Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 (Cth)
Section
1. Short title
2. Commencement
3. Schedule
SCHEDULE 1
MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES
PART 1- AMENDMENT OF THE
PART 2- AMENDMENT OF THE
SCHEDULE 2
CAR PARKING
PART 1- AMENDMENT OF THE
CONTENTS—
PART 2—AMENDMENT OF THE
SCHEDULE 3
AMENDMENTS OF THE
SCHEDULE 4
AMENDMENTS OF THE
SCHEDULE 5
OTHER AMENDMENTS OF THE
[
The Parliament of Australia enacts:
MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES
Insert:
“
“
“37A.
An employer may elect that this Division will apply to the employer for an FBT year. If the employer does this, the taxable value of meal entertainment fringe benefits provided to the employer’s employees and associates of those employees by the employer will either be half the expenses incurred for the FBT year by the employer in providing meal entertainment benefits or, if the employer makes a further election, an amount worked out based on a 12 week register kept by the employer. |
“37AA. An employer may elect that this Division applies to the employer for an FBT year.
“37AB. For the purposes of this Division any reference to expenses or expenditure in relation to meal entertainment or meal entertainment benefits excludes any contribution from an employee or an associate of an employee that is not subject to reimbursement by the employer.
“37AC. Where at a particular time an employer (the
“37AD. A reference to the
(a) entertainment by way of food or drink; or
(b) accommodation or travel in connection with, or for the purpose of facilitating, entertainment to which paragraph (a) applies; or
(c) the payment or reimbursement of expenses incurred in providing something covered by paragraph (a) or (b);
whether or not:
(d) business discussions or business transactions occur; or
(e) in connection with the working of overtime or otherwise in connection with the performance of the duties of any office or employment; or
(f) for the purposes of promotion or advertising; or
(g) at or in connection with a seminar.
“37AE. No meal entertainment fringe benefit arises where the employer in relation to whom the benefit would otherwise arise is not the provider of the benefit.
“37AF. If a meal entertainment fringe benefit arises in respect of the provision of meal entertainment, no other fringe benefit arises in relation to any person in respect of the provision of the meal entertainment.
“37AG. To avoid doubt, sections 37AE and 37AF do not prevent a fringe benefit in relation to an employer arising under any provision of this Act where the employer is not the provider of the benefit.
“
“37B.
If an employer elects that this Division applies, then (unless the employer elects that Subdivision C applies) the taxable value of meal entertainment fringe benefits provided to the employer’s employees and associates of those employees by the employer is half the expenses incurred for the FBT year by the employer in providing meal entertainment benefits. |
“37BA. If this Division applies to an employer for an FBT year then, unless the employer elects that Subdivision C applies, the total taxable value of meal entertainment fringe benefits of the employer for the FBT is 50% of the expenses incurred by the employer in providing meal entertainment for the FBT year.
Note: This means that the employer’s
aggregate fringe benefits amount (see subsection 136(1)) for the FBT year will include 50% of the total expenses incurred by the employer for the provision of meal entertainment to all persons in the FBT year.
“
“37C.
If an employer elects that this Subdivision applies, the taxable value of meal entertainment fringe benefits is to be calculated by reference to a 12 week register kept by the employer. |
“37CA. An employer who elects that this Division applies may elect also that this Subdivision applies to meal entertainment provided by the employer for an FBT year if the employer has a valid meal entertainment register for that year.
“37CB.(1) If the employer elects that this Subdivision applies for an FBT year then, despite any other provision of this Act, the taxable value of meal entertainment fringe benefits for the employer for the FBT year is worked out using the formula:
Note: This means that the employer’s
aggregate fringe benefits amount (see subsection 136(1)) for the FBT year will include a proportion of the expenses incurred by the employer for the provision of meal entertainment for all persons in the FBT year. The proportion is worked out on the basis of the 12 week register.
“(2) The
where:
“(3) The
“37CC.(1) The register must be kept for a continuous period of at least 12 weeks throughout which meal entertainment is provided by the employer.
“(2) The period for which the register is kept must be representative of the first FBT year for which it is valid.
“(3) If the register does not meet these conditions it is not valid.
“37CD.(1) If the 12 week period begins and ends in the same FBT year, the register is valid for that FBT year and, subject to subsection (3), for each of the 4 FBT years immediately following that year.
“(2) If the 12 week period begins in one FBT year and ends in another FBT year, the register is only valid for the second FBT year and, subject to subsection (3), for each of the 4 FBT years immediately following that year.
“(3) A register that is valid for an FBT year ceases to be valid at the end of that FBT year if the total of expenses incurred by the employer in providing meal entertainment for that FBT year is more than 20% higher than the corresponding total for the first FBT year for which the register was valid. A register also ceases to be valid for an FBT year if there is a later valid register for that FBT year.
“37CE.(1) The register must include the details of the following:
(a) the date the employer provided meal entertainment;
(b) for each recipient of meal entertainment—whether the recipient is an employee of the employer or an associate of the employer;
(c) the cost of the meal entertainment;
(d) the kind of meal entertainment provided;
(e) where the meal entertainment is provided;
(f) if the meal entertainment is provided on the employer’s premises—whether it is provided in an
in-house dining facility within the meaning of subsection 51AE(1) of theIncome Tax Assessment Act 1936.
“(2) A person responsible for making entries in the register must make the entry as soon as practicable after he or she knows the details required by subsection (1).
“37CF. For the purposes of this Act, a register is not valid if the register contains an entry that is false or misleading in a material particular.”.
