Practical Compliance Guidelines

PCG 2016/14

Discount to the valuation of housing fringe benefits provided by retirement village operators

Table of Contents Paragraph
What this Guideline is about
Date of effect
Purpose
Guideline

Relying on this Guideline

This Practical Compliance Guideline sets out a practical administration approach to assist taxpayers in complying with relevant tax laws. Provided you follow this guideline in good faith, the Commissioner will administer the law in accordance with this approach.

What this Guideline is about

1. This Guideline sets out the acceptable discount to the valuation of housing fringe benefits provided to live-in-managers in a retirement village.

Date of effect

2. This Guideline applies both before and after date of issue. It will be reviewed under the ATO's standard review process to ensure the currency and relevance of the content, and that the content maintains alignment with Australian taxation requirements and industry practice.

Purpose

3. This Guideline outlines the results of collaboration and consultation with industry participants regarding an acceptable discount to the valuation of housing fringe benefits provided to live-in-managers in a retirement village.

Guideline

4. Consistent with the principles outlined in Miscellaneous Taxation Ruling MT 2025 Fringe Benefits Tax: Guidelines for Valuation of Housing Fringe Benefits, we confirm the following: a retirement village operator can apply a valuation discount of 10% to work out the statutory annual value of a live-in-manager's annual current housing right for the purposes of 'A' in the formula in paragraph 26(1)(c) of the Fringe Benefits Tax Assessment Act 1986.

5. This is in line with the physical characteristics of a live-in manager's accommodation and the location of that accommodation within a retirement village.

Commissioner of Taxation
26 August 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Business Line:  PGH

Related Rulings/Determinations:
MT 2025

Legislative References:
FBTAA 1986 26(1)(c)


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).