FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART III - FRINGE BENEFITS  

Division 2 - Car fringe benefits  

Subdivision A - Car benefits  

SECTION 7   CAR BENEFITS  

7(1)   [Car applied to, available for employee's private use]  

Where:


(a) at any time on a day, in respect of the employment of an employee, a car held by a person (in this subsection referred to as the provider ):


(i) is applied to a private use by the employee or an associate of the employee; or

(ii) is taken to be available for the private use of the employee or an associate of the employee; and


(b) either of the following conditions is satisfied:


(i) the provider is the employer, or an associate of the employer, of the employee;

(ii) the car is so applied or available, as the case may be, under an arrangement between:

(A) the provider or another person; and

(B) the employer, or an associate of the employer, of the employee;

that application or availability of the car shall be taken to constitute a benefit provided on that day by the provider to the employee or associate in respect of the employment of the employee.

7(2)   [Car garaged at employee's residence]  

Where, at a particular time, the following conditions are satisfied in relation to an employee of an employer:


(a) a car is held by a person, being:


(i) the employer;

(ii) an associate of the employer; or

(iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;


(b) the car is garaged or kept at or near a place of residence of the employee or of an associate of the employee;

the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be.

7(2A)   [Ambulance, firefighting, police]  

Subsection (2) does not apply to a car that:


(a) is used by an ambulance service, a firefighting service or a police service; and


(b) is visibly marked on its exterior for that use; and


(c) is fitted with:


(i) a flashing warning light; and

(ii) a horn, bell or alarm that can give audible warning of the approach or position of the car by making sounds with different amplitude, tones or frequencies on a regular time cycle.

7(3)   [Car not at employer's business premises]  

Where, at a particular time, the following conditions are satisfied in relation to an employee of an employer:


(a) a car is held by a person, being:


(i) the employer;

(ii) an associate of the employer; or

(iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;


(b) the car is not at business premises of:


(i) the employer;

(ii) an associate of the employer; or

(iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car;


(c) any of the following conditions is satisfied:


(i) the employee is entitled to apply the car to a private use;

(ii) the employee is not performing the duties of his or her employment and has custody or control of the car;

(iii) an associate of the employee is entitled to use, or has custody or control of, the car;

the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be.

7(4)   [Prohibition on private use not consistently enforced]  

For the purposes of subsection (3), where a prohibition on the application of a car, or on the application of a car for a private use, by a person is not consistently enforced, the person shall be deemed to be entitled to use the car, or to apply the car to a private use, notwithstanding the prohibition.

7(5)   [Car deemed applied by person]  

For the purposes of this Act, a car shall be deemed to be applied by a person if it is applied in accordance with the directions, instructions or wishes of the person.

7(6)   [Car leased under hire-purchase agreement]  

For the purposes of this Division, a car that is let on hire to a person under a hire-purchase agreement shall be deemed:


(a) to have been purchased by the person at the time when the person first took the car on hire; and


(b) to have been owned by the person at all material times.

7(7)   [Reference to " car held by a person " ]  

A reference in this Division to a car held by a person (in this subsection referred to as the provider ) does not include a reference to:


(a) a taxi let on hire to the provider; or


(b) a car let on hire to the provider under an agreement of a kind ordinarily entered into by persons taking cars on hire intermittently as occasion requires on an hourly, daily, weekly or other short-term basis unless the car has been or may reasonably be expected to be on hire under successive agreements of a kind that result in substantial continuity of the hiring of the car.




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