Exempt relocation benefits
This provides some guidance in relation to the FBT consequences of providing financial assistance to employees who are relocating for work reasons. There are a number of FBT concessions and exemptions associated with relocation benefits:
| Benefit | Conditions | How can benefit be provided | Documentation required | Expense Code | FBT |
|---|---|---|---|---|---|
| Removal and storage of household items | The removal and/or storage must commence within 12 months of the employee starting work at the ANU. | Reimburse employee OR pay supplier direct | Tax invoice from removalist/storage firm. | 5851 | Exempt |
| Relocation transport , e.g, Transport costs or cents per km. Accommodation en route for an employee and family members | If cents per km allowance, must be at (or less than) the ATO rates | Reimburse employee OR pay supplier direct OR cents per km motor vehicle allowance through payroll | tax invoice for expenses incurred if reimbursing of paying supplier direct OR Relocation transport declaration if paying allowance through payroll. | 5440A, 5441A, 5450A, 5451A, 5460A, 5461A, 5470A, 5430ACents per km allowance through payroll: Motor Vehicle allowance – (paycodes 181, 182,183 depending on engine size) | Exempt |
| Incidental costs of selling old house and acquiring new house, e.g. stamp duty, legal services, agent's services, discharge of a mortgage, expenses of borrowing | Employee must enter into contract for sale of old dwelling within 2 years of new employment. The timeframe for purchase of new dwelling is 4 years. | reimburse employee or pay direct | tax invoices, receipts for expenses incurred | 5420A, 5837, 5851 | Exempt |
| Utilities (e.g. telephone, gas and electricity) connection | incurred within 12 months commencement of new employment. | reimburse employee or pay direct | tax invoices, receipts for expenses incurred | 5837 | Exempt |
| Temporary accommodation & leasing of household goods at new location | Only while employee is searching for suitable long-term accommodation. Maximum 4 months (can be extended to 6 or 12 months if declaration signed) | reimburse employee or pay direct | tax invoices, receipts for expenses incurred | 5420A, 5421A | Exempt |
| Meals while searching for suitable long term accommodation. | Employee and family must have been accommodated in a hotel, motel, hostel or guesthouse during search for long-term accommodation. | reimburse employee or pay direct | tax invoices, receipts for expenses incurred | 5470A, 5471A, 5420A | FBT Benefit value is $2 per meal and $1 per meal for children under 12. |
| Temporary accommodation at old location | Only if former home is unavailable (max 3 weeks prior to start date) | reimburse employee or pay direct | tax invoices, receipts for expenses incurred | 5420A, 5421A |
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