Fringe benefits tax

Date

D. Fringe Benefits Tax

D1 Exemption for compensation-related benefits, occupational health and counselling services and some training courses

Public order and safety ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D1
Estimate Reliability: Not Applicable * Category 3+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 58J, 58K and 58M of the Fringe Benefits Tax Assessment Act 1986

Certain benefits in relation to: compensable work related trauma, medical services, other forms of health care provided in work site first aid posts and medical clinics, work related medical examinations, work related medical screening, work related preventative health care, work related counselling and migrant language training are exempt from fringe benefits tax.

D2 Exemption for safety award benefits

Public order and safety ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D2
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58R of the Fringe Benefits Tax Assessment Act 1986

An award related to occupational health or an occupational safety achievement that is granted to an employee is exempt from fringe benefits tax if its value does not exceed $200 per year.

D3 Reduction in taxable value for car expenses incurred for occupational health and counselling services and some training courses

Public order and safety ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Reduction in taxable value 2014 TES code: D3
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 61F of the Fringe Benefits Tax Assessment Act 1986

The taxable value of a fringe benefit may be reduced where an employee travels in their own car for the purpose of attending a work related medical examination, screening, preventative health care or counselling session, or for migrant language training and is reimbursed for the car expenses incurred calculated based on the distance travelled by the car.

D4 Exemption for benefits provided by certain international organisations

General public services — Foreign affairs and economic aid ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D4
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 55 and 56 of the Fringe Benefits Tax Assessment Act 1986

An exemption from fringe benefits tax applies to benefits provided by certain international organisations that are exempt from income tax and other taxes by virtue of the International Organisations (Privileges and Immunities) Act 1963, the Consular Privileges and Immunities Act 1972 or the Diplomatic Privileges and Immunities Act 1967 and by organisations established under international agreements which oblige Australia to grant the organisation a general tax exemption.

D5 Exemption for benefits received by Australian Government employees in receipt of military compensation payments

Defence ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
25 35 40 45 45 50 50 55
Tax expenditure type: Exemption 2014 TES code: D5
Estimate Reliability: Medium    
Commencement date: 1995 Expiry date:  
Legislative reference: Sections 6AA and 6AB of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986

Benefits provided to Australian Government employees in receipt of military compensation payments are exempt from fringe benefits tax.

D6 Exemption for health care benefits provided to members of the Defence Force

Defence ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
600 560 640 660 690 710 730 750
Tax expenditure type: Exemption 2014 TES code: D6
Estimate Reliability: Medium    
Commencement date: 1995 Expiry date:  
Legislative reference: Section 6AC of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986

All health care benefits provided by the Australian Government to members of the Australian Defence Force (because of their membership) are exempt from fringe benefits tax.

D7 Exemption for war service loans

Defence ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1 1 1 1 1 1 1 1
Tax expenditure type: Exemption 2014 TES code: D7
Estimate Reliability: Medium — High    
Commencement date: 1986 Expiry date:  
Legislative reference: Section 6 of the Fringe Benefits Tax (Application to the Commonwealth) Act 1986

Loan concessions authorised under the Defence Service Homes Act 1918 and made by virtue of an employee’s war service are exempt from fringe benefits tax.

D8 Reduction in taxable value for education costs of children of employees posted overseas

Education ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Reduction in taxable value 2014 TES code: D8
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 65A of the Fringe Benefits Tax Assessment Act 1986

The taxable value of fringe benefits (including a car, expense payment, property or residual benefit) in respect of full-time education of children of employees posted overseas for 28 days or more may be reduced. The extent of the reduction relates to the period of the employee’s service overseas.

D9 Exemption for charities promoting the prevention or control of disease in human beings

Health ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
100 110 125 135 140 150 155 165
Tax expenditure type: Exemption 2014 TES code: D9
Estimate Reliability: Medium — High    
Commencement date: 2001 Expiry date:  
Legislative reference: Section 5B and Subsection 57A(5) of the Fringe Benefits Tax Assessment Act 1986

Charitable institutions whose principal activity is to promote the prevention or control of diseases in human beings are provided with an exemption from fringe benefits tax for up to $30,000 of the grossed-up taxable value of fringe benefits per employee.

D10 Exemption for public and not-for-profit hospitals and public ambulance services

Health ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1,100 1,200 1,250 1,350 1,450 1,550 1,650 1,750
Tax expenditure type: Exemption 2014 TES code: D10
Estimate Reliability: Medium    
Commencement date: 2000 Expiry date:  
Legislative reference: Sections 57A(3) and 57A(4) of the Fringe Benefits Tax Assessment Act 1986

Public and not-for-profit hospitals and public ambulance services are provided with an exemption from fringe benefits tax for up to $17,000 of the grossed-up taxable value of fringe benefits per employee.

