29 Nov 11 FBT changes in Mid-Year Economic and Fiscal Outlook (MYEFO)
In media release No 2011/148, issued 29 November 2011, the Treasurer, Wayne Swan, announced the following change to FBT in relation to Living-away-from-home allowances and benefits as a result of the Mid-Year Economic and Fiscal Outlook (MYEFO).
Mr Swan said:
- access to the tax exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as 'fly-in fly-out' workers; and
- individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount.
No permanent resident legitimately using this tax exemption for accommodation and food expenses will lose any entitlements.
The change will apply from 1 July 2012 for both new and existing arrangements.
On 29 November 2011, Treasury released for public consultation a consultation paper that outlines the existing treatment of the living away from home benefits and the implementation issues of the reform, including whether there is a need for special transitional arrangements to ensure there are no unintended consequences with the new arrangements.
The closing date for submissions on the consultation paper is Friday, 3 February 2012.