An Examination of General and Specific Motivational Mechanisms Essay Example for Free

An Examination of General and Specific Motivational Mechanisms Essay Luc G. Pelletier and Stà ©phanie C. Dion’s report entitled An Examination of General and Specific Motivational Mechanisms for the Relations Between Body Dissatisfaction and Eating Behaviors aims to examine the relationship of body dissatisfaction with eating behaviors through a study of the different models of regulation of eating behaviors used by women. The study mainly uses the Self-Determination Theory (SDT) as a framework for examination of socio-cultural pressures and the `thin-ideal` as factors for body dissatisfaction and, in turn, body dissatisfaction as a cause of eating-related problems like binge eating, dietary restraint, and bulimia. Lastly, the study also looks at two different levels of motivation to explain the differences in the responses of women to socio-cultural pressures regarding body image, which lead to a difference in eating patterns. These two are the general self-determination or a sense of self-determination toward ones life and self-determination towards eating. Negative body image and its causes and effects have been the subject of many studies during the past decade. Due to its popularity as a topic for research, many of its findings are well-known and accepted by society at present. Among these are the role of media, peers, family, puberty and others in reinforcing the thin ideal, the relationship of women’s perceived discrepancies between their body ideal and body image with their satisfaction with their own body and the effect of negative body images to women’s eating habits. However, a review of the existing literature about body image reveals many interesting and sometimes unexpected findings. The first among these is the main basis of this study, which is self-determination. Deci and Ryan’s Self-Determination Theory shows that the level of women’s general self-determination in life may serve as a shield against the effect of the pressure exerted by society for women to be thin. This is interesting because this will show how body-image can be approached as a cyclical issue when joined with the findings on how positive body image can lead to confidence then to a positive self-determination. Second, body image may have an effect on many positive qualities such as attractiveness, success and intelligence. This shows attractiveness as more than just a fixed variable. It is not merely affected by the physical attributes one is born with, but also by how one feels about these physical attributes. Moreover, it emphasizes the gravity of the consequences that either a positive or negative body image may cause. Its affects can extend onto many non-physical aspects of a person’s life. In fact, another research shows that pressures from society to be thin can change individual core beliefs as regards the importance of physical appearance compared with other values. Another interesting finding is that body dissatisfaction may be addressed by either self-reinforcement or by aiming to change one’s appearance. People are more familiar with the second approach, which includes exercising and dieting. However, it is interesting to find that grooming and other forms of self-reinforcement are also used. While these forms of self-reinforcement may have been admitted to be used by people to enhance their self-image, it is not easily identifiable to have a direct correlation to body image. Moreover, this type approach shows a more positive and less destructive way of addressing issues on body image.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Seven hypotheses were tested in the research. They are stated in the article as follows. First, general self-determination will be negatively associated with both socio-cultural pressures about body image and the endorsement of society’s beliefs about thinness and obesity. Second, socio-cultural pressures should be positively linked to the endorsement of society’s beliefs, which, in turn, will positively predict body dissatisfaction. Third, although body dissatisfaction is expected to positively predict both an autonomous and a controlled form of regulation of eating behaviors, it should lead mainly to a controlled regulation of eating. Fourth, the autonomous form of regulation of eating will be positively associated with healthy eating behaviors, whereas the controlled form of regulation will be positively associated with dysfunctional eating behaviors. Fifth, general self-determination should be positively associated with the autonomous form of regulation and negatively associated with the controlled form of regulation. Sixth, the autonomous regulation of eating behaviors will be positively associated with healthy eating behaviors and negatively associated with bulimic symptoms, whereas the controlled regulation of eating behaviors will be positively associated with dysfunctional eating and