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30 Oct 14 FBT: duties of a government body employee relating to a public or non-profit hospital - TD 2014/D17

On 29 October 2014, the ATO issued, for public comment by 28 November 2014, draft Taxation Determination TD 2014/D17 entitled "Fringe benefits tax: when are the duties of the employment of an employee of a government body exclusively performed in, or in connection with, a public hospital or 'non-profit hospital' for the purposes of paragraph 57A(2)(b) of the Fringe Benefits Tax Assessment Act 1986? "

The question posed is answered as follows:

"1. The duties of the employment of an employee of a government body are exclusively performed in, or in connection with, a public hospital or a 'non-profit hospital' for the purposes of paragraph 57A(2)(b) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) when the duties of employment of the employee satisfy one of the following tests:

  • the duties are performed 'in' the hospital such that the employee performs their duties in the physical location of the hospital facility and within that facility at a place where activities are conducted that enable the hospital to carry out its functions, or
  • the duties are performed 'in connection with' the hospital such that the employee is engaged in activities that enable the hospital to carry out its functions. These duties may be performed at places other than 'in' the hospital.

2. The presence of the word 'exclusively' in paragraph 57A(2)(b) requires that all of the duties of the employment of the employee must be performed for the required purposes, being 'in, or in connection with...a public hospital' or a non-profit hospital.

3. When an employee engages in separate job positions during a year, each job position must be considered separately for the purpose of determining whether the criteria in subsection 57A(2) are satisfied.

4. Therefore, when an employee has more than one job position during the year, it is possible for subsection 57A(2) to apply to the benefits provided in respect of one of the positions even if the requirements of subsection 57A(2) are not met in relation to the other position..."

As a result of the release of the draft determination, ATO Interpretative Decision ATO ID 2003/40 (Fringe benefits tax: exempt benefits - duties of employee relating to a public hospital) was withdrawn on 29 October 2014.


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