A housing fringe benefit arises where an employee is provided with the right to use a unit of accommodation and a 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.
Housing benefits provided in a remote area may be exempt benefits. Other accommodation that does not meet the requirements of a housing fringe benefit is included as a residual fringe benefit and you must show it at item M 'Other benefits (residual)'.
Example 15: Taxable value of housing fringe benefits
You manufacture chocolate and provide a flat in Sydney CBD to your employee for the year ending 31 March 2017. The flat is the employee's usual place of residence for the whole year.
The market rental value for the year is $26,000 (52 weeks at $500). The employee pays you a nominal rent of $2,600 for the year ($50 per week).
The calculation of the taxable value is:
$26,000 – $2,600 = $23,400
You would write at item 23: