Hartley and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between Mr. Hartley and the Commissioner of Taxation concerning the tax treatment of monies paid and declared as salary over seven tax years. Mr. Hartley sought to claim these payments as remote area housing benefits under section 58ZC of the *Fringe Benefits Tax Assessment Act 1986* (Cth) or as expense payment benefits under section 60 of the same Act.

The Tribunal was required to determine whether the payments made to Mr. Hartley constituted remote area housing benefits or expense payment benefits as defined by the *Fringe Benefits Tax Assessment Act 1986*, or if they were simply salary and therefore assessable income. Specifically, the Tribunal had to consider the applicability of sections 58ZC and 60 of the Act in light of the terms of Mr. Hartley's employment agreement.

The Tribunal reasoned that sub-sections 60(5), 60(6), and 60(7) of the *Fringe Benefits Tax Assessment Act 1986* did not apply to the payments in question. This was because there was no suggestion of an option fee relevant to the matter, nor was there any indication that an amount was paid by Choice for the purchase of the property. Consequently, the Tribunal concluded that the amounts subject to Mr. Hartley’s objection were salary and thus assessable income, not remote housing benefits or expense payment benefits. The Commissioner's decision disallowing the objection was affirmed.