| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1012699503770
Ruling
Subject: Fringe benefit
Question
Are you assessable on the value of an item of property?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You were an employee.
Your employer gave you an item of property.
You ceased working for the employer.
Your employer provided you with a PAYG summary showing that the value of the item of property as 'Gross Income'.
The employer has since stated that the PAYG summary should have shown the amount of the property as a Reportable Fringe Benefit.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 23L
Reasons for decision
Fringe Benefits Tax (FBT) is a tax payable by employers on the value of certain benefits known as fringe benefits that have been provided to their employees or to associates of those employees in respect of their employment.
Employers are required to record on payment summaries the grossed up taxable value of certain fringe benefits provided to employees during the FBT year where the taxable value of the benefits provided to an employee exceeds $2,000.
The reportable fringe benefits amount (that is, the individual's grossed up amount) is not assessable income to the employee but it is used to determine entitlement to certain income tested tax concessions and income tested surcharges for the year.
The provision of the property to you by your employer constitutes a fringe benefit. Therefore the value of the property should not be included in the gross income on your PAYG payment summary and you are not assessable on the value of the property. The grossed up value of the property should be included on your payment summary as a reportable fringe benefits amount.