Edited version of private advice

Authorisation Number: 1051789859464

Date of advice: 21 December 2020

Ruling

Subject: Fringe benefits tax - exempt benefits

Question 1

Does the Fringe Benefits Tax (FBT) exemption under section 58C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) apply to the reimbursement of the expenses (incidentals to the sale of a residence in Location A) which are being salary sacrificed?

Answer

Yes

Question 2

Assuming the employee acquires a property near the new place of employment in Location B to occupy as the main residence, does the FBT exemption under section 58C of the FBTAA apply to the reimbursement of acquisition expenses if they are salary sacrificed?

Answer

Yes

Question 3

Does section 61C of the FBTAA apply to reduce the taxable value of the reimbursement of the expenses (rent of temporary accommodation near the new place of employment in Location B) which are being salary sacrificed?

Answer

Yes

Question 4

Does the FBT exemption under section 58B of the FBTAA apply to the reimbursement of the removalist expenses which are being salary sacrificed?

Answer

Yes

This ruling applies for the following periods

Year ending 31 March 20XX

Year ending 31 March 20XX

Year ending 31 March 20XX

Year ending 31 March 20XX

Year ending 31 March 20XX

The scheme commenced on

1 July 20XX

Relevant facts

An employer has an employee whose duties of employment moved from Location A to Location B in 20XX.

The employer initially discussed the employee's relocation of employment in 20XX. The employee ceased employment in Location A in 20XX and commenced employment in Location B XX days later.

The employee owned his primary residence in Location A, which he sold in 20XX. The employee is currently renting in Location B on a 12-month lease and is looking to acquire a residence in Location B to occupy.

Costs associated with this relocation include moving costs (i.e. removalists, incidental costs associated with selling a residence in Location A, rental costs in Location B).

A truck was hired to remove the employee's personal effects from Location A to Location B after the employee's last day of employment in Location A and before the employee's first day of employment in Location B.

The employee anticipates acquiring a property in Location B within the near future with the objective of occupying it as his main residence. The employee has attended numerous open houses, has conducted market research and has made enquiries relating to a home loan application.

A 12-month lease agreement was entered into in 20XX, expiring in 20XX.

The proposed salary sacrifice agreement in relation to relocation costs will be worded:

'This document confirms the salary sacrifice arrangement for relocation costs relating to the move from Location A to Location B.

The employer will reimburse you for the GST-inclusive cost of relocation costs. You agree to forgo an amount from your salary which is equal to the relocation costs plus any fringe benefits tax liability associated with the benefit provided, less any input tax credits that can be claimed by the employer for the relocation costs.

As agreed, we will deduct the amount from your salary after being presented a valid tax invoice for the costs incurred.'

Assumptions

The employee acquires a property in Location B which already has a dwelling constructed and the employee occupies this property as his main residence within four years of his new employment, that is, prior to 2024.

The employee is currently and continues to look for a property to acquire in Location B.

The Salary Sacrifice Arrangement between the employer and the employee is an effective Salary Sacrifice Arrangement.

Relevant legislative provisions

Fringe Benefits Tax Assessment Act 1986 Section 58B

Fringe Benefits Tax Assessment Act 1986 Section 58C

Fringe Benefits Tax Assessment Act 1986 Section 61C

Fringe Benefits Tax Assessment Act 1986 Subsection 136(1)

Reasons for decision

Question 1

Does the Fringe Benefits Tax (FBT) exemption under section 58C of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) apply to the reimbursement of the expenses (incidentals to the sale of the residence in Location A) which are being salary sacrificed?

Subsection 58C(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) states:

[Pre-condition for application of exemption]

Where:

(a)  During a particular period (in this subsection called the "former home holding period"), an employee of an employer, or an associate of an employee of an employer, holds:

(i) a prescribed interest in land on which:

(A)  there is a building constituting or containing a dwelling;

(B)  the employee or associate proposes to construct, or complete the construction of, a building constituting or containing a dwelling;

(ii) a prescribed interest in a stratum unit in relation to a dwelling; or

(iii) a proprietary right in respect of a dwelling, being a flat or home unit;

(b)  the employee or associate sells, or proposes to sell, the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of his or her employment;

(c)   the employer first notifies the employee at a time (in this subsection called the "notice time") during the former home holding period that the employee is required to perform the duties of that employment at the employee's new place of employment; and

(d)  at the notice time, the employee occupied, or proposed to occupy, the dwelling, or proposed to occupy the proposed dwelling, as his or her usual place of residence;

(e)  (Repealed by No 23 of 2005)

the following subsections (i.e. subsections 58C(2) - 58C(5)) have effect.

