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  • Accommodation, property and other benefits

    References to employers and employees equally apply where the benefit is provided by a third party under an arrangement with the employer, or is provided to an associate of the employee.

    Accommodation benefits

    Providing housing to an employee, with or without meals, or the payment of a living-away-from-home allowance may constitute a fringe benefit.


    A housing fringe benefit may arise if an employer provides an employee with accommodation rent-free, or at a reduced rent, and the accommodation is the employee’s usual place of residence. For the purpose of FBT, accommodation includes:

    • a house, flat or home unit
    • accommodation in a hotel, motel, guesthouse, bunkhouse or other living quarters
    • a caravan or mobile home
    • accommodation on a ship or other floating structure.

    Accommodation provided to an employee in a remote area may be exempt from FBT.

    See also:


    A board fringe benefit may arise if an employer provides an employee with accommodation and they are entitled to at least two meals a day. For example:

    • meals provided in a dining facility located on a remote construction site, oil rig or ship
    • meals provided to a live-in housekeeper or to resident teachers in a boarding school.

    These meals may be a board fringe benefit.

    Board benefits provided to an employee of a primary production business located in a remote area are exempt benefits.

    See also:

    Living-away-from-home allowance

    A living-away-from-home allowance (LAFHA) fringe benefit may arise if you pay an allowance to your employee to cover additional expenses incurred, because they are temporarily required to live away from their normal place of residence to perform their employment duties.

    Access to tax concessions for LAFHA fringe benefits will generally be limited to where:

    • your employee maintains a home in Australia at which they usually reside
    • your employee provides you with a declaration about living away from home
    • the fringe benefit relates to the first 12-month period at a particular work location.

    See also:

    Property benefits

    A property fringe benefit may arise if an employer provides an employee with property, either free or at a discount. For FBT purposes, property includes goods and other assets, such as:

    • items of clothing
    • a cylinder of heating gas
    • real property (land and buildings)
    • rights to property (such as shares and bonds).

    In some circumstances, there are property benefits that are exempt from FBT.

    See also:

    Residual benefits

    The provision by an employer to an employee of any right (that is, a privilege, service or facility) that does not fall into any of the specific types of fringe benefit may constitute a residual fringe benefit.

    Residual fringe benefits include, for example:

    • use of an employer's property, such as a video camera or television
    • provision of a service, such as advice given by a solicitor
    • private use of a motor vehicle that is not a ‘car’ for FBT purposes (such as a one-tonne ute)
    • use of an employer's electronic toll tag.

    A range of exemptions apply to residual fringe benefits.

    See also:

      Last modified: 10 Feb 2021QC 16948