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Remote Area HousingRemote Area Housing Benefit is a tax concession designed by the Federal government to assist employers in rural and remote areas attracts and retain staff. If your employer and your home are located more than 40kms from a town of 14,000 people or more and more than 100kms from a town with more than 130,000 people they are eligible for a 50% reduction in the Fringe Benefits Tax payable on housing assistance. Hospitals and Charities can provide a set amount of benefits tax free normally $9,095 for hospitals and $16,050 for Charities and Aged Care facilities. This means that their employees can increase their tax free benefits by half of the interest they pay on their home loan. (Maximums apply) How does it work?
Based on the interest on your home loan or the rent you pay on the place you live in half of this amount can be added to your annual packaging. For instance if you paid $10,000 in interest for the period 1st of January 2006 – 31st December 2006, then you can increase your total packaging by $5,000.
Therefore if you normally pay 31.5% tax you would increase your annual pay by $1,575. This is over and above your normal packaging.
To obtain an information sheet or a claim for Mortgage Interest and Rental Remote Area Housing click the higlighted words.
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