Did the employee hold a prescribed interest in land containing a dwelling during the former home holding period?

The employee held a prescribed interest in land containing a dwelling in Location A during the former home holding period.

Sub-subparagraph 58C(1)(a)(i)(A) of the FBTAA is satisfied.

Did the employee sell his property solely because he was required to change his usual place of residence in order to perform the duties of his employment?

The employee was initially notified of his relocation of employment in 2019. The employee ceased employment in Location A in 2020 and commenced employment in Location B 10 days later.

The employee sold his property in Location A solely in order to move to Location B to perform his duties of employment in Location B.

Paragraph 58C(1)(b) of the FBTAA is satisfied.

Did the employer first notify the employee during the former home holding period that the employee is required to perform the duties of employment at the employee's new place of employment?

The employer first notified the employee in 2019 that he is required to perform duties of employment at the employee's new place of employment in Location B. This was during the former home holding period when the employee was living in Location A.

Paragraph 58C(1)(c) of the FBTAA is satisfied.

Did the employee occupy the first dwelling as his usual place of residence at the notice time?

The employee occupied the first dwelling in Location A as his usual place of residence at the notice time.

Paragraph 58C(1)(d) of the FBTAA is satisfied.

Conclusion

As the employee satisfies all of the pre-conditions for application of the exemption under subsection 58C(1) of the FBTAA, subsections 58C(2) - 58C(5) of the FBTAA have effect.

Subsection 58C(2) of the FBTAA states:

[Sale of property]

Where:

(a)  either of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax:

(i) an expense payment benefit where the recipients expenditure is incidental to the sale of that interest or right;

(ii) a residual benefit where the recipients benefit is incidental to the sale of that interest or right;

(aa) the employee or associate entered into a contract for the sale of the interest or right within 2 years after the day (the new employment day) on which the employee commenced to perform the duties of that employment at the employee's new place of employment;

(b)  if, apart from this paragraph, this subsection would apply in relation to 2 or more dwellings or proposed dwellings in relation to the change in the employee's usual place of residence - the employer of the employee elects that this subsection apply in relation to only one of those dwellings or proposed dwellings;

(c)   if paragraph (b) applies - the benefit relates to the dwelling or proposed dwelling in respect of which the election is made;

(d)  if subparagraph (a)(i) applies - documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

(e)  the benefit is not provided under a non-arm's length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

Will an expense payment benefit be provided to the employee in respect of the employee's expenditure that is incidental to the sale of the property?

The employee will enter into a salary sacrifice arrangement with his employer to be reimbursed for expenditure that is incidental to the sale of the property in Location A. The reimbursement will give rise to an expense payment benefit.

Subparagraph 58C(2)(a)(i) of the FBTAA is satisfied.

Did the employee, or an associate, enter into a contract for the sale of the property within 2 years after commencement of duties at the employee's new place of employment?

The employee commenced duties at the new place of employment in Location B city in 2020. The employee entered into a contract for the sale of the property in Location A in 2020, less than three months later, with settlement occurring one month later. The employee entered into a contract for the sale of the property in Location A within 2 years after commencement of duties at the employee's new place of employment.

Paragraph 58C(2)(aa) of the FBTAA is satisfied.

Has documentary evidence been provided of the employee's expenses?

Documentary evidence has been provided to the employer of the employee's expenses with respect to selling costs, being real estate, solicitor and conveyancing fees.

Paragraph 58C(2)(d) of the FBTAA is satisfied.

Was the benefit provided under an arm's length arrangement?

The expense payment benefit was provided to the employee with the employer and employee dealing with each other at arm's length.

Paragraph 58C(2)(e) of the FBTAA is satisfied.

