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  • K – Property



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    You may provide a property fringe benefit when you provide an employee with property (for example, goods), either free or at a discount.


    The transitional rules that applied to in-house property fringe benefits provided under a salary packaging arrangement entered into before 22 October 2012 ceased to apply from 1 April 2014.

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    Example: Calculate property fringe benefits

    An electrical retailer provides a television that normally sells for $2,000, and an air conditioner that normally sells for $1,600, to an employee during the FBT year. The employee paid a total of $300 for these items and did not enter into a salary sacrifice arrangement to pay for the goods.

    The value of the benefit is reduced to 75% of the selling price. Because these items are in-house property fringe benefits, and are not provided under a salary sacrifice arrangement, the taxable value is 75% of the normal selling price and the employer qualifies for the in-house concession of up to $1,000 per employee per year.

    The retailer calculates the property fringe benefit as follows:

    Gross taxable value is $2,700 (($2,000 + $1,600) x 75%)

    Value of reduction is $1,000.

    The electrical retailer would show this at item 23 as follows:

    End of example
    Last modified: 27 Mar 2015QC 44652