negatively associated with healthy eating behaviors. Finally, healthy eating behaviors should positively predict psychological adjustment, whereas dysfunctional eating should negatively predict psychological adjustment. These hypotheses aim to test the relationship of general self-determination, body image, body dissatisfaction, forms of regulation of eating behaviors, eating habits and psychological adjustment among each other. Methodology The study was done on 447 female students, ages 16 to 54 from two universities—the University of Ottawa and the Carleton University. Of these students 78.2% are taking undergraduate degrees from the University of Ottawa, 20% are graduate students from the same university, while the remaining 1.2% are enrolled at Carleton University. The researchers adopted several scales and indexes to test its hypotheses. Enumerated in the study are the General Motivation Scale (GMS), Teasing Assessment Scale, Body Dissatisfaction Subscale (EDI-BD), Regulation of Eating Behaviors Scale (REBS), Healthy Eating Habits Scale, Dysfunctional Eating (BULIT-R), Psychological Adjustment Index (PAI), Depressed Mood Scale (CES-D), Self-Esteem Scale (SES) and the Satisfaction with Life Scale (SWLS). The tests are composed of statements and questions, which the respondents assess using a Likert scale with around five to seven points for rating. The scales are usually divided in several subscales with equal number of items based on the nature of the hypothesis being tested. They have been previously used in other studies and their reliability and validity have been tested. Results and Discussion The study was able to prove all six hypotheses. These hypotheses will be discussed in three groups. These groups are general self-determination and determinants of body dissatisfaction, general self-determination and forms of regulation of eating behaviors and consequences of the forms of regulation of eating behaviors on psychological adjustment. The last group will be divided into the association of autonomous and controlled eating regulation to healthy and dysfunctional eating habits and the relationship of eating behaviors with psychological adjustment. The first discussion group pertains to the first and second hypotheses. Findings show that general self-determination has a positive association with autonomous regulation of eating behaviors, while it has a negative association with controlled regulation of eating. In relation to this, general self-determination has a negative relation with socio-cultural pressures about body image and the endorsement of society’s beliefs about thinness and obesity. On the contrary, socio-cultural pressures about body image and endorsement of society’s beliefs about thinness and obesity have a positive association, while the latter is positively associated with body dissatisfaction. The cause for this result was explained to be that the more women perceived socio-cultural pressures about body image, the more they internalized societal beliefs about thinness and obesity, which causes them to have body dissatisfaction. However, general self-determination allows them to be more motivated to act according to their own values, rather than be pressured socio-cultural messages of thinness. People with general self-determination are more likely to measure self-worth based on personal growth, meaningful relationships and other intrinsic values, rather than by using extrinsic values such as physical attractiveness. The second discussion group relates to the third and fifth hypotheses. It was found that both autonomous and controlled eating behaviors are good motivational mechanisms and have a positive association to body dissatisfaction. However, the association of controlled regulation, which is ÃŽ ² = .74 is stronger than autonomous regulation’s ÃŽ ² = .14. In addition to this, it was found that general self-determination in life caused them to be self-determined in the regulation of their eating behaviors, which is a specific life domain. The third discussion groups relates to the fourth, fifth and sixth hypotheses. As for the fourth and sixth hypotheses, majority of women who are dissatisfied with their body image eat in a restrictive manner due to the motivation to reduce body dissatisfaction caused by internal pressures such as guilt or shame or external pressures such as media and parents about body image and the endorsement of beliefs about thinness and obesity. Controlled regulation has a positive association with dysfunctional eating behaviors and a negative associated with healthy eating behaviors. On the contrary, women with greater self-determination tend to have healthy eating habits because they have less probability of perceiving socio-cultural pressures about body image and internalize societal beliefs about thinness and obesity. Unlike its negative relation with dysfunctional eating behaviors, autonomous regulation has a positive relation to healthy eating behaviors. Lastly, as