Benefits Hub
Remote Area Benefits
Working in a remote part of Australia comes with real challenges. The ATO provides special FBT concessions for housing, energy costs and holiday travel - making it far more affordable for your employer to support you.
FBT reduction
50%
On fuel & holiday travel
What counts as a "remote area"?
Not every rural or regional location qualifies. The ATO has a specific definition based on distance from a population centre. Common examples include mine sites, remote stations, remote health clinics and certain government postings.
Check the ATO's remote area definitionConditions that apply to all three benefits
You live and work in a remote area
Both your place of work and your usual home must be in an ATO-classified remote area.
You're a current employee
The concessions apply to employees only - not contractors or other arrangements.
There's a genuine housing reason
Your employer must have a real reason to provide housing support - not just to get a tax break.
It's a genuine arrangement
The benefit must be provided at arm's length and have legitimate commercial substance.
The three remote area concessions
Each concession has additional requirements on top of the shared conditions above.
Remote Area Housing
Free or subsidised accommodation - potentially FBT-free
If your employer provides you with a house or unit to live in while working in a remote area, that housing benefit may be completely exempt from FBT - meaning no extra tax cost for your employer and no reportable benefit for you.
You generally qualify if:
You live and work in an area the ATO classifies as 'remote'
Your employer provides or subsidises your housing
The housing is in a proper dwelling (house or unit - not a caravan)
The arrangement has a genuine work reason behind it
Remote Area Residential Fuel
Electricity and fuel costs - 50% FBT reduction
If your employer pays or contributes to your electricity or gas bills at your remote area home, the taxable value of that benefit can be reduced by 50%. This means your employer's FBT cost is halved - making it much more likely they'll offer this support.
You generally qualify if:
You live and work in an ATO-recognised remote area
Your employer pays or contributes to your home energy costs
The fuel benefit is provided alongside a housing benefit
The arrangement has a genuine business reason
Remote Area Holiday Transport
Travel home for a break - 50% FBT reduction
Working far from home is tough. The ATO recognises this and allows a 50% reduction in the FBT taxable value when your employer pays for you (and potentially your family) to travel from your remote location for a holiday - and then return.
You generally qualify if:
You live and work in an ATO-recognised remote area
Your employer pays for the travel (not you being reimbursed for unrelated trips)
The travel is from your remote area, for a holiday, and returns to your remote area
The arrangement is genuine and arm's-length
What records do you need to keep?
Evidence that your usual workplace and home are in a remote area (e.g. employment records, lease agreements)
Tax invoices or receipts for accommodation, fuel costs and travel
Evidence of the employment arrangement and why housing support is being provided
Travel records confirming holiday transport trips (origin, destination, purpose, dates)
Working in a remote area? Let's check what you can access.
Remote area benefits are often underutilised. NSP can review your situation and ensure you're accessing everything available.