Conclusion

As all of the criteria of subsections 58C(1) and (2) of the FBTAA are satisfied, the expense payment benefit being provided by the employer, that is, reimbursement of the expenses associated with selling the employee's home in Location A, is an exempt benefit.

Question 2

Assuming the employee acquires a property near the new place of employment in Location B to occupy as the main residence, does the FBT exemption under section 58C of the FBTAA apply to the reimbursement of acquisition expenses if they are salary sacrificed?

As per Question 1, the employee satisfies all of the pre-conditions for application of the exemption under subsection 58C(1) of the FBTAA, therefore subsections 58C(2) - 58C(5) of the FBTAA have effect.

Subsection 58C(3) of the FBTAA states:

[Acquisition of property]

Where:

(a)  at a particular time, the employee or an associate of the employee acquires:

(i) a prescribed interest in land on which:

(A)  there is a building constituting or containing another dwelling;

(B)  the employee or associate proposes to construct, or complete the construction of, a building constituting or containing another dwelling;

(ii) a prescribed interest in a stratum unit in relation to another dwelling; or

(iii) a proprietary right in respect of another dwelling, being a flat or home unit;

(b)  the employer or associate acquires the interest or right solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment at the employee's new place of employment;

(c)   the employee or associate entered into a contract for the acquisition of the interest or right on a day (the contract day) within 4 years after the new employment day;

(ca) if, on the contract day, the employee or associate holds an interest or right in another dwelling in a situation where:

(i)    if that interest or right were sold within 2 years after the new employment day; and

(ii)   if a benefit of a kind referred to in subsection (2) were provided in relation to that interest or right;

the benefit would be an exempt benefit under subsection (2) - not more than 2 years have elapsed since the new employment day;

(d)  immediately after the completion of the acquisition, the employee occupied the other dwelling, or proposed to occupy the other proposed dwelling, as his or her usual place of residence;

(e)  any of the following benefits is provided in respect of that employment of the employee in, or in respect of, a year of tax:

(i)    an expense payment benefit where the recipients expenditure is incidental to the acquisition of that interest or right;

(ii)   a residual benefit where the recipients benefit is incidental to the acquisition of that interest or right;

(iii)  an expense payment benefit where the recipients expenditure is in respect of the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling;

(iv)  a residual benefit where the recipients benefit is constituted by the act of connecting or re-connecting a telephone service to the other dwelling or proposed dwelling;

(v)   an expense payment benefit where the recipients expenditure is in respect of the act of re-connecting gas or electricity to the other dwelling or proposed dwelling;

(vi)  a residual benefit where the recipients benefit is constituted by the act of re-connecting gas or electricity to the other dwelling or proposed dwelling;

(f)    if subparagraph (e)(iii) or (iv) applies - immediately before the change, a telephone service was provided to the unit of accommodation that was the employee's usual place of residence before the change;

(g)  if subparagraph (e)(i), (iii) or (v) applies - documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date; and

(h)  the benefit is not provided under a non-arm's length arrangement;

the benefit is an exempt benefit in relation to the year of tax.

Has the employee acquired land containing another dwelling?

The employee has not yet acquired land containing another dwelling. The employee is currently living in rental accommodation. However, the employee intends to acquire another property in Location B and has been attending numerous open houses and making enquiries relating to a home loan.

Did the employee acquire the property solely because the employee is required to change his usual place of residence in order to perform the duties of that employment at the employee's new place of employment?

It is accepted that when the employee acquires a new property, it will be because the employee was required to change his usual place of residence in Location A in order to perform his duties of employment at the employee's new place of employment in Location B.

Did the employee enter into a contract for the acquisition of a property within 4 years after the new employment day?

It is assumed that the employee will enter into a contract for the acquisition of a property within 4 years after the new employment day of 2020, that is, prior to 2024.

Did the employee occupy the residence immediately after the acquisition?

It is assumed that when the employee acquires a new property near his place of employment in Location B, he will immediately occupy the residence.

Was an expense payment benefit provided to the employee in respect of incidental expenditure related to the acquisition?

It is assumed that an expense payment benefit will be provided under a salary sacrifice arrangement in relation to reimbursement of property acquisition costs such as stamp duty and legal fees.

Has documentary evidence been provided of the employee's expenses?