regards the last hypothesis, positive psychological adjustment are found have a positive connection with healthy eating behaviors. On the contrary, it has a negative relation with dysfunctional eating behaviors. The results of the study suggest that healthy eating behavior may be a necessary condition for global psychological adjustment. These findings may provide new approaches to understanding and treating body image-related issues and eating disorders. Having built the relationship between body dissatisfaction and eating disorders, specialists may focus on increasing self-esteem rather than emphasizing the evils of unhealthy eating habits. They may also begin looking at the motivational perspective introduced in the study and adapt treatment according to what motivates a woman to adopt weight control habits. Summary In summary, the results were interpreted to show that societal pressures and self-determination may be seen as competing factors that determine body dissatisfaction, with societal pressures as the cause for the endorsement of societal beliefs about obesity and thinness, while self-determination as the buffer against it. Both body dissatisfaction and self-determination have an effect on the kind of eating regulation a woman may adopt. This may result to either a healthy or dysfunctional eating habit among women. However, the authors offered an alternative explanation for the results. The explanation is actually a reverse of the second hypotheses. According to the authors, body dissatisfaction may have been the cause for women to endorse society’s belief, rather than the inverse, because such dissatisfaction may lead women to pay more attention socio-cultural pressures about body image.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Several other topics related to this area of research may be examined in the future. First, researchers can look at satisfaction or dissatisfaction caused by the body image formed relative to the body type of the person with whom a subject has constant contact with. Some people may feel less overweight when placed with obese people than when placed with thin people and vice versa. Second, researchers may delve into more deeply into other means women address body dissatisfaction such as exercise, and determine what factors cause women to choose a certain approach. This may also be related to general self-determination such that researchers may examine which between exercising or other means of addressing body dissatisfaction and dieting, or a combination of both, is used by women with different levels of self-determination. Lastly, the present study may also be replicated using different genders, attributes, and means of addressing body dissatisfaction. Very interesting results may arise from the study of gays and lesbians.

High Stakes :: essays research papers

High Stakes   Ã‚  Ã‚  Ã‚  Ã‚  Presently, America is experiencing a gambling boom. Everywhere you look there’s at least one advertisement involving gambling. Whether it’s a new Las Vegas hotel or a one-dollar scratcher, it seems to catch people’s eyes. Although it may look like a lot of glam and hype, there’s a dark side to the gambling industry, one people overlook the harsh consequences of. The gambling industry grasps a hold of everyone’s attention. Lotteries appeal to the low economic levels of society as a way to change their lives forever. One pull of the lever on a slot machine can make you an instant millionaire. On the flip side, there are those who gamble for excitement and entertainment reasons. They create a lifestyle of risk taking and chance, often ending up with making the wrong decisions. Most People like the thrill of sitting down in front of a slot machine and pulling the lever in hopes of winning a bundle. The opportunities are endless. So, what does the gambling tell us? A dollar and a dream, that’s all it takes. The gambling industry has grabbed a hold on our society. Roughly three quarters of all Americans gamble. Presently, 48 out of 50 states allow one or more forms of legalized gambling. Sure, the government is going to support gambling, but not without getting a healthy share of the profits. They use political smoke screening. What most Americans don’t know is that promotions and advertisements are producing such small amounts of proceeds that it yields very little funding to public projects. Politicians say that by legalizing gambling, we reduce illegal gambling and organized crime. What its actually doing is enlarging the pool of bettors. Even though casinos have created a number of jobs, the cost to society is greater than the benefits. People are arguing that the jobs created by casinos are low paying and offer little opportunity for the worker in progress. Furthermore, the creation of these casino jobs has taken away jobs from other areas of the economy. Restaurants near casinos are being forced out of business by the cheap buffets that casinos offer, to draw people in.

