FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART IIA - CORE PROVISIONS  

Division 2 - Working out an employer's aggregate fringe benefits amount  

SECTION 5C   AGGREGATE FRINGE BENEFITS AMOUNT  

5C(1)   [ Calculating the amount]  

Work out an employer ' s aggregate fringe benefits amount for a year of tax earlier than the year of tax beginning on 1 April 2000 as follows: Method statement


Step 1.

Work out under Division 3 for each of the employer ' s employees the individual fringe benefits amount for the year of tax in respect of the employment of the employee by the employer.


Step 2.

Add up all the individual fringe benefits amounts worked out under Step 1.


Step 3.

Add up the taxable value of every excluded fringe benefit (other than an amortised fringe benefit) relating to an employee of the employer, the employer and the year of tax.

Note:

Subsection 5E(3) explains what is an excluded fringe benefit.


Step 4.

Add the total from Step 2 to the total from Step 3.

Note:

The result of Step 4 is the employer ' s aggregate fringe benefits amount if there are no amortised fringe benefits or reducible fringe benefits in relation to the employer.


Step 5.

Add to the total from Step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax.


Step 6.

Subtract from the total from Step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax.

5C(2)   [ Years from 1 April 2000]  

An employer ' s aggregate fringe benefits amount for the year of tax beginning on 1 April 2000 or a later year of tax is the sum of the employer ' s type 1 aggregate fringe benefits amount and the employer ' s type 2 aggregate fringe benefits amount for the year of tax.

5C(3)   [ Type 1 aggregate fringe benefits amount]  

Work out an employer ' s type 1 aggregate fringe benefits amount for a year of tax as follows. Method statement


Step 1.

Identify the fringe benefits in respect of each of the employer ' s employees that are GST-creditable benefits (see section 149A ), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits.


Step 2.

Add up all the individual fringe benefits amounts worked out under step 1.


Step 3.

Identify the excluded fringe benefits (other than an amortised fringe benefit) for the year of tax in respect of each of the employer's employees that are GST-creditable benefits, and add up the taxable values of all those excluded fringe benefits.

Note 1:

Subsection 5E(3) explains what is an excluded fringe benefit.

Note 2:

Section 149A explains what is a GST-creditable benefit.


Step 4.

Add the total from step 2 to the total from step 3.

Note:

The result of step 4 is the employer's type 1 aggregate fringe benefits amount if there are no amortised amounts in relation to the employer.


Step 5.

Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that are GST-creditable benefits. The total amount is the employer's type 1 aggregate fringe benefits amount for the year of tax.

Note:

Section 65CA explains what is an amortised fringe benefit.

5C(4)   [ Type 2 amount]  

Work out an employer ' s type 2 aggregate fringe benefits amount for a year of tax as follows. Method statement


Step 1.

Identify, in respect of each of the employer ' s employees, the fringe benefits that are not taken into account under step 1 of the method statement in subsection (3), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits.


Step 2.

Add up all the individual fringe benefits amounts worked out under step 1.


Step 3.

Identify, in respect of each of the employer's employees, the excluded fringe benefits (other than an amortised fringe benefit) for the year of tax that are not taken into account under step 3 of the method statement in subsection (3), and add up the taxable values of all those excluded fringe benefits.

Note:

Subsection 5E(3) explains what is an excluded fringe benefit.


Step 4.

Add the total from step 2 to the total from step 3.

Note:

The result of step 4 is the employer's type 2 aggregate fringe benefits amount if there are no amortised amounts or reducible fringe benefits in relation to the employer.


Step 5.

Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that is not taken into account under step 5 of the method statement in subsection (3).

Note 1:

The result of step 5 is the employer's type 2 aggregate fringe benefits amount if there are no reducible fringe benefits in relation to the employer.

Note 2:

Section 65CA explains what is an amortised fringe benefit.


Step 6.

Subtract from the total from step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax. The total amount is the employer's type 2 aggregate fringe benefits amount for the year of tax.

Note:

Other provisions may affect the aggregate fringe benefits amount. For example, see section 67 (about arrangements to avoid or reduce tax), section 135L (about reducing the aggregate fringe benefits amount of an employer who is in business for only part of a year of tax) and section 152B (about entertainment facility leasing expenses).




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