Residual benefits - no-private-use declaration

Legislative reference: section 47AExternal Link of the FBTAA.

A residual benefit that is covered by a No-private-use declaration - residual benefits is an exempt benefit.

A condition of the exemption is that the residual benefit arises from the use of property that is subject to a consistently enforced prohibition on private use and that, as such, under the 'otherwise deductible' rule, would have a taxable value of nil.

In such instances, you will then be able to make an annual declaration. The declaration must cover all residual benefits provided to employees where you are able to state that the benefits were provided only for employment-related purposes and there was no private portion.

The declaration must be in a form approved by the Commissioner of Taxation and be made by the date your FBT return is due to be lodged (refer to Declarations).

    Last modified: 08 Jan 2014QC 17820