ATO Interpretative Decision

ATO ID 2004/293

Fringe Benefits Tax

Exempt benefits: relocation transport benefits provided to an employee prior to actual relocation taking place
FOI status: may be released

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

If an employee and their family undertake a journey in order to arrange suitable accommodation prior to their actual employment relocation, will the costs associated with that journey, that are paid by the employer, be exempt from FBT under section 58F of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision

Yes. The costs of a journey that enables an employee and their family to relocate will be exempt from FBT under section 58F of the FBTAA, as the employee has already accepted an offer to transfer.

Facts

During the FBT year the employee accepted a temporary employment transfer. This would require the employee to live away from their usual place of residence in order to perform the duties of that employment.

Under the employer's relocation policy, the employer provided the employee and their family with reimbursed airline tickets and other associated expenses in order to find suitable accommodation prior to the actual relocation taking place. These 'other expenses' included accommodation and meals en route to visit real estate agents and view rental properties in the town where they will be temporarily employed.

The employee was not required to perform any employment duties whilst undertaking the travel.

Reasons for Decision

Section 58F of the FBTAA exempts from fringe benefits tax 'benefits in respect of relocation transport'.

The requirements for a benefit to be treated as a 'benefit in respect of relocation transport' are specified in section 143A of the FBTAA. In particular subparagraph 143A(d)(i) requires that the transport (including meals and accommodation whilst undertaking the journey) is provided to an employee and their family to enable them to take up residence near the locality of the new workplace. It is accepted that a journey undertaken prior to relocation in order to seek accommodation (where the employee and their family are definitely relocating) does 'enable' the employee to take up residence in the new locality.

As the benefits provided by the employer satisfy the requirements specified in section 143A of the FBTAA, they will be exempt from FBT under section 58F of the FBTAA.

Amendment History

Date of Amendment	Part	Comment
11 March 2026	Business line	Updated to correct business line
22 December 2017	Facts	Replaced 'air line' with 'airline'
22 December 2017	Reviewed date	28 November 2017

Date of decision: 3 March 2004

Year of income: Year ended 31 March 2004

Legislative References:
Fringe Benefits Tax Assessment Act 1986
   section 58F
   section 143A
   subparagraph 143A(d)(i)

Keywords
Fringe benefits tax
FBT relocation transport
Exempt benefits

Siebel/TDMS Reference Number: 3882567; 1-6AK6LX2

Business Line: Superannuation and Employer Obligations

Date of publication: 26 March 2004
Date reviewed: 4 March 2026

ISSN: 1445-2782

history

	Date:	Version:
	3 March 2004	Original statement
	22 December 2017	Updated statement
You are here	11 March 2026	Updated statement

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