Aug 21 2014
We’re all going on a (Salary Packaging) Holiday!
We wish to provide some more clarity to the Salary Packaging of Holiday Accommodation and Venue Hire for employees of Public Hospitals, Charities and Medical Research Organisations that qualify for FBT exemptions.
The ATO has issued a number of Public or Class Rulings that assist us in providing you with some detail.
A Holiday Accommodation expense is an expense incurred by the employee or spouse in renting one of the following:
- a holiday home;
- a hotel/motel room;
- a room or cabin at a holiday resort;
- a room/suite at a bed and breakfast;
- an on-site caravan and/or cabin;
- a serviced or self-contained apartment; or
- a houseboat in its entirety.
The unit of accommodation will be used primarily to accommodate the employee’s immediate family. Non-family members are able to reside in the rental facility as guests.
The expense incurred by the employee or spouse will be for the entire unit of accommodation.
Everyone staying in the unit of accommodation will be on holidays.
The expenses will be for the rent of the unit of accommodation only.
WHAT IS NOT ELIGIBLE
If an employee or spouse shares the Holiday Accommodation expense with another person, the employee will not be permitted to package any portion of the expense.
Costs such as dry cleaning, phone bills, mini bar and meals will not be reimbursed.
Package deals that entitle the employee to additional recreational and/or education activities will not be reimbursed. For example, the following package deals will not be reimbursed:
- golfing ‘stay and play’ accommodation packages;
- skiing packages that include lift-hire and ski-rental in the accommodation cost; and
- arrangements where the accommodation costs include foreign language, cooking or other courses.
A Venue Hire expense is an expense incurred by the employee or spouse in hiring one of the following:
- a room in a reception centre or entire function room for an entertainment event such as a wedding reception;
- a marquee for an entertainment event;
- a boat or plane for the purpose of a social event; or
- a corporate box.
The expense incurred by the employee or spouse will relate to the entire room etc.
The expense will be for the hire of the venue only. However, it may include items that come as part of the hire cost and are necessary for the operation of the room etcetera. For example, tables and chairs provided as part of the hire of a function room used for a wedding reception.
WHAT IS NOT ELIGIBLE
If an employee or spouse shares the Venue Hire expense with another person, the employee will not be permitted to package any portion of the expense.