D11 Exemption for travel costs of employees and their families associated with overseas medical treatment

Health ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D11
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58L of the Fringe Benefits Tax Assessment Act 1986

Benefits that meet the costs of travel away from a work place located in a foreign country in order to obtain medical treatment are exempt from fringe benefits tax. Accommodation and meals are also exempt if provided en route.

D12 Exemption for accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged

Social security and welfare ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D12
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 58 and 58U of the Fringe Benefits Tax Assessment Act 1986

Certain benefits that are provided to people employed in caring for elderly or disadvantaged persons and who reside with them in their own homes are exempt from fringe benefits tax. The benefits that are exempt are accommodation, residential fuel, meals and other food and drink provided in the home to the employee.

D13 Exemption for emergency assistance

Social security and welfare ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D13
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58N of the Fringe Benefits Tax Assessment Act 1986

Benefits provided by way of emergency assistance to employees are exempt from fringe benefits tax. Emergency assistance includes certain first aid or other emergency health care; emergency meals, food supplies, clothing, accommodation, transport, or use of household goods; temporary repairs; and any other similar benefit.

D14 Exemption for public benevolent institutions (excluding public and not-for-profit hospitals)

Social security and welfare ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1,100 1,150 1,300 1,400 1,450 1,500 1,600 1,650
Tax expenditure type: Exemption 2014 TES code: D14
Estimate Reliability: Medium — High    
Commencement date: 2001 Expiry date:  
Legislative reference: Subsection 57A(1) of the Fringe Benefits Tax Assessment Act 1986

Public benevolent institutions (excluding hospital activities) are provided with an exemption from fringe benefits tax for up to $30,000 of the grossed-up taxable value of fringe benefits per employee.

D15 Exemption from the fringe benefit cap for meal entertainment and entertainment facility leasing expenses

Social security and welfare ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
390 405 425 450 455 415 430 450
Tax expenditure type: Exemption 2014 TES code: D15
Estimate Reliability: Low    
Commencement date: 1 January 2001 Expiry date:  
Legislative reference: Section 5B and Subsections 57A(1) and 57A(5) of the Fringe Benefits Tax Assessment Act 1986

Charitable institutions whose principal activity is to promote the prevention or control of diseases in human beings, public and not-for-profit hospitals and public ambulance services, and public benevolent institutions (excluding hospital activities) are provided with an exemption from fringe benefits tax for meal entertainment (such as expenses on a restaurant meal at a social occasion) and entertainment facility leasing expenses. From 1 April 2016, the fringe benefits tax exemption on these items will no longer be unlimited, with a $5,000 cap on the grossed up taxable value of fringe benefits per employee being imposed.

D16 Exemption for meals for primary production employees in remote areas

Social security and welfare ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D16
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1 April 2000 Expiry date:  
Legislative reference: Section 58ZD of the Fringe Benefits Tax Assessment Act 1986

Certain meals provided on working days to employees of primary producers in remote areas are exempt from fringe benefits tax.

D17 Exemption for remote area housing and reduction in taxable value for housing assistance


Housing and community amenities ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption, Reduction in taxable value 2014 TES code: D17
Estimate Reliability: Not Applicable * Category 3+
Commencement date: 2000 Expiry date:  
Legislative reference: Sections 58ZC, 59, 60, and 65CC of the Fringe Benefits Tax Assessment Act 1986

Housing benefits (the right to use accommodation as a usual place of residence) provided to employees in remote areas are exempt from fringe benefits tax. The taxable value of housing assistance (such as housing loans or the reimbursement of rent) provided to employees in remote areas is generally reduced by 50 per cent.

D18 Exemption for certain fringe benefits provided to live-in employees providing domestic services to religious institutions and practitioners

Recreation and culture ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D18
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58T of the Fringe Benefits Tax Assessment Act 1986

Accommodation, residential fuel, meals and other food and drink provided to live-in employees who provide domestic services and are employed by religious institutions or religious practitioners are exempt from fringe benefits tax.

D19 Exemption for fringe benefits provided to certain employees of religious institutions

Recreation and culture ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
85 85 90 95 95 100 110 110
Tax expenditure type: Exemption 2014 TES code: D19
Estimate Reliability: Low    
Commencement date: 1986 Expiry date:  
Legislative reference: Section 57 of the Fringe Benefits Tax Assessment Act 1986

Benefits provided to an employee, or to a spouse or child of the employee, of a religious institution are exempt from fringe benefits tax if the employee is a religious practitioner and only if the benefit is provided principally in respect of pastoral duties or any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs.

