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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1012625124369

Ruling

Subject: Exempt Fringe Benefits

Issue 1

Question 1

Is an FBT exemption available under Section 58C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986) for the incidental costs associated with the sale and purchase of an employee's home, where notification of the permanent location to one location occurs whilst the employee is undertaking a temporary transfer at another location?

Answers

Scenario 1 A - Yes

Scenario 1 B - Yes

Scenario 2 A - Yes

Scenario 2 B - Yes

Issue 2

Question 1

Would the answer to scenario 1 A, 1 B, 2 A or 2 B be any different if the two year transfer from Location A is within Australia instead of an overseas posting?

Answers

Scenario 1 A - No, the answer would remain the same.

Scenario 1 B - No, the answer would remain the same.

Scenario 2 A - No, the answer would remain the same.

Scenario 2 B - No, the answer would remain the same.

Issue 3

Question 1

Is an FBT exemption available under Section 58C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986) for the incidental costs associated with the sale and purchase of an employee's home, where notification of the permanent location changes from location B to location C?

Answers

Scenario 1 A - Yes

Scenario 1 B - Yes

Scenario 2 A - Yes

Scenario 2 B - Yes

Question 2

Is an FBT exemption available under Section 58C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986) for the incidental costs associated with the sale and purchase of an employee's home, where a subsequent sale is made at location B and a purchase at location C?

Answers

Scenario 1A - Yes

Scenario 1B - Yes

Scenario 2A - Yes

Scenario 2B - Yes

This ruling applies for the following periods:

1 April 2012 - 31 March 2018

The scheme commences on:

1 April 2012

Relevant facts and circumstances

Company employees are regularly transferred both interstate and overseas. Within Australia there are two transfer methods.

International transfers are always considered option 1 and are for a period of two years, with two, one year optional extensions. If an extension is received for an International posting the employee will be notified towards the end of their initial two year posting.

When an employee is domestically or internationally transferred from their usual place of residence to another place on an option 2 transfer, they are entitled to claim the incidental costs incurred in relation to the sale and or purchase of their residential property.

The intention upon cessation of an option 1 posting, whether domestic or international, is that the employee will return to their home office location. However, a member may be required to return to another location where organisational needs dictate.

Relevant legislative provisions

Subsection 136(1) of the FBTAA 1986

Section 58C of the FBTAA 1986

Section 20 of the FBTAA 1986

Section 142A of the FBTAA 1986

Subsection 142A(1) of the FBTAA 1986

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