Sunshine Pty Ltd made a loan of $100,000 to an employee on 1 July 2020 at an interest rate of 2.0%. The loan was used by the employee to purchase his first home. On 1 February 2021, the employee made a principal repayment of $20,000 on the loan.

In addition he was provided with 10 gift vouchers worth $50 each for use at the local supermarket as a Christmas gift

1. Advise Sunshine Pty Ltd as to the FBT consequences (including calculation of any FBT liability) arising out of the above information (6 marks)
2. Would your response differ if the loan was used to pay for a $10,000 holiday to the Maldives with the balance used to purchase a rental property? Explain and calculate the fringe benefit value if used for this purpose. (4 marks)