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Re: Remote Housing Allowance

This post is archived and may not be up-to-date.

Newbie

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I have just moved to a remote area in Western Australia for a permanent work contract, which currently has no end date. My Employer is paying me a ‘Housing Allowance’ (as part of my contract special conditions) for my weekly rent, which will now be my main place of residency. I have received varying information from people and would like to clarify if this Housing Allowance (due to the remote area) should be taxed?
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ATO Certified Response

Former Community Support

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Hi @Kirkyy92,

 

Welcome to our Community!

 

If you meet the criteria of being within a 'remote area', then it is possible that your employer may be exempt from fringe benefits tax (FBT). Where these benefits are classified as 'exempt', they are not only exempt from FBT, but also in most cases exempt from income tax in the hands of the employee to whom they are provided. This guide contains further information regarding FBT - particularly section 20.7.

 

 

If you require further information or guidance regarding your specific circumstances, you can apply for a private ruling.

 

Thanks, @NelsonS

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Most helpful response

ATO Certified Response

Former Community Support

Replies 2

Hi @Kirkyy92,

 

Welcome to our Community!

 

If you meet the criteria of being within a 'remote area', then it is possible that your employer may be exempt from fringe benefits tax (FBT). Where these benefits are classified as 'exempt', they are not only exempt from FBT, but also in most cases exempt from income tax in the hands of the employee to whom they are provided. This guide contains further information regarding FBT - particularly section 20.7.

 

 

If you require further information or guidance regarding your specific circumstances, you can apply for a private ruling.

 

Thanks, @NelsonS

Newbie

Replies 1

Thank you so much for your help @NelsonS 

If this is the case, is the FBT exempt from your fortnightly pay or do you still pay this and receive a refund with your Tax Return?

Community Manager

Replies 0

Hi @Kirkyy92,

 

You wouldn't pay it at all if there is an exemption.

 

Thanks, NateH