Air Asia

Key MANAGEMENT (PMS 3393) ‘AIR ASIA’ Prepared by: Ahmad Izzuddin Bin Ahmad Zamri (4102005781) HaslindaBinti Ismail (4092008911) MohdAzuan Bin MohdAbdKadir (4102008091) Muhammad Khairil Anwar Bin Othman (4102004441) Nur A NisaBintiRahmat (4071032881) SitiAisyahBintiMohdYusoff( 4102001031) SitiKhajirahBinti Abdul Aziz (4092008931) Prepared for: Dr. HafsahBinti Ahmad Submission Date: 22nd November 2012 Table of Content Acknowledgement1 Introduction2 History3 The Vision, Mission Statement and Objective5 Value Strategy6 Business Model8 Competitive Advantages10 AirAsia Assumption12SWOT Analysis13 The Air Asia 5 Forces Porter Model16 Air Asia Market Segments19 Five Years Financial Highlights22 Appendix24 References25 Acknowledgment Alhamdulillah. On account of Allah SWT, whom with His readiness has allowing us the chance to effectively finish this Strategic Management task. Most importantly, we might want to communicate our exceptional thank to Dr. HafsahBinti Ahmad, an instruc tor of Strategic Management who had guided us and furthermore give a ton of data with respect to our task from starting to the furthest limit of the semester and furthermore the significant advices that he provided for us during our lectures.We are truly valuing it. Most profound thanks and gratefulness to our folks, family and all kindred companions for their collaboration, consolation, valuable recommendation and brimming with help for the task finishing, from the earliest starting point till the end. Without the assistance and direction from every one of you, it will be hard for us to finish this task. Much obliged to you. 1. 0 Introduction Air Asia is a Malaysian-based ease aircraft. Air Asia will be Asia's biggest low-passage, nitty gritty carrier and a pioneer of minimal effort travel in Asia.Air Asia bunch works planned residential and universal trips to more than 400 goals crossing 25 nations. Its principle center point is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its member carriers Thai Air Asia, Indonesia Air Asia, Air Asia Philippines and Air Asia Japan have center points in Suvarnabhumi Airport, Soekarno-Hatta International Airport, Clark International Airport and Narita International Airport separately. Air Asia's enrolled office is in Petaling Jaya, Selangor while its administrative center is at Kuala Lumpur International Airport. 1. 1 HistoryAirAsia was built up in 1993 and started procedure on 18 November 1996. It was initially established by an administration claimed combination, DRB-Hicom. On 2 December 2001 the intensely obliged carrier was purchased by previous Time Warner official Tony Fernandes' organization Tune Air Sdn Bhd for the token whole of one ringgit (about USD 0. 26 at that point) with USD 11 million (MYR 40 million) worth of obligations. Fernandes turned the organization around, delivering a benefit in 2002 and propelling new courses from its center point in Kuala Lumpur, undermining pr evious restraining infrastructure administrator Malaysia Airlines with limited time passages as low as MYR 1 (USD 0. 7). In 2003, AirAsia opened a second center point at Senai International Airport in Johor Bahru close to Singapore and propelled its first global trip to Bangkok. AirAsia has since begun a Thai auxiliary, added Singapore itself to the goal list, and began trips to Indonesia. Trips to Macau started in June 2004, and trips to terrain China (Xiamen) and the Philippines (Manila) in April 2005. Trips to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the last by Thai AirAsia.On August 2006, AirAsia took over Malaysia Airlines’ Rural Air Service courses in Sabah and Sarawak, working under the Fly Asian Xpress brand. The courses were in this way came back to MAS wings a year later, refering to business reasons. Air Asia's CEO Tony Fernandes accordingly revealed a five-year intend to additionally upgrade its essence in Asia. Under the arr angement, Air Asia proposes to reinforce and improve its course organize by interfacing all the current urban communities in the locale and growing further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India.The carrier will concentrate on building up its center points in Bangkok and Jakarta through its sister organizations, Thai AirAsia and Indonesia AirAsia. With increment recurrence and the option of new courses, AirAsia anticipates that traveler volume should arrive at 18 million before the finish of 2007 On 27 September 2008, the organization had on its rundown 106 new courses to be added to its then-current rundown of 60. The quantity of old courses stopped has not been openly uncovered. On 2 April 2012 Air Asia had their first departure from Sydney to Kuala Lumpur.In August 2011, AirAsia consented to produce a union with Malaysian Airlines by methods for an offer trade. The partnership was struck somewhere near the Malaysian government, basically voi ding the understanding of the two aircrafts. 2. 