Bankruptcy Regulations 1996
(regulation 6.12 )
17 Section 31 (Taxable value of living-away-from-home allowance fringe benefits) 17.1Add at the end:
| ' (2) | For the purposes of this section, ' deducted home consumption expenditure ' referred to in the definition of exempt food component in section 136 to be taken to be: | |
| (a) | in relation to a person of the age of 12 years or over - $42; and | |
| (b) | in relation to a person under the age of 12 years - $21. |
Example: Calculation of the value of a living-away-from-home allowance.
Assume that a bankrupt living away from his or her family is given a living-away-from-home allowance of $220 a week. Of this amount, $100 represents reasonable compensation for the costs of accommodation (i.e. the ' exempt accommodation component ' is $100), and $80 represents reasonable compensation for the cost of food.
The remaining $40 is compensation for the disadvantage of living away from home in a town where facilities that would be available at home are not available.
Under subsection 31(2), the exempt food component is $80 minus $42 (i.e. the compensation for increased food cost less the deducted home consumption expenditure). The value of the benefit is:
$ 200 − 100 − (80 − 42) = $ 82. ' .
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