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Appendix A - Description of tax expenditures (Part C)

Date

C Fringe benefits tax benchmark

C1 Benefits provided by certain international organisations

    Introduced in 1986. Legislative reference: Section 55 FBTAA86. 2000 TES reference code: C1.

    FBT exemption for benefits provided by certain international organisations.

C2 Loan benefits on war service home loans

    Introduced in 1986. Legislative reference: Section 6 of Fringe Benefits Tax (Application to the Commonwealth) Act 1986. 2000 TES reference code: C2.

    FBT exemption for loan benefits on war service home loans provided under the Defence Service Homes Act 1918.

C3 Exclusion from reporting requirement for certain benefits provided to Australian Defence Force personnel

    Introduced in 1999. Legislative reference: Fringe Benefits Tax Regulations 1992. 2000 TES reference code: C3.

C4 Exclusion from reporting for certain elements of the Overseas Living Allowance

    Introduced in 1999. Legislative reference: Fringe Benefits Tax Regulations 1992. 2000 TES reference code: C4.

    The component of the Commonwealth Overseas Living Allowance that compensates personnel for the additional costs associated with living at overseas posts is excluded from the fringe benefits reporting requirement.

C5 Exclusion from reporting of benefits associated with Australian Defence Force removals

    Introduced in 2001. Legislative reference: Section 58B FBTAA86. 2000 TES reference code: na

    Fringe benefits associated with the removal or storage of household effects of Australian Defence Force members are excluded from the fringe benefits reporting requirements where the removal is Defence-directed.

C6 Education costs for children of employees posted overseas

    Introduced in 1986. Legislative reference: Section 65A FBTAA86. 2000 TES reference code: C5.

    FBT reduction of the taxable value for education costs paid by employers for children of employees posted overseas.

C7 Disregard of possible application of the $250 threshold for deductibility for some self-education expenses

    Introduced in 1986. Legislative reference: Section 24(1) FBTAA86. 2000 TES reference code: C6.

    To be applied when determining the 'otherwise deductible' rule for expense payment benefits of this kind.

C8 Benefits provided by public hospitals to their employees

    Introduced in 1986. Legislative reference: Section 57A FBTAA86. 2000 TES reference code: C7.

    FBT exemption for benefits provided by public hospitals to employees, and benefits provided to employees of public hospitals if they are employed by a State or Territory health authority rather than the institution itself.

    The decrease in the estimate in 2000-01 mainly reflects the introduction of a cap of $17,000 grossed up taxable value per employee on the exemption, effective from 1 April 2000.

C9 Employee/family travel costs associated with overseas medical treatment

    Introduced in 1986. Legislative reference: Section 58L FBTAA86. 2000 TES reference code: C8.

    FBT exemption for travel costs of employees and their families in foreign countries to obtain medical treatment.

C10 Safety award benefits up to $200 per year per employee

    Introduced in 1986. Legislative reference: Section 58R FBTAA86. 2000 TES reference code: C9.

    FBT exemption for providing safety award benefits up to a value of $200 per year per employee.

C11 Recreational/child-care facilities on an employer's premises

    Introduced in 1986. Legislative reference: Section 47(2) FBTAA86. 2000 TES reference code: C10.

    FBT exemption for provision of recreational or child-care facilities on an employer's premises.

C12 Employer contributions to secure child-care places in certain centres

    Introduced in 1986. Legislative reference: Section 47(8) FBTAA86. 2000 TES reference code: C11.

    FBT exemption for employer contributions to guarantee places for employees' children in certain child-care centres.

C13 Benefits provided by public benevolent institutions (PBIs) (excluding public hospitals) to employees

    Introduced in 1986. Legislative reference: Section 57A FBTAA86. 2000 TES reference code: C12.

    FBT exemption for benefits provided by PBIs, excluding public hospitals, to employees. From 1 April 2001, the exemption will be capped at $30,000 of grossed up taxable value per employee.

C14 Accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged

    Introduced in 1986. Legislative reference: Sections 58 and 58U FBTAA86. 2000 TES reference code: C13.

    FBT exemption for accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged.

C15 Employer provided property/facilities for immediate relief of employees/families in times of emergency

    Introduced in 1986. Legislative reference: Section 58N FBTAA86. 2000 TES reference code: C14.

    FBT exemption for employer-provided property and facilities for immediate relief of employees and their families in times of emergency.

