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Draft Taxation Determination

TD 94/D93

Fringe benefits tax: can the exemption for 'fly-in fly-out' transport in subsection 47(7) of the Fringe Benefits Tax Assessment Act 1986 apply, where the employees take a rest day during their time at the work site?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/96.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

Yes. Where the other conditions of subsection 47(7) are met, this Office will accept that the break in the working days does not affect the availability of the exemption for the transport of the employees to and from their usual place of residence.

Example

Builder Pty Ltd operates a construction site at a remote locality. Employees are transported to the site from their homes in the capital city at the start of their three week work cycle, and are returned home again for their one week off cycle. The applicable Mines Regulations specify that employees must take one day off after working 13 consecutive days. The fact that employees have this day off will not jeopardise the exemption available under subsection 47(7).

Commissioner of Taxation
1 September 1994

References

ATO references:
NO

ISSN 1038 - 8982

Subject References:
fly-in fly-out transport
exempt fringe benefit
fringe benefit

Legislative References:
FBTAA 47(7)


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