Relocation - connection or reconnection of certain utilities

Legislative reference: section 58DExternal Link of the FBTAA.

Where an employee is required to live away from home in order to perform employment duties, the costs of connecting or reconnecting gas, electricity and telephone services to the new place of residence may be exempt benefits. Similarly, where there is a change in the employee's usual place of residence, these costs may be exempt benefits.

Several requirements must be satisfied for the exemption to apply, namely:

  • the relevant benefit must be of a type that would be an expense payment fringe benefit or a residual fringe benefit but for the exemption
  • where the benefit is of a type that would be an expense payment fringe benefit but for the exemption, you must obtain documentary evidence of the employee's expenditure
  • in the case of telephone connections, the employee must have had a telephone connected at the former residence
  • where the employee has permanently relocated, the benefits will be exempt only if the connection or reconnection of services is made within 12 months of the employee starting work at the new location.
    Last modified: 08 Jan 2014QC 17820