On 1 July 2021, Joanne, who lives in a 3-bedroom house in Brisbane, is transferred by her

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Question:

On 1 July 2021, Joanne, who lives in a 3-bedroom house in Brisbane, is transferred by her employer, Ace Jewellery Pty Ltd, to Sydney. Joanne’s transfer is for a period of 6 months, after which she intends to return to her home in Brisbane.

Joanne is paid a total LAFHA of $1400 per week for the 26-week period from 1 July 2021 to 30 December 2021.

The LAFHA allowance is broken down as follows (per week).

Accommodation component $1 000
Food component (to cover all of her food costs) $380
Incidentals component $20
Total $1 400

Joanne has kept receipts substantiating the accommodation whilst in Sydney for the 26-week period. Unfortunately, Joanne did not keep receipts substantiating her food costs whilst away.

Required

(a)
Calculate the taxable value of the LAFHA for the year ended 31 March 2022.

(b)
Calculate the FBT payable by Ace Jewellery Pty Ltd in relation to the LAFHA paid to Joanne.