C16 Housing benefits and residential fuels in remote areas

    Introduced in 1986. Legislative reference: Sections 58ZC and 59(1) FBTAA86. 2000 TES reference code: C15.

    FBT reduction of the taxable value to 50 per cent of the market value for remote area housing benefits (including rent reimbursement), with a 50 per cent reduction in the taxable value of fuels supplied to the housing.

    From 2000-01, the estimate reflects the extension of an FBT exemption for remote area housing benefits to all employers. A 50 per cent reduction continues to apply to housing-related benefits (including rent reimbursement and residential fuels).

C17 Exemption for housing provided by certain employers in regional areas

    Introduced in 2000. Legislative reference: Section 58ZC FBTAA86. 2000 TES reference code: C16.

    FBT exemption for housing benefits provided by charities, non-profit hospitals and police services to their employees in regional areas.

C18 Exclusion from reporting for regional housing benefits provided by certain employers in regional areas

    Introduced in 2000. Legislative reference: Fringe Benefits Tax Regulations 1992. 2000 TES reference code: C17.

    Housing benefits provided by charities, non-profit hospitals and police services in regional areas are excluded from the fringe benefits reporting requirement for the FBT year commencing 1 April 1999.

C19 Discount on interest or purchase price for remote area housing purchase assistance and associated fuel benefits

    Introduced in 1986. Legislative reference: Section 60 FBTAA86. 2000 TES reference code: C18.

    FBT reduction of the taxable value to 50 per cent of the discount on interest or purchase price for remote area housing purchase assistance, with 50 per cent reduction in the taxable value of associated fuel benefits.

C20 Free or discounted commuter travel to employees where the employer carries on a business of providing public transport

    Introduced in 1986. Legislative reference: Section 47(1) FBTAA86. 2000 TES reference code: C19.

    FBT exemption for providing free or discounted commuter travel to employees where the employer carries on a business of providing public transport.

    The increase in the estimates from 1999-2000 to 2000-01 reflects the new GST-inclusive gross-up formula.

C21 Employee taxi travel arriving at or leaving from place of work

    Introduced in 1997. Legislative reference: Section 58Z(1) FB
    TAA86. 2000 TES reference code: C20.

    FBT exemption for employee taxi travel arriving at or leaving from place of work.

C22 Exemption for free travel to and from duty by police officers on public transport

    Announced in 2000. Legislative reference: Section 47(1A) FBTAA86. 2000 TES reference code: C21.

C23 Discounted valuation of employee stand-by travel for airline employees and travel agents

    Introduced in 1986. Legislative reference: Section 33 FBTAA86. 2000 TES reference code: C22.

    FBT valuation of stand-by travel for airline employees and travel agents at 37.5 per cent of full fare.

C24 Long service awards of more than 15 years to $500 per employee

    Introduced in 1986. Legislative reference: Section 58Q FBTAA86. 2000 TES reference code: C23.

    FBT exemption for long service awards for service of more than 15 years to a value of $500 per employee.

C25 Food and accommodation provided to employees training under the Australian Traineeship Scheme

    Introduced in 1986. Legislative reference: Section 58S FBTAA86. 2000 TES reference code: C24.

    FBT exemption for food and accommodation provided to employees training under the Australian Traineeship Scheme.

C26 Compensation-related benefits, certain relocation and recruitment expenses

    Introduced in 1986. Legislative reference: Sections 58A-D and F FBTAA86. 2000 TES reference code: C25.

    FBT exemption for providing compensation-related benefits, certain relocation and recruitment expenses.

C27 Occupational health and counselling services and some training courses

    Introduced in 1986. Legislative reference: Sections 58J, K and M FBTAA86. 2000 TES reference code: C26.

    FBT exemption for providing occupational health and counselling services and some training courses.

C28 Discounted valuation of certain relocation and recruitment expenses

    Introduced in 1986. Legislative reference: Sections 61B-E FBTAA86. 2000 TES reference code: C27.

    FBT reduction in the taxable value of certain relocation and recruitment expenses.

C29 Reimbursement of car expenses incurred with occupational health and counselling services and some training courses

    Introduced in 1986. Legislative reference: Section 61F FBTAA86. 2000 TES reference code: C28.

    FBT reduction in the taxable value of benefits in the form of a reimbursement of car expenses on cents per kilometre basis.

