Draft Taxation Determination

TD 93/D27

Income tax: is a 'housing allowance subsidy' paid to an employee in respect of the employee's principal residence assessable under the Income Tax Assessment Act 1936 (ITAA)?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/55.

FOI status:

draft only - for comment


Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes. An amount paid to an employee as a housing allowance subsidy (as described below) is considered to be an allowance given in respect of employment or services rendered and is assessable to the employee under subsection 26(e) of the ITAA.

2. Some remuneration packages provide for the payment of a housing allowance subsidy where the employee owns a home. The subsidy is not intended to be a payment or reimbursement of any particular expense of home purchase or ownership incurred by the employee. The subsidy is merely intended to maintain equitable remuneration between employees who own their homes and those whose rental of private accommodation is paid or reimbursed by the employer.

3. A housing allowance subsidy paid in these circumstances is not a fringe benefit as defined in the Fringe Benefits Tax Assessment Act 1986 but is assessable income of the employee.

Commissioner of Taxation
4 February 1993


BO PNR T95 Pt3

ISSN 1038 - 8982

Related Rulings/Determinations:

IT 2614
TR 92/15

Subject References:
housing allowance subsidy

Legislative References:
ITAA 26(e)
FBTAA 136(1)