C P Snow and the Second Law of Thermodynamics Essay

The scientist and the literary intellectual represent two cultures that are drifting apart from each other to such an extent that each is becoming increasing ignorant of and alien to the other, and because they must represent a body of knowledge as a whole, the consequence is that, though specialization, both the scientist and the intellectual are becoming effectively ignorant. Analysis: Though C P Snow claims to be speaking from a common ground between the two cultures that he envisages, I would argue that he is squarely placed in the scientific camp, and is by no means an intellectual. The manner in which he describes the rift between the two cultures has a distinct whiff of â€Å"shallow optimism† about it, which is the intellectual trait of the scientist. He advocates a simple dialogue between the two camps, which is very much reminiscent of Enlightenment thinking, which, before the advent of modern science, maintained that scientific education was the key to overcoming all social ills, and dialogue is but a means to educate each other. Snow is right in thinking that the two camps had grown apart unawares, and that at one time the cultured man endeavored to keep abreast of knowledge as a whole. But a fundamental point seems to escape him, and that is that modern science entails specialization, and neither does he suspect that it could be the root of the problem. While he acknowledges the existence of specialization in science, he tries to make out that it need not be divisive. His advocacy is of a holistic understanding, and on the strength of this plea he wants to effect a negotiation between the two camps. â€Å"Don’t carry your specializations too far,† he seems to be saying to both the scientists and the intellectuals, â€Å"because both the arts and the sciences are important, and one is in danger of becoming ignorant if one loses complete touch with any one of them. † The propositional content of his plea is correct, but the mistake is to sound it on the platform of modern science, which is divisive in its fundamental aspect. If one is committed to the scientific outlook one must live with specialization. We can take his example about the literary intellectual knowing the second law of thermodynamics as a testing point. He thinks that literary intellectual should at least know this law, which is accepted among physicists as being fundamentally significant. The equivalent feat of for a physicist would be of having read a play by Shakespeare, he suggests. But concentrating on the first point, why should one know the second law of thermodynamics if one will never question its validity? Science functions by constant questioning, and no scientist is ever trained to carry absolute dictates about with him. A literary intellectual may come to it in two ways. He may absorb it as in inviolable dictate, in which case it would not be science at all. Or he may come to it with the proper outlook of the scientist, which is the questioning one. If on the second trajectory, he may either be captivated by the question, or he may deem it not worth his while. If he is captivated, and he remains honest to his intellectual proclivities, then he cannot but pursue the question further, to the detriment of usual literary occupation. But it is more likely that he deems it not worth his while, in which case he returns to the field in which he is proficient and interested. And in due course, through neglect, he forgets how to state the scientific principle at all. If the last is the most natural and likeliest outcome, there is little point in pushing the second law of thermodynamics to the literary man. He has arrived at the status quo of not knowing the law at all, because that is the most natural state of affairs for him. In his situation he has better things to occupy himself with. For Snow to suggest that he ought to know the second law smacks of the arrogance of science, which is an arrogance rooted in naive optimism. Then again, a scientist should only be expected to enjoy a performance of Shakespeare, but certainly not to analyze it. Literary understanding calls for a profound understanding of human nature, which is certainly not part of the equipment of the scientist, who is trained to detect only empirical evidence. To tell a scientist to analyze King Lear would only confuse him, and if he tried too hard it would blunt his scientific perception. Snow would be better advised to consider the underlying philosophy of science, rather than external practice of the separate disciplines. It is a tacit understanding among members of the scientific society (of which literary intellectual are a part) that each practice his own specialization. Only the fruits are to be enjoyed by all, and this is the true egalitarian dimension of atomized science. The notion of â€Å"progress† comes from the understanding that the fruits of specialization confer on all, and it is this notion of progress that binds all members of scientific society. In its original conception modern science was defined as an egalitarianism of knowledge, and apparent loss of this is what Snow is lamenting. But such egalitarianism has not disappeared; it has only become impractical for a single person to keep up with the expanding body of knowledge. But more important than knowledge sharing is the philosophy that underpins it, and this philosophy still unites the particle physicist and the Shakespeare man. In calling for a new, and strained, egalitarianism of knowledge, Snow is only betraying his naivete of the world, which is the characteristic naivete of the scientist daring to speak on the humanities. Works Cited Snow, Charles Percy. The Two Cultures. Ed. Stefan Collini. Cambridge, UK: Cambridge University Press, 1993.

