Notices of Ruling, Notices of Addendum, Notices of Withdrawal

Administered by Department of the Treasury

Legislation au C2016G00755 In force Gazette

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COMMISSIONER OF TAXATION

The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from Branches of the Australian Taxation Office or at http://law.ato.gov.au.

NOTICES OF RULING
Ruling Number	Subject	Brief Description
CR 2016/34	Income tax: PayPal Holdings, Inc. – employee share schemes – separation from eBay	The Ruling sets out the Commissioner’s opinion on the employees of PayPal Holdings, Inc. and its wholly owned subsidiaries (PayPal Group). The Ruling applies from 1 July 2015.
CR 2016/35	Income tax: eBay Inc. – employee share schemes – separation of PayPal from eBay	The Ruling sets out the Commissioner’s opinion on the employees of the employees of eBay Inc. and its wholly owned subsidiaries (eBay Group). The Ruling applies from 1 July 2015.
PR 2016/6	Income tax: PPS Mutual Professionals Choice	The Ruling sets out the Commissioner’s opinion on the purchase and holding of a PPS Mutual Accidental Death Insurance and Profit‑Share Account and one or more PPS Mutual core insurance plans issued by NobleOak Life Limited and offered under the PPS Mutual Professionals Choice Product Disclosure Statement. The Ruling applies from 2 May 2016.
LCG 2016/1	GST and carrying on an enterprise in the indirect tax zone (Australia)	The Law Companion Guideline describes how the Commissioner will apply the law in the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016. The Ruling applies from 5 May 2016.

NOTICES OF ADDENDUM

Ruling Number

Subject

Brief Description

CR 2003/36

Fringe benefits tax: Employer clients of McMillan Shakespeare Australia Pty Ltd that make use of a Meal Entertainment Payment Card facility

The addendum amends CR 2003/36 to take account of the application of the Tax and Superannuation Laws Amendment (2015 Measures No 5) Act 2015 to the concessional treatment of meal entertainment and entertainment facility leasing expense benefits provided under a salary packaging arrangement from 1 April 2016.

The Addendum applies on and from 1 June 2016.

NOTICES OF WITHDRAWAL
Ruling Number	Subject	Brief Description
TD 2010/2	Fringe benefits tax: for the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986, what is the exemption threshold for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/2 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/3	Fringe benefits tax: for the purposes of section 28 of the Fringe Benefits Tax Assessment Act 1986 what are the indexation factors for valuing non‑remote housing for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/3 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/4	Fringe benefits tax: for the purposes of Division 7 of Part III of the Fringe Benefits Tax Assessment Act 1986, what amount represents a reasonable food component of a living‑away‑from‑home allowance for expatriate employees for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/4 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/5	Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/5 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/6	Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/6 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/13	Income tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2010?	TD 2010/13 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/16	Income tax: capital gains: what is the improvement threshold for the 2010‑11 income year under section 108‑85 of the Income Tax Assessment Act 1997?	TD 2010/16 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/17	Income tax: what is the car limit for the 2010‑11 financial year?	TD 2010/17 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/18	Income tax: what is the benchmark interest rate applicable for the year of income that commenced on 1 July 2010 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 and how is it used?	TD 2010/18 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.
TD 2010/19	Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2010‑11 income year?	TD 2010/19 is being withdrawn as its date of effect has ceased. The Determination will continue to be legally binding on the Commissioner for the relevant period to which it relates. Withdrawn with effect from 1 June 2016.

Overview

The Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 was enacted by the Parliament of Australia to address gaps and issues in the existing tax and superannuation laws. This Act introduced several measures to ensure clarity and consistency in the application of tax laws, particularly in relation to fringe benefits tax, income tax, and GST. The policy objective of the Act was to streamline tax administration, enhance compliance, and provide certainty to taxpayers by clarifying the application of the law in various scenarios. The Act came into effect on 5 May 2016, with subsequent rulings and guidelines issued to assist in the implementation and interpretation of the new provisions.

Scope and Application

The notice of rulings and addenda published by the Commissioner of Taxation pertains to specific aspects of income tax and fringe benefits tax, impacting various groups and transactions. Ruling CR 2016/34 applies to employees of PayPal Holdings, Inc. and its subsidiaries, while Ruling CR 2016/35 applies to employees of eBay Inc. and its subsidiaries. These rulings set out the Commissioner’s opinions on the tax implications for these entities post their separation. Ruling PR 2016/6 concerns the purchase and holding of certain insurance products offered by NobleOak Life Limited. The Law Companion Guideline LCG 2016/1 addresses the application of the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 concerning GST and carrying on an enterprise in the indirect tax zone of Australia. Additionally, Addendum CR 2003/36 modifies the fringe benefits tax treatment of meal entertainment payment card facilities provided to employer clients of McMillan Shakespeare Australia Pty Ltd from 1 June 2016. These rulings and addenda are applicable from their specified dates and are enforceable under Australian law, with some rulings having been withdrawn due to the cessation of their effective dates.

Key Provisions

The key provisions of the Commissioner of Taxation's Rulings, as detailed in the Gazette, revolve around several distinct areas of taxation, namely income tax and fringe benefits tax, with specific emphasis on certain corporate separations and insurance schemes, as well as the application of GST. Firstly, Ruling CR 2016/34 (CR 2016/35) outlines the Commissioner's opinion regarding the employees of PayPal Holdings, Inc. (eBay Inc.) and its wholly owned subsidiaries post their separation, applying from 1 July 2015. Secondly, Ruling PR 2016/6 provides the Commissioner's opinion on the purchase and holding of a PPS Mutual Accidental Death Insurance and Profit-Share Account and related insurance plans, effective from 2 May 2016. Lastly, Law Companion Guideline LCG 2016/1 explains how the Commissioner will apply the law regarding the indirect tax zone in Australia, as per the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016, effective from 5 May 2016. These rulings impose specific obligations on the entities and individuals they govern. For instance, the rulings on PayPal and eBay require adherence to the tax implications stemming from their corporate separation. This includes ensuring that all financial transactions and employee entitlements are correctly reported and taxed in line with the Commissioner's opinion. Similarly, the ruling on PPS Mutual insurance plans necessitates that any purchases and holdings of these insurance products comply with the outlined tax treatment. Businesses and individuals affected by these rulings must accurately reflect these transactions in their tax returns and related documentation. The legislation also outlines various consequences for non-compliance. While specific penalties are not detailed in the provided text, it is standard under Australian tax law that failure to comply with tax rulings can result in civil penalties, including fines and interest on unpaid taxes. In more severe cases, persistent or deliberate non-compliance could lead to criminal charges, potentially resulting in substantial fines and imprisonment. The exact penalties depend on the nature and extent of the breach, with the Commissioner having the authority to impose appropriate sanctions as per the applicable tax acts.

Area of Law: Taxation Law
Instrument: Gazette Notice
Concepts: Definitions & Interpretation; Reporting & Disclosure Obligations; Fringe Benefits Tax

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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