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  • G – Employees receiving living-away-from-home allowance (show total paid including exempt components)

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    From 1 October 2012, the law relating to living-away-from-home benefits has changed.

    Further information

    For more about the changes, refer to Living-away-from-home allowance fringe benefits.

    End of further information

    When completing item G, show the amount of benefits you provide to employees as a living-away-from-home allowance.

    The amount you include at this item in the 'Gross taxable value (a)' column includes the exempt accommodation and exempt food components, as well as the statutory food amount.

    The statutory food amount is the amount the employee would spend on food at their normal residence – it is set at $42 per week per adult, and $21 per week per child under 12 years of age.

    Show the exempt accommodation and exempt food component amounts as reductions in the 'Value of reductions (c)'column.

    You must obtain the necessary documentary evidence or declaration of employee expenses and the declaration about living away from home so you can take advantage of any exempt accommodation and exempt food components.

    Example: Calculate living-away-from-home allowance fringe benefits

    An employer pays an employee $542 per week ($28,184 for the FBT year) as a living-away-from-home allowance.

    This is made up of:

    • $350 per week ($18,200 for the FBT year) for accommodation
    • $192 per week ($9,984 for the FBT year) for food.

    The accommodation component reflects what the employee could reasonably be expected to pay for rent, and the food component relates to the total estimated food expenditure of $192 per week. The employee provides the employer with the required documentary evidence showing that they spent at least $350 per week on accommodation. Substantiation of the food component is not required because the amount is less than the Commissioner of Taxation's reasonable amount.

    The calculation for living-away-from-home allowance fringe benefits is as follows:

    Exempt food component = $7,800 ($9,984 – $2,184 [52 weeks at $42 per week])

    Taxable value = $28,184 – $18,200 (exempt accommodation) – $7,800 (exempt food) = $2,184

    Value of reduction is the total of the exempt accommodation and the exempt food components = $26,000 ($18,200 + $7,800).

    The employer shows this at item 23 as:

    Example of employer entry at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133