Your client Electrical Services Pty Ltd has 52 employees and has approached you for advice on the following transactions:

1. Payment to an employee for an estimated cost of electricity used in his home workshop.
2. Loan to an employee at no interest. The employee used the loan as a deposit to buy a holiday home with intention to rent it out.
3. Payment of an employees medical bills for a recent heart scare
4. Providing food for an afterwork course from the inhouse kitchen on work premises which is held each Friday, total cost $250 a week
5. $150 gift card to all employees as a Christmas present
6. Payment of Christmas party for all employees to attend, total cost $6,240
7. Provision of car to the employee, however the car was left at the airport for 6 months as the employee worked remotely for that period

Required:

Which of the above items of the Electrical Services Pty Ltd subject to Fringe Benefits Tax? Justify your comments using legislation and case law.

Additional information about tax rates 201819:

INDIVIDUAL RESIDENT

Taxable income Tax on this income

0 $18,200 Nil

$18,201 $37,000 19c for each $1 over $18,200

$37,001 $90,000 $3,572 plus 32.5c for each $1 over

$90,001 $180,000 $20,797 plus 37c for each $1 over

$180,001 and over $54,097 plus 45c for each $1 over

The above rates do not include the:

Medicare levy of 2%

COMPANIES

Small business entities - 27.5%

Other companies and entities - 30%