Taxation Determination

TD 2006/15

Fringe benefits tax: for the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986, what is the exemption threshold for the fringe benefits tax year commencing on 1 April 2006?

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FOI status:

may be released

Exclamation This Ruling provides you with the following level of protection:

This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, we must apply the law to you in the way set out in the ruling (or in a way that is more favourable for you if we are satisfied that the ruling is incorrect and disadvantages you, and we are not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

1. The exemption threshold for the fringe benefits tax (FBT) year commencing 1 April 2006 is $6,391. This replaces the amount of $6,223 that applied in the previous year commencing 1 April 2005.

Date of effect

2. This Determination applies to the FBT year commencing 1 April 2006.

Commissioner of Taxation
29 March 2005

Appendix 1 - Explanation

Exclamation This Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.

Explanation

Two conditions must be satisfied for the record keeping exemption arrangements to apply to an employer for an FBT year:

(i)
a base year needs to be established; and
(ii)
during the FBT year immediately before the current year the employer has not received a notice from the Commissioner requiring the employer to resume record keeping.

4. Section 135C of the Fringe Benefits Tax Assessment Act 1986 sets out a number of conditions that must be met before an FBT year is a base year of an employer. One of the conditions is that the employer's aggregate fringe benefits amount in the base year does not exceed the exemption threshold.

5. The exemption threshold set in this Determination has been ascertained by applying an indexation factor of 1.027 (reflecting the movement in the All Groups Consumer Price Index for the eight capital cities for the year ending 31 December 2005) to the previous year's threshold.

Not previously issued as a draft

References

ATO references:
NO 2004/6082

ISSN: 1038-8982

Related Rulings/Determinations:

TD 1999/44
TD 2000/22
TD 2001/6
TD 2002/8
TD 2003/7
TD 2004/11
TD 2005/11

Subject References:
base year
exemption threshold
FBT
fringe benefits tax
record keeping exemption arrangements
record keeping requirements
RKEA

Legislative References:
FBTAA 1986 135C
TAA 1953

TD 2006/15 history
  Date: Version: Change:
You are here 29 March 2005 Original ruling  
  18 May 2016 Withdrawn