Remote area accommodation and fringe benefits tax

Many people miss the opportunity to live in housing as a Director or employee because they are unaware of certain laws.

Benefits provided for remote area accommodation are exempt from fringe benefits tax (FBT). Big savings can be made and it is not too difficult to comply.

In order to be considered remote:

• The accommodation must be 40km or more from a town with a population of 14,000 or more;
• The accommodation must be 100km or more from a town with a population of 130,000 or more;
• For Zone A + B accommodation (for income tax purposes), the accommodation is considered remote if it is 40km or more from a town with a population of 28,000 or more; or 100km from a town that has a population of 130,000 or more.

To discuss the savings you could make, contact one of our accountants today along the East Coast for a free, initial consultation.

Date published 6 Jun 2017

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.