0 The Vision, Mission Statement and Objective The Vision To be the biggest ease aircraft in Asia and serving the 3 billion individuals who are as of now underserved with poor network and high charges. The Mission Statement †¢ To be the best organization to work for whereby representatives are treated as a component of a major family. †¢ Create an all inclusive perceived ASEAN brand. To accomplish the least expense so everybody can fly with Air Asia. †¢ Maintain the best item, grasping innovation to lessen cost and upgrade administration level. Future Objective for AirAsia Kuala Lumpur, Malaysia-based AirAsia has as of late reported in a question and answer session that they plan to buy an extra twenty-five airplane. The buy is the second this year for the carrier and fourth since the 2005. The buy understanding is for 25 Airbus A320 arrangement airplane. This will bring the all out A320 arrangement airplane worked via Ai rAsia to well more than 200 aircraft.Air Asia bunch CEO Tony Fernades says at the public interview that this buy is a significant advance for Air Asia as it means their future forceful course extension designs pair to their normal traffic development throughout the following decade. It additionally shows their pledge to improve AirAsia's situation on the systems by joining the most current and effective airplane in the market. The option of airplane will be utilized to include recurrence over the course arrange and present new courses. First experience with the avionics business as a pioneer has developed to the degree it is currently a pioneer that sets the benchmark to other people. Additionally talking at the question and answer session was Airbus CEO John Leahy. Leahy was amped up for this most up to date request and says that their organization have been incredibly pleased to be a piece of AirAsia's exceptional achievement and charmed that the trust in the A320 has brought abou t the carrier currently turning into the biggest carrier client for this airplane on the planet. With its top notch financial aspects and gigantic traveler advance, he is sure that the huge A320 armada is bound to move AirAsia to the bleeding edge of industry in the years ahead. 2. 1 Value Strategy * SafetyAdopting a zero resilience to dangerous practices and makes progress toward zero mishaps through appropriate preparing, work rehearses, hazard the board and adherence to security guidelines consistently. * High Aircraft Utilization Air Asia actualizing the areas quickest turnaround time at just 25 minutes and guaranteeing the lower costs and higher efficiency. * Low Fare, No Frills Providing visitors with decision of redoing administrations without settling on the quality and administrations. * Valuing their People Committing to their people’s advancement and prosperity and approaching them with deference, respect and reasonableness. Client Focused They give it a second tho ught and treat everybody in a similar way that they need to be dealt with. * Lean Distribution System They additionally offer a wide and creative scope of circulation channels to make booking and voyaging simpler. * Integrity Practicing best expectations of moral conduct and show trustworthiness in the entirety of their professions so as to deserve trust and shared admiration. * Excellence in Performance Setting objectives past the best and fortifying great execution guidelines and accomplishing greatness through actualizing best practices. 2. AirAsia Business Model 1. Minimal effort Carrier An ease transporter (otherwise called a nitty gritty or rebate bearer) is an aircraft that offer low admissions yet wipes out all â€Å"non-essential† administrations. The run of the mill ease bearer plan of action depends on: * A solitary traveler class * A solitary sort of plane (diminishing preparing and administrations costs) * A basic tolls conspire (ordinarily charges increment as t he plane tops off, rewards early reservations) * Free seating ( which urges travelers to load up right on time) * Direct, point to guide trip with no exchange Flying toward less expensive, less blocked optional air terminal * Short flights and quick turnaround times (permitting most extreme usage of planes) * â€Å"Free† in-flight cooking and other â€Å"complimentary† administrations are disposed of, and substituted by ideal paid-for-in-flight food and drink. 2. Straightforward Products An ordinary ease aircrafts item is amazingly essential. It centers around getting traveler from guide A toward B, cutting all the â€Å"extras†. This implies there are no suppers, beverages and tidbits served free on the board. In specific carriers, these might be bought on request.The airplane have Narrow seating to allow more prominent limit. Minimal effort aircrafts offer all-economy trips with no extra space prerequisite for more extensive business class seating. This implie s more travelers can be oblige on every division. There are no offices for seat portions as this free-seating makes passenger’s load onto the flights right on time to get themselves a respectable seat. The evaluating structures of ease carriers take into consideration no extra plans or deals advancement exercises, including regular customers customized. 3. PositioningThe minimal effort carriers the world over are known to target non-business travelers, relaxation traffic and the cost cognizant business traveler fragment. The l

