This Determination, released Wed 27.2.2013, sets out the weekly 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.
If the total of food and drink expenses for an employee (including eligible family members) does not exceed the amount the Commissioner considers reasonable, the taxable value of a LAFHA fringe benefit is reduced by the exempt food component (and substantiation is not required).
If the total of an employee’s food or drink expenses 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. If the food and drink expenses exceed the reasonable amount and are not substantiated in full, only the reasonable amount will be exempt.
The Determination was previously issued as Draft Taxation Determination TD 2012/D8.
DATE OF EFFECT: The Determination applies only to the FBT year beginning on 1 April 2013. As a transitional measure, where an employee and employer have an existing employment agreement in force as at 27 February 2013 that specifies a rate in TD 2012/5, and that employment agreement is not varied in a material way or renewed, the rates in TD 2012/5 will continue to be accepted by the Commissioner as reasonable amounts under s 31G for the FBT year beginning on 1 April 2013.
[LTN 39, 27/2/13]