Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 (145 of 1995)

Schedule 1   MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES

Part 1   AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

4   Before section 153

Insert:

Employer may elect 50/50 split method for entertainment facility

leasing costs

"152B. If:

(a) the taxable value of one or more fringe benefits of an employer

for an FBT year is attributable, in whole or in part, to entertainment

facility leasing expenses incurred by the employer in the FBT year; and

(b) the employer elects that this section applies for the FBT year;

then:

(c) the aggregate fringe benefit amount for the employer for the FBT

year is to be reduced by so much of the total taxable value of all

fringe benefits as is attributable to entertainment facility leasing

expenses; and

(d) the aggregate fringe benefit amount for the employer for the FBT

year is to then be increased by 50% of the total of entertainment

facility leasing expenses incurred by the employer in the FBT year

(including expenses not taken into account under paragraph (a)).

Note: The effect of this is that the employer's aggregate fringe

benefits amount (see subsection 136(1)) for the FBT year will include

50% of the entertainment facility leasing expenses incurred by the

employer for the FBT year.".