A business that leased an apartment for employee’s travel use was entitled to claim a deduction for accommodation, as well as get an exemption for fringe benefits tax. The leased apartment was being used solely for short-term work purposes as the business was operating in two different cities, and required collaboration between the two places.

As the apartment was not considered a living-away-from-home allowance benefit for employees, it was deductible for the business, and also excluded from FBT under the “otherwise deductible rule”. This Private Binding Ruling may provide an idea for businesses in a similar situation to save costs for the future.

Source: PBR 1013127765710