FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART III - FRINGE BENEFITS  

Division 13 - Miscellaneous exempt benefits  

SECTION 58L   EXEMPT BENEFITS - CERTAIN TRAVEL TO OBTAIN MEDICAL TREATMENT  

58L(1)   [Conditions for exemption]  

Where:


(a) a person (in this subsection called the traveller ):


(i) is provided with transport by another person; or

(ii) provides transport for himself or herself;


(b) any of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:


(i) a car benefit relating to a particular car where the application or availability of the car is in respect of the provision of the transport;

(ii) an expense payment benefit where the recipients expenditure is in respect of the provision of:

(A) the transport; or

(B) meals or accommodation for the traveller;

(iii) a property benefit where the recipients property consists of meals for the traveller;

(iv) a residual benefit where the recipients benefit consists of the provision of:

(A) the transport; or

(B) accommodation for the traveller;


(c) the transport is required solely because a person (in this subsection called the patient ) requires medical treatment;


(d) the medical treatment is provided in a particular place (in this subsection called the treatment place ) at a time during a period when the employee is, or would but for that requirement to obtain treatment or any other temporary absence be, performing the duties of that employment in another place (in this subsection called the overseas employment place ), being a place in:


(i) a foreign country;

(ii) a part of a foreign country; or

(iii) a territory, dependency or colony (however described) of a foreign country;


(e) the transport is between:


(i) a place at or near the overseas employment place; and

(ii) a place at or near the treatment place;


(f) if the patient is not the employee - the patient is a family member and lives with the employee at or near the overseas employment place;


(g) if the traveller is not the patient - either of the following conditions is satisfied:


(i) the traveller accompanies the patient because:

(A) the patient has not attained the age of 18 years and requires the traveller as an escort; or

(B) the patient requires the traveller as an escort for medical reasons;

(ii) the traveller is a family member and accompanies or visits the patient where it is customary for family members to accompany or visit patients receiving medical treatment of the same nature and duration as the medical treatment required by the patient;


(h) the meals or accommodation:


(i) are:

(A) in connection with the transport; or

(B) required solely in connection with the presence of the traveller at the treatment place for purposes related to the medical treatment of the patient; and

(ii) where sub-subparagraph (i)(B) applies and the traveller is the patient - are not provided to the patient in a hospital, clinic or similar place in connection with the medical treatment of the patient;


(j) either of the following conditions is satisfied:


(i) the treatment place was the place nearest to the overseas employment place at which medical treatment suitable for the patient could be provided;

(ii) the total cost associated with obtaining medical treatment at the treatment place was equal to, or less than, the lowest total cost associated with obtaining medical treatment at any of the places at which medical treatment suitable for the patient could have been provided; and


(k) if subparagraph (b)(ii) applies - documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date;

the benefit is an exempt benefit in relation to the year of tax.

58L(2)  


In this section:

medical expenses
means payments:


(a) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of an illness or operation; or


(b) to a legally qualified dentist for dental services or treatment or the supply, alteration or repair of artificial teeth; or


(c) to a person registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by that person for the supply, alteration or repair of artificial teeth; or


(d) for therapeutic treatment administered by direction of a legally qualified medical practitioner; or


(e) in respect of an artificial limb (or part of a limb), artificial eye or hearing aid; or


(f) in respect of a medical or surgical appliance (not otherwise specified in this definition) prescribed by a legally qualified medical practitioner; or


(g) for:


(i) the testing of eyes or the prescribing of spectacles or contact lenses by a person legally qualified to perform those services; or

(ii) the supply of spectacles or contact lenses in accordance with any such prescription; or


(h) as remuneration of a person for services rendered by him or her as an attendant of a person who is blind or permanently confined to a bed or an invalid chair; or


(i) for the maintenance of a dog used for the guidance or assistance of, but not social therapy for, a person with a disability, being a dog that the Commissioner is satisfied is properly trained in the guidance or assistance of persons with disabilities.

medical treatment
means an act or thing where a payment in respect of the act or thing:


(a) is a medical expense; and


(b) is not a payment:


(i) to a legally qualified medical practitioner, nurse or chemist, or a public or private hospital, in respect of a cosmetic operation that is not a professional service (within the meaning of subsection 3(1) of the Health Insurance Act 1973 ) for which a medicare benefit is payable under Part II of that Act; or

(ii) to a legally qualified dentist for dental services that are, or dental treatment that is, solely cosmetic.

58L(3)  
For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified medical practitioner, nurse or chemist (the qualified person ) in respect of the provision of services or treatment, or the supply of goods, if:


(a) the payment is made to an employer (not being a public or private hospital) of the qualified person, or a person with whom the qualified person has entered into a contract for services; and


(b) the payment is made in respect of the provision of those services or that treatment, or the supply of those goods, by the qualified person.

58L(4)  
For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a legally qualified dentist in respect of the provision of dental services or treatment or the supply, alteration or repair of artificial teeth if:


(a) the payment is made to an employer of the dentist, or a person with whom the dentist has entered into a contract for services; and


(b) the payment is made in respect of the provision of those services or that treatment or the supply, alteration or repair of those artificial teeth, by the dentist.

58L(5)  
For the purposes of the definitions of medical expenses and medical treatment in subsection (2), a payment is taken to be made to a person (a registered dental mechanic ) registered under a law of a State or Territory as a dental mechanic in respect of charges lawfully made by the registered dental mechanic for the supply, alteration or repair of artificial teeth if:


(a) the payment is made to an employer of such a person, or a person with whom such a person has entered into a contract for services; and


(b) the charges are made in respect of the supply, alteration or repair of artificial teeth by the dental mechanic.




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