ATO Interpretative Decision
ATO ID 2004/706 (Withdrawn)
Fringe benefits tax
Living-away-from-home allowance benefits : offshore oil and gas rig workers and hardlying allowanceFOI status: may be released
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The ATO ID is withdrawn. Guidance on the issue contained in this ATO ID can be found in ATO ID 2005/314 Income Tax Assessable income: Offshore oil and gas rig workers and hard lying allowanceThis document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Does the payment of a hardlying allowance by the employer to its employees, who are offshore oil and gas rig workers, satisfy the requirement of paragraph 30(2)(d) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
No. The payment by the employer of a hardlying allowance does not satisfy the requirement of paragraph 30(2)(d) of the FBTAA, as the allowance is not expressed to be paid as a living-away-from-home allowance (LAFHA).
Facts
The employer employs offshore oil and gas rig workers on a self propelled drilling vessel.
The employer negotiated a workplace agreement with its employees.
Under the workplace agreement, the employees are paid a hardlying allowance.
Under the workplace agreement the hardlying allowance is paid by the employer having regard to the accommodation and recreation facilities and all other conditions associated with living on board a self propelled drilling vessel.
On the employee's fortnightly payslip, the payment of the hardlying allowance is shown as 'Hardlying' and the amount paid is shown.
Reasons for Decision
Paragraph 30(2)(d) of the FBTAA requires that 'the allowance is expressed to be paid as a living-away-from-home allowance'.
The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01. defines 'express' as:
- 8.
- clearly indicated; distinctly stated (rather than implied); definite; explicit; plain.
Under the workplace agreement and on the payslip, the allowance is shown as 'hardlying allowance' or 'Hardlying'.
Accordingly, the allowance is not expressed to be paid as a LAFHA and paragraph 30(2)(d) of the FBTAA is not satisfied.
Subsection 30(2) of the FBTAA is not satisfied so that the payment of the whole of the allowance does not constitute a LAFHA benefit as LAFHA benefits are provided for by that subsection.
Date of decision: 12 August 2004Year of income: Year ended 31 March 2005
Legislative References:
Fringe Benefits Tax Assessment Act 1986
subsection 30(2)
paragraph 30(2)(d)
Other References:
The Macquarie Dictionary, [Multimedia], version 5.0.0, 1/10/01
Keywords
Employee allowances
FBT living-away-from-home
Fringe benefits tax
Living away from home allowances
ISSN: 1445-2782
| Date: | Version: | |
| 12 August 2004 | Original statement | |
| You are here | 12 September 2014 | Archived |