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Edited version of private advice
Authorisation Number: 1052009501768
Date of advice: XX July 2022
Ruling
Subject: Airfares and fringe benefits tax
In order to protect the privacy of the applicant of this private ruling the following summary is provided in accordance with PSLA 2008/4:
Issue
This ruling concerned the FBT treatment of airfares provided to employees at the start and end of leave.
Question 1
Are the airfares paid for at the start and end of leave an expense payment benefit under Division 5 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986)?
Answer
No, they are instead a residual fringe benefit provided under Division 12 of the FBTAA 1986.
Question 2
Is the benefit provided in respect of the airfares paid for at the start and end of the leave subject to the reduction in taxable value under section 61A of the FBTAA 1986?
Answer
Yes
Question 3
Are the airfares paid for at the start and end of the leave considered a fly-in fly-out arrangement under section 31E of the FBTAA 1986?
Answer
No
Question 4
If the airfares paid for at the start and end of the leave is considered a fly-in fly-out arrangement under section 31E of the FBTAA, is it an exempt residual benefit under subsection 47(7) of the FBTAA 1986?
Answer
Not applicable, the airfares paid for at the start and end of leave are not considered to be a fly-in fly-out arrangement under section 31E.
Question 5
Is the benefit of the airfares provided at the start and end of the leave included in the employee's individual fringe benefits amount as a reportable benefit under section 5E of the FBTAA 1986?
Answer
Yes