Minor benefits exemption
31 March 2008
In a recent ruling from the ATO, emphasis has been placed on the need to satisy sevaral requirements in addition to the threshold test before the exemption is available:
1. Infrequency and irregularity with which associated identical or similar benefits are provided - the more often and regular those benefits are provided, the less likely that this criterion would be satisfied
2. Sum of the notional taxable values of the minor benefit and associated benefits- identical or similar - The greater the value of the minor benefit and identical or similar benefits, the less likely it is the minor benefit will qualify as an exempt benefit.
3. Sum of the notional taxable values of any other associated benefits - The greater the total value of the other associated benefits, the less likely it is that the minor benefit, being the meal, will qualify as an exempt benefit.
4. Practical difficulty in determining the notional taxable values of the minor benefit and any associated benefits - includes consideration of the difficulty for the employer in keeping the necessary records
5. Circumstances surrounding the provision of the minor benefit and any associated benefits - to deal with an unexpected event - otherwise than wholly or principally by way of a reward for services