Remote Area Housing Benefits

Definition

Remote area housing is an exempt benefit that can be salary packaged in addition to the capped limit benefits. However, conditions apply to qualify for this benefit.

To qualify for this benefit, both the organisation’s address and the residential address of the employee must meet the ATO definition of a remote area:

40kms or more from a town with a census population of 14,000 or greater, and 100kms or more from a city with a census population of 130,000 or greater.

The following expenses can be salary packaged as an exempt benefit under remote area housing benefits:

• 50% of the interest charges of their home loan, or
• 50% of their residential rent payments.

 What Are The Conditions and Limits?

The following conditions and limits apply:

• Employees can salary package 50% of their home loan interest charges, or 50% of their rent payments as an exempt benefit.
• The other 50% non-exempt portion must be salary packaged as part of their capped limit benefits.
• The maximum amount that can be salary packaged as remote area housing benefit is equal to the capped limit value of the organisation.
• The home loan interest or rent payments claimed must be for the primary residence in which the employee lives.
• Home loan interest charges are claimed retrospectively whilst rent payments are claimed prospectively.

This benefit is assessed on an annual basis by calculating the amount of interest or rent paid over 12 months. The claim is then calculated and packaged over a period of 12 months.

The remote area housing benefit must be claimed by the employee each year due to changes in the amount of interest paid on your home loan or rental payments. A new claim form and submission of evidence is required each year.

Not Qualified For This Benefit

The following does not qualify you for remote area housing benefits:

• Working for an organisation that qualifies as remote but not living in an area which is remote.
• Living in an area that qualifies as remote but not working in an organisation that qualifies as remote.
• An investment property or holiday house does not qualify for remote area housing benefits.

The home loan interest must be for the primary residence. If a redraw for a car, holiday, etc. has been taken on the loan then this portion of the loan interest cannot be salary packaged as remote area benefits (this must be declared when submitting your claim).

Evidence Required

Home Loan Interest:
It is required that you gather 12 months of home loan statements for the period of January to December of the previous year. Statements must clearly show interest charges and you must have been employed at the organisation for the duration of the period being claimed.

Rental Payments:
Submit the rental agreement, statutory declaration or letter from your landlord stating the rent payments and frequency due.

 Claim Procedure

Gather the evidence for your claim and complete a claim form:

• Go to the Claim Centre, and download and complete the remote area housing claim form that relates to you, i.e. mortgage interest, or rental payments claim.
• Then send your claim and evidence to our office:

It is an ATO requirement that the remote area housing benefit is renewed and re-submitted annually. It is necessary to confirm that you acknowledge the compliance requirements of this benefit and you will be liable for any FBT that may be incurred due to incorrect information provided. Your claim cannot be processed if you do not sign the declaration or fail to complete the form in full. Incomplete claims will be returned.

Need Help?

If you need help or need more information about salary packaging or novated leasing, please call 1300 40 80 46 or click here to request a call back from one of our experienced consultants.