D20 Application of statutory formula to value car benefits

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
1,170 1,120 900 810 810 880 980 1,030
Tax expenditure type: Discounted valuation 2014 TES code: D20
Estimate Reliability: Medium — Low    
Commencement date: 1986 Expiry date:  
Legislative reference: Section 9 of the Fringe Benefits Tax Assessment Act 1986

A fringe benefit arises where an employee is provided with a car for private use. A car fringe benefit can be valued using the statutory formula method, under which the value of a person’s car fringe benefit is determined by multiplying the cost of the car by the proportion of days the vehicle is used privately by the statutory rate of 20 per cent for contracts entered into after 7.30pm (AEST) on 10 May 2011. For contracts entered into prior to this, the statutory rates decreased as annual kilometres travelled increased.

D21 Approved worker entitlement fund payment — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
195 195 200 210 215 225 230 235
Tax expenditure type: Exemption 2014 TES code: D21
Estimate Reliability: Low    
Commencement date: 2003 Expiry date:  
Legislative reference: Sections 58PA and 58PB of the Fringe Benefits Tax Assessment Act 1986

Payments to approved worker entitlement funds providing for entitlements such as redundancy and long service leave of employees are exempt from fringe benefits tax. The funds must be either endorsed by the Commissioner of Taxation or be a long service leave fund established under a Commonwealth, state or territory law.

D22 Australian Traineeship System — exemptions for certain employees

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D22
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58S of the Fringe Benefits Tax Assessment Act 1986

Food, drink and accommodation provided to people training under the Australian Traineeship System may be exempt from fringe benefits tax if the benefit is provided in accordance with an award or an industry custom. Benefits relating to food or drink must not be provided at a party, reception or other social function.

D23 Car parking benefits

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Discounted valuation 2014 TES code: D26
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1993 Expiry date:  
Legislative reference: Division 10A of the Fringe Benefits Tax Assessment Act 1986

A car parking fringe benefit arises if there is a commercial parking station within a one kilometre radius of the car parking premises charging an all-day fee greater than $8.37 (for the year commencing 1 April 2015). There are four methods for valuing car parking fringe benefits that may result in a non-market valuation.

D24 Certain relocation and recruitment expenses — exemption and reduction in taxable value

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption, Reduction in taxable value 2014 TES code: D23
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986, 2006 Expiry date:  
Legislative reference: Sections 58A to 58D and 58F of the Fringe Benefits Tax Assessment Act 1986
Sections 61B to 61E of the Fringe Benefits Tax Assessment Act 1986

Certain benefits associated with relocation and recruitment expenses, including transport, temporary accommodation, relocation consultants and other benefits, are exempt from fringe benefits tax. Certain other benefits may be eligible for a reduction in taxable value.

D25 Compassionate travel exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D24
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1989 Expiry date:  
Legislative reference: Section 58LA of the Fringe Benefits Tax Assessment Act 1986

Certain travel costs provided on compassionate grounds to an employee, or their close relatives, are exempt from fringe benefits tax.

D26 Discounted valuation for board meals

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
5 4 5 5 5 5 6 6
Tax expenditure type: Discounted valuation 2014 TES code: D25
Estimate Reliability: Low    
Commencement date: 1986 Expiry date:  
Legislative reference: Section 36 of the Fringe Benefits Tax Assessment Act 1986

Where an employee is entitled to accommodation and to at least two meals a day, eligible meals (known as ‘board meals‘) are valued at concessional rates for the purposes of fringe benefits tax. The taxable value is $2 per meal per adult, or $1 per meal per child under the age of 12.

D27 Discounted valuation for holidays for employees and their families when posted overseas

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Discounted valuation 2014 TES code: D27
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 61A and 143C of the Fringe Benefits Tax Assessment Act 1986

For fringe benefits tax purposes, the value of an overseas holiday provided as industry custom or under an industrial award to an employee and their family while posted overseas, is reduced by 50 per cent or 50 per cent of a benchmark holiday cost, whichever is lower. Overseas transport, meals and accommodation are included.

D28 Discounted valuation of arm’s length transaction price for in-house property and residual fringe benefits

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Discounted valuation 2014 TES code: D28
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 42, 48 and 49 of the Fringe Benefits Tax Assessment Act 1986

The taxable value of in-house property and residual fringe benefits (generally, goods or services sold by the employer to the public) is 75 per cent of the lowest retail price charged to the public in the ordinary course of business. This includes airline transport fringe benefits. This treatment is not available for in-house fringe benefits accessed by way of a salary sacrifice arrangement.

