This Draft TD, released late on 28 September 2012, sets out the amounts the Commissioner considers reasonable under s 31G of the FBT Assessment Act for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefit in the period 1 April 2013 to 31 March 2014. In addition, a transitional arrangement for the period ending on 31 March 2013 is set out in the Draft.
Where the total of food and drink expenses for eligible family members (including an employee) incurred by an employee in a period (up to a maximum of 12 months) does not exceed the amount the Commissioner considers reasonable, those expenses do not have to be substantiated under s 31G of the FBTAA. If the total of an employee’s food or drink expenses in the period exceeds the amount the Commissioner considers reasonable, the exempt food component is so much of the food and drink expenses (less the applicable statutory food total) as are substantiated by the employee.
DATE OF EFFECT: When the final Determination is issued, it will apply only to the FBT year beginning on 1 April 2013, and not to any later FBT year. As a transitional measure, for the period from the commencement of s 31G to the end of the 2012-13 FBT year, the rates specified in TD 2012/54 will be accepted by the ATO for all employees as reasonable amounts under para 31G(1)(b) of the FBTAA for food and drink expenses incurred by an employee receiving a LAFHA fringe benefit.
COMMENTS are due by 26 October 2012. ATO contact – Steve Mulcahy; Tel: (03) 9215 3736; Fax: (03) 9215 3833; Email: steve.mulcahy@ato.gov.au.
[LTN 190, 2/10]