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FBT Q&A – Relocation exemptions

In relation to employee relocation costs, what are the more common available heads of salary sacrifice?

Question

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?

Answer

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

 

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