It is assumed that documentary evidence will be provided to the employer of the employee's acquisition expenses when the property is purchased.

Was the benefit provided under an arm's length arrangement?

It is assumed the expense payment benefit will be provided to the employee with the employer and employee dealing with each other at arm's length.

Conclusion

Assuming the employee acquires a property in Location B within 4 years of the new employment day of 2020, that is, prior to 2024 and complies with all of the other conditions outlined in subsection 58C(3) of the FBTAA, the employee will satisfy the criteria in subsection 58C(3) of the FBTAA and the payment benefit, being the reimbursement of acquisition costs, will be an exempt benefit.

Question 3

Does section 61C of the FBTAA apply to reduce the taxable value of the reimbursement of the expenses (rent of temporary accommodation near the new place of employment in Location B) which are being salary sacrificed?

Subsection 61C(1) of the FBTAA states the following conditions for application of a reduction of the taxable value of temporary accommodation relating to relocation:

[Conditions for application of reduction]

Where:

(a) any of the following fringe benefits is provided in, or in respect of, a year of tax in respect of the employment of an employee of an employer:

(i) an expense payment fringe benefit where the recipients expenditure is in respect:

(A) a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or

(B) a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members;

(ii) a housing fringe benefit where the housing right is in respect of a unit of accommodation occupied or used for the temporary accommodation of family members;

(iii) a residual fringe benefit where the recipients benefit:

(A) is constituted by the subsistence of a lease or licence in respect of a unit of accommodation occupied or used for the temporary accommodation of family members; or

(B) is constituted by the subsistence of a lease or licence in respect of goods primarily for domestic use by family members, being domestic use in connection with a unit of accommodation occupied or used for the temporary accommodation of family members;

(b) the temporary accommodation is required solely because the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

(c) if the unit of accommodation is located at or near the employee's former usual place of residence - the temporary accommodation was required because the unit of accommodation that was the employee's former usual place of residence became unavailable, or unsuitable, for residential use by family members due to removal, storage or other arrangement relating to the change in the usual place of residence of the employee;

(d) if the unit of accommodation is located at or near the employee's new place of employment - the employee, or an associate of the employee, either before, on, or as soon as reasonably practicable after, the day (in this section called the "relocation day") on which the employee commenced to perform the duties of that employment at the employee's new place of employment, commenced sustained reasonable efforts to acquire, or to acquire the right to occupy or use, a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee; and

(e) the fringe benefit is not provided under a non-arm's length arrangement:

the following provisions (i.e. subsections 61C(2) -61C(5)) have effect.

Was a benefit provided to the employee in respect of a lease or licence of a unit of accommodation?

The employee's payment of rent in Location B will be reimbursed by the employer under a salary sacrifice arrangement, giving rise to an expense payment benefit.

Sub-subparagraph 61C(1)(a)(i)(A) of the FBTAA is satisfied.

Was the temporary accommodation required solely because the employee is required to change his usual place of residence in order to perform the duties of employment?

It is accepted that the temporary accommodation, being rental accommodation in Location B, is required solely because the employee was required to change his place of residence in Location A in order to perform his duties of employment in Location B.

Paragraph 61C(1)(b) of the FBTAA is satisfied.

With the unit of accommodation being near the employee's new place of employment, has the employee sustained reasonable efforts to acquire a long-term place of residence?

The employee's unit of accommodation will be near the employee's new place of employment in Location B. The employee has attended numerous open houses, has conducted market research and has made enquiries in relation to home loans. It is accepted that the employee intends to acquire a property in Location B at the termination of the lease and is sustaining reasonable efforts to acquire a long-term place of residence in Location B.

Paragraph 61C(1)(d) of the FBTAA is satisfied.

Was the benefit provided under an arm's length arrangement?

The expense payment benefit was provided with the employer and employee dealing with each other at arm's length.

Paragraph 61C(1)(e) of the FBTAA is satisfied.

Conclusion

As the employee satisfies all of the conditions for application of the reduction outlined in subsection 61C(1) of the FBTAA, subsections 61C(2) - 61C(5) have effect.

Subsection 61C(3) of the FBTAA states the following:

[Accommodation near new place of residence]

Where:

(a)  paragraph (1)(d) applies;

(b)  any of the following subparagraph applies:

(i)    ...

