Expatriate tax ebook - Australia

Tax planning opportunities
Certain benefits in kind are concessionally taxed for FBT purposes where the recipient is living away from their usual place of residence, such as:

• reimbursement of relocation costs
• provision of accommodation
• cash allowances for living costs
• school fees for a person’s children
• air fares, meals and accommodation for holidays for employees and family members. 

Note: the Government has recently proposed changes to these concessions which if enacted will apply from 1 July 2012. The proposed changes will remove the availability of some of these concessions for some temporary residents. Under the proposed changes, provision of some previously exempt benefits in kind to temporary residents who are living away from their overseas home will be subject to FBT.

Other benefits that are concessionally taxed for FBT purposes include motor vehicles and benefits that would be ‘otherwise deductible’.

Information about Australia:

• introduction 
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities