Employees living and working in designated remote areas (as defined by the ATO) may qualify for ‘remote area housing assistance’. The accommodation claimed must be the employee’s usual place of residence during the FBT year in which it is claimed. Remote area housing is 50% FBT exempt.
Employees with a mortgage will need to provide copies of their mortgage statement for a period of 6 months so that the average interest paid can be calculated and claimed to reduce their taxable income. If you redraw on your mortgage, or have done so in the past, the mortgage should not be packaged under this benefit.
For employees paying rent, they will need to provide a copy of their rental agreement and claim their payments to reduce your taxable income.
Examples based on Mortgage Interest
For more information regarding the above, please contact Prosperity Salary Packaging or email sp@prosperity.com.au.
