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An employee is employed in a remote area. 2. The employee either buys or leases a residential property in that area. 3. The employee leases the property to his or her employer and receives rent from the employer. The property is then provided to the employee rent-free by the employer until such time as the employee ceases to be in employment or moves to another location. 4. In a variation on this arrangement, the employee enters into a salary sacrifice arrangement with the employer. The employee foregoes part of their expected total remuneration in return for the rent-free housing. The amount foregone is equal to the rental payments made by the employer to the employee. 5. The employee declares the rent received as assessable income and claims property expenses such as interest on loans, rates, maintenance and depreciation as deductions from that income. This is said to result in an overall loss to the employee which can be offset against other income. 6. The employer claims to satisfy the conditions set out in paragraph 58ZC(2)(a) to paragraph 58ZC(2)(e) of the Fringe Benefits Tax Assessment Act 1986 ('the FBTAA') and to be entitled to the remote area housing benefit exemption.