C30 Exemption for certain loan benefits

    Introduced in 1986. Legislative reference: Section 18 FBTAA86. 2000 TES reference code: C29.

    FBT exemption for benefits on loans where the interest paid is above the declared rate, but below the market rate. The term `declared rate' (also referred to as the `benchmark rate') is used to refer to the rate declared by the Commissioner of Taxation for the purpose of determining FBT liability for loan benefits.

C31 Discounted valuation of certain loan benefits

    Introduced in 1986. Legislative reference: Section 18 FBTAA86. 2000 TES reference code: C30.

    FBT undervaluation of benefits on loans where the interest paid is below the declared rate and is below the market rate. The term `declared rate' (also referred to as the `benchmark rate') is used to refer to the rate declared by the Commissioner of Taxation for the purpose of determining FBT liability for loan benefits.

C32 Application of statutory formula to value car benefits

    Introduced in 1986. Legislative reference: Section 9 FBTAA86. 2000 TES reference code: C31.

    FBT undervaluation of benefits resulting from the statutory formula available to value car benefits.

    The reduction in the estimate for 2000-01 reflects the reduced cash-out value associated with the lower personal tax rates under The New Tax System.

C33 Record keeping for employers submitting a return with $5,000 or less in taxable benefits

    Introduced in 1997. Legislative reference: Section 135(c) FBTAA86. 2000 TES reference code: C32.

    FBT exemption for record keeping for employers (other than a government body or tax-exempt body) submitting a return in a base year with $5,000 or less in taxable benefits and thereafter not significantly altering the amount or kind of benefits provided in each year.

C34 Car parking on small business premises

    Introduced in 1997. Legislative reference: Section 58GA FBTAA86. 2000 TES reference code: C33.

    For the purposes of the exemption, small business employers are taxpayers (other than government bodies and listed public companies and their subsidiaries) with gross incomes of less than $10 million.

C35 Rebate of FBT for some non-government, non-profit organisations

    Introduced in 1994. Legislative reference: Section 65J FBTAA86. 2000 TES reference code: C34.

    The reduction in the estimates in 2000-01 reflects the lower personal tax rates under The New Tax System, and the further reduction from 2001-02 onwards reflects the imposition of a $30,000 per employee cap on the exemption.

C36 Benefits in relation to certain compassionate travel of employees

    Introduced in 1986. Legislative reference: Section 58LA FBTAA86. 2000 TES reference code: C35.

    FBT exemption for benefits provided by employers in relation to certain compassionate travel of employees.

C37 Fringe benefits provided by religious institutions

    Introduced in 1986. Legislative reference: Section 57 FBTAA86. 2000 TES reference code: C36.

    FBT exemption for fringe benefits provided to religious practitioners who work in religious institutions.

C38 Staff accommodation at religious institutions and meals provided in religious houses

    Introduced in 1986. Legislative reference: Section 58T FBTAA86. 2000 TES reference code: C37.

    FBT exemption for staff accommodation at religious institutions and meals provided in religious houses to domestic employees.

C39 Provision of food and drink in certain circumstances

    Introduced in 1986. Legislative reference: Sections 54 and 58V FBTAA86. 2000 TES reference code: C38.

    Food and drink provided to employees is exempt from FBT in certain circumstances, including where food and drink is provided to non-live-in domestic employees at the place of residence where they are employed at the time when they are performing their duties.

C40 Discounted valuation of arm's length transaction price for in-house property and residual fringe benefits

    Introduced in 1986. Legislative reference: Sections 42(1), 48 and 49 FBTAA86. 2000 TES reference code: C39.

    FBT reduction of the taxable value to 75 per cent of the arm's length transaction price for in-house property and residual fringe benefits.

C41 Airline transport fringe benefits and free discounted goods and services up to a threshold

    Introduced in 1986. Legislative reference: Section 62 FBTAA86. 2000 TES reference code: C40.

    FBT exemption for up to $500 per employee of the taxable value of airline transport fringe benefits and free discounted goods or services of a kind ordinarily provided to employers' customers or clients.

C42 Board fringe benefits

    Introduced in 1986. Legislative reference: Section 36 FBTAA86. 2000 TES reference code: C41.

    FBT valuation of board fringe benefits at $2 per meal, or $1 per meal if the person is under the age of 12.

C43 Certain car parking fringe benefits

    Introduced in 1993. Legislative reference: Section 58G FBTAA86. 2000 TES reference code: C42.

