Taxation Determination

TD 98/7

Fringe benefits tax: for the purposes of Division 7 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA), 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 1998?

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FOI status:

may be releasedFOI number: I 1015605

Preamble The number, subject heading, date of effect and paragraphs 1 and 2 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of the Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain how a Determination is legally or administratively binding.
Date of effect This Determination applies for the FBT year commencing on 1 April 1998. However, it does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. The reasonable food component for the fringe benefits tax year commencing on 1 April 1998, as shown below, is the result of indexation to reflect movements in the food sub-group of the Consumer Price Index:

per week
One adult $137
Two adults $221
Three adults $248
Two adults and one or two children $248
Two adults and three children $289
Three adults and one child $289
Three adults and two children $330
Four adults $330
('Adults' for this purpose are persons aged 12 years or more).

2. In relation to larger family groupings, we accept a food component based on the above figures plus $82 for each additional adult and $41 for each additional child.

3. This 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 and TD 97/9.

Example Bob and his wife and 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 1998 is $371 per week (i.e., $289 plus $82).

Commissioner of Taxation
6 May 1998


ATO references:
NO NAT 95/6880-8; FBT 153

ISSN 1038 - 8982

Related Rulings/Determinations:

TD 93/41
TD 93/230
TD 94/23
TD 95/55
TD 96/25
TD 97/9
MT 2030
MT 2040
MT 2043
MT 2045
MT 2047
MT 2051

Subject References:
fringe benefits tax
living-away-from-home allowance

Legislative References:

TD 98/7 history
  Date: Version: Change:
You are here 6 May 1998 Original ruling  
  4 May 2016 Withdrawn