10.7 Reductions in taxable value
There are a number of circumstances where you may reduce the taxable value of a housing fringe benefit. These are outlined below.
Relocation - temporary accommodation
This concession reduces the taxable value of fringe benefits arising from providing temporary accommodation (including household goods) to an employee who changes their usual place of residence during employment, or to start employment.
Temporary accommodation at former location
The concession applies to temporary accommodation at the employee's former location only if the temporary accommodation is necessary because the former home is unavailable or unsuitable for occupancy because of the relocation (for example, furniture removal). In that case, the concession applies to the temporary accommodation for a maximum 21-day period ending on the day the employee starts work at the new location.
Temporary accommodation at new location
Where the temporary accommodation is at the new location, the employee must start to make sustained and reasonable efforts to buy or lease suitable long-term accommodation as soon as reasonably practicable after starting work at the new location.
The concession is limited to an occupancy period that begins seven days before the day the employee starts work at the new location and ends when the employee could reasonably be expected to occupy the home after it has been purchased or leased.
The concession is ordinarily limited to a maximum occupancy period of four months. However, it may apply for a maximum of 12 months, as follows.
Where the employee gives you a declaration outlining their efforts to find suitable long-term accommodation, the concession may apply for a maximum of six months.
Where the employee:
- owned a home at the former location but sold it within six months of starting work at the new location and, during that period, attempted to buy a home at the new location, and
- gives you a declaration (see below) outlining their efforts to find suitable long-term accommodation.
In either case, the concession will end before the four months, six months or 12 months elapse if the employee stops making reasonable and sustained efforts to buy or lease suitable long-term accommodation.
The Temporary accommodation relating to relocation declaration must be in a form approved by the Commissioner (refer to Declarations).