Art Gallery Project essays

Craftsmanship Gallery Project expositions For the Arts gathering, we will introduce a craftsman (or classification) for about 30minutes to present the foundation and impacts just as methods utilized by a specific craftsman. The rest of great importance will be committed to every understudy making their own portrayal of what we introduced. For instance, every understudy will make their own Van Gogh on the first of November. We will spare the entirety of their fine art all through the a month and a half. After the program has finished, we will have a type of craftsmanship display gathering. The time/area is still not yet decided on the grounds that we might have the option to utilize the caf that Kristen works at. In the event that have the exhibition at the caf, we are going to welcome the guardians and family and perhaps even sell their work of art. If not, we will likely have it the next Monday after the program finishes during the after-school program hours. We are anticipating having juice and extravagant hors eats up to make a genuine craftsmanship display feel.For the Arts gathering, we will introduce a craftsman (or class) for about 30minutes to present the foundation and impacts just as methods utilized by a specific craftsman. The rest of great importance will be committed to every understudy making their own portrayal of what we introduced. For instance, every understudy will make their own Van Gogh on the first of November. We will spare the entirety of their work of art all through the a month and a half. After the program has finished, we will have a type of workmanship exhibition gathering. The time/area is still not yet decided in light of the fact that we might have the option to utilize the caf that Kristen works at. In the event that have the display at the caf, we are going to welcome the guardians and family and potentially even sell their work of art. If not, we will most likely have it the next Monday after the program finishes during the after-school program hours. We are anticipa ting having juice and extravagant hors eats up to make a genuine craftsmanship exhibition feel. ... <!

Places to Be, Things to See

Places to Be, Things to See College visits can be super exciting and confusing. You get to experience for the first time the next four (or so) years of your vastly different life and in a sense choose your path. The confusing part is, how do you know what to look for? Gif from Giphy Here are a few things at the University of Illinois at Urbana-Champaign that I think are great to check out before you make the big decision: Undergraduate Library (UGL) Education is first. No matter where you decide to go I believe that having the proper tools to be able to succeed is important. The Undergraduate Library is not only a super interesting place to see (it is both undergrad and underground!), but we do have the third-largest academic library in the world, right after Harvard and the Library of Congress! The People This might be equally as important to consider as education. Making sure you get a feel for the people who will be living on campus and going to school with you will give you a sense of if you feel the school fits your personality. One good place to go for this is the Main Quad. In this open area, you will see a ton of students either making their way to class, advertising for their club, playing a game of some sort, traditional or non-traditional, or simply laying out to relax. Another place to go is an athletic game if one is going on. The student section in the games are filled with passionate people having a good time. Academic Buildings The classroom environment is something that can really impact the way one learns. Going into the buildings that have the classes for your major is always a good idea, but check out some of the other buildings, too. You might be in a different building than you thought for electives or general education classes. Some of the more interesting ones  are the Krannart Center for the Performing Arts, the Bardeen Quad (the Engineering Quad), and the Carl R. Woese Institute for Genomic Biology. The more interesting the classroom, the more fun the learning experience! The Engineering Quad! (Picture from Illinois Admissionss Flickr) Chisom Class of 2020 I'm a Kinesiology major in the College of Applied Health Sciences. I'm a first-generation American; my twin and I were born in Oak Park, Illinois. The rest of my siblings were born in Nigeria. I'm a pole vaulter and sprinter on the Illini track team.

