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).
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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).