What Can t Be Changed During The 1900 S - 1349 Words

Alex Garcia Mr.Cooper English 11 30 December 2016 Trying to Change what Can t be Changed During the 1900’s, homosexuals were sent to mental institutions to â€Å"cure† them of what was thought to be a disease. There they underwent shock therapy, one of the many methods used in conversion therapy. In 1920 Sigmund Freud began the practice of changing a person s sexual orientation from homosexual to heterosexual. In the beginning homosexuality was also deemed as â€Å" a negative human characteristic caused by immaturity, pathology and family dynamic† (Scoolaid.net). Soon its popularity had scientists such as Eugen Steinach, Sandor Ferenczi as well as his daughter Anna Freud partake in the practice. If they were not sent to mental†¦show more content†¦In â€Å"refusal to identify with masculinity† , a gay male may also want to be â€Å"cured† due to the inability to bond with straight males. As stated by a client of Joseph Nicolosi â€Å" these monolithic macho things I couldn’t relate to†. Nicolosi and Freeman beli eved that due this inability a homosexual may feel â€Å"too superior or inferior to establish the mutuality necessary for friendship† (Healing Homosexuality). Having a platonic relationship with the same sex isn’t always easy due to the fears a heterosexual may have when they have a homosexual friend. The lack of same sex friends can allow for one to often feel isolated. Carl Charles, a survivor of conversion therapy, had his pastor say â€Å"you think Jesus wants you to be a dyke? You think Jesus died so you can march down the street with all your faggot friends?† (advocate.com) This so called â€Å"therapy† made Carl feel isolated: â€Å"I couldn’t tell my friends, and adults I thought I could trust† (advocate.com). Not only is isolation one of the effects of conversion therapy but an APA study done in 2009 concluded that â€Å" depression, guilt, helplessness, shame, social withdrawal, suicidality and self-blame† are risks taken when enacting in the therapy. The study also concluded that these â€Å"risks are even greater for youth. Minors whoShow MoreRelatedEssay on Intro to Human Services129 6 Words   |  6 Pagesservices from the early 1900s to the present day. 2 Throughout History Human Services made a big impact and a difference in our society as we know it today. Through the sociological era in the 1900s many were faced with challenges such as financial support for the poor and no support or guidance for the children, developmentally disabled and the mentally ill. Human Services make positive and lasting differences in peoples lives, and they help improve the world. The early 1900s, sometimes calledRead MoreAnalysis Of Ford s Assembly Line1556 Words   |  7 PagesTechnology can impact different denominations of religious affiliations. For example Muslim, Catholic, Christians, Judaism, and etc., can use and see technology differently. 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University s Master Of Social Work Program - 1252 Words

On August 8, 2014, I relocated to Fayetteville, North Carolina from Bahama, North Carolina to attend Fayetteville State University’s Master of Social Work Program. Fayetteville, North Carolina’s significant military population and the academic program offered many opportunities to students interested in researching and practicing with military personnel and their families initially generating an interest for me in the program. Within the first twenty-fours of living in Fayetteville, North Carolina, I had the opportunity to experience the military culture and the pride that residents exhibited for military personnel. I observed military personnel in uniforms, multiple car magnets that stated, â€Å"we support our troops†, military discount signs†¦show more content†¦I have enrolled to complete five courses during the summer, and upon completion, I will have completed the Substance Abuse Certificate Program at Fayetteville State University. 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Women s Public Image And Policies Essay - 2344 Words

Historically women were not even given the chance to pursue education or even to vote, and now gender equality has became one of the most discussed topic in the nation. Even though many countries and cities are involved in the evolution of gender equality, their attainments on the issue vary, like the United States and Hong Kong. In the U.S., women are being presumed as incapable to finish hard task by themselves, or undeserved for a higher position in corporations. On the other hand, Hong Kong employs women on higher position, however, women’s media appearance are limited to only lingerie or clothing brands instead of professional billboard advertisements. While both places have taken actions towards gender equality over the years, China has a relatively more efficient approach on diversity in job employments, while the U.S. has achieved a more notable development on women’s public image and policies to regulate women’s right, which could be because of the cultu ral difference. 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Capital Gains and Personal Home Tax