Roman Society During the Period of Kings the Republic

Marketing Industry The Largest Bookstore Chain - 1043 Words

Industry Description Book retailing is an industry where companies sell books and other reading media, including, audio books, e-books and e-readers. Some bookstores sell other products including DVDs, stationery and gifts. Price Waterhouse Coopers (PWCS) world network reports sales of sixty billion globally, including e-books (Hoovers Inc, 2016). Most Book retailers operate from storefronts, although some bookstores also operate online. Barnes Noble US, Fnac France, Page One China, Thalia Germany, and WH Smith UK are prominent companies in this industry. (Hoovers Inc, 2016). According to Yee, (n.d.). Dymocks is the largest bookstore chain in Australia; others include Collins Booksellers, Books and Gifts and department stores such as Meyer however, the book retailing industry is largely composed of small single storefront operators the largest chains making up only 40% of the market share (IBISWorld, 2016). Some retailers operate entirely online, prominent online retailers include Amazon and Booktopia ( Keshen, 2016). Some retailers sell a range of books, others specialise in a particular area of interest including, the Co-op Bookshop that retails textbooks or Book cafà © which sells children s books (Finding a bookstore, 2016). Significant Issues Facing Entrepreneurs in This Industry There are a number of significant issues for entrepreneurs examining this industry. The book retailing industry has faced a number of strong challenges recently. According to ibisworld,Show MoreRelatedMarketing Industry : The Largest Bookstore Chain1043 Words   |  5 Pagesâ€Æ' Industry Description Book retailing is an industry where companies sell books and other reading media, including, audio books, e-books and e-readers. Some bookstores sell other products including DVDs, stationery and gifts. 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Only a fraction of the titles available on its Web site are actually on shelves in one of its two warehouses. Most of the time, Amazon.com doesnt order a particular book from a distributor until after a consumer has ordered Marketing Industry The Largest Bookstore Chain - 1043 Words Industry Description Book retailing is an industry where companies sell books and other reading media, including, audio books, e-books and e-readers. Some bookstores sell other products including DVDs, stationery and gifts. Price Waterhouse Coopers (PWCS) world network reports sales of sixty billion globally, including e-books (Hoovers Inc, 2016). Most Book retailers operate from storefronts, although some bookstores also operate online. Barnes Noble US, Fnac France, Page One China, Thalia Germany, and WH Smith UK are prominent companies in this industry. (Hoovers Inc, 2016). According to Yee, (n.d.). Dymocks is the largest bookstore chain in Australia; others include Collins Booksellers, Books and Gifts and department stores such as†¦show more content†¦Over the five year period until 2015-6, there was an annual decline in revenue of 10.6% (ibisworld, 2016). Numerous challenges have beset the industry, such as, lower book prices, strong competition from online retailers and a change in popular ity from printed books to e-books (ibisworld, 2016). Other issues that have a significant effect on bookstores are parallel import restrictions (IBISWorld, 2016), and online retailers being advantaged by low freight charges and often no requirement to pay (GST) Goods and Services Tax (ABC, 2016). Encouraging Signs However, there are encouraging signs according to Williams, (2015) who points to the icon of bookstores Dymocks, which claims to have had its best ever sales year. Sydney book retailer Jon Page noted an upward surge in sales in the final quarter leading up to Christmas, a period that accounts for around 70% of annual sales (Han, 2015). According to the Nielsen book scan data, there were 55.4 million in sales of printed books in Australia last year, a 2.2% increase over the previous year, the first sales increase since 2009. (Han, 2015). Some of the downturns in printed book sales may be as a result of economic conditions which have affected all retailers. According to Page, (n.d.) the global financial crisis has dramatically changed retailing regardless of your product (Han, 2015).The chief executive of the Australian Booksellers Association, Joel Becker commented,

Sexual Intercourse and Circumstances Gonorrhea Free Essays

