Housing Fringe Benefits

Introduction

Where the University grants an employee the right to occupy a unit of accommodation as their usual place of residence (ie Edwards Hall, Evatt House, International House), then the right to use or occupy that residence is a housing fringe benefit. If the employee is required to live away from home the benefit may be exempt.

Taxable Value

The method of valuing the housing fringe benefit is dependent on where the accommodation provided is located. The two types of locations for calculating housing fringe benefits are:

1. Housing fringe benefits provided in Australia, not in remote areas

The taxable value of non-remote housing is the market value of the accommodation or indexed value, less any amount contributed by the employee.

In the first year the accommodation is provided, the market value of the accommodation must be obtained. The market value is then used as the taxable value of the housing fringe benefit, for subsequent years the market value in the previous year is indexed by multiplying the market value (or indexed value market value) by the annual State housing index factor (refer TD 2006/14).

Market value can be obtained by approved real estate valuation. Indexing can be continued for a maximum of nine years then a new valuation is required, or when additions, alterations or damage to the accommodation have the effect of altering the market rental value by at least 10%.

If the housing benefit was provided for only part of the year, the taxable value is apportioned.

2. Housing fringe benefits provided in Australia in remote areas.

Housing provided in remote areas of Australia is FBT exempt.