15Exempt loan benefits

15 Exempt loan benefits

(1) A loan is an exempt loan benefit if:

(a) the loan is made by a provider who carries on a business that consists of, or includes, making loans to members of the public; and

(b) the rate of interest payable in respect of the loan:

(i) is specified in a document in existence at the time the loan is made; and

(ii) is not less than the rate of interest in respect of a similar arm’s length loan made by the provider, at or about that time, to a member of the public in the ordinary course of carrying on that business; and

(iii) cannot be varied.

(2) A loan is an exempt loan benefit if:

(a) the loan is made by a provider who carries on a business that consists of, or includes, making loans to members of the public; and

(b) the interest rate payable from time to time for the loan is not less than the rate applicable to a comparable arm’s length loan made by the provider to another person in the ordinary course of carrying on that business.

(3) A loan is an exempt loan benefit if:

(a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

(b) the sole purpose of the making of the loan is to enable the recipient to meet the expenses incurred by the recipient:

(i) in the course of performing the duties of that employment; and

(ii) not later than 6 months after the loan is made; and

(c) the amount of the loan is not substantially greater than the amount of those expenses that could reasonably be expected to be incurred by the recipient; and

(d) the recipient is required:

(i) to account to the employer, not later than 6 months after the loan is made, for expenses met from the loan; and

(ii) to repay (whether by set-off or otherwise) any amount not so accounted for.

(4) A loan is an exempt loan benefit if:

(a) the loan consists of an advance to a recipient by a provider who is an employer of the recipient; and

(b) the sole purpose of the making of the loan is to enable the recipient to pay any of the following amounts payable by the recipient in respect of accommodation:

(i) a rental bond;

(ii) a security deposit in respect of electricity, gas or telephone services;

(iii) any similar amount; and

(c) the recipient is required to repay (whether by set-off or otherwise) the loan not later than 12 months after the loan is made.

Division 3 Value of a loan benefit