Gonorrhea is a bacterial disease that is an infection caused by gonococcus bacteria. This bacteria is round shaped and can live only in dark, warm, moist places. These places would include; inside your body, cervix, penis, throat, and rectum. We will write a custom essay sample on Sexual Intercourse and Circumstances Gonorrhea or any similar topic only for you Order Now It usually involves the urethra in males, and vagina, cervix, and fallopian tubes in females. For 2-9 days there are no symptoms of Gonorrhea. There can a lot of burring during urination and thick green-yellow discharge from the penis or vagina.Also, there may be rectal discomfort and discharge, joint pain, a mild rash, or sore throat and swollen glands. For men, the opening of the penis may be red and sore. Symptoms of gonorrhea show up more in males than in females, in fact, about half of the women with gonorrhea have no symptoms. Effects of this disease could include; gonococcal eye infection, blood poisoning, infectious arthritis, pelvic inflammatory disease, epididnmitis, endocarditis, sexual impotence in men, and infertility in women.Also, pregnant women can infect unborn babies. In females the infection occurs in the urethra, the vagina, or the cervix. Although discharged and irritation of vaginal mucous membranes may be severe, and fatal.. Gonorrhea is diagnosed by staining a smear of the discharge to expose the bacteria. Treatment in the early stages is usually effective. In females gonorrhea seems to strike selectively at the cervix. Eighty percent of females with gonorrhea have no immediate signs or symptoms. One symptom in women is a foul smelling vaginal discharge.Since vaginal discharges are not uncommon, women should be alert to any change in the color, odor, or other appearance of discharges. If gonorrhea has affected the urethra, women may experience a burning sensation upon urination. Gonorrhea can be diagnosed by tests that include blood studies. There could be laboratory cultures and microscopic analysis of the discharge from the reproductive organs, rectum, or throat. You will have to obtain some of the symptoms before the doctor will confirm that the tests be administered. This disease is transmitted by sexual contact.Any form of sexual penetration, oral, anal, and vaginal can transmit gonorrhea. There are other ways you can catch the disease, but they are not common. A person with gonorrhea can infect another area of their body by touching the infected area and transferring the excretions. Gonorrhea can also spread through clothing or wash clothes if used by an infected person, and then by someone who isn’t infected. Sometimes infected secretions from the vagina drip down around the anus can cause infection in women. Gonorrhea is treated with antibiotics.Common ones include: ciprofloxacin, ofloxacin, cefixime, certriaxone, azithromycin, you can also take non-prescription drugs such as Tylenol or aspirin to reduce discomfort and inflammatory pain. The period of communicability for gonorrhea is uncertain but can last as long as discharge continues anywhere from three to six months. Precise diagnosis of gonorrhea requires cultures of discharge specimens. Under most circumstances gonorrhea is easily treated. It is now clear that great amounts of penicillin may be necessary to kill some resistant strains.Untreated gonorrhea may result in irreversible complications. Infertility and sterility can develop in males and females. Gonococcal arthritis in major joints is a generalized infection that irreversibly damages the brain, heart, liver and other key organs and can be present in either sex. The most reliable form of protection is the use of condoms during sexual episodes. STD’s is a very serious matter and it can be fatal, the sexually active individual should also be selective about sexual partners and stay alert to obvious signs and symptoms of disease.Not being wise in your selections can cause you to be infected by the STD, and not being wise in your selections can cause death. No matter what situation your in always use a condom, that is The best way to avoid sexual transmitted disease like Gonorrhea, you have a 90% chance of not getting infected. A 100 % chance of not getting infected wit STD’s is through abstinence. Gonorrhea http://www. marchofdimes. com/pnhec/188_712. asp http://www. smartersex. org/stis/gonorrhea. asp http://www. vdh. virginia. gov/Epidemiology/factsheets/Gonorrhea. htm http://www. womenshealth. gov/faq/gonorrhea. cfm How to cite Sexual Intercourse and Circumstances Gonorrhea, Papers

Australian Taxation Gross-Up Rates

