Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 58ZC

Remote area housing benefit to be exempt

  (1)   A housing benefit that is a remote area housing benefit is an exempt benefit.

What constitutes remote area housing benefit

  (2)   A housing benefit in relation to an employer for a year of tax and for a unit of accommodation, being a benefit provided to an employee of the employer in respect of the employee's employment, is a remote area housing benefit if:

  (a)   during the whole of the tenancy period, the unit of accommodation was located in a State or internal Territory and was not at a location in, or adjacent to, an eligible urban area; and

  (b)   during the whole of the tenancy period, the recipient was a current employee of the employer and the usual place of employment of the recipient was not at a location in, or adjacent to, an eligible urban area; and

  (d)   it would be concluded that it was necessary for the employer, during the year of tax, to provide, or to arrange for the provision of, residential accommodation for employees of the employer because:

  (i)   the nature of the employer's business was such that employees of the employer were liable to be frequently required to change their places of residence; or

  (ii)   there was not, at or near the place or places at which the employees of the employer were employed, sufficient suitable residential accommodation for those employees (other than residential accommodation provided by or on behalf of the employer); or

  (iii)   it is customary for employers in the industry in which the recipient was employed during the tenancy period to provide residential accommodation for their employees free of charge or for a rent or other consideration that is less than the market value of the right to occupy or use the accommodation concerned; and

  (e)   the recipients overall housing right was not granted to the recipient under:

  (i)   a non - arm's length arrangement; or

  (ii)   an arrangement that was entered into by any of the parties to the arrangement for the purpose, or for purposes that included the purpose, of enabling the employer to obtain the benefit of the application of this section.

Discretion to treat accommodation or place of employment as being remote

  (3)   For the purposes of subsection   (2):

  (a)   if a unit of accommodation:

  (i)   is at a location in, or adjacent to, an eligible urban area; and

  (ii)   is adjacent to, or in close proximity to, another unit of accommodation that is occupied or used and is not at a location in, or adjacent to, an eligible urban area;

    the Commissioner may, if the Commissioner considers that it is appropriate to do so having regard to all the circumstances, treat the first - mentioned unit of accommodation as not being at a location in, or adjacent to, an eligible urban area; and

  (b)   if the usual place of employment of a person:

  (i)   is at a location in, or adjacent to, an eligible urban area; and

  (ii)   is adjacent to, or in close proximity to, another location at which people are employed, being another location that is not in, or adjacent to, an eligible urban area;

    the Commissioner may, if the Commissioner considers that it is appropriate to do so having regard to all the circumstances, treat that place of employment of the first - mentioned person as not being at a location in, or adjacent to, an eligible urban area.