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Edited version of private advice
Authorisation Number: 5010092094070
Date of advice: 17 May 2023
Ruling
Subject: FBT exemption
To protect the privacy and commercial in-confidence components of this private binding ruling, the following summary is provided.
The taxpayer sought a ruling in regard to whether benefits are exempt benefits under subsection 57A(2) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA).
The Commissioner has ruled on questions relating to employees who work in certain facilities and their eligibility for the exemption.
Question 1
Are the overpayments of salary and wages, interim cash payments and corporate loans made before XX August 20XX considered loan fringe benefits as defined within subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Answer
Yes.
Question 2
If yes, do the amendments to the Act, barring the employer from recovering the loans, result in debt waiver fringe benefits arising when those loans are formally written off by the employer?
Answer
No.
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