Question: Describe about the Australian Taxation for Gross-Up Rates. Answer: 1. The information extended in the given case has been summarised below in wake of relevant facts. A holiday home situated in Blue Mountains has been sold by Fred in the current tax year for a total sun of $ 800,000. This particular holiday home was bought by Fred nearly two decades ago i.e. in 1987 for a price of $ 100,000. There are various other costs that have been incurred by Fred in relation to the buying and selling of the holiday home and also for construction on the asset which effectively would be considered while calculation of the cost base associated with the holiday home. Additionally, certain information has been provided with regards to the accumulated capital losses from previous years on account of sale of assets. In wake of the above, the concern is to compute the net capital gains for Fred for FY2016 that would be subjected to CGT liability. CGT applicable or not Holiday Home The first step is to determine if the capital gains that are derived from holiday home sale would attract CGT or not. In this regard, it is noteworthy that all those assets which are bought before September 20, 1985 would be exempt from the application of CGT (Gilders et. al., 2016). Apparently, the holiday home does not fall in the above category and hence CGT would apply on the capital gains derived from the home sale. Calculation of capital gains For computation of capital gains from any asset, the primary step is to determine the cost base of the asset. In accordance with Section 110-25, the cost base of the asset would typically consist of the following elements (Nethercott, Richardson Devos, 2016). Buying price of the asset Incidental costs in relation to taking asset possession and ownership Incidental costs in relation to sale of asset Costs of construction which lead to asset value enhancement Costs undertaken to maintain asset possession In wake of the above discussion, the cost base of Blue Mountain based holiday home is computed below. Price at which holiday home bought in 1987 = $ 100,000 Incidental expenses while purchasing holiday home in 1987 = 1,000 (Legal Fees) + 2,000(Stamp Duty) = $3,000 Incidental expenses while sale of holiday home in FY2016 = 1,100 (Legal Fees) + 9,900 Real Estate Agent Commission = $ 11,000 Money spent during garage construction = $20,000 Total cost base of Holiday Home = 100,000 + 3,000 + 11,000 + 20,000 = $ 134,000 Considering that Fred is an individual taxpayer and the fact that property was bought before September 20, 1999, thus two methods namely discount method and indexation method are available for derivation of capital gains that are taxable (Deutsch et. al., 2015). As the discount method allows for a 50% concession on the long term capital gains, hence it would result in lower CGT liability and would be used to calculate taxable capital gains (Section 115-25) (Barkoczy, 2015). Hence, the proceeds obtained from the sale of the house = $800,000 Total cost base of the holiday home as computed above = $ 134,000 Capital gains (Holiday Home) =Sales proceeds (Holiday Home) Cost Base (Holiday Home) = 800,000 134,000 = $666,000 The case information states that Fred has an accumulated capital loss to the tune of $ 10,000 from the previous year on account of losses in share investments. The capital loss on shares would be adjusted against the corresponding capital gains made on the holiday home sale and finally the net amount would be applied the discount method to arrive at the capital gains for FY2016 on which CGT would be applicable (Sadiq et. al., 2014). Thus, capital gains for Fred in FY2016 = 666,000 10,000 = $656,000 Concession of the above capital gains as per the discount method = 0.5*656000 = $ 328,000 Thus, capital gains that would atleast CGT in FY2016 = 656000 - 328000= $ 328,000 Antique vase related previous year capital loss of $ 10,000 In the given case, there would be change in the value of the taxable capital gains, as the capital losses on antiques must be adjusted against future capital gains from antiques only. Hence, there would not be any impact of this capital loss as this will have to be carried to the next year (CCH, 2013). Thus, capital gains for Fred in FY2016 = 666,000 Concession of the above capital gains as per the discount method = 0.5*666000 = $ 333,000 Thus, capital gains that would atleast CGT in FY2016 = 666000 - 333000= $ 333,000 2. The objective in the case study provided is to analyse the host of fringe benefits that Periwinkle has given to Emma and in light of the relevant provisions of the Fringe Benefit Tax Assessment Act, 1986 (FBTAA, 86), comment on the FBT (Fringe Benefit Tax) liability for the employer, Periwinkle. Car fringe benefit Section 8, Division 2A advocates that car fringe benefit are provided to employee only when the employer owned car is utilised by employee for personal use. However, if the use of the car is limited