Omit all the words after “business operations”, substitute, “of the person, but does not include:
(a) premises, or a part of premises, used as a place of residence of an employee of the person or an employee of an associate of the person; or
(b) a corporate box; or
(c) boats or planes used primarily for the purpose of providing entertainment unless the boat or plane is used in the person’s business of providing entertainment; or
(d) other premises used primarily for the purpose of providing entertainment unless the premises are used in the person’s business of providing entertainment.
In this definition,
Insert:
“
(a) a corporate box; or
(b) boats, or planes, for the purpose of the provision of entertainment; or
(c) other premises, or facilities, for the purpose of the provision of entertainment;
but does not include so much of any of such expenses that is attributable to:
(d) the provision of food or beverages; or
(e) is attributable to advertising and is an allowable deduction for the person under the
Income Tax Assessment Act 1936.
Insert:
“152B. If:
(a) the taxable value of one or more fringe benefits of an employer for an FBT year is attributable, in whole or in part, to entertainment facility leasing expenses incurred by the employer in the FBT year; and
(b) the employer elects that this section applies for the FBT year;
then:
(c) the aggregate fringe benefit amount for the employer for the FBT year is to be reduced by so much of the total taxable value of all fringe benefits as is attributable to entertainment facility leasing expenses; and
(d) the aggregate fringe benefit amount for the employer for the FBT year is to then be increased by 50% of the total of entertainment facility leasing expenses incurred by the employer in the FBT year (including expenses not taken into account under paragraph (a)).
Note: The effect of this is that the employer’s
aggregate fringe benefits amount (see subsection 136(1)) for the FBT year will include 50% of the entertainment facility leasing expenses incurred by the employer for the FBT year.”.
The amendments made by this Part apply to assessments of the fringe benefits taxable amount of an employer of the FBT year beginning on 1 April 1995 and of all later FBT years.
Insert:
“51AEA.( 1) If a meal entertainment fringe benefit arises for a taxpayer for an FBT year and the taxpayer elects that Division 9A of Part III of the
(a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and
(b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.
“(2) Expressions used in this section have the same meaning as in the
“51AEB.(1) If a taxpayer has made an election under section 37CA of the Fringe Benefits Tax Assessment Act 1986:
(a) for each expense incurred in the FBT year by the taxpayer in providing meal entertainment, a deduction equal to the amount worked out using the following formula is allowable to the taxpayer for the year of income in which it is incurred:
(b) no other deduction under any provision of this Act is allowable to the taxpayer for the expense.
“(2) The
where:
“(3) Expressions used in this section have the same meaning as in the
“51AEC.(1) If a taxpayer has made an election under section 152B of the
(a) for each entertainment facility leasing expense incurred in the FBT year by the taxpayer, a deduction equal to 50% of that expense is allowable to the taxpayer for the year of income in which it is incurred; and
(b) no other deduction under any provision of this Act is allowable to the taxpayer for entertainment facility leasing expenses incurred in the FBT year.
“(2) Expressions used in this section have the same meaning as in the
_______________
CAR PARKING
Add at the end:
“and (iii) the lowest fee charged by the operator of any such commercial parking station in the ordinary course of business to members of the public for all-day parking on the first business day of the FBT year is more than the car parking threshold;”.
Add at the end:
“(2) For the purposes of this section:
(a) the carparking threshold for the FBT year beginning on 1 April 1995 is $5.00; and
(b) for later years the carparking threshold is the threshold for the previous FBT year as adjusted on the first business day of the later FBT year by a factor equivalent to the movement in the preceding twelve months in the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.
“(3) Subject to subsection (4), if at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number is to be disregarded for the purposes of this section.
“(4) If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change, regard is to be had only to the index numbers published in terms of the new reference base.”.
Insert:
“39AA. For the purposes of subparagraph 39A(a)(iii), any fee charged on the first business day of an FBT year that is not representative is to be disregarded.
“39AB. A fee charged by an operator of a commercial parking station on a particular day is
(a) the 4 week period beginning on the day; or
(b) the 4 week period ending on the day.”.
Insert:
Election
“39DA.(1) An employer may elect that this section applies to any or all of the employer’s car parking fringe benefits for a particular FBT year.
“(2) Subject to this Part, if an election covers a car parking fringe benefit, the taxable value of the fringe benefit is the average cost worked out under subsection (3) reduced by the recipients contribution.
where:
“(4) An election is of no effect if the fees referred to in subsection (3) are
Insert in Division 10A:
“
“39F.
Under this Subdivision, an employer may elect to calculate the value of certain car parking fringe benefits by using a statutory formula based on the number and value of spaces available to employees covered by the election. |
“39FA.(1) If a provider provides one or more car parking benefits in respect of one or more employees of an employer in a particular FBT year, the employer may elect that this Subdivision applies to the employer’s car parking fringe benefits for some or all of the employees for that FBT year.
“(2) The employer must specify that the election covers:
(a) all the employees; or
(b) all employees of a particular class; or
(c) particular employees.
“(3) Despite any other provision of this Act (other than section 39FB) the total taxable value of the employer’s car parking fringe benefits for employees covered by the election for the FBT year is the amount worked out using the spaces method under subsection (4).
Note: Section 39FB covers the situation where the number of spaces available to employees exceeds the number of employees.
