In relation to employee relocation costs, what are the more common available heads of salary sacrifice?
We have made an offer to an individual to take up a senior management role with us. The individual and his family live interstate and will relocate if he accepts the offer. They have enquired as to whether they can salary sacrifice costs associated with the relocation. What are the more common relocation exemptions/concession available?
The ATO accept that an employee can salary sacrifice relocation costs. The following table provides a summary of some of the more common relocation exemptions/concessions available:
| Type of Benefit | FBT Act Reference |
| Removal and Storage of Household effects including:
Transport, packing, unpacking and insurance in connection with the removal or storage of household effects (including pets). |
58B |
| Costs incidental to the sale or acquisition of a dwelling. | 58C |
| Connecting or re-connecting a telephone service to the dwelling and connecting or re-connecting gas or electricity to the dwelling. | 58D |
| Short term loans repayable within 12 months to pay a security deposit (e.g. rental bond or service connection deposit) in connection with accommodation which is an exempt benefit under the living away from home accommodation rules. | 17 |
| Leasing of household goods while living away from home. | 58E |
| Relocation transport covering transport, meals or accommodation for family members. | 58F & 61B |
| Living away from home accommodation. | 21 & 47(5) |
| Temporary accommodation relating to relocation. | 61C |
| Temporary accommodation meal fringe benefits. | 61D |
| Engaging a relocation consultant. | 58AA |
This article provides a general summary of the subject covered and cannot be relied upon in relation to any specific instance. It is not intended to be, nor should it be relied upon as, a substitute for professional advice. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use.
This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.