• 18.3 Taxable value

    For valuation purposes, there are two types of residual fringe benefits: in-house residual fringe benefits and external residual fringe benefits. Each type has specific valuation rules.

    The taxable value of a residual fringe benefit is the goods and services tax (GST)-inclusive value of the residual benefit (determined according to the appropriate valuation rule), less any employee contribution.

    You calculate the taxable value of a residual fringe benefit in accordance with the valuation rules explained in sections 18.4 to 18.6. These rules are summarised in the following table:

    If: Then:

    The benefit is an in-house residual fringe benefit provided under a salary packaging arrangement

    The taxable value is:

    • the amount the employee could reasonably be expected to pay to obtain the benefit under an arm's length transaction

    less (minus)

    • any employee contribution

    Note: Transitional rules may apply

    The benefit is an in-house residual fringe benefit, but it is not provided under a salary packaging arrangement

    The valuation rule depends on whether the identical benefits were provided by the benefit provider:

    • In the ordinary course of business to members of the public under arm's length transactions
    • in similar circumstances; and
    • subject to identical terms and conditions.
     

    The benefit is an external residual fringe benefit

    The valuation rule depends on whether you, or an associate (rather than a third party), incurred expenditure in relation to the provision of the benefit.

    Where the 'otherwise deductible' rule applies, you reduce the taxable value, as explained in section 18.7.

    If a residual fringe benefit is of a type that attracts any of the concessions listed in section 18.10, you may reduce the taxable value further. In some instances, special conditions may have to be satisfied before the concession applies - for example, keeping certain records.

    For more on GST and fringe benefits tax (FBT), refer to What is fringe benefits tax?

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      Last modified: 15 Apr 2015QC 17817