Financial Services

Housing Fringe Benefits Tax (FBT)

Further information

Overarching Fringe Benefit Tax Policy


A housing fringe benefit arises when the University provides an employee a right to occupy or use any type of accommodation, which is the employee's usual place of residence.

The use of shared accommodation will also be a housing fringe benefit.

If the accommodation is not the usual place of residence of an employee then the accommodation provided is a residual fringe benefit.

  1. Calculation of housing fringe benefits taxable value
  2. Temporary accommodation
  3. Students occupying accommodation
  4. Remote area housing fringe benefits
  5. Related forms

Calculation of housing fringe benefits taxable value

The taxable value of a housing fringe benefit provided in Australia is measured by using the market value of the accommodation provided or a statutory annual value and is reduced by any rent paid by the employee.

The market value must be determined at the commencement of the arrangement and is thereafter subject to indexation. A new market valuation must be obtained in the tenth year.

The statutory annual value is the annualised market value at the date of last valuation, indexed according to Consumer Price Index movements to the current year.

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Temporary accommodation

Where the University provides temporary accommodation to an employee who changes his or her usual place of residence in the course of employment or in order to commence employment, the taxable value of the housing fringe benefit may be reduced to $nil.

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Students occupying accommodation

On occasions students may act as suitable caretakers in place of residential assistants who travel overseas or are absent on leave. The University is not liable for housing fringe benefits as long as the student caretaker is not an employee of the University. However, should the student caretaker be an employee of the University, a residual fringe benefit may arise.

Residential assistants

Where a residential assistant is employed, they will be exempt from FBT where they are living away from home. Where the student normally resides at the student village, they will not be considered as living away from home as the village is their home.

A declaration must be obtained by the University for each residential assistant in order to be entitled to this exemption.

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Remote area housing fringe benefits

Since 1 April 2000 any housing fringe benefits provided in a remote area have been exempt from fringe benefits tax. Some examples of what areas the Australian Taxation office considers to be remote for FBT purposes are:

  • Broome
  • Bunbury
  • Busselton
  • Carnarvon
  • Kalgoorlie-Boulder
  • Newman
  • Port Hedland.

Note: the above list of remote areas is not an exhaustive list, if you are in doubt please contact the Tax Team.

Where the University also reimburses employees for residential fuel, electricity, water, in connection with the remote area housing fringe benefit, the reimbursement will be an expense payment fringe benefit. The taxable value of the fringe benefit in this case will equal 50 per cent of the amount reimbursed.

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Related forms

This declaration is to be used where a Property Benefit has been provided to an employee. Once completed, the form is to be submitted to FS-Tax for review.

This declaration is to be used where multiple Property Benefits have been provided to an employee during the same FBT year. Once completed, the Authorisation Summary and individual Declarations are to be printed and submitted to FS-Tax for review.

 
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