Housing fringe benefits

Extension of the remote area housing exemption for some regional employers

An extended exemption applies under subsection 140(1A) of the Fringe Benefits Tax Assessment Act 1986 to housing benefits provided for employees of:

• a public hospital
• a government body where the duties of the employee are exclusively performed in, or in connection with, a public hospital or a non-profit hospital
• a hospital carried on by a non-profit society or a non-profit association
• a charitable institution
• a public ambulance service
• a police service.

For these employers, regardless of whether or not they are located in a zone A or B area (for income tax purposes), an employee's housing will no longer be considered adjacent to an eligible urban area (and will therefore be remote), where it is situated less than 40 kilometres via the shortest practical surface route from the centre point of an eligible urban area of less than 130,000 people.

For eligible urban areas of 130,000 or more, an area adjacent to an eligible urban area (and therefore not remote) will remain as being within 100 kilometres via the shortest practical surface route from that eligible urban area's centre point.

The extended definition of remote area exemption for some regional employers does not apply to the remote area reductions explained in section 19.2 of Reductions in fringe benefit taxable value.

Sections within 10.8 Exempt housing benefits

• Remote area housing benefits
• Extension of the remote area housing exemption for some regional employers