Fringe benefits tax: for the purposes of Division 7 of Part III of the Fringe Benefits Tax Assessment Act 1986, what amount represents a reasonable food component of a living-away-from-home allowance for expatriate employees for the fringe benefits tax year commencing on 1 April 2012?
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1. The amounts listed below are acceptable as a food component for the fringe benefits tax (FBT) year commencing 1 April 2012. The amounts have been calculated by reference to the 2009-10 Household expenditure Survey (HES) conducted by the Australian Bureau of Statistics. The HES has been indexed to take into account movements in the food sub-group of the Consumer Price Index since the survey was completed.
|One adult and one child||$325|
|Two adults and one or two children||$450|
|Two adults and three children||$524|
|Three adults and one child||$524|
|Three adults and two children||$599|
('Adults' for this purpose are persons who had attained the age of 12 years before the beginning of the FBT year.)
3. Bob and his wife and their five children (all under 12 years of age) are temporarily living in Australia while Bob is working on a project for his employer (an overseas company). Bob is in receipt of a living-away-from-home allowance. The amount that is considered to be a reasonable food component of the allowance for the year commencing 1 April 2012 is $674 per week. (That is, $524 plus $150).
Date of effect
Commissioner of Taxation
28 March 2012
Appendix 1 - Explanation
|This Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.|
5. Determination is intended to be read in conjunction with Taxation Ruling MT 2040. MT 2040 sets out the amounts that represent a reasonable food component of living-away-from-home allowances received by expatriate employees during their term of employment in Australia for the FBT years ended 31 March 1987 and 1988. Indexed amounts for subsequent years are provided in MT 2043, MT 2045, MT 2047, MT 2051, TD 93/41, TD 94/23, TD 95/55, TD 96/25, TD 97/9, TD 98/7, TD 1999/3, TD 2000/21, TD 2001/5, TD 2002/9, TD 2003/5, TD 2004/8, TD 2005/12, TD 2006/23, TD 2007/9, TD 2008/3, TD 2009/6, TD 2010/4 and TD 2011/4.
6. While this Determination will apply to the majority of cases, it will be open to any individual expatriate employee to establish a higher level of spending by reference to receipts or detailed records maintained for such period, for example 12 weeks, as would be sufficient to reflect a long-term expenditure pattern.
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fringe benefits tax