ATO Interpretative Decision
ATO ID 2011/56
Fringe Benefits Tax
Reduction of taxable value: education of children of overseas employees - tutorFOI status: may be released
-
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Can a spouse of an overseas employee who participates in the Home School Education Program in respect of the full-time education their child, be a 'tutor' for the purposes of subparagraph 65A(b)(ii) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
Yes. A spouse of an overseas employee who participates in the Home School Education Program in respect of the full-time education their child can satisfy the requirements of being a 'tutor' for the purposes of subparagraph 65A(b)(ii) of the FBTAA.
Facts
An overseas employee is working for an employer in Australia for a fixed period.
The employee's spouse and child also accompany the employee and reside in Australia during this period.
The child is home-schooled, that is, education is delivered in the child's home by a parent or guardian through the Home School Education Program.
The employee's spouse accepts responsibility for developing, implementing and evaluating their child's learning program.
The home schooling meets the requirements for registration with the Board of Studies.
As evidence of meeting these requirements, records are kept of the teaching/learning program, time allocated, assessment of achievement and progress and resources used.
Parents do not need formal teacher training or teaching experience to be home educators. However, a capacity to plan and provide for the educational needs of the child must be demonstrated.
Applications for registration for home schooling are assessed by an Authorised Person during a home visit.
Reasons for Decision
Section 65A of the FBTAA applies to reduce the taxable value of certain fringe benefits which meet the costs of the education of children of overseas employees. To qualify for the reduction, a benefit must fulfil a number of conditions.
In accordance with paragraph 65A(b) of the FBTAA the full-time education being received by the child must be either:
- (i)
- at an educational institution: or
- (ii)
- by a tutor:
There is no definition of 'tutor' in the FBTAA and as such it takes on its ordinary meaning. The Macquarie Dictionary Online defines 'tutor' as:
4
. a teacher without institutional connections who assists students in preparing for examinations.
A 'teacher' in turn is defined in The Macquarie Dictionary Online as:
1
. someone who teaches or instructs, especially as a profession; instructor.
Where a parent has been accepted by the Board of Studies for registration as a home schooler and there is a formal Home School Education Program in place, the parent can be considered as 'someone who teaches or instructs' and is therefore a 'tutor' as defined. Evidence of meeting these requirements is provided through records of the teaching/learning program, time allocated, assessment of achievement and progress and resources used under the formal program.
Accordingly, it is accepted that a spouse of an overseas employee who participates in the Home School Education Program in respect of the full-time education of their child, is a 'tutor' for the purposes of subparagraph 65A(b)(ii) of the FBTAA.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 June 2017 | Reason for Decision | Minor formatting and punctuation |
| Reason for Decision and Other References | 'The Macquarie Dictionary , [Multimedia], version 5.0.0, 1/10/01' reference updated to 'Macquarie Dictionary Online' |
Year of income: Year ended 31st March 2012
Legislative References:
Fringe Benefits Tax Assessment Act 1986
section 65A
paragraph 65A(b)
subparagraph 65A(b)(ii)
Other References:
The Macquarie Dictionary Online
Keywords
Fringe benefits tax
FBT employees
Overseas employees
Reductions of taxable value
Date reviewed: 23 May 2017
ISSN: 1445-2782
| Date: | Version: | |
| 30 June 2011 | Original statement | |
| You are here | 9 June 2017 | Updated statement |