Long service awards
Legislative reference: section 58QExternal Link of the FBTAA.
Long service awards granted in recognition of 15 years or more service are exempt, provided the value of the award doesn't exceed a specified maximum amount – for this purpose, the value of the award is the amount that would be the taxable value if the award was a fringe benefit.
From 1 April 2005 onwards
From 1 April 2005, where the period of service being recognised by the award is 15 years, the specified maximum value is increased to $1,000. If the first long service award received by an employee recognises a period of service greater than 15 years, the maximum value increases from $50 to $100 for each additional year – for example, the maximum value for a first award recognising 20 years service is $1,500.
If the employee has received a previous long service award (that is, in recognition of 15 years or more service) from you, the maximum value of any subsequent award is $100 for each year in excess of 15 years that is being recognised by the additional award.
Where the value of an award exceeds the relevant maximum value, no part of the award is exempt.