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Housing Benefits
A housing fringe benefit arises where an employer provides an employee a right to occupy or use accommodation as a usual place of residence. This accommodation includes the following: house, flat, unit, hotel, motel, guesthouse, bunkhouse, ship, oil rig, caravan or mobile home. If the accommodation cannot be described as the employee’s usual place of residence then the benefit will not be a housing benefit, but will be a residual benefit.
Note: Accommodation whilst travelling on business will definitely not be a housing benefit. Depending on the circumstances, expenditure of this type may be fully tax deductible.
Living Away From Home Allowance (LAFHA) Benefits
A living away from home allowance benefit arises where an employer pays an employee an allowance to compensate for additional expenses or disadvantages suffered because the employee was required to live away from his or her usual place of residence for employment purposes.
The following requirements must generally be satisfied:
- 1. The employee was required to live away from usual place of
residence;
- 2. The employee must be paid an allowance in addition to salary;
- 3. An allowance must be paid in respect of employment;
- 4. An allowance was paid to compensate the employee for
additional non deductible expenses and other living
disadvantages incurred because the employee is required to
live awayfrom home to perform employment duties.
Unless all four of these conditions are satisfied the amount paid to employees is assessable to them as a normal allowance. The extent to which a LAFHA benefit is subject to FBT will be determined on the basis of the facts, so please provide as much information as you can about such an arrangement if you think it applies to you.
If you require further information or assistance in preparing your FBT return feel free to contact us at fbt@krestondormers.com or on (02) 9874 8038
Property Benefits
A property benefit arises when an employee is provided with free or discounted property by the employer. Property includes goods, real property such as land and buildings and choses in action such as shares and bonds.
If you have provided employees with any goods during the year please provide as many details as possible (i.e. what was provided) to determine whether a fringe benefit has been provided.
Food and drink consumed by current employees on a working day on the employer’s premises is an exempt property fringe benefit. (note: this does not apply if you elect the 50/50 method for meal entertainment).
Note: Property is provided when the ownership passes. If ownership does not pass e.g. the employee used the property for a time then this would be classified a residual benefit.
If you require further information or assistance in preparing your FBT return feel free to contact us at fbt@krestondormers.com or on (02) 9874 8038 |
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