“(4) The spaces method is:
Step 1 : Work out an amount using the following formula, for each space for which there is, in the FBT year, at least one car parking benefit for an employee covered by the election:
Note 1: Section 39FC defines
Note 2: Section 39FD defines
Note 3: Section 39FE defines
“(5) The election is of no effect if, in working out the daily rate for a space, the fees referred to in subsection 39DA(3) are
“39FB.(1) This section applies if, throughout the parking period (see subsection (5)), the average number of employees covered by the election is less than the average number of spaces (
“(2) If this section applies, the total statutory benefit (see Step 2 in subsection 39FA(4)) is multiplied by the following fraction:
“(3) The
“(4) The
“(5) The
(a) beginning on the first day in the FBT year on which the parking of a car in any space referred to in subsection 39FA(4) gives rise to a car parking fringe benefit of the employer for an employee covered by the election; and
(b) ending on the last day in the FBT year on which the parking of a car in any space referred to in subsection 39FA(4) gives rise to a car parking fringe benefit of the employer for an employee covered by the election.
“(6) This section does not apply if the number of employees or the number of eligible spaces referred to in subsections (3) and (4) are
“(7) A number of employees, or a number of eligible spaces, as the case requires, is
(a) the 4 week period ending on the first day of the parking period; or
(b) the 4 week period beginning on the last day of the parking period.
“39FC. The
(a) the commercial parking station method;
(b) the market value method;
(c) the average cost method;
as the taxable value of the car parking fringe benefit for the space, if there were no recipients contribution.
“39FD. An
“39FE. A
“39G.
Under this Subdivision, an employer may keep a 12 week register of car parking provided to employees. An employer who keeps such a register may elect that the total value of certain car parking fringe benefits for an FBT year for which the register is valid is to be determined in accordance with the register. |
“39GA.(1) An employer may elect that this Subdivision applies to the employer’s car parking fringe benefits for some or all of the employer’s employees for that FBT year if the employer has a valid register for that FBT year covering those employees.
“(2) The employer must specify that the election covers:
(a) all the employees; or
(b) all employees of a particular class; or
(c) particular employees.
“39GB. Despite any other provision of this Act (other than this section), the total taxable value of the employer’s car parking fringe benefits for employees covered by the election for the FBT year is the amount worked out using the formula:
“39GC. The
(a) the register had been kept in that FBT year; and
(b) the value of the benefits were calculated in accordance with the information in the register; and
(c) the value of the benefits were calculated using whichever of the following methods that the taxpayer chooses:
(i) the commercial parking station method;
(ii) the market value method;
(iii) the average cost method.
(a) beginning on the first day in the FBT year on which there is a car parking benefit for an employee covered by the election; and
(b) ending on the last day in the FBT year on which there is a car parking benefit for an employee covered by the election.
“39GE.(1) The register must be kept for a continuous period of at least 12 weeks throughout which car parking benefits are provided to employees covered by the election.
“(2) The period for which the register is kept must be representative of usage for the first FBT year for which it is valid.
“(3) If subsection (1) or (2) is not satisfied, the register is not valid.
“39GF.(1) If the 12 week period begins and ends in the one FBT year, the register is valid for that FBT year and, subject to subsections (3) and (4), for each of the 4 FBT years immediately following that year.
“(2) If the 12 week period begins in one FBT year and ends in another FBT year, the register is only valid for the second FBT year and, subject to subsections (3) and (4), for each of the 4 years immediately following that year.
“(3) A register that is valid for an FBT year ceases to be valid at the end of that FBT year if the number of car parking fringe benefits for the employer for employees covered by the election increases by more than 10% on any day in that FBT year.
Note: This means that if the number of car parking fringe benefits increases by more than 10%, the employer will have to keep a new register in the FBT year following the year of the increase if the employer wants to use the method in this Subdivision for that following year.
“(4) A register that is valid for an FBT year ceases to be valid if there is a later valid register for that FBT year that covers the same employee.
“39GG.(1) The register must include details of the following:
(a) the date on which each car covered by subsection (4) was parked;
(b) whether the car was parked for a total that exceeds 4 hours;
(c) whether the car travelled between the place of residence of an employee covered by the election and his or her primary place of employment on that day;
(d) the place where the car was parked.
“(2) The person responsible for making entries in the register must make the entry as soon as practicable after he or she knows the details required by subsection (1).
“(3) If subsection (1) or (2) is not satisfied, the register is not valid.
“(4) A car is covered by this subsection if:
(a) a car benefit relating to the car is provided on a day during the 12 week period to an employee covered by the election in respect of the employee’s employment; or
(b) the car is owned by, or leased to, an employee covered by the election at any time during the 12 week period; or
(c) the car is made available by another person to an employee covered by the election at any time during the 12 week period where:
(i) the other person is not the employee’s employer; and
(ii) the other person did not make the car available under an arrangement to which the employee’s employer is a party.
“39GH. For the purposes of this Act, a register is not valid if the register contains an entry that is false or misleading in a material particular.”.
Omit “a year of tax”, substitute “an FBT year”.
Omit “the year of tax” (wherever occurring), substitute “the FBT year”.
Omit “a particular year of tax”, substitute “a particular FBT year”.
Omit “Subdivision”, substitute “Division”.
The amendments made by this Part apply to assessments of the fringe benefits taxable amount of an employer of the FBT year beginning on 1 April 1995 and of all later FBT years.
A register is taken to have been kept under Subdivision D of Division 10A of Part III of the
(a) before the commencement of this item, an employer kept the register; and
(b) the register satisfies subsections 39GE(1) and (2) and 39GG(1) and (2) of that Act.