(ii)   the employee, not later than 4 months after the relocation day, pursuant to a contract entered into by the employee or an associate of the employee, commences or commenced to occupy or use a unit of accommodation intended by the employee or associate, as the case may be, to provide a long-term place of residence for the employee;

(iii)  the employee gives to the employer, before the declaration date, a declaration in a form approved by the Commissioner, in respect of the application of this section in relation to the employee; and

(c)   a percentage (in this subsection called the "attributable percentage") of the taxable value of the fringe benefit in relation to the year of tax is attributable to the subsistence of the lease, licence or housing right referred to in paragraph (1)(a) during the whole or a part of the period commencing 7 days before the relocation day and ending on the earlier or earliest of whichever of the following days is applicable:

(i)    if, during the initial accommodation search period, a contract is or was entered into by the employee or an associate of the employee for the acquisition of, or of the right to occupy or use, a unit of accommodation intended by the employee or associate to provide a long-term place of residence for the employee - the day on which the employee could reasonably be or have been expected to commence, or to have commenced, to occupy or use that unit of accommodation pursuant to that contract;

(ii)   if the initial accommodation search period ends or ended before any contract of a kind referred to in subparagraph (i) of this paragraph is or was entered into by the employee or an associate - the day on which that period ends or ended;

(iii)  if:

(A)  the unit of accommodation that was the employee's former usual place of residence was a dwelling in which the employee, or an associate of the employee held a relevant proprietary interest;

(B)  within 6 months after the relocation day, a contract for the sale of that relevant proprietary interest is or was entered into; and

(C)  the efforts referred to in paragraph (1)(d), and the efforts of that kind that continue or continued to be made during the initial accommodation search period are, or were, efforts to acquire a relevant proprietary interest in a unit of accommodation, being a dwelling;

the day occurring 12 months after the relocation day;

(iv)  except in a case where subparagraph (iii) applies - the day occurring 6 months after the relocation day;

the amount that, but for this subsection and section 62, would be the taxable value of the fringe benefit in relation to the year of tax shall be reduced by the attributable percentage.

Does paragraph 61C(1)(d) apply?

The unit of accommodation is near the employee's new place of employment and the employee has commenced sustained reasonable efforts to acquire a long-term place of residence. Therefore paragraph 61C1(d) applies, and subsection 61C(3)(a) of the FBTAA is satisfied.

Did the employee give the employer a declaration before the declaration date?

It is assumed the employee will give to the employer a declaration before the declaration date in a form approved by the Commissioner in respect of the application of this section in relation to the employee.

Subparagraph 61C(3)(b)(iii) of the FBTAA is satisfied.

Was the employee's former residence sold within 6 months after the relocation day?

The relocation day, when the employee commenced employment duties at his new place of employment, is in 2020. The contract to sell the employee's former usual place of residence was less than 3 months later. Therefore, a contract was entered into for the sale of the employee's former residence within 6 months after the relocation day.

Sub-subparagraph 61C(3)(c)(iii)(B) of the FBTAA is satisfied.

Conclusion

Accepting that the employee is undertaking sustained reasonable efforts to acquire a long-term place of residence in Location B, the taxable value of the expense payment benefit in relation to the rental property will be reduced by the attributable percentage calculated from seven days before the relocation day to 12 months after the relocation day.

Question 4

Does the FBT exemption under section 58B of the FBTAA apply to the reimbursement of the removalist expenses which are being salary sacrificed?

Subsection 58B(1) of the FBTAA states:

[Conditions for exemption]

Where:

(a)  either of the following benefits is provided in, or in respect of, a year of tax in respect of the employment of an employer:

(i) an expense payment benefit where the recipients expenditure is in respect of the removal or storage of household effects of the employee;

(ii) a residual benefit where the recipients benefit consists of the removal or storage of household effects of the employee;

(b)  the removal or storage is required solely because:

(i) the employee is required to live away from his or her usual place of residence in order to perform the duties of that employment;

(ii) the employee, having lived away from his or her usual place of residence in order to perform the duties of that employment, is required to return to his or her usual place of residence:

