Accommodation benefits

2010 amendments clarify that the market value of the benefit of accommodation is income if the accommodation benefit arises in relation to an office or a position.

Sections 30 and 164 of the Taxation (GST and Remedial Matters) Act 2010

Key features

The Rewrite advisory Panel has agreed with a submission that, in the 2004 and 2007 Acts, section CE 1 incorrectly:

  • includes the full value of accommodation in the income of an employee; and
  • omits to refer to accommodation allowances.

In addition, the Panel noted that the corresponding provisions of the 1994 Act limit the application of this rule to a benefit provided in respect of an office or position.

Detailed analysis

The amendments correct section CE 1(1)(d), (g), and (2) in both the 2007 and 2004 Acts to clarify that the market value of the benefit of accommodation is income of a person if the accommodation benefit arises in relation to an office or a position.

In addition, the amount of income for the provision of accommodation is measured by the market value of the benefit of the accommodation provided, or if an allowance is provided in substitution for the provision of accommodation, the market value of the benefit arising from that allowance.

These amendments restore the outcome given by the corresponding provisions of the Income Tax Act 1994 in the definition of "monetary remuneration".

Application dates

The amendment to the 2004 Act applies from the beginning of the 2005-06 income year.

The amendment to the 2007 Act applies from the beginning of the 2008-09 income year.