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