(A)  in order to perform those duties; or

(B)  because the employee has ceased to perform those duties; or

(iii) the employee is required to change his or her usual place of residence in order to perform the duties of that employment;

(c)   the removal or storage is required to enable a family member to:

(i) if subparagraph (b)(i) applies - take up residence, or to continue to reside, at or near the place where the employee performs the duties of that employment while living away from his or her usual place of residence;

(ii) if subparagraph (b)(ii) applies - take up residence at the employee's usual place of residence; or

(iii) if subparagraph (b)(iii) applies - take up residence, or to continue to reside, at the employee's new usual place of residence;

(d)  if subparagraph (b)(iii) applies:

(i) the removal takes place, or the storage commences to be provided, within 12 months after the day on which the employee commenced to perform the duties of that employment at the employee's new place of employment; and

(ii) the benefit is not provided under a non-arm's length arrangement;

(e)  if subparagraph (a)(i) applies - documentary evidence of the recipients expenditure is obtained by the recipient and that documentary evidence, or a copy, is given to the employer before the declaration date;

(f)    the removal or storage was not provided in connection with travel undertaken by the employee in the course of performing the duties of that employment;

the benefit is an exempt benefit in relation to the year of tax.

Subsection 58B(2) of the FBTAA states:

[Interpretation] For the purposes of this section:

(a)  a reference to the household effects of an employee is a reference to tangible property (whether or not owned by a family member) kept primarily for the personal use of family members; and

(b)  without limiting the generality of an expression used in subsection (1), the recipients expenditure shall be taken to be in respect of, and the recipients benefit shall be taken to consist of, the removal or storage of household effects if the expenditure or benefit is in respect of, or consists of, the transport, packing, unpacking or insurance of the household effects in connection with the removal or storage of the household effects.

Was an expense payment benefit provided to the employee with respect to removal expenses?

The employee will enter into a salary sacrifice arrangement with his employer to be reimbursed for removal expenses.

Subparagraph 58B(1)(a)(i) of the FBTAA is satisfied.

Was the removal or storage required solely because the employee was required to change his usual place of residence in order to perform his duties of employment?

It is accepted that the employee was required to change his usual place of residence from Location A to Location B in order to perform his duties of employment. The removal of personal effects from Location A to Location B was required solely because the employee was required to change his usual place of residence in order to perform his duties of employment.

Subparagraph 58B(1)(b)(iii) of the FBTAA is satisfied.

Will a family member reside at his new usual place of residence?

The definition of family member in subsection 136(1) of the FBTAA includes the employee or spouse of the employee. The employee and his spouse will reside at his new usual place of residence.

Subparagraph 58B(1)(c)(iii) of the FBTAA is satisfied.

If subparagraph 58B(1)(b)(iii) of the FBTAA applies, did the removal take place within 12 months after the day on which the employee commenced duties at the employee's new place of employment?

Subparagraph 58B(1)(b)(iii) of the FBTAA applies, as above. A truck was hired to transport household effects from Location A to Location B and return after the last day of employment in Location A and before the first day of employment in Location B. The removal of household effects therefore occurred within 12 months of the employee commencing to perform the duties of employment at the employee's new place of employment.

Subparagraph 58B(1)(d)(i) of the FBTAA is satisfied.

Was the benefit provided under an arm's length arrangement?

The expense payment benefit was provided to the employee with the employer and employee dealing with each other at arm's length.

Subparagraph 58B(1)(d)(ii) of the FBTAA is satisfied.

Has documentary evidence been provided of the employee's expenses?

Documentary evidence has been provided to the employer of the employee's expenses of removal expenses before the declaration date.

Paragraph 58B(1)(e) of the FBTAA is satisfied.

Was the removal provided in connection with travel undertaken by the employee in the course of performing the duties of employment?

The removal was not provided in connection with travel undertaken by the employee in the course of performing the duties of employment. The removal was in relation to the employee living near his new place of employment, requiring a move from Location A to Location B.

Paragraph 58B(1)(f) of the FBTAA is satisfied.

Conclusion

As all of the conditions for exemption that are contained in section 58B of the FBTAA have been satisfied, the expense payment benefit, being the reimbursement of removalist expenses, is an exempt benefit under section 58B of the FBTAA.