The items below are exempt through the fringe benefits tax provisions making them deductable to the employer but not to the employee. If you believe you are eligible for one of these items it may be best to include it in your salary package or salary sacrifice the amount.
These are costs incurred when your employment related duties require you to relocation your place of residence. It can occur when acquiring a new job or when required to move locations for a current job. It can also include costs of moving back to your original location after those duties are complete. Common relocation costs are:
- Freight and Removalist costs
- Meals and accommodation cost to get to new location
- Storage of goods used predominantly by the family
Living away from home allowance (rent and food):
This allowance can be paid if employment duties require you to live away from your current place of residence and you will be still maintaining that residence for your personal use. Just be wary that there are very tight rules for claiming this exemption. This allowance can be paid for:
- Rental costs, and
- some food components above a statutory amount.
Remote area housing (rent in remote areas):
This exemption can be used by an employer to pay for rent for an employee working in a remote area without the need to pay fringe benefits tax.
Fly in Fly out transport to site:
The exemption can be used by employers of fly in fly out employees working in a remote location for transport costs from their place of residence to the work location. This can included costs incurred to and from the airport.
These costs can be both deductable to an employee and an employer however if paid by an employee the first $250 in costs is classified as personal and cannot be claimed as a tax deduction.
The information supplied is only meant to assist readers in their understanding of the law and is not intended to be taxation advice.