The Commonwealth Treasury


TAX EXPENDITURES STATEMENT 2004

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Chapter 6: Tax expenditures
(continued)

Fringe Benefits Tax

Tax expenditures for general public services

D1 Exemption for benefits provided by certain international organisations

General public services (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D1
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 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)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D2
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 6 of the 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 health care benefits provided to members of the Defence Force

Defence ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
New
Commencement date:
1995
Expiry date:
 
Legislative reference:
Section 6AC of the 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.

 

D4 Exemption for certain benefits received by Australian Government employees in receipt of military compensation payments

Defence ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
New
Commencement date:
1995
Expiry date:
 
Legislative reference:
Sections 6AA and 6AB of the 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.

 

Tax expenditures for education

D5 Reduction in taxable value for certain education costs of children of employees posted overseas

Education ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2003 TES code:
D3
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 65A of the 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.

 

D6 Disregard of possible application of the $250 threshold for deductibility for some self-education expenses

Education ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2003 TES code:
D4
Commencement date:
1986
Expiry date:
 
Legislative reference:
Subsection 24(1) of the Fringe Benefits Tax Assessment Act 1986

The taxable value of a fringe benefit may be reduced by the amount that the employee would have been entitled to claim as an income tax deduction if the employee had not been reimbursed by the employer. In applying this rule, the fringe benefits tax legislation disregards the $250 threshold that applies to the deduction for self-education expenses.

 

Tax expenditures for health

D7 Capped exemption for certain public and non-profit hospitals

Health ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
125 130 200 220 220 230 240 250
Tax expenditure type:
Exemption
2003 TES code:
D5
Commencement date:
2000
Expiry date:
 
Legislative reference:
Section 57A of the 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 grossed up taxable value per employee.

 

D8 Exemption for travel costs of employees and their families associated with overseas medical treatment

Health ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D6
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58L of the 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

D9 Exemption for safety award benefits up to $200 per year per employee

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D7
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58R of the 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.

 

D10 Exemption for recreational or childcare facilities on an employer's business premises

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D8
Commencement date:
1986
Expiry date:
 
Legislative reference:
Subsection 47(2) of the 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.

 

D11 Exemption for employer contributions to secure childcare places in certain centres

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D9
Commencement date:
1986
Expiry date:
 
Legislative reference:
Subsection 47(8) of the 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 Capped exemption for public benevolent institutions (excluding public hospitals)

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
230 230 165 210 210 220 230 230
Tax expenditure type:
Exemption
2003 TES code:
D10
Commencement date:
2001
Expiry date:
 
Legislative reference:
Subsection 57A(1) of the Fringe Benefits Tax Assessment Act 1986

Public benevolent institutions are provided with an exemption from fringe benefits tax on up to $30,000 of grossed up taxable value per employee. Prior to 1 April 2001, the exemption was not capped.

 

D13 Exemption for accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D11
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 58 and 58U of the 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.

 

D14 Exemption for emergency assistance

Social security and welfare ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D12
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58N of the 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 matter.

 

Tax expenditures for housing and community amenities

D15 Exemption for remote area housing and reduction in taxable value for remote area housing assistance

Housing and community amenities ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
80 70 80 80 85 90 100 110
Tax expenditure type:
Exemption
2003 TES code:
D13
Commencement date:
2000
Expiry date:
 
Legislative reference:
Sections 58ZC, 59, 60, and 65CC of the Fringe Benefits Tax Assessment Act 1986

Housing 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 a housing loan, the provision of residential fuel, the provision of a house and land, the provision of a residential property 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.

 

D16 Exemption for housing provided by certain employers in regional areas

Housing and community amenities ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D14
Commencement date:
2000
Expiry date:
 
Legislative reference:
Section 58ZC of the 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.

 

Tax expenditures for other economic affairs

D17 Discounted valuation of stand-by travel for airline employees and travel agents

Other economic affairs (A) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
85 45 20 20 20 20 25 25
Tax expenditure type:
Discounted valuation
2003 TES code:
D18
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 32 and 33 of the 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.

 

D18 Exemption for certain long service awards for more than 15 years of service

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D19
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58Q of the Fringe Benefits Tax Assessment Act 1986

Long service awards granted in recognition of 15 years or more service are exempt from fringe benefits tax provided the value of the award does not exceed a specified maximum amount.

From 1 April 2005, the specified maximum amount will increase from $500 to $1000 where the period of service being recognised by the award is 15 years. From 1April2005, the maximum additional amount will increase from $50 to $100 for each additional year served where an award recognises a period of service greater than 15years.

 

D19 Exemption for certain benefits provided to employees training under the Australian Traineeship System

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D20
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58S of the 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.

 

D20 Exemption for certain relocation and recruitment expenses

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D21
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 58A-D and 58F of the 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.

 

D21 Reduction in taxable value of certain relocation and recruitment expenses

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2003 TES code:
D22
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 61B-E of the 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.

 

D22 Exemption for compensation-related benefits, occupational health and counselling services and some training courses

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D23
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 58J, 58K and 58M of the 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.

 

D23 Reduction in taxable value for reimbursements of car expenses incurred for occupational health and counselling services and some training courses

Other economic affairs (B) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2003 TES code:
D24
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 61F of the 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.

 

D24 Exemption for certain loan benefits

Other economic affairs (C) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D25
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 17 of the 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.

 

D25 Application of statutory formula to value car benefits

Other economic affairs (C) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
970 1,000 1,030 1,070 1,100 1,140 1,180 1,220
Tax expenditure type:
Discounted valuation
2003 TES code:
D26
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 9 of the 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. However, 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.

