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From 1 October 2012, the law relating to living-away-from-home benefits has changed.
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 employee, living away from home for the full 2014 FBT year, receives $583 per week ($30,316 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
- $233 per week ($12,116 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 $233 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 not more than the Commissioner of Taxation's reasonable amount.
The employee started living away from home at this location in January 2013. Due to the 12 month rule, the employer is only entitled to reduce the taxable value of the allowance for the first 40 weeks of the 2014 FBT year.
The calculation for living-away-from-home allowance fringe benefits is as follows:
Exempt accommodation component = $14,000 (40 weeks at $350 per week)
Exempt food component = $7,640 ($9,320 – $1,680 (40 weeks at $191 [$233 paid less $42 per week statutory food amount)
Taxable value = $30,316 – $14,000 (exempt accommodation) – $7,640 (exempt food) = $8,676
Value of reduction is the total of the exempt accommodation and the exempt food components = $21,640 ($14,000 + $7,640).
The employer shows this at item 23 as:
End of example
Last modified: 16 May 2014QC 39720