Contact: Gavin Clancy
Deloitte
Communications Manager
+61 3 9208 7759

Contact: Vessa Playfair
Deloitte
Director of Communications
+61 2 9322 7576

Contact: Sally Morton
Deloitte
Partner - International Assignment Services
+61 2 9322 7511

Relocating employees will get some minor additional tax breaks under changes proposed in the Federal Budget, according to Deloitte.

The proposed changes include an exemption from Fringe Benefits Tax (“FBT”) for benefits associated with the engagement of a relocation consultant in addition to the broadening of the scope of the exemption available for the costs of purchase of a home in the new location. 

Further, there is some relief proposed for Australian resident employees working temporarily overseas with the Government simplifying the tests regarding qualification for the foreign earnings exemption for those working overseas for more than 90 days.

However, Deloitte Tax Partner Sally Morton says that while the proposed changes are welcome, they do not go far enough in recognising that employee mobility is a growing feature of international company operations.

“Australia must be competitive on the world tax stage for the purpose of attracting appropriate skills and investment.  Accordingly, there is a need for significant expatriate tax reform if Australia wishes to be ahead of the competition in this area,” she said.