Insert:
“
“
“89A.
No deduction is allowable under this Act to a self-employed person, a partnership or a trust for certain parking expenditure unless the amount that would otherwise be deductible is reduced by the amount calculated using one of the approved valuation methods. |
“89AA. The following table summarises the contents of this Division:
A | Key principle, overview and coverage of Division |
B | The basic requirement that the deduction must be calculated using an approved valuation method |
C | The commercial parking station method |
D | The market value method |
E | The average cost method |
F | The statutory formula (spaces) method |
G | The 12 week record keeping method |
H | Special provisions—2 anti-avoidance provisions |
J | Definitions (many terms have the same meaning as in the |
“89AB.(1) This Division applies to any deduction that would otherwise be allowable to a taxpayer who is a natural person (including a person in the capacity of trustee) or a partnership if all of the conditions set out in this section are satisfied.
“(2) The first condition is that the deduction (the
“(3) The second condition is that, on the parking day, the taxpayer or a partner in the taxpayer (if the taxpayer is a partnership) has a primary place of self-employment and the car is used in connection with travel by the taxpayer or partner between his or her place of residence and that primary place of self-employment.
“(4) The third condition is that:
(a) on the parking day, the car is parked on particular premises (the
parking premises ) for one or more daylight periods exceeding 4 hours in total; and(b) the parking premises are at, or in the vicinity of, the primary place of self-employment; and
(c) a commercial parking station is located within a 1 km radius of the parking premises; and
(d) the lowest fee charged by the operator of any such commercial parking station in the ordinary course of business to members of the public for all-day parking on the first business day of the year of income is more than $5.00.
Note: An anti-avoidance provision applies to paragraph (4)(d)—see section 89HA.
“(5) The final condition is that the expenditure is in respect of the provision of the parking facilities to which that parking relates.
“89AC. This Division does not apply to a deduction if the provision of parking facilities for the car during the period or periods to which the deduction relates is taken, under the regulations, to be excluded from this Division.
“
“89B.(1) If this Division applies to a gross deduction, the gross deduction is not allowable to the taxpayer, unless the taxpayer elects to use an approved valuation method in calculating the amount of the deduction.
“(2) The following are the
(a) the commercial parking station method;
(b) the market value method;
(c) the average cost method;
(d) the statutory formula (spaces);
(e) the 12 week record keeping method.
“
“89C. A taxpayer may elect to use the commercial parking station method to cover all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
“89CA.(1) The amount of the deduction worked out using this method is:
“(2) The
(a) if only one gross deduction is covered by the election—the amount of that gross deduction; or
(b) if more than one gross deduction is covered by the election—the sum of the amounts of those gross deductions.
“(3) The
“
“89D. A taxpayer may elect to use the market value method to cover all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
“89DA.(1) The amount of the deduction worked out using this method is:
“(2) The
(a) if only one gross deduction is covered by the election—the amount of that gross deduction; or
(b) if more than one gross deduction is covered by the election—the sum of the amounts of those gross deductions.
“(3) The
(a) those facilities had been provided by another person; and
(b) the parties to the transaction were dealing with each other at arm’s length.
“89DB. An election to use the market value method in relation to one or more days in a year of income has no effect unless:
(a) a suitably qualified valuer gives to the taxpayer a report, in a form approved by the Commissioner, about the valuation of the provision of the car parking facilities; and
(b) the valuer is at arm’s length in relation to the valuation; and
(c) the taxpayer’s return for the year of income, in so far as it relates to the market value method, is based on the report.
“
“89E. A taxpayer may elect to use the average cost method to cover all gross deductions for the taxpayer that relate to:
(a) a particular car; and
(b) particular parking premises; and
(c) a particular day.
“89EA.(1) The amount of the deduction worked out using this method is:
“(2) The
(a) if only one gross deduction is covered by the election—the amount of that gross deduction; or
(b) if more than one gross deduction is covered by the election—the sum of the amounts of those gross deductions.
“(3) The
|
|
where:
“89EB. An election to use the average cost method is of no effect if the fees referred to in subsection 89EA(3) are
“
“89F.
Under this Subdivision, a taxpayer may elect to reduce the amount of certain deductions by an amount calculated using a statutory formula based on the number and value of spaces available to the taxpayer, or, if the taxpayer is a partnership, to partners in the taxpayer who are covered by the election. |
“89FA.(1) A taxpayer, other than a partnership, may elect to use the statutory formula (spaces) method to cover all of the gross deductions for the taxpayer for a year of income.
“(2) A partnership may elect to use the statutory formula (spaces) method to cover all of the gross deductions for the taxpayer for a year of income that relate to one or more partners in the taxpayer.
“(3) The partnership must specify that the election covers gross deductions that relate to:
(a) all the partners; or
(b) all partners of a particular class; or
(c) particular partners.
“(4) Despite any other provision of this Act (other than section 89FB) the total amount of deductions covered by the election for the year of income is the amount worked out using the spaces method under subsection (5).
Note: Section 89FB covers the situation where the number of spaces available to partners exceeds the number of partners.
“(5) The spaces method is:
Step 1: Work out an amount using the following formula, for each space for which there is, in the year of income, at least one gross deduction for the taxpayer, or for a partner covered by the election (as the case requires):
Note 1: Section 89FC defines
Note 2: Section 89FD defines
Note 3: Subsection (6) defines
“(6) The
(a) if only one gross deduction is covered by the election—the amount of that gross deduction; or
(b) if more than one gross deduction is covered by the election—the sum of the amounts of those gross deductions.
