Janice Jordan, aged 60, is a senior executive of Jupiter Pty Ltd. She had worked with the
Question:
Janice Jordan, aged 60, is a senior executive of Jupiter Pty Ltd. She had worked with the company since 1 July 1982. As part of her remuneration package, Jupiter provided her with a one-year loan of $860,000 at a special interest rate of 2.1% pa (payable in monthly instalments). The loan was provided on 1 June 2020. Janice used 40% of the borrowed funds for income0producing purposes and met all her obligations in relation to the interest payments.
On 20 June 2021, Janice received a redundancy payout of $560,000 from her employer due to a significant restructuring and no arrangement of re-employment was provided by her employer.
Janice decided to retire, and on 30 June 2021, she received $400,000 from the Jupiter Superfund (a private sector superannuation fund), and commenced a pension of $50,000.
a) Calculate the taxable value of this fringe benefit for the 2020/21 FBT year
(Hint: consider various elements including loan fringe benefit, statutory interest rate, otherwise deductible rule, taxable value of the fringe benefit)
b) After Janice's employment is terminated and she is on her pension, is it correct that FBT no longer applies given she is no employee? Explain reason
Fundamentals Of Human Resource Management
ISBN: 9781119032748
12th Edition
Authors: David A DeCenzo, Stephen P Robbins, Susan L Verhulst