Overseas employees – education of children
Legislative reference: section 65AExternal Link of the FBTAA.
A reduction is available for:
- any car or expense payment fringe benefit provided in respect of the full-time education costs of an employee’s child
- any property or residual fringe benefit provided solely for the purposes of the child’s full-time education.
The reduction is available where:
- any part of the full-time education is undertaken by the child when the employee is posted overseas, and
- the benefits are provided in accordance with an award or industry custom.
The concession applies to both Australian employees posted overseas and overseas residents posted to Australia. The employee’s child doesn't have to accompany the employee overseas in order for you to be entitled to this concession.
The full-time education can be provided to a child at a school, college or university, or by a tutor. Where the child receives their education at a school, college or university, the employee must be posted overseas for 28 days or more.
Education costs you bear for children of employees who are posted overseas will be reduced proportionately, in accordance with the extent that the benefit relates to the period of the employee’s service overseas. If the overseas service commences or ceases during a school term, and the child receives their education at a school, college or university, the education costs relating to the whole term will be subject to the reduction.
Where the child receives their education by a tutor, the reduction applies to the education costs relating to the period from the day the posting started to the day the posting ended.
For the purposes of this concession, a child is an employee’s child who is less than 25 years of age at the time the benefit is provided.
If you reimburse the education expenses incurred by the employee, you must obtain documentary evidence of the expenses before you lodge your FBT return (21 May).