MATT is employed as an executive for YXZ Pty Ltd$.$ On $3$ April $2019$ she borrowed $$560,000$ at an interest rate of $3\%$ from her employer, XYZ Pty Limited. The loan was to be for $10$ years. The loan lasted from $3$ April $2019$ to $31$ March $2020$ and was for three purposes:

Invest in BHP shares for $$80,000$ for income producing purposes

Family holiday to Spain $$35,000$

The rest of the loan is to repay the home mortgage.

On $1$ February $2020,$ the employer decided to waive $$160,000$ from the loan because MATT has been an exceptional employee for the year

Required:

Advise XYZ Pty Limited on the Fringe Benefit Tax implications $($showing all necessary calculations$)$ of the above. Your answer must include explanation of the legal principles as well as all relevant calculations.