Tom has been appointed Manager of a national poultry and meat processing company in Mildura from 1 April 2020 for 5 years and has received a salary packaging arrangement, involving: 

(1) Salary, Bonus, Clothing allowance and Superannuation benefits received from his employer  

$100,000 salary and $20,000 bonus  

$5,000 clothing allowance  

$25,000 employer sponsored superannuation contribution Tom’s chosen superannuation fund. 

(2) Gym Membership for himself and his partner. 

(3) The employer paid Fitness gym directly an amount of $598 for 2 gym memberships for Tom and his spouse.

(4) Low rate interest loan. 4 

(5) Tom has a low interest loan of $500,000, which he used (60%) to pay off his home mortgage in a Sydney property and the balance (40%) as a deposit for a rental apartment at Phillip Island. He pays a rate of 2.8% on this loan. (The benchmark interest rate is 4.8% for the 2021 FBT year). 

(6) Housing 

The employer rents a modest 4-bedroom home at market value in Ivanhoe for $400/week for Tom’s family use for the 5-year contract. Tom makes no contribution to the rent and rents out his home in Sydney. 

(7) Company car 

Tom drives a car for work costing $80,000. He travels 30,000 km in the FBT year given he attends a fortnightly Manager’s Meeting in Melbourne. Tom gives the employer $2,000 for the year as he has exclusive use of the car for business and private use. Tom ‘s employer chooses the Statutory Method to calculate FBT. 

REQUIRED 

Part 1 In relation to Tom’s salary packaging arrangement, calculate the aggregate fringe benefits under s 5C FBTAA 1986. 

Part 2 Calculate the FBT payable under s 5 and s 66 FBTAA 1986.