Housing fringe benefits


This information forms Chapter 10 of Fringe benefits tax - a guide for employers.

Remember, a fringe benefit may be provided by another person on behalf of an employer. It may also be provided to another person on behalf of an employee (for example, a relative).

End of attention

10.1 What is a housing fringe benefit?

A housing fringe benefit arises where an employee is provided with the right to use a unit of accommodation and the lease or licence which grants that right exists at a time when that unit of accommodation is the usual place of residence of the employee.

A unit of accommodation includes:

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

The employee does not have to have exclusive use of the unit of accommodation - the use of shared accommodation as a usual place of residence is a housing fringe benefit.

If the unit of accommodation is not the employee's usual place of residence, the right to use the unit is not a housing fringe benefit. However, it may give rise to a residual fringe benefit (refer to Residual fringe benefits).

    Last modified: 15 Oct 2013QC 17824