“(7) The election is of no effect if, in working out the daily rate for a space, the fees referred to in subsection 89EA(3) are
“89FB.(1) This section applies if the taxpayer is a partnership and, throughout the parking period (see subsection (5)), the average number of partners covered by the election is less than the average number of spaces (eligible spaces) for which there is an availability period.
“(2) If this section applies, the total statutory deduction (see Step 2 in subsection 89FA(5)) is multiplied by the following fraction:
“(3) The
“(4) The
“(5) The
(a) beginning on the first day in the year of income on which the parking of a car in any space referred to in subsection 89FA(5) gives rise to a gross deduction of the taxpayer that relates to a partner covered by the election; and
(b) ending on the last day in the year of income on which the parking of a car in any space referred to in subsection 89FA(5) gives rise to a such a gross deduction.
“(6) This section does not apply if the number of partners or the number of eligible spaces referred to in subsections (3) and (4) are
“(7) A number of partners, or a number of eligible spaces, as the case requires, is
(a) the 4 week period ending on the first day of the parking period; or
(b) the 4 week period beginning on the last day of the parking period.
“89FC. The daily rate amount for a space is the amount that would be worked out under section 89EA as the gross deduction amount for the space.
“89FD. An
(a) begins:
(i) in the case of a taxpayer other than a partnership—on the first day in the year of income on which the parking of a car in the space gives rise to a gross deduction of the taxpayer; or
(ii) in the case of a partnership—on the first day in the year of income on which the parking of a car in the space gives rise to a gross deduction of the taxpayer that relates to a partner covered by the election; and
(b) ends on the last day in the year of income on which the parking of a car in the space gives rise to such a gross deduction.
“
“89G.
Under this Subdivision, a taxpayer may keep a 12 week register of car parking. A taxpayer who keeps such a register may elect that the total amount of gross deductions for years of income for which the register is valid is to be determined in accordance with the register. |
“89GA.(1) A taxpayer may elect to use the 12 week record keeping method to cover all gross deductions for the taxpayer for a year of income.
“(2) A partnership may, alternatively, elect to use the 12 week record keeping method to cover all gross deductions for the partnership that relate to a particular partner, or particular partners, for a year of income.
“89GB. The total amount of the deductions covered by the election is:
“89GC.(1) The
(a) the register had been kept in that year of income; and
(b) the amount of the deductions were calculated in accordance with the information in the register; and
(c) the allowable deductions were calculated using whichever of the following methods that the taxpayer chooses:
(i) the commercial parking station method;
(ii) the market value method;
(iii) the average cost method.
“(2) In working out the allowable deductions (register) for a partnership, only those deductions that are attributable to the partners covered by the election are to be taken into account.
“89GD. The
(a) beginning on the first parking day for the taxpayer or a partner covered by the election (as the case requires) in that year of income; and
(b) ending on the last parking day for the taxpayer or a partner covered by the election (as the case requires) in that year of income.
“89GE.(1) The register must be kept for a continuous period of at least 12 weeks.
“(2) The period over which the register is kept must be representative of usage for the first year of income for which it is valid.
“(3) If subsection (1) or (2) is not satisfied, the register is not valid.
“89GF.(1) If the 12 week period begins and ends in the one year of income, the register is valid for that year of income and, subject to subsections (3), (4) and (5), for each of the 4 years of income immediately following that year.
“(2) If the 12 week period begins in one year of income and ends in another year of income, the register is only valid for the second year of income and, subject to subsections (3), (4) and (5), for each of the 4 years of income immediately following that year.
“(3) A register that is valid for a year of income ceases to be valid at the end of that year if before the end of that year of income, the Commissioner gives the taxpayer a notice advising the taxpayer that the register will cease to be valid at the end of the year of income.
Note: This means that if the Commissioner notifies the taxpayer, the taxpayer will have to keep a new register in the following year of income if the taxpayer wants to use this method.
“(4) A register kept by a taxpayer other than a partnership that is valid for a year of income ceases to be valid if there is a later valid register for that year.
“(5) A register kept by a taxpayer that is a partnership that is valid for a year of income ceases to be valid if there is a later valid register for that year of income that covers the same partners.
“89GG.(1) The register must include the following details:
(a) the date on which each car covered by subsection (4) was parked;
(b) whether the car was parked for a total that exceeds 4 hours;
(c) whether the car was used in connection with travel by a person between his or her place of residence and his or her primary place of self-employment on that day;
(d) the place where the car was parked.
“(2) The person responsible for making entries in the register must make the entry as soon as practicable after he or she knows the details required by subsection (1).
“(3) If subsection (1) or (2) is not satisfied, the register is not valid.
“(4) A car is covered by this subsection if the car was used in connection with travel by the taxpayer, or a partner covered by the election, between his or her place of residence and his or her primary place of self-employment on any day in the 12 week period.
“89GH. For the purposes of this Act, a register is not valid if the register contains an entry that is false or misleading in a material particular.
“
“89H. If either or both of the following apply:
(a) a transaction between the operator of a commercial parking station and a customer is not at arm’s length;
(b) the operator of a commercial parking station sets the level of a fee for the sole or dominant purpose of enabling one or more taxpayers to avoid, in whole or in part, the application of this Division;
then, for the purposes of this Division:
(c) if only paragraph (a) applies—it is to be assumed that the fee is the fee that would have been payable if the operator and the customer had been dealing with each other at arm's length in relation to the transaction; and
(d) if only paragraph (b) applies—it is to be assumed that the fee is the fee that would have been payable if it had been set without that purpose in mind; and
(e) if both paragraphs (a) and (b) apply—it is to be assumed that the fee is the fee that would have been payable if:
(i) the operator and the customer had been dealing with each other at arm’s length in relation to the transaction; and
(ii) it had been set without that purpose in mind.
