Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 29

29. (1) The taxable value of a remote area housing fringe benefit in relation
to an employer in relation to a year of tax is-

   (a)  if the employer has made an election under sub-section (2) in relation
        to the year of tax-the amount calculated in
3AB accordance with the formula ---, where-
5C
A is the statutory annual rent amount in relation to the year of tax;
B is the number of whole days in the tenancy period; and
C is-

        (i)    in the case of the transitional year of tax-365; and

        (ii)   in any other case-the number of days in the year of tax,
reduced by the recipients rent;

   (b)  where-

        (i)    paragraph (a) does not apply; and

        (ii)   if the housing fringe benefit were not a remote area housing
               fringe benefit, the taxable value of the fringe benefit would
               be calculated under paragraph 26 (1) (b),
the amount that would be calculated under that paragraph if component B in the
formula in that paragraph were 0.6; or

   (c)  in any other case-the amount that would be calculated under paragraph
        26 (1) (c) if the amount represented by component A in the formula in
        that paragraph were reduced by 40%.

(2) An employer may elect, on or before the declaration date, that paragraph
(1) (a) be applied in determining the taxable values of all remote area
housing fringe benefits in relation to the employer in relation to the year of
tax.

(3) Where an employer makes an election under sub-section (2) in relation to a
year of tax, the employer shall be deemed also to have made an election under
that sub-section in respect of each subsequent year of tax.

(4) For the purposes of this section, a housing fringe benefit in relation to
an employer in relation to a year of tax in relation to a unit of
accommodation shall be taken to be a remote area housing fringe benefit if-

   (a)  during the whole of the tenancy period, the unit of accommodation was
        located in a State or internal Territory and was not at a location in,
        or adjacent to, an eligible urban area;

   (b)  during the whole of the tenancy period, the recipient was a current
        employee of the employer and the usual place of employment of the
        recipient was not at a location in, or adjacent to, an eligible urban
        area;

   (c)  it is customary for employers in the industry in which the recipient
        was employed during the tenancy period to provide residential
        accommodation for their employees without charge or for a rent or
        other consideration that is less than the market value of the right to
        occupy or use the accommodation concerned;

   (d)  it would be concluded that it was necessary for the employer, during
        the year of tax, to provide or to arrange for the provision of
        residential accommodation for employees of the employer by reason
        that-

        (i)    the nature of the employer's business was such that employees
               of the employer were liable to be frequently required to change
               their places of residence;

        (ii)   there was not, at or near the place or places at which the
               employees of the employer were employed, sufficient suitable
               residential accommodation for those employees (other than
               residential accommodation provided by or on behalf of the
               employer); or

        (iii)  it is customary for employers in the industry in which the
               recipient was employed during the tenancy period to provide
               residential accommodation for their employees free of charge or
               for a rent or other consideration that is less than the market
               value of the right to occupy or use the accommodation
               concerned; and

   (e)  the recipients overall housing right was not granted to the recipient
        pursuant to-

        (i)    an arrangement other than an arm's length arrangement; or

        (ii)   an arrangement that was entered into by any of the parties to
               the arrangement for the purpose, or for purposes that included
               the purpose, of enabling the employer to obtain the benefit of
               the application of this section.

(5) For the purposes of sub-section (4)-

   (a)  where a unit of accommodation is at a location in, or adjacent to, an
        eligible urban area and adjacent to, or in close proximity to, another
        unit of accommodation that is occupied or used and is not at a
        location in, or adjacent to, an eligible urban area, the Commissioner
        may, if the Commissioner considers that it is appropriate to do so
        having regard to all the circumstances, treat the first-mentioned
        unit of accommodation as not being at a location in, or adjacent to,
        an eligible urban area; and

   (b)  where the usual place of employment of a person is at a location in,
        or adjacent to, an eligible urban area and adjacent to, or in close
        proximity to, another location at which persons are employed, being
        another location that is not in, or adjacent to, an eligible urban
        area, the Commissioner may, if the Commissioner considers that it is
        appropriate to do so having regard to all the circumstances, treat
        that place of employment of the first-mentioned person as not being at
        a location in, or adjacent to, an eligible urban area.