Decision
There is no fringe benefits tax (FBT) liability in respect of the provision of accommodation, as the benefit is, depending on whether the employee is travelling in the course of performing the duties of that employment, either specifically made an exempt benefit under subsection 47(5) of the FBTAA or the taxable value of the benefit may be reduced to nil under the ODR in section 52 of the FBTAA.
In respect of the provision of meals to the employees, the taxable value of the board benefit is reduced to nil under the ODR in section 37 of the FBTAA.
Facts
Employees working at these remote locations therefore necessarily had to be provided with accommodation at or near these sites until the projects they were working on were completed or until their contracts of employment with the employer otherwise concluded.
The usual practice for the employer was to arrange transport to and from the nearest capital city to the remote work site.
Employees working at remote locations were entitled to be provided with three meals on each day while at the site.
The employees provided the employer with a Usual Place of Residence declaration stating that during the period they worked at a remote work site they also maintained a usual place of residence. The relevant conditions of employment include: • they are required to live away from their usual place of residence at various remote locations in the course of their employment; • they are required to live at or near actual remote work sites; • the taxpayer provides meals and accommodation at or near these remote work sites until the respective projects on which they are contracted to work, which may have a life of several years, are completed; • they do not make a contribution towards the cost of their meals or accommodation; • because of the remoteness of the sites and the conditions of their employment, the employees cannot choose accommodation or meals other than what is provided by the employer; • they are neither able to bring their families to live with them at the camp sites nor, generally, to have visitors; • they work rosters, often comprising 12 hour shifts on 13 successive days followed by 1 day off, of 7 or 14 weeks at the site followed by a week off; • they are generally employed on a 'fly-in-fly-out' basis and are generally required to leave the camp during their rostered-off period; • where they are required to leave the camp at the end of a roster then, depending on the remoteness of the camp, they may either drive out of the camp or be flown out, usually to the nearest state capital; • while the projects may last a number of years, the employees do not spend inordinate amounts of time at the work site, very rarely spending more than 1 year, being the aggregate of a number of 7 or 14 week rosters worked, at the same work site; and • typical facilities at the sites consist of demountable modules which provide single quarters accommodation for employees, a common dining area and shared laundry and bathroom facilities.