Reductions in fringe benefit taxable value

Residential fuel

Legislative reference: section 59 of the FBTAA.

Residential fuel is any form of fuel (including electricity) used for domestic purposes. If you provide a current employee with residential fuel for use in connection with their usual place of residence, you may reduce the taxable value of the fringe benefit by 50% in the following circumstances:

• the fringe benefit is an expense payment fringe benefit, a property fringe benefit or a residual fringe benefit
• the fringe benefit was not provided to the employee under a non-arm's length arrangement, or an arrangement that was entered into by any of the parties for the purpose, or partial purpose, of enabling you to obtain the residential fuel concession
• the employee is also
• the recipient of a remote area housing benefit that is an exempt benefit as described in section 10.8 of Housing fringe benefits
• under an obligation to repay the whole, or a part of, a remote area housing loan connected with the dwelling and you provide a form of housing assistance referred to below, or
• incurring remote area housing rent in connection with a unit of accommodation and you provide a form of housing assistance referred to below.

Free water provided to an employee under a residential tenancy agreement is part of the remote area housing benefit, as described in section 10.8 of Housing fringe benefits, and is not considered residential fuel.

Sections within 19.2 Remote area reductions

• Residential fuel
• Remote area housing
• Remote area holiday transport - not subject to ceiling
• Remote area holiday transport - subject to ceiling
• Remote area home ownership schemes