“89HA. For the purposes of paragraph 89AB(4)(d), any fee on the first business day after 31 March in a year that is not representative is taken to be more than $5.00.
“
“89J. A commercial parking station is taken to be located within a 1 km radius of particular parking premises if, and only if, a car entrance to the commercial parking station is situated less than 1 km, by the shortest practicable route, from a car entrance to those premises.
“89JA. If the operator of a commercial parking station provides all-day parking in the ordinary course of business to members of the public on a weekly, monthly, yearly or other periodic basis, the operator is taken to charge a fee for all-day parking on a particular day during the period equal to the amount worked out using the formula:
where:
“89JB. A fee charged by an operator of a commercial parking station on a particular day is
(a) the 4 week period beginning on the day; or
(b) the 4 week period ending on the day.
“89JC. In this Division:
(a) in any case—assessable income (other than salary or wages) of the person of any year of income; or
(b) if the person is a partner in a partnership—assessable income of the partnership of any year of income; or
(c) if the person is the trustee of a trust estate—assessable income of the trust estate of any year of income.
(a) if the person carried on income-producing activities on that day—on that day; or
(b) in any other case—on the most recent day before that day on which the person carried on income-producing activities;
those premises are or were the sole or primary place from which, or at which, the person carried on income-producing activities.
Add at the end “and before 1 July 1995.”.
After “subsection 51AGB(7)” insert “or section 89DB”.
(a) before the commencement of this item, a taxpayer kept a register; and
(b) the register satisfies sections 89GE and 89GG of that Act.
______________
AMENDMENTS OF THE
Add at the end:
“(3) If:
(a) the employer of an employee is a government body; and
(b) the employee is exclusively employed in, or in connection with, a public educational institution;
the following benefits provided in respect of the employment of the employee are exempt benefits:
(c) an eligible car parking expense payment benefit;
(d) a car parking benefit.”.
Insert in Division 13:
“58X.(1) Any of the following benefits provided by an employer to an employee of the employer in respect of the employee’s employment is an exempt benefit:
(a) an expense payment benefit where the recipients expenditure is in respect of an eligible work related item;
(b) a property benefit where the recipients property is an eligible work related item;
(c) a residual benefit where the recipients benefit consists of the making available of an eligible work related item.
“(2) Subject to subsections (3) and (4), each of the following is an
(a) a mobile phone or a car phone;
(b) an item of protective clothing that is required for the employment of the employee;
(c) a briefcase;
(d) a calculator;
(e) a tool of trade;
(f) an item of computer software for use in the employee’s employment;
(g) an electronic diary or similar item;
(h) a notebook computer, a laptop computer or a similar portable computer.
“(3) A mobile phone or a car phone is only an eligible work related item if the phone is primarily for use in the employee’s employment.
“(4) A notebook computer, a laptop computer or a similar portable computer is not an eligible work related item if, earlier in the FBT year, an expense payment benefit or a property benefit of the employee has arisen in relation to another notebook computer, laptop computer or similar portable computer.
“58Y.(1) Either of the following benefits provided by an employer to an employee of the employer in respect of the employee’s employment is an exempt benefit:
(a) an expense payment benefit where the recipients expenditure is in respect of an eligible membership or subscription;
(b) a property benefit where the recipients property is an eligible membership or subscription.
“(2) Each of the following is an
(a) a subscription to a trade or professional journal;
(b) an entitlement to use a corporate credit card;
(c) an entitlement to use an airport lounge membership.
“58Z.(1) Any benefit arising from taxi travel by an employee is an exempt benefit if the travel:
(a) is the whole or a part of the journey directly between the employee’s place of residence and the employee’s place of work; and
(b) commences between 7.00 p.m. and 7.00 a.m.
“(2) Any benefit arising from taxi travel by an employee is an exempt benefit if the travel:
(a) is as a result of sickness of, or injury to, the employee; and
(b) is the whole or a part of the journey directly between any of the following:
(i) the employee’s place of work; or
(ii) the employee’s place of residence; or
(iii) any other place that it is necessary, or appropriate, for the employee to go as a result of the sickness or injury.”.
Insert:
“(aa) a non-profit scientific institution that:
(i) is engaged solely in research into the causes, prevention or cure of diseases in humans; and
(ii) is established by a law of the Commonwealth, a State or a Territory; and
(iii) is not conducted by or on behalf of the Commonwealth, a State or a Territory;”.
(a) in relation to expense payment fringe benefits where the recipients expenditure in relation to the benefit was incurred on or after 1 April 1995; and
(b) in relation to any other fringe benefit where the benefit is in relation to the FBT year beginning on 1 April 1995 or a later FBT year.
__________________
AMENDMENTS OF
Insert:
“20A.(1) An expense payment fringe benefit that is covered by a no-private-use declaration is an exempt benefit.
“(2) An employer may make a
“(3) The declaration must be in a form approved in writing by the Commissioner and be made by the declaration date.”.
Insert:
“(ia) covered by a recurring fringe benefit declaration (see section 152A);”.
Insert:
“(ia) covered by a recurring fringe benefit declaration (see section 152A);”.
