FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART III - FRINGE BENEFITS  

Division 13 - Miscellaneous exempt benefits  

SECTION 58Q   EXEMPT BENEFITS - LONG SERVICE AWARDS  

58Q(1)   [Conditions for exemption]  

Where:


(a) a long service award benefit (in this section called the " current long service award benefit " ) is provided in, or in respect of, a year of tax in respect of the employment of an employee;


(b) the current long service award benefit is in recognition of a particular recognised long service period (in this section called the " current recognised long service period " ) of the employee;


(c) if there is no other long service award benefit provided in, or in respect of, any year of tax in respect of that employment in recognition of a different recognised long service period of the employee that is shorter than the current recognised long service period - the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula:


$1,000 + ($100 × (RLS - 15))


where RLS is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and


(d) if paragraph (c) does not apply - the sum of the notional taxable values of the current long service award benefit and any other long service award benefits provided in, or in respect of, any year of tax in respect of the employment of the employee in recognition of the current recognised long service period does not exceed the amount calculated in accordance with the formula:


$100 × (RLS - ERLS)


where:

RLS is the number of whole years in the recognised long service period of the employee that was recognised by the provision of the current long service award benefit; and

ERLS is the number of whole years in the longest recognised long service period of the employee that:

  • (i) is shorter than the current recognised long service period; and
  • (ii) was recognised by the provision of one or more long service award benefits in, or in respect of, any year of tax, in respect of the employment of the employee;
  • the current long service award benefit is an exempt benefit in relation to the year of tax.

    58Q(2)   [Amendment of assessments]  

    Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to this section.


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