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  • K – Property

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

    Example 18: Taxable value of property fringe benefits

    You are an electrical retailer that provides a television that you sell to the public for $2,000, and an air conditioner that you sell to the public for $1,600, to an employee during the year ending 31 March 2017. These prices are the lowest selling price including GST. Your employee paid a total of $300 for these items and did not enter into a salary packaged arrangement to pay for the goods.

    As these items are in-house property fringe benefits, and are not provided under a salary packaging arrangement, the taxable value is 75% of the normal selling price. Additionally, you qualify for the in-house concession of up to $1,000 per employee per year. The goods are not used for work-related purposes.

    The calculation of the taxable value of the property fringe benefit is:

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

    Value of reduction is $1,000.

    You would write at item 23:

    Example 18: Taxable value of property fringe benefits

    End of example
    Last modified: 22 Mar 2017QC 51524