Bankruptcy Regulations 1996

SCHEDULE 4 - MODIFICATIONS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986  

(regulation 6.12 )

17   Section 31 (Taxable value of living-away-from-home allowance fringe benefits)  

17.1    
Add at the end:

' (2)	For the purposes of this section, ' deducted home consumption expenditure ' referred to in the definition of exempt food component in section 136 to be taken to be:
	(a)	in relation to a person of the age of 12 years or over - $42; and
	(b)	in relation to a person under the age of 12 years - $21.

Example: Calculation of the value of a living-away-from-home allowance.

Assume that a bankrupt living away from his or her family is given a living-away-from-home allowance of $220 a week. Of this amount, $100 represents reasonable compensation for the costs of accommodation (i.e. the ' exempt accommodation component ' is $100), and $80 represents reasonable compensation for the cost of food.

The remaining $40 is compensation for the disadvantage of living away from home in a town where facilities that would be available at home are not available.

Under subsection 31(2), the exempt food component is $80 minus $42 (i.e. the compensation for increased food cost less the deducted home consumption expenditure). The value of the benefit is:

$ 200   −   100 −   (80   −   42)   =   $ 82. ' .