Question: Discuss about the Capital Gains and Personal Home Tax. Answer: The proceeds received by Dave from sale of his residence at St Lucia is fully exempted from capital gains tax because as per ATO proceeds from a sale of personal home are fully exempted if the individual has been living it for the duration for which he/she has owned the property and the property hasnt been generating any assessable income. The proceeds received from the forfeiture by a buyer is also application for exemption under capital gains as it is falls under the capital proceeds from the disposal of the asset which was exempted due to it being the main residence of the tax payer. Due to the conditions given by ATO, therefore the forfeiture amount by the buyer is also exempt under capital gains. The painting is not eligible for exemption as neither was it purchased under $500 nor was it acquired before 16th September,1995 hence the net capital gains are taxable. So the net gains of 110,000 are to be taxed under capital gains tax. The figure of 110,000 dollars is the selling price less the acquiring price which are 15,000 and 125,000 respectively. The taxable amount can be arrived at using the two methods available i.e. the indexing method or the discount method subject to the method that yields the lowest value. Since the asset has been held for more than a year it is eligible for discount. Since the asset was acquired before September,1999 he can apply the indexation method to calculate the discount. The indexation factor is given by CPI in which the sale was made divided by the CPI for the quarter in which the initial investment was made. CPI values were obtained from the website of ATO to calculate the indexation factor as 2.7. Hence the cost of the painting would be incr eased by that factor to get the capital gain. Hence now capital gain would be 84,500 as the cost for calculating capital gain would be 40,500 dollars which is 15,000 multiplied by the indexing factor. But the discount factor gives a better result as under the discount method the capital gains are discounted by 50% hence under this method capital gains would be 55,000 dollars which is the net gains of 110,000 discounted by 50%. Since the discount method gives the better result which in this case is the lower value we would use this method to calculate the capital gain at 55,000 dollars. The capital loss on the boat boat which was purchased in 2004 would be calculated using the other method which would give the highest possible result of 50,000 dollars. The amount is obtained by subtracting the sale price of 60,000 dollars from the acquisition cost of 110,000 dollars. For the capital gain tax on the shares, other method will be used. The cost base would include the cost piece of shares and also the brokerage paid on the shares and the stamp duty. Hence total cost would be 71,000 dollars and since the shares were sold for 80,000 dollars the total capital gain is 9000 dollars. Its explicitly mentioned that the interest charges are not to be included in the cost base. Hence, the net capital gain from sale of painting and shares is 64,000 dollars Net capital loss from sale of boat is 50,000 dollars Hence net capital gain of 14,000 dollars for Dave for the current year. Since Dave has had a net capital gain of 14,000 dollars he can use this to deduct the net capital loss carried forward from the previous year which amounts to 50,000 dollars. His net capital loss would now stand at 36,000 dollars as the capital gain this year would be deducted from the carried forward capital gain loss. If Dave has a net capital loss it would be added to the capital gain loss carried forward from last year. Hence now his total capital loss would stand at 50,000 dollars and the additional capital loss incurred this year Capital loss cannot be used to offset the tax liability and would be carried forward and can be used to deduct it against capital gains in the coming years. To evaluate the fringe benefit arising from the use of a car, the first step is the employer calculating the taxable value of the benefit which can be done either of the below mentioned methods as per ATO. The statutory formula method which uses the cars cost price to calculate the tax liability The operating cost method which uses the quantum of cars running or operations to calculate the tax liability. The method of choice would be one which yields the lowest taxable value, rather than being dependent on the method used in the previous year. However, if the required documentation for the operating cost method (for example, log books) have not been kept then the statutory formula method must be used. The operating cost method requires the company to maintain a log book which specifics the usage of car in terms of business and non-business use. Since this has not been maintained the statutory method of valuation would be used to evaluate the taxable value of the fringe benefit arising from the use of the car. Under the statutory formula method, the steps involved are estimating the cost of the car, estimating the statutory rate and determining the number of days the car