An employer allows an employee to use a car to travel to and from work on an ad-hoc basis during the FBT year.

The employee travels on a toll road on the way to and from work. An electronic toll tag is attached to the car and records all road toll expenditure for that car. The electronic toll tag is held in the employer’s name.

The employee takes the car home overnight 10 times during the FBT year (which is 20 tolls). The cost of each toll is well below the minor benefits threshold.

The value of the benefit to the employee is below the minor benefits threshold of $300.

Next, the 5 criteria are considered to determine if it’s unreasonable to treat the minor benefits as fringe benefits.

The road tolls are provided infrequently and irregularly. The sum of the value of all road tolls are identical or similar benefits in this FBT year and other FBT years and it’s not considered to be substantial.

The use of the car is provided in connection with the road tolls, but the sum of the value of the associated benefits is not considered to be substantial.

There would be difficulties in determining the value of the benefit and it’s not clear whether the benefit was provided to help the employee deal with an unexpected event.

Considering the facts, the benefit is not wholly or principally a reward for services.

Having considered the 5 criteria, the employer could decide it’s unreasonable to treat the benefit as a fringe benefit. For this reason, the benefits provided to the employee are exempt minor benefits.