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  • Fringe benefits tax remote areas – meeting the customary condition

    If you provide your employees with remote area housing benefits you can reduce the taxable value of those fringe benefits or they may be exempt benefits if certain conditions are met. One condition is that it is customary in the industry for employers in your industry to provide such a remote area housing benefit.

    Examples of remote area housing benefits include:

    • payment of housing loan interest
    • payment of housing rent
    • assistance acquiring a remote area dwelling.

    Meeting the customary condition

    We consider a benefit to be customary in your industry if it is normal or common for employees of that job description to be provided the same or similar benefits due to the nature of the conditions of employment. For example, housing assistance may be customary if you require employees to live at or near a work site or direct them to perform their duties at a new location.

    It is not necessary that all or even a majority of employees in the industry receive the benefit. However a benefit is not customary where it is unique, rare or unusual to provide it in your industry.

    See also:

      Last modified: 03 Mar 2020QC 61586