ATO Interpretative Decision

ATO ID 2002/963

Fringe Benefits Tax

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Are benefits relating to the vaccination of an employee against Q fever 'work-related preventative health care' ('WRPHC') and exempt from Fringe Benefits Tax (FBT) under section 58M of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision

Yes. Benefits relating to the vaccination of an employee against Q fever are for 'WRPHC' and are exempt from FBT under section 58M of the FBTAA.

Facts

Q fever is a well-recognised occupational hazard within the cattle industry. It is a disease carried by cattle which is communicable to human beings.

The employer, an abattoir, incurs expenses to make vaccinations available to all employees who, because of their duties, are at risk of contracting Q fever.

The vaccination process includes skin and blood testing, vaccination and registration on the Q Fever Register. The expenses include the costs of providing a legally qualified medical practitioner (LQMP) or nurse, the testing procedure and the vaccination.

Reasons for Decision

Section 58M of the FBTAA exempts from FBT the provision of certain benefits provided in respect of the employment of an employee. The exemptions include the provision of benefits that result in the 'WRPHC' of the employee. The definition of 'WRPHC' in subsection 136(1) of the FBTAA requires that the form of care needs to be for the purpose of preventing the employee suffering from 'work-related trauma'.

'Work-related trauma' is defined in subsection 136(1) of the FBTAA to include the contraction of a disease that is related to the employee's employment. An employee contracting Q fever as a result of his or her work duties would be one form of 'work-related trauma'.

The definition of 'WRPHC' in subsection 136(1) of the FBTAA requires that the care provided to the employee is made available generally to all employees of the employer:

(a)

Who, because of their work duties, are likely to be at risk of suffering from similar work related trauma;

(b)

who work at or near the location where the employee works; and

(c)

whose duties are similar to those of the employee.

If care as required by (a) above, is made available to all employees of the employer who because of their work duties are likely to be at risk of contracting Q fever, then (b) and (c) above would always be satisfied. The employer makes vaccinations available to all employees who, because of their work duties, are at risk of contracting Q fever.

The definition of 'WRPHC' in subsection 136(1) of the FBTAA also requires that the care be provided by, or on behalf of a legally qualified medical practitioner (LQMP) or nurse.

The provision of benefits relating to vaccination against Q fever is for 'WRPHC' as defined in subsection 136(1) of the FBTAA. These benefits include the provision of an LQMP, a nurse, the testing procedure and the vaccine itself. These benefits are exempt from FBT under section 58M of the FBTAA.

Amendment History

Year of income:  Year ended 31 March 2002

Legislative References:
Fringe Benefits Tax Assessment Act 1986
   section 58M
   subsection 136(1)

Keywords
Fringe benefits tax
Exempt benefits
Residual fringe benefits
Medical expenses
Vaccinations
FBT work-related preventative health care
FBT work-related trauma

Siebel/TDMS Reference Number:  CRS76086; 1-69ZOPWQ; 1-CVH87ED

Business Line:  Private Groups and High Wealth Individuals

Date of publication:  2 October 2002
Date reviewed:  12 June 2018

ISSN: 1445-2782