to only use for professional work, then car fringe benefit would not arise. In the situation given, it is known that Emma does utilise the car for her personal works also and thereby there is no denying the extension of car fringe benefit (Barkoczy, 2015). The statutory formula for estimating the taxable value of car fringe benefit has been given by Section 9, Division 2B and stated below (Wilmot, 2012). The requisite inputs that are required above are computed as shown below. Base value of car = Purchase price paid by the employer Repairs = (33,000 550) = $ 32,450 The applicable rule states that a statutory percentage of 20% is valid for all cars whose purchase date lies after April 1, 2014 irrespective of the usage and the distance covered during the year. Periwinkle has purchased the car in 2015, thus applicable statutory percentage for the given case would be 20%. (ATO, 2016b). Car availability (FY2016) = 366 30 (Emma got the car only on May 1) 5 (Out for repairs) = 331 days It is worth noticing that the period for which car was at the parking is not deductible as the car was very well available for use but the employee Emma could not use the car as she ws not in the city (Gilders et. al., 2016). Grossed up value for the car fringe benefit = $ 32450 20% 331/365 2.1463 = $ 12,631.95 Periwinkles FBT liability = 12,631.95 *0.49 = $ 6,190 Loan fringe benefit As per Section16, Division 4A, loan fringe benefit would arise if interest savings are accrued by the employee on account of no interest charged or lower interest rate charged by the employer in comparison to the applicable RBA (Reserve Bank of Australia) rate (Deutsch et. al., 2015). The rate of interest charged by Periwinkle = 4.45% pa The rate of interest advocated by RBA for FY2016 (TD 2015/8) (ATO, 2015) = 5.65% pa As the rate of interest charged by employer is less than the corresponding rate announced by the RBA, hence some interest cost would be saved by the employee and hence would lead to loan fringe benefits (Sadiq et. al., 2016). It is critical to note that Emma does not have loan for the complete financial year but rather a part of it as lending was executed on September 1, 2015. Days for which Emma took the loan = 213 Absolute value of Loan Fringe Benefit given to Emma = 500000*(5.65% - 4.45%)*(213/366) = $ 3,491.8 Grossed up value of corresponding benefit = 3,491.8*1.9608 = $ 6,846.72 Periwinkles FBT liability = 6,846.72*0.49 = $ 3,355 Expense fringe benefit The useful facts from the given case study are detailed below Bathtubs unit sale price in market =$ 2,600 However, price at which bathtub offered to Emma = $ 1,300 It is apparent that on an item which is meant for personal use, an expense of $ 1,300 is saved, which amounts to expense fringe benefit for Emma from Periwinkle (CCH, 2013). It is also known that bathtub sale attracts GST due to which the applicable gross up factor for calculation would be 2.1463 (ATO, 2016a). Expense Fringe Benefit (EFB)- Bathtub) taxable value = (2600-1300)*2.1463 = $ 4,078 Periwinkles FBT liability = 4078*0.49 = $ 1.998 In line with the information provided, the component of loan to the tune of $ 50,000 which the husband was using before now is being used for Emma for generation of income from trading in shares. This would allow the employer to claim higher tax deductions on account of the incremental loan amount being used by Emma for producing taxable income as calculated below (Nethercott, Richardson Devos, 2016). Periwinkles addition deduction on outstanding FBT liability = 50000*(5.65% -4.45%) = $ 600 Hence, due to the changed circumstance, Periwinkle would be able to reduce its outstanding FBT liability by $ 600. Reference ATO 2015, TD 2015/8, Australian Taxation Office, Available online from https://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20158%2FNAT%2FATO%2F00001%22 (Accessed on September 20, 3016) ATO 2016a, Gross-up rates for FBT, Australian Taxation Office, Available online from https://www.ato.gov.au/rates/fbt/?page=3 (Accessed on September 20, 3016) ATO 2016b, Car fringe benefits statutory formula rates, Australian Taxation Office, Available online from https://www.ato.gov.au/rates/fbt/?page=4 (Accessed on September 20, 3016) Barkoczy,S 2015, Foundation of Taxation Law 2015, 7th eds., CCH Publications, North Ryde CCH 2013, Australian Master Tax Guide 2013, 51st eds., Wolters Kluwer, Sydney Deutsch, R, Freizer, M, Fullerton, I, Hanley, P, Snape, T 2015, Australian tax handbook 8th eds., Thomson Reuters, Pymont Gilders, F, Taylor, J, Walpole, M, Burton, M. Ciro, T 2016, Understanding taxation law 2016, 9th eds., LexisNexis/Butterworths. 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