On the 1st of July 2020 Brian is a financial planner who received $100,000 low interest loan from his employer, Melbourne Bank. The low interest loan rate is 4%. He used $90,000 to buy a Jeep of which 10% was used for business. A log book had been maintained by Brian. He made a superannuation sacrifice of $20,000 with his employer.
The Bank provided $3000 as a living away allowance to cover expenses that were incurred by Brian while temporarily living away from his normal place of residence. This expenditure was paid by the Bank so he could continue to effectively perform his employment duties.

The Bank paid an allowance of $2000 per annum to clean his business suits. The employer provided him with a printer costing $1,000.

Required

Advise the Bank, it’s Fringe Benefit tax Liability for the year ending 30/6/2020. Provide the FBTAA and ITAA 36 and 97 legislation tax where applicable.

Answer rating: 100% (QA)

FBTAA LEGISLATION Benefits are broadly defined in the Fringe Benefit Tax Assessment Act 1986 to include any right privilage service or facility The de... View the full answer