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Edited version of your written advice
Authorisation Number: 1051212864962
Date of advice: 10 April 2017
Ruling
Subject: Income tax treatment of expense payment fringe benefits
Question 1
Are the reimbursements I receive from my employer included in my assessable income?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 20ZZ
The scheme commences on:
1 July 20YY
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
● You commenced employment with your employer in 20XX.
● Your employer reimbursed you for the following expenses incurred by you: (documented)
Expense |
Amount ($) |
Lenders Mortgage Insurance on construction loan for new residence |
XX,XXX |
Selling fees (old residence) |
XX,XXX |
Advertising (old residence) |
XXX |
Settlement agents fees (old residence) |
XXX |
Disbursements (old residence) |
XX |
Removal costs |
X,XXX |
Stamp duty (new residence) |
XX,XXX |
Registration of transfer (new residence) |
XXX |
Settlement agent fee (new residence) |
XXX |
Disbursements enquiry fees (new residence) |
XXX |
Refinancing fees from original lender (new residence) |
XXX |
Refinancing fees from replacement lender (new residence) |
XXX |
Reasons for decision
Fringe benefits and exempt fringe benefits are non-assessable non-exempt income under section 23L of the Income Tax Assessment Act 1936 (Cth).
Fringe benefits include expense payment fringe benefits. Under sections 20 and 136 of the Fringe Benefits Tax Assessment Act 1986 (Cth), an expense payment fringe benefit includes a reimbursement of expenditure incurred by the recipient where that reimbursement is in respect of the recipient's employment.
In your case, your employer has reimbursed you for specific expenses incurred by you. Therefore, the reimbursements constitute expense payment fringe benefits which are, therefore, excluded from your assessable income for income tax purposes.