Draft Taxation Determination

TD 94/D87

Fringe benefits tax: is accommodation in a ship, vessel or floating structure accepted as 'residential accommodation' for the purposes of the 'fly-in fly-out' transport exemption in subsection 47(7) of the Fringe Benefits Tax Assessment Act 1986?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 95/49.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

Yes. Where the other conditions of subsection 47(7) are met, and the accommodation is near the employee's usual place of employment, the 'fly-in fly-out' transport will be an exempt benefit.

Example

Mr C Marine works at a construction site on one of the Torres Strait Islands and is accommodated on his employer's ship moored offshore. He works six weeks on, and then for his two weeks off is flown by his employer to and from his home in Cairns. Mr Marine's employer will not be subject to fringe benefits tax on the flights.

Commissioner of Taxation
11 August 1994

References

ATO references:
NO TOW 44

ISSN 1038 - 8982

Related Rulings/Determinations:

TR 94/D85
IT 2207

Subject References:
accommodation
residential accommodation
fly-in fly-out transport
exempt fringe benefit

Legislative References:
FBTAA 47(7)

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