Remote Area Benefits
Living & working in a regional or remote area has its benefits.
Use the online Calculators to find out how much Tax Benefit you are able to save
Click on this link to find out if you are eligible for additional benefits
What are Remote Area Benefits?
Depending on your personal circumstances and the industry you work in you may have the opportunity to Salary Package ‘Remote Area’ Benefits.
This is an additional benefit available to people who work and live in a town/area that is deemed as remote by the Australian Tax Office (ATO). There are other criteria to meet to access these benefits, including industry and job role.
If eligible to Salary Packaging Remote Area Benefits, you will increase your disposable income.
How does Remote Area Benefits Salary Packaging work?
Salary Packaging Remote Area Benefits is a way to reduce the amount of tax that you pay by paying certain expenses, as referenced below, through Salary Packaging. This means the tax you pay is calculated on a reduced income.
What are the benefits of Remote Area Salary Packaging?
Remote Area Residential Rent
Residential Rent is the amount of rent paid where you live
- You need to provide a Lease or Rental Agreement to claim for the term identified
- You need to renew the Agreement to be able to continue to claim this benefit
- Sign a Remote Area Lease or Rental Agreement Declaration
- 50% of your Lease or Rental Agreement can be paid directly to the Landlord or reimbursed directly from your Employer (Salary Packaged) free of paying PAYG tax on
- 50% of your Rental payment is taxed at your normal PAYG rate
Example:
$18,000 Rental Payments:
- $9,000 directly sent from the Employer is without any PAYG tax deducted (Pre-Tax)
- $9,000 paid by the Employee was taxed at your normal PAYG rate
The Tax Benefit you will receive will depend on the MTR that this benefit is calculated against
Jack and Jane are on the same income however Jack is salary packaging his rent through Remote Area Housing Benefits and Jane is not.
| Particulars | Jane | Jack |
| Gross Income | $55,000 | $55,000 |
| Less Salary Packaged Rent | – | -$9,000 |
| Taxable Income | $55,000 | $46,000 |
| Tax & MC Levy (2021/22 Tax) | $9,442 | $6,337 |
| Net Pay | $45,558 | $39,663 |
| Rent pd if not packaged | -$18,000 | -$9,000 |
| Net Disposable Income | $27,558 | $30,663 |
| Tax Benefit by Salary Packaging | $3,105 |
Remote Area Mortgage Interest
Mortgage Interest consist of the interest portion only of your mortgage payment
- You need to provide bank statements
- Sign a Remote Area Mortgage Interest Declaration
- 50% of your Mortgage Interest can be reimbursed directly from your Employer (Salary Packaged) free of paying PAYG tax on
- 50% of your Mortgage Interest has FBT applied to it
Example:
$24,000 Mortgage Interest:
- All $24,000 is sent from the Employer to FAA Sal Pac Administrator to reimburse for the interest paid
- $12,000 is without any tax deducted (Pre-Tax)
- $12,000 will have FBT paid on this portion
The Tax Benefit you will receive will depend on the MTR that this benefit is calculated against
Remote Area Residential Fuel
Residential Fuel consist of: electricity, gas, fuel for generators and fire wood
- You need to provide receipts and sign a remote area residential fuel declaration
- 50% of your Residential Fuel can be paid directly by your Employer (Salary Packaged) free of paying PAYG tax on
- 50% of your Residential Fuel has FBT applied to it
- Plus you are credited back with the GST included with the cost
Example:
$2,400 Electricity Bill:
- All $2,400 is sent from the Employer to FAA Sal Pac Administrator to pay the Bill
- $1,200 is without any tax deducted (Pre-Tax)
- $1,200 will have FBT paid on this portion
The Tax Benefit you will receive will depend on the MTR that this benefit is calculated against
Remote Area Holiday Travel
Remote Travel consist of:
- You may reduce the taxable value of the fringe benefits arising from the transport, accommodation and meals by 50% if:
- the employee travels from the work locality to the town where they lived before being engaged to work at that locality
- the employee travels to the capital city of the state or territory in which the workplace is located (for this purpose, Perth and Adelaide are treated as if they were the capital cities of Christmas Island and the Northern Territory, respectively).
- The following requirements must also be satisfied:
- The holiday is of three working days or more
- Valid proof of the expenditure
- Remote Area Holiday Travel Declaration is uploaded via your FAA App
- What can you claim under Remote Travel?
- Air Fares
- Meals (on route only)
- Accommodation
- Travel to and from in your own car
- Hire car
- How it works:
- 50% of your Remote Travel can be can be paid directly to the provider or reimbursed directly from your Employer (Salary Packaged) free of paying PAYG tax on
- 50% of your Remote Travel has FBT applied to it
- Plus you are credited back with the GST included with the cost
Example:
$2,400 Remote Travel:
- All $2,400 is sent from the Employer to FAA Sal Pac Administrator to pay for the Remote Travel expense
- $1,200 is without any tax deducted (Pre-Tax)
- $1,200 will have FBT paid on this portion
The Tax Benefit you will receive will depend on the MTR that this benefit is calculated against
Click here for the ATO Remote Area town list