 

D26 Record keeping exemption

Other economic affairs (C) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
4 4 4 4 4 4 4 4
Tax expenditure type:
Record keeping valuation
2003 TES code:
D27
Commencement date:
1998
Expiry date:
 
Legislative reference:
Section 135A of the 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.

 

D27 Exemption for small business employee car parking

Other economic affairs (C) ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D28
Commencement date:
1997
Expiry date:
 
Legislative reference:
Section 58GA of the 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.

 

Tax expenditures for transport and communications

D28 Exemption for free or discounted commuter travel for employees of public transport providers

Transport and communications ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
50 55 55 60 60 65 65 70
Tax expenditure type:
Exemption
2003 TES code:
D15
Commencement date:
1986
Expiry date:
 
Legislative reference:
Subsection 47(1) of the 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.

 

D29 Exemption for employee taxi travel arriving at or leaving from place of work

Transport and communications ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D16
Commencement date:
1997
Expiry date:
 
Legislative reference:
Section 58Z of the 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.

 

D30 Exemption for free or discounted travel to and from duty by police officers on public transport

Transport and communications ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
5 5 5 5 5 5 5 5
Tax expenditure type:
Exemption
2003 TES code:
D17
Commencement date:
2000
Expiry date:
 
Legislative reference:
Subsection 47(1A) of the 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.

 

Miscellaneous tax expenditures

D31 Partial rebate for certain non-profit, non-government bodies

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
40 15 17 18 19 20 20 20
Tax expenditure type:
Rebate
2003 TES code:
D29
Commencement date:
1994
Expiry date:
 
Legislative reference:
Section 65J of the 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 grossed up taxable value per employee. Prior to 1 April 2001, the rebate was not subject to the $30,000 cap.

 

D32 Exemption for benefits in relation to certain compassionate travel

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D30
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58LA of the 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.

 

D33 Exemption for certain fringe benefits provided to religious practitioners

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
170 175 180 185 185 185 190 195
Tax expenditure type:
Exemption
2003 TES code:
D31
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 57 of the 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.

 

D34 Exemption for certain benefits provided to live-in employees who provide domestic services and are employed by religious institutions or religious practitioners

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D32
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58T of the 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.

 

D35 Discounted valuation of arm's length transaction price for in-house property and residual fringe benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Discounted valuation
2003 TES code:
D34
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 42, 48 and 49 of the 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 up to $500 per employee

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D35
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 62 of the 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.

 

D37 Discounted valuation for car parking fringe benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Discounted valuation
2003 TES code:
D37
Commencement date:
1993
Expiry date:
 
Legislative reference:
Section 39A of the 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 threshold.

 

D38 Exemption for motor vehicle parking and car parking fringe benefits provided by certain employers

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D38
Commencement date:
1986, 1993
Expiry date:
 
Legislative reference:
Section 58G of the Fringe Benefits Tax Assessment Act 1986Regulation 13A of the 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.

 

D39 Reduction in taxable value for holiday transport for employees posted overseas

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Reduction in taxable value
2003 TES code:
D39
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 61A of the 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.

 

D40 Exemption for transport for oil rig and remote area employees in certain circumstances

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D40
Commencement date:
1986
Expiry date:
 
Legislative reference:
Subsection 47(7) of the 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.

 

D41 Reduction in taxable value for remote area holiday benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D41
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 60A and 61 of the Fringe Benefits Tax Assessment Act 1986

The taxable value in relation to remote area holiday transport benefits may be reduced. The reduction in taxable value depends on certain conditions being met.

 

D42 Exemption for minor benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D42
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 58P of the of the Fringe Benefits Tax Assessment Act 1986

Minor benefits may be exempt from fringe benefits tax. Minor benefits are benefits that are less than $100 in value, infrequently provided and/or are difficult to record and value. It also must be concluded that it would be unreasonable to treat the minor benefit as a fringe benefit.

 

D43 Exemption for private use of business property

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D43
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 41 and 47(3) of the of the 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.

 

D44 Exemption for certain allowances and accommodation and food benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D44
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 21, 31, 47(5), 58E, 58ZD and 63 of the of the 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.

 

D45 Exemption for minor private use of company motor vehicle

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D45
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 47(6) of the of the 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.

 

D46 Capped exemption for charities promoting the prevention or control of disease in human beings

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D46
Commencement date:
2001
Expiry date:
 
Legislative reference:
Subsection 57A(5) of the of the 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 grossed up taxable value per employee. These institutions were provided with an uncapped exemption from 1 April 1998 to 1 April 2001 and a capped exemption thereafter.

 

D47 Exemption for certain payments to approved worker entitlement funds

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
- - - - 220 230 250 260
Tax expenditure type:
Exemption
2003 TES code:
D47
Commencement date:
2003
Expiry date:
 
Legislative reference:
Sections 58PA, 58PB and 58PC of the of the Fringe Benefits Tax Assessment Act 1986

Certain payments to approved worker entitlement funds are exempt from fringe benefits tax. For the exemption to apply, the payments into the fund and the fund itself must satisfy certain criteria.

 

D48 Discounted valuation for board fringe benefits

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
17 13 11 11 12 12 12 13
Tax expenditure type:
Discounted valuation
2003 TES code:
D36
Commencement date:
1986
Expiry date:
 
Legislative reference:
Section 36 of the 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.

 

D49 Exemption for the provision of food and drink in certain circumstances

Not allocated to function ($m)
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
* * * * * * * *
Tax expenditure type:
Exemption
2003 TES code:
D33
Commencement date:
1986
Expiry date:
 
Legislative reference:
Sections 54 and 58V of the 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 D48 for the valuation of board fringe benefits.

 

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Commonwealth of Australia 2005
ISBN 0 642 74280 4