Private ruling: Income tax treatment of expense payment fringe benefits
Date of advice: 10 April 2017
Published: September 2017
Ruling period: Year ended 30 June 20ZZ
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are the reimbursements I receive from my employer included in my assessable income? | A1: No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. ● You commenced employment with your employer in 20XX. ● Your employer reimbursed you for the following expenses incurred by you: (documented) Expense Amount ($) Lenders Mortgage Insurance on construction loan for new residence XX,XXX Selling fees (old residence) XX,XXX Advertising (old residence) XXX Settlement agents fees (old residence) XXX Disbursements (old residence) XX Removal costs X,XXX Stamp duty (new residence) XX,XXX Registration of transfer (new residence) XXX Settlement agent fee (new residence) XXX Disbursements enquiry fees (new residence) XXX Refinancing fees from original lender (new residence) XXX Refinancing fees from replacement lender (new residence) XXX


Reasons for decision: Summary: Fringe benefits and exempt fringe benefits are non-assessable non-exempt income under section 23L of the Income Tax Assessment Act 1936 (Cth). Fringe benefits include expense payment fringe benefits. Under sections 20 and 136 of the Fringe Benefits Tax Assessment Act 1986 (Cth), an expense payment fringe benefit includes a reimbursement of expenditure incurred by the recipient where that reimbursement is in respect of the recipient's employment. In your case, your employer has reimbursed you for specific expenses incurred by you. Therefore, the reimbursements constitute expense payment fringe benefits which are, therefore, excluded from your assessable income for income tax purposes.