D29 Employees of public transport providers — free or discounted travel exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
30 40 50 55 55 60 60 65
Tax expenditure type: Exemption 2014 TES code: D29
Estimate Reliability: Low    
Commencement date: 1986 Expiry date:  
Legislative reference: Subsection 47(1) of the Fringe Benefits Tax Assessment Act 1986

Where an employer operates a business of providing public transport, the provision of free or discounted travel (other than in an aircraft) to employees of that business for travelling to and from work is exempt from fringe benefits tax. Free or discounted travel on a scheduled metropolitan service is also exempt from fringe benefits tax. This exemption excludes benefits provided under a salary sacrifice arrangement.

D30 Employer contributions to secure childcare places — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D30
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Subsection 47(8) of the Fringe Benefits Tax Assessment Act 1986

Payments made by employers to obtain priority of access to approved childcare services for children of employees are exempt from fringe benefits tax.

D31 Employer-provided motor vehicle parking — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D31
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1987, 1993 Expiry date:  
Legislative reference: Section 58G of the Fringe Benefits Tax Assessment Act 1986
Regulation 13A of the Fringe Benefits Tax Regulations 1992

Parking for disabled employees, and for employees of scientific, religious, charitable or other public educational institutions, is exempt from fringe benefits tax.

D32 Expenses for employees living away from home — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
490 240 70 70 70 70 70 70
Tax expenditure type: Exemption 2014 TES code: D32
Estimate Reliability: Low    
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 21, 31, 47(5), 58E, 58ZD and 63 of the Fringe Benefits Tax Assessment Act 1986

Accommodation, food, household goods and payments for extra expenses provided to employees living away from their usual place of residence (in order to perform their duties of employment) are exempt from fringe benefits tax. A range of requirements must be satisfied in order to access this concession.

D33 In-house fringe benefits — reduction in the aggregate taxable value

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Reduction in taxable value 2014 TES code: D33
Estimate Reliability: Not
Applicable		 * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 62 of the Fringe Benefits Tax Assessment Act 1986

The taxable value of in-house fringe benefits (for example, goods sold by the employer to its customers) provided to an employee is reduced by $1,000, or the taxable value of the benefits if this is less than $1,000, unless the benefits are provided under a salary sacrifice arrangement.

D34 Loan benefits exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D34
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 17 of the Fringe Benefits Tax Assessment Act 1986

Certain in-house loan benefits and certain loans to employees to meet employment-related expenses are exempt from fringe benefits tax.

D35 Long service awards — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D35
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1987 Expiry date:  
Legislative reference: Section 58Q of the Fringe Benefits Tax Assessment Act 1986

Long service awards granted in recognition of 15 years or more service, up to a specified maximum amount, are exempt from fringe benefits tax.

D36 Minor benefits — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D36
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Section 58P of the Fringe Benefits Tax Assessment Act 1986

Minor benefits, worth less than $300 and where it is unreasonable to treat them as fringe benefits, are exempt from fringe benefits tax.

D37 Minor private use of company motor vehicle — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D37
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Subsection 47(6) of the Fringe Benefits Tax Assessment Act 1986

Where an employee is provided with the use of a motor vehicle that is not a car, such use is exempt from fringe benefits tax if any private use is restricted to travel to and from work, use which is incidental to travel in the course of duties of employment, and non-work-related use that is minor, infrequent and irregular. There is a separate exemption for taxi travel by employees.

D38 Philanthropy — exemption for donations to deductible gift recipients

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D38
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1 July 2008 Expiry date:  
Legislative reference: Subsection 148(2A) of the Fringe Benefits Tax Assessment Act 1986

Donations to deductible gift recipients made under salary sacrifice arrangements are exempt from fringe benefits tax.

D39 Police officers — free or discounted travel to and from duty on public transport exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D39
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 2000 Expiry date:  
Legislative reference: Subsection 47(1A) of the Fringe Benefits Tax Assessment Act 1986

The provision of travel on public transport to police officers for the purpose of travel between the officer’s place of residence and their primary place of employment is exempt from fringe benefits tax.

D40 Private use of business property — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D40
Estimate Reliability: Not Applicable * Category 3+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 41 and 47(3) of the Fringe Benefits Tax Assessment Act 1986

The personal use of property (other than a motor vehicle) principally used directly in connection with business operations is exempt from fringe benefits tax. The property must be onsite or ordinarily located onsite, and provided to or consumed by an employee on a working day. This exemption excludes meals provided under a salary sacrifice arrangement.

