ITAA 1997 s 24 of the FBTAA has a related effect in the circumstances in question, when determining whether or not the employee does satisfy the income requirement in subsection 35-10(2E)

Fringe benefits tax: when an employer reimburses an amount of expenditure incurred by an employee to a third party, under a salary sacrifice (or similar) arrangement with that employee where that expenditure is notionally subject to Division 35 of the Income Tax Assessment Act 1997 , is the amount included under subsection 35-10(2E) increased when applying the 'otherwise deductible rule' in section 24 of the Fringe Benefits Tax Assessment Act 1986 ?