FBT and Housing (Australia) Procedures

Parent Policy

Fringe Benefits Tax (Australia) Policy

A housing fringe benefit will arise where an employee is provided with the right to use a unit of accommodation and that unit of accommodation is the usual place of residence of the employee.

Definition of terms

FBT: Fringe Benefits Tax
ATO: Australian Taxation Office
Taxable value: Value of the fringe benefit before it is grossed up
CPI: Consumer price index
FBT Year: 1 April to 31 March

Taxable Value of the Benefit

• The taxable value of the benefit provided is the current market rental value of the accommodation less any contributions i.e., rent, paid by the employee.

Responsibility

Monash Residential Services

• The basis for calculating the taxable value is determined by the first year's market rental value obtained from an estate agent or independent Property Valuer. The first year's Market Value must then be recalculated annually using the CPI factor announced by the Australian Taxation Office.

Responsibility

Monash Residential Services

• The first year's market value can be used for obtaining the annual CPI market value for a maximum of up to nine consecutive years. If the accommodation reduces or increases in value by at least 10%, then a new valuation must be obtained.

Responsibility

Monash Residential Services

Occupancy Status Report

An Occupancy status report for each employee receiving Housing fringe benefits must be completed annually for the FBT year. This should show details of:

• Market value of accommodation
• Valuation date
• Occupancy dates
• Employee contributions

Responsibility

Monash Residential Services

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