D41 Provision of food and drink in certain circumstances — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D41
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 54 and 58V of the Fringe Benefits Tax Assessment Act 1986

Where employees receive meals that are board fringe benefits, any additional food and drink supplied to them is exempt from fringe benefits tax. Food and drink provided to domestic employees who do not ‘live-in’ may also be exempt if consumed at the place of employment and the employer is a religious institution or individual.

D42 Recreational or childcare facilities on an employer’s business premises — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D42
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1986 Expiry date:  
Legislative reference: Subsection 47(2) of the Fringe Benefits Tax Assessment Act 1986

Recreational or childcare facilities are exempt from fringe benefits tax if the facilities are provided on an employer’s business premises for the benefit of employees.

D43 Remote area holiday benefits — discounted valuation

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Discounted valuation 2014 TES code: D43
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Sections 60A and 61 of the Fringe Benefits Tax Assessment Act 1986

The value of holiday-related transport benefits (including the cost of appropriate meals and accommodation en route) provided to employees working in a remote area (and in some cases family members ) are generally reduced by 50 per cent.

D44 Small business employee car parking — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D44
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1997 Expiry date:  
Legislative reference: Section 58GA of the Fringe Benefits Tax Assessment Act 1986

Car parking benefits provided to employees of small businesses are e
xempt from fringe benefits tax if the parking is not provided in a commercial car park. The employer must not be a government body, listed public company or subsidiary of a listed public company, and the employer’s total income must be less than $10 million.

D45 Taxi travel to or from place of work — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D45
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1995 Expiry date:  
Legislative reference: Section 58Z of the Fringe Benefits Tax Assessment Act 1986

Any benefit arising from taxi travel by an employee is exempt from fringe benefits tax if the travel is a single trip beginning or ending at the employee’s place of work.

D46 Transport for oil rig and remote area employees — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D46
Estimate Reliability: Not Applicable * Category 1+
Commencement date: 1986 Expiry date:  
Legislative reference: Subsection 47(7) of the Fringe Benefits Tax Assessment Act 1986

Transport provided to employees working in remote areas or on oil rigs may be exempt from fringe benefits tax.

D47 Work-related items — exemption

Other economic affairs — Total labour and employment affairs ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Exemption 2014 TES code: D47
Estimate Reliability: Low * Category 2+
Commencement date: 1995 Expiry date:  
Legislative reference: Section 58X of the Fringe Benefits Tax Assessment Act 1986

Eligible work-related items (such as mobile phones, laptop computers, protective clothing and tools of trade) provided by an employer to an employee are exempt from fringe benefits tax.

D48 Fringe benefits tax record keeping — exemption

.. ..

Other economic affairs — Other economic affairs, nec ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
.. .. .. .. .. .. .. ..
Tax expenditure type: Record keeping exemption 2014 TES code: D48
Estimate Reliability: High    
Commencement date: 1999 Expiry date:  
Legislative reference: Part XIA of the Fringe Benefits Tax Assessment Act 1986

Certain employers are eligible to use record keeping exemption arrangements when calculating their fringe benefits tax liability. The employer’s liability is based on their aggregate fringe benefits amount in the most recent base year (a year after 1 April 1996) in which they qualified to use the exemption arrangements. This may result in concessional tax treatment compared to being required to keep full fringe benefits tax records.

D49 Meal entertainment fringe benefits — 50/50 valuation method

Other economic affairs — Other economic affairs, nec ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
* * * * * * * *
Tax expenditure type: Record keeping exemption 2014 TES code: D49
Estimate Reliability: Not Applicable * Category 2+
Commencement date: 1995 Expiry date:  
Legislative reference: Sections 37B and 37BA of the Fringe Benefits Tax Assessment Act 1986

An employer may elect to value meal entertainment fringe benefits using the 50/50 method, under which the taxable value is equal to 50 per cent of total food and drink entertainment expenditure incurred in an FBT year relating to employees and their associates as well as third parties.

D50 Philanthropy — rebate for certain not-for-profit, non-government bodies

Other economic affairs — Other economic affairs, nec ($m)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
30 40 50 55 60 65 85 95
Tax expenditure type: Rebate 2014 TES
code:		 D50
Estimate Reliability: Medium    
Commencement date: 1994 Expiry date:  
Legislative reference: Section 65J of the Fringe Benefits Tax Assessment Act 1986

Certain not-for-profit, non-government bodies (including, in general, charitable institutions, schools, and trade unions) are eligible for a partial rebate of the fringe benefits tax that would otherwise be payable on up to $30,000 of the grossed-up taxable value of fringe benefits per employee.