Fringe benefits tax: will the taxable value of a loan fringe benefit be reduced by premiums on a life assurance policy held by an insurance agent where that policy is required to be held as a condition to the granting of the loan?

No. Section 18 of the Fringe Benefits Tax Assessment Act 1986 defines the taxable value of a loan fringe benefit to be the difference between the 'notional' interest (based on the statutory interest rate), and the interest accrued on the loan.

The life assurance premiums are payments made towards the purchase or maintenance of a life assurance policy and have no effect on the calculation of the taxable value of a loan fringe benefit.