Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 (145 of 1995)
Schedule 4 AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 RELATED TO DECLARATIONS
7 After section 152
Insert:
Recurring fringe benefit declaration
Recipient may make recurring fringe benefit declaration
"152A.(1) If a person is provided with a benefit (the declaration
benefit), the person may make a recurring fringe benefit declaration in
relation to the declaration benefit.
Expense payment fringe benefits covered by declaration
"(2) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is an expense payment fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 24(1)(e) in respect of the recipients expenditure
for that benefit; and
(b) the gross deduction in subparagraph 24(1)(b)(iii) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 24(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration benefit as worked out under subsection
(9).
Note: The gross deduction is used as component GD in the formula in
paragraph 24(1)(ba).
Property fringe benefits covered by declaration
"(3) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is a property fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 44(1)(c) in respect of the recipients property for
that benefit; and
(b) the gross deduction in subparagraph 44(1)(b)(i) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 44(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration as worked out under subsection (9).
Note: The gross deduction is used as component GD in the formula in
paragraph 44(1)(ba).
Residual fringe benefits covered by declaration
"(4) If the recurring fringe benefit declaration covers another
benefit (the later benefit) that is a residual fringe benefit:
(a) the recurring fringe benefit declaration is taken to have been
made under paragraph 52(1)(c) in respect of the recipients benefit for
that benefit; and
(b) the gross deduction in subparagraph 52(1)(b)(i) in relation to
the later benefit is taken to be the amount worked out using the
formula:
Gross expenditure (later benefit) X Deductible proportion of
declaration benefit
where:
Gross expenditure (later benefit) is the gross expenditure mentioned in
paragraph 52(1)(b) in relation to the later benefit.
Deductible proportion of declaration benefit is the deductible
proportion of the declaration benefit as worked out under subsection
(9).
Note: The gross deduction is used as component GD in the formula in
paragraph 52(1)(ba).
"(5) The declaration must be in a form approved in writing by the
Commissioner and be made, and given to the employer, by the declaration
date for the employer for the FBT year in which the declaration benefit
is provided.
What benefit declaration covers
"(6) The declaration covers all benefits that are identical to the
declaration benefit received by the person before the earlier of:
(a) the time when the person revokes the declaration; and
(b) the end of 5 years starting when the declaration is made.
"(7) The declaration does not cover a benefit if the deductible
proportion of the benefit is more than 10 percentage points less than
the deductible proportion of the declaration benefit.
"(8) If a taxpayer makes a declaration for a benefit that is an
identical benefit to a benefit covered by an earlier declaration, the
earlier declaration is revoked.
Meaning of deductible proportion
"(9) The deductible proportion of a benefit is the percentage worked
out using the formula:
Gross Deduction X 100%
Gross Expenditure
where:
gross deduction means the gross deduction mentioned in whichever of
subparagraph 24(1)(b)(iii), 44(1)(b)(i) or 52(1)(b)(i) applied to the
benefit.
gross expenditure means the gross expenditure mentioned in whichever of
paragraph 24(1)(b), 44(1)(b) or 52(1)(b) applied to the benefit.".
Meaning of identical
"(10) A benefit is identical to another benefit if the benefits are
the same in all respects except for any differences:
(a) that are minimal or insignificant; or
(b) that relate to the value of the benefits; or
(c) in the deductible proportion of the benefits.".