiry date:
-
Legislative reference:
Section 65J Fringe Benefits Tax Assessment Act 1986

Certain non-profit, non-government bodies are eligible for a 48 per cent rebate of the fringe benefits tax that would otherwise be payable on up to $30,000 of the grossed-up taxable value of fringe benefits per employee.

 

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