Insert in Subdivision A of Division 12 of Part III:
“47A.(1) A residual fringe benefit that is covered by a no-private-use declaration is an exempt benefit.
“(2) An employer may make a
“(3) The declaration must be in a form approved in writing by the Commissioner and be made by the declaration date.”.
Insert:
“(ia) covered by a recurring fringe benefit declaration (see section 152A);”.
Add at the end:
“and (d) a no-private-use declaration or a recurring fringe benefit declaration that covers benefits provided in the current year of tax.”.
Insert:
“152A.(1) If a person is provided with a benefit (the
“(2) If the recurring fringe benefit declaration covers another benefit (the
(a) the recurring fringe benefit declaration is taken to have been made under paragraph 24(1)(e) in respect of the recipients expenditure for that benefit; and
(b) the
gross deduction in subparagraph 24(1)(b)(iii) in relation to the later benefit is taken to be the amount worked out using the formula:where:
Gross expenditure (later benefit) is the gross expenditure mentioned in paragraph 24(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible proportion of the declaration benefit as worked out under subsection (9).
Note: The
“(3) If the recurring fringe benefit declaration covers another benefit
(a) the recurring fringe benefit declaration is taken to have been made under paragraph 44(1)(c) in respect of the recipients property for that benefit; and
(b) the
gross deduction in subparagraph 44(1)(b)(i) in relation to the later benefit is taken to be the amount worked out using the formula:
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in paragraph 44(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible proportion of the declaration as worked out under subsection (9).
Note: The
“(4) If the recurring fringe benefit declaration covers another benefit (the
(a) the recurring fringe benefit declaration is taken to have been made under paragraph 52(1)(c) in respect of the recipients benefit for that benefit; and
(b) the gross deduction in subparagraph 52(1)(b)(i) in relation to the later benefit is taken to be the amount worked out using the formula:
where:
Gross expenditure ( later benefit ) is the gross expenditure mentioned in paragraph 52(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible proportion of the declaration benefit as worked out under subsection (9).
Note: The
“(5) The declaration must be in a form approved in writing by the Commissioner and be made, and given to the employer, by the declaration date for the employer for the FBT year in which the declaration benefit is provided.
“(6) The declaration covers all benefits that are identical to the declaration benefit received by the person before the earlier of:
(a) the time when the person revokes the declaration: and
(b) the end of 5 years starting when the declaration is made.
“(7) The declaration does not cover a benefit if the deductible proportion of the benefit is more than 10 percentage points less than the deductible proportion of the declaration benefit.
“(8) If a taxpayer makes a declaration for a benefit that is an identical benefit to a benefit covered by an earlier declaration, the earlier declaration is revoked.
“(9) The
where:
“(10) A benefit is
(a) that are minimal or insignificant; or
(b) that relate to the value of the benefits; or
(c) in the deductible proportion of the benefits.”.
The amendments made by this Schedule apply to assessments of the fringe benefits taxable amount of an employer of the FBT year beginning on 1 April 1995 and of all later FBT years.
____________
OTHER AMENDMENTS OF THE
After “truck” insert “, designed to carry a load of less than 1 tonne”.
Omit “0.06”, substitute “0.07”.
Omit “0.1”, substitute “0.11”.
Omit “0.18”, substitute “0.20”.
Omit “0.24”, substitute “0.26”.
Add at the end “or”.
Omit the paragraph.
Omit all the words after “case —“, substitute “the business use percentage applicable to the car for the holding period; and”.
Omit the paragraphs, substitute:
“(a) log books and odometer records are maintained by or on behalf of the provider for an applicable log period in relation to the car; and
(b) odometer records are maintained by or on behalf of the provider for the holding period; and
(c) if the provider is not the employer—those log books and odometer records are given to the employer before the declaration date; and
(d) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car during the holding period; and
(e) the employer specifies a percentage as the business use percentage applicable to the car in relation to the provider for the holding period.”.
Omit the paragraph, substitute:
“(b) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car in the holding period; and
(c) the employer specifies the business use percentage applicable to the car in relation to the provider for the holding period.”.
Repeal the section.
Omit “car deduction percentage, ascertained under section 65G,” substitute “business use percentage”.
Omit “car deduction percentage, ascertained under section 65G,” substitute “business use percentage”.
Omit “car deduction percentage, ascertained under section 65G,” substitute “business use percentage”.
Omit the subsection, substitute:
“(4) For the purposes of paragraph (1)(c), the part of a petty cash book or similar document that sets out the particulars that would be set out in documentary evidence of the recipients expenditure (other than particulars of the date on which the documentary evidence was made out) is taken to be substitute documentary evidence of the recipients expenditure. The entry must be in English.”.
Omit “car deduction percentage, ascertained under section 65G,” substitute “business use percentage”.
Omit “car deduction percentage, ascertained under section 65G,” substitute “business use percentage”.
Omit the paragraphs, substitute:
“(a) log books and odometer records have been maintained by or on behalf of the recipient for an applicable log period in relation to the car; and
(b) odometer records are maintained by or on behalf of the provider for the holding period; and
(c) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car during the holding period; and
(d) the employer specifies a percentage as the business use percentage applicable to the car in relation to the recipient for the holding period.”.
Omit the paragraph, substitute:
“(b) the employer specifies the employer’s estimate of the number of business kilometres travelled by the car in the holding period; and
(c) the employer specifies a percentage as the business use percentage applicable to the car in relation to the recipient for the holding period.”.
Repeal the section.