    FBT exemption for c
    ar parking benefits provided by employers who are non-profit scientific organisations, religious institutions or public education institutions.

    Exemption for all car parking benefits was available up to 1 July 1993.

C44 Benefits resulting from valuation arrangements for car parking

    Introduced in 1993. Legislative reference: Section 39A FBTAA86. 2000 TES reference code: C43.

    FBT undervaluation of benefits resulting from valuation arrangements for car parking.

C45 Discounted valuation for holiday travel for employees posted overseas

    Introduced in 1986. Legislative reference: Section 61A FBTAA86. 2000 TES reference code: C44.

    FBT reduction in the taxable value of holiday travel by 50 per cent of actual cost up to an amount equal to 50 per cent of the cost of one return holiday per year to Australia, irrespective of destination, for employees posted overseas.

C46 Transport for oil rig and remote area employees in certain circumstances

    Introduced in 1986. Legislative reference: Section 47(7) FBTAA86. 2000 TES reference code: C45.

    FBT exemption in certain circumstances for transport for oil rig and remote area employees.

C47 Discounted valuation of remote area holiday benefits

    Introduced in 1986. Legislative reference: Sections 60A and 61 FBTAA86. 2000 TES reference code: C46.

    FBT reduction in taxable value by up to 50 per cent of cost for remote area holiday benefits, including those given to the employee's family.

C48 Minor benefits

    Introduced in 1986. Legislative reference: Section 58P FBTAA86. 2000 TES reference code: C47.

    FBT exemption for minor benefits, for example benefits of less than $100 that are provided infrequently and/or are difficult to value.

C49 Private use of business property consumed on business premises

    Introduced in 1986. Legislative reference: Sections 41 and 47(3) FBTAA86. 2000 TES reference code: C48.

    FBT exemption for private use of business property consumed on business premises and principally for use in connection with business operations.

C50 Allowances and accommodation benefits

    Introduced in 1986. Legislative reference: Sections 21, 31, 47(5) of 58E and 63, FBTAA86. 2000 TES reference code: C49.

    FBT exemption for benefits such as allowances or components of allowances, accommodation, food and household goods provided while living away from home in order to perform duties of employment.

C51 Private use of company car that is minor and infrequent

    Introduced in 1986. Legislative reference: Section 47(6) FBTAA86. 2000 TES reference code: C50.

    FBT exemption for private use of company car that is minor and infrequent.

C52 Loans to employees to meet employment-related and accommodation-related expenses

    Introduced in 1986. Legislative reference: Sections 17(3) and 17(4) FBTAA86. 2000 TES reference code: C51.

    FBT exemption for fringe benefits on loans provided to employees to meet employment-related and accommodation-related expenses.

C53 Exclusion from reporting for certain travel in marked emergency vehicles

    Introduced in 2000. Legislative reference: Fringe Benefits Tax Regulations 1992. 2000 TES reference code: C52.

    Benefits associated with travel between home and work in a marked emergency vehicle are excluded from the fringe benefits reporting requirement. The emergency vehicle must be one used by an ambulance, police or firefighting service and be visibly marked for that purpose. It also must be fitted with flashing warning lights and sirens.

C54 Exemption for organisations promoting the prevention or control of disease in people

    Introduced in 2000. Legislative reference: Section 57A FBTAA86. 2000 TES reference code: C53.

    Organisations whose main activity is promoting the prevention or control of disease or illness in people are able to access exemptions from FBT.

C55 Exclusion from reporting of benefits associated with police force removals

    Announced in 2001. 2000 TES reference code: na.

    Fringe benefits associated with the removal or storage of household effects of police officers are to be excluded from the fringe benefits reporting requirement. To be eligible for the exclusion, the removal or storage will have to be as a result of a move undertaken at the direction of the police force.

C56 Exclusion from reporting of benefits associated with home-to-work travel in unmarked police vehicles

    Introduced in 2001. Legislative reference: Fringe Benefits Tax Amendment Regulations 2001 (No. 2). 2000 TES reference code: na.

    Benefits associated with travel between home and work in an unmarked police vehicle are excluded from the fringe benefits reporting requirement. The exclusion is limited to situations where such vehicles are taken home by police officers in order to enable them to respond to events of crime and public safety. The unmarked police vehicle must be fitted with a police radio, concealed or portable warning lights and concealed or portable sirens.