was used for private purpose. The taxable value is then given by A*B*C/365 where A is the base value of the car, B is the statutory rate and C is the number of days in use of the car in a given assessment year. The base value of a car is: The cost price of the car including which doesnt include registration and duty expenses, Charges incurred on the delivery Some standard accessories The cost price included the GST(Gross Service Tax) component. The statutory rate for calculating the fringe benefits tax would be 20% since ATO prescribes a flat tax rate of 20% for calculating the benefit provided if kilometres travelled are less than 15,000 kilometres. In fact, for any benefits provided after 2011 the tax structure is a flat rate of 20%. The car was available for the private use of Emma for 336 days. During the 11-month period or the 336-day period from 1st may to 31st March no days would be deducted in determining the number of days of usage of car as ATO clearly lists that annual maintenances are to be listed as days when it is available for use and whenever it is garaged at the employees house would also be not deducted, in this case when Emma was interstate would not be deducted, Keeping the above factors in consideration the tax liability would be calculated at 20% of the cost price of the car which is 33,000 and it would be factored by 336/365. Hence 6075 is the taxable value. A company is said to provide a loan fringe benefit if it extends to its employee a loan and charges no interest or a low rate of interest. Any interest rate lower than the prescribed or the benchmark interest rate qualifies as a loan fringe benefit. Thebenchmark interest ratefor the Fringe Benefit Tax for the assessment year ending March 31,2015 is given as 5.95% by ATO. Hence for the given scenario since the loan is provided by periwinkle to Emma at 4.5% it is a loan fringe benefit. The taxable value of a loan fringe benefit is the difference between: the interest that would have arisen on the amount extended as loan during the Fringe Benefit Taxable year had the benchmark rate been applicable, and the interest which the company charges the employee on the reduced rate of interest Since Emma uses the loan for purchase of a holiday home and for lending it to her husband the entire amount is to be taken into consideration. For the given scenario the taxable value of the loan fringe benefit is the difference between the two amounts 29,750 dollars and 22,500 dollars which is 7,250 dollars. While the former is the rate of interest charged by the company to Emma, the latter is the interest to be paid in accordance with the statutory rate in 2015. There is no specific information regarding cheap sale of its own products to its employees and neither is it under any exempt category but since the price Emma paid for it is anyways more than the manufacturing cost we exclude it from our scope of taking out the fringe benefits provided to Emma. Hence the total taxable value of the fringe benefits is the loan fringe befit of 7,250 dollars and the car fringe benefit of 6,075 dollars which is a total of 13,325 dollars. Hence the total fringe tax liability would be 6262.75 dollars as the fringe benefit tax is 47%. Had the 50,000 been used by Emma herself instead of being lent to the husband to buy the shares it would be eligible for deduction. ATO prescribes that the taxable value of a loan fringe benefit may be reduced in accordance with the 'otherwise deductible' rule, subject to the constraint hat the investment is made by the employee himself or herself rather than an associate which was the case in first place. Putting it simply it implies that the taxable value would be reduced to the extent to which interest payable on the loan is, or would be, allowable as an income tax deduction to the employee. We look at an example to understand the implications better. Supposing an employee uses a loan from his/her company wholly to invest in interest bearing financial instruments, then the interest that he would have to pay the company is deductible fully for tax purposes. Hence what the mentioned scenario implied is that under this rule the taxable value of the fringe benefit provided would be ze ro, irrespective of the rate of interest charged by the company on the loan. Therefore, where the otherwise deductible rule applies, the taxable value of a loan fringe benefit is: The interest accrued on the principal during the fringe benefit taxable year at the benchmark rate of interest, less by The interest arising at the lowered rate of interest, less The otherwise deductible amount. Hence for the given scenario the taxable amount under loan fringe benefit would be reduced by the differential interest paid on 50,000 dollars. This would mean that the loan fringe benefit would now be 6525 dollars instead of 7250 dollars and the total taxable amount under fringe benefit tax would be 12,600 dollars. References ATO, 2016. Capital Gains Tax. [Online] Available at: https://www.ato.gov.au/General/Capital-gains-tax/ ATO, 2016. Fringe benefits tax. [Online]Available at: https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/