Document ID: chunk:federal_register_of_legislation:C2025C00120:section:26:p1
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 26 (pt 1/3)
Character Range: 105181–107837

26  Taxable value of non‑remote housing fringe benefits
 (1) Subject to this Part, the taxable value of a housing fringe benefit provided in respect of the employment of an employee in relation to a year of tax is:
 (a) where the recipients unit of accommodation is not located in a State or internal Territory—so much of the market value of the recipients current housing right as exceeds the recipients rent;
 (b) where:
 (i) paragraph (a) does not apply;
 (ii) the recipients unit of accommodation is a caravan or mobile home or is in a hotel, motel, hostel or guesthouse; and
 (iii) during the whole or a part of the tenancy period, the provider carried on a business consisting of or including the provision to outsiders, in respect of identical or similar caravans or mobile homes or in respect of identical or similar units of accommodation in the hotel, motel, hostel or guesthouse, of leases or licences that are identical or similar to the recipients overall housing right;
  the amount calculated in accordance with the formula AB, where:
           A is the market value of the recipients current housing right; and
           B is:
 (iv) in a case where, if the fringe benefit were not a housing fringe benefit, it would be an in‑house residual fringe benefit—0.75; and
 (v) in any other case—1;
  reduced by the recipients rent; and
 (c) in any other case—the amount calculated in accordance with the formula:

  where:
           A is the statutory annual value of the recipients current housing right;
           B is the number of whole days in the tenancy period; and
           C is the number of days in the year of tax;
  reduced by the recipients rent.
 (2) For the purposes of the application of subsection (1) in relation to a housing fringe benefit in relation to an employer in relation to a year of tax (in this subsection referred to as the current year of tax), the statutory annual value of the recipients current housing right is:
 (a) if the current year of tax is a base year of tax in relation to the recipients current housing right—the amount calculated in accordance with the formula:

  where:
           A is the market value of the recipients current housing right;
           B is the number of days in the current year of tax; and
           C is the number of whole days in the tenancy period; and
 (b) in any other case—the amount ascertained in accordance with the formula AB, where:
           A is:
 (i) if the year of tax immediately preceding the current year of tax was a base year of tax for the purpose of calculating the taxable value of:
 (A) a housing fringe benefit in relation to the employer in