Repeal the section.
Repeal the section, substitute:
“115A. If:
(a) the number of kilometres specified by an employer as the employer’s estimate of the number of business kilometres travelled by a car during a period in an FBT year is not a reasonable estimate of the number of business kilometres travelled in that period; and
(b) the tax that would be payable by the employer if a reasonable estimate of the number of business kilometres was substituted for the employer’s estimate exceeds the tax that would be payable if the employer’s estimate was used;
then:
(c) the Commissioner may make a reasonable estimate of the number of business kilometres; and
(d) the Commissioner’s estimate is to be used in calculating the business use percentage applicable to the car for the period; and
(e) the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in paragraph (b).”.
Omit the paragraph, substitute:
“(b) the employer has a document (the
(i) is a copy of the original document; or
(ii) properly records all of the matters as set out in the original document and was in existence when the original document was lost or destroyed;”.
Add at the end “and”.
Omit the subparagraphs.
Add at the end “and”.
Omit the subparagraphs.
Repeal the section, substitute:
“123 A. If a provision requires a business use percentage or an estimate of the number of business kilometres to be specified, it must be specified in writing on or before the declaration date for the FBT year.”.
Omit the subsections, substitute:
“(1) The substantiation rules do not apply in relation to a benefit if the nature and quality of evidence that a person has satisfies the Commissioner that the taxable value of the benefit is not greater than the amount specified in the taxpayer’s return for the FBT year as the taxable value of that benefit.”.
Omit “7 years”, substitute “5 years”.
Omit “7 years”, substitute “5 years”.
Insert:
“132a.( 1) This section applies if:
(a) a provision of this Act requires documentary evidence of an expense to be given to, or obtained by, an employer before the declaration date for an employer for an FBT year; and
(b) at the date of lodgment of the employer’s return of the fringe benefits taxable amount for the FBT year:
(i) the employer has not been given, or has not obtained, the documentary evidence;
but:
(ii) the employer has good reason to expect that he or she will be given, or will obtain, that evidence within a reasonable time.
“(2) If this section applies:
(a) the employer may complete his or her return as if the documentary evidence had been given to, or obtained by, him or her by the date of lodgment; and
(b) if the evidence is given to, or obtained by, the employer within a reasonable time—this Act applies as if the documentary evidence had been given to, or obtained by, the employer before the declaration date; and
(c) if the evidence is not given to, or obtained by, the employer within a reasonable time—the employer must notify the Commissioner in writing that the evidence has not been obtained.”.
Insert:
“
After “vehicle”, insert, “, designed to carry a load of less than 1 tonne”.
Omit the definition.
After “route” insert “and involves the recipient being away from the recipient’s usual place of residence for a continuous period including more than 5 nights”.
After “Australia” insert “and involves the recipient being away from the recipient’s usual place of residence for a continuous period including more than 5 nights”.
After “Australia” insert “and involves the recipient being away from the recipient’s usual place of residence for a continuous period including more than 5 nights”.
After “Australia” insert “and involves the recipient being away from the recipient’s usual place of residence for a continuous period including more than 5 nights”.
Insert:
“
Add at the end “and”.
Omit the paragraphs.
Omit all the words after “end of the journey”.
Omit the definition.
Omit the definition.
Omit all the words after “period” (first occurring), substitute “; and”.
Omit the paragraphs.
Omit “, and that is signed by the person or persons referred to in paragraph (e)”.
Omit “6”, substitute “5”.
Add at the end “and”.
Omit “car records”, substitute “records of a nomination under section 162K or 162L”.
Insert:
“(ab) a record of the business use percentage specified by the employer for the current year of tax; and”.
Omit “paragraph 10A(b) or”, substitute “section 10A or paragraph”.
Omit the paragraph.
Omit the definition.
Repeal the sections.
Omit “the percentage that represents a reasonable estimate underlying business percentage”, substitute “ the number of kilometres that represents a reasonable estimate of the number of business kilometres”.
Note: The heading to section 162F is altered by omitting “
underlying business percentage ” and substituting “number of business kilometres ”.
Omit the paragraph, substitute:
“(a) none of the previous 4 years was a log book year of tax of the employer in relation to the car;
Note: This paragraph will apply if it is the first year that the employer uses the cost basis method.”.
Add at the end “or”.
Omit the paragraphs.
Omit the paragraph, substitute:
“(a) none of the previous 4 years was a log book year of tax of the employer in relation to the car;”.
Add at the end “or”.
Omit the paragraphs.
Omit the subsection, substitute:
“(3) An election under this section is to be in writing.”.
Add at the end:
“(3) The applicable log book period must be specified in the log book records for the period at, or as soon as possible after, the end of the period.”.
Before “in a year of tax” insert “starting or ending”.
Omit the paragraphs, substitute:
“(b) in any other case—a continuous period of not less than 12 weeks that begins and ends during the holding period.”.
Repeal the section.
Omit “, in the employer’s car records for the current year of tax,”.
Insert:
“(2A) A nomination shall be made in writing on or before the declaration date for the current year of tax.”.
Omit “, in the employer’s car records for the current year of tax,”.
Insert:
“(2A) A nomination shall be made in writing on or before the declaration date for the current year of tax.”.
Repeal the section.
The amendments made by this Schedule apply to assessments of the fringe benefits taxable amount of an employer of the FBT year beginning on 1 April 1995 and of all later FBT years.
_____________________________________________________________________________________
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House of Representatives on 20 September 1995 Senate on 16 October 1995
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