We would like to draw your attention to some information that the Australian Taxation Office provides and how it can help you use our services to assist your company and your employees.
The services of a relocation consultant such as ourselves, Settled In Home Search and Relocation Services, can help your employee get settled more quickly, help their family be happier, and consequently help them be more productive at work. It directly helps your business – your employee isn’t off work for weeks finding a house to live in and all the other associated tasks that take up lots of time.
Settled In can provide all these services for you and we encourage you to look over our website and explore all the ways that we can assist your business and your employees:
The good news is that our costs are most likely exempt from fringe benefits tax which makes it cheaper for you to use us. The ATO has full information on their website at: https://ato.gov.au/General/Fringe-benefits-tax/In-detail/Employers-guide/FBT-exempt-benefits/
Here is the relevant portion:
From 1 April 2006, if a relocation consultant is used to help relocate an employee, or their family members, you may be eligible to access a FBT exemption for costs associated with the engagement of the relocation consultant.
A relocation consultant is a person who helps an employee, or his or her family members, move and settle into a new location.
In order for a benefit, consisting of the engagement of a relocation consultant, to qualify as a FBT exempt benefit, the following conditions must be met:
- the engagement of the relocation consultant must be an expense payment or residual benefit
- the engagement of the relocation consultant must be in respect of the employment of your employee
- the benefit is provided under an arm’s length arrangement
- if the benefit is an expense payment benefit – documentary evidence is provided to you before the date your employee declarations are due (refer to section 4.1 of Fringe benefits tax record keeping)
- the engagement of the relocation consultant is required solely for one or more of the following reasons
- the employee is required to live away from home in order to fulfil their employment duties
- the employee returns to their usual place of residence, having previously been relocated from their usual place of residence, in order to fulfil his or her employment
- the employee, having previously been relocated from their usual place of residence, returns to their usual place of residence because they cease to perform the employment duties he or she had previously been relocated for
- in order to fulfil their duties of employment, the employee moves from his or her usual place of residence.
Any expenses a relocation consultant pays on behalf of an employee or their family member is not exempt from FBT.
The common services a relocation consultant can provide to help an employee (or their family member) relocate include:
- obtaining removalist quotes
- finding accommodation, including temporary accommodation
- lease negotiation
- providing information about transportation to the new location
- providing information about education and community services at the new location.
Relocation advice provided incidental to the provision of another good or service (for example, by real estate agents) doesn’t qualify for this exemption (but may qualify for other relocation exemptions).
Whilst we cannot provide you with definite tax advice we can point out this as information. You will need to get your own taxation advice of course.
If you would like to discuss how our services can assist you then please contact us to discuss your specific needs. We would be glad to help tailor our services to meet the unique needs of each employee and your business. And don’t forget that based on the above information we can also assist your employees family as well to keep everyone happy.