Miscellaneous Taxation Ruling

MT 2045

Fringe benefits tax: living-away-from-home allowance benefits: reasonable food component for expatriate employees: update of mt 2040

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FOI status:

May be releasedFOI number: I 1011859

PREAMBLE

This ruling should be read in conjunction with Taxation Rulings Nos. MT 2040 and MT 2043.

2. Taxation Ruling No. MT 2040 sets out the reasonable food components of living-away-from-home allowances received by expatriate employees that will be accepted by this office for the fringe benefits tax years ended 31 March 1987 and 1988. Taxation Ruling No. MT 2043 sets out the reasonable food component for the fringe benefits tax year ended 31 March 1989.

3. The reasonable food component for the 1990 year has now been indexed according to movements in the food subgroup of the Consumer Price Index.

RULING

4. The following table itemises the amounts that will be accepted as a reasonable food component of a living-away-from-home allowance paid to expatriate employees in various family situations for the fringe benefits tax year ended 31 March 1990.

5. In relation to larger family groupings, this office will accept a food component based on the above figures plus $74 for each additional adult and $37 for each additional child. Thus, for a family of 2 adults and 4 children a reasonable food component would be $261 plus $37, i.e., $298; for a family of 5 adults it would be $298 plus $74, i.e., $372 per week.

6. While this Ruling will apply to the majority of cases, it will be open, of course, to any individual expatriate employee to establish a higher level of spending by reference to receipts or detailed records maintained for such a period, e.g., 3 months, as would be sufficient to reflect a long-term expenditure pattern.

COMMISSIONER OF TAXATION
22 March 1990

References

ATO references:
NO 86/9581-4 87/1500-9

Date of effect:
Immediate

Related Rulings/Determinations:

MT 2030
MT 2040
MT 2043

Subject References:
FRINGE BENEFITS TAX
LIVING-AWAY-FROM-HOME ALLOWANCE

Legislative References:
FRINGE BENEFITS TAX ASSESSMENT ACT: S 30
FRINGE BENEFITS TAX ASSESSMENT ACT: S 31
FRINGE BENEFITS TAX ASSESSMENT ACT: S 136