That ICPA(Aust) advocate that the Australian Boarding Schools Association (ABSA) continue discussions with the Federal Government to lobby for a Fringe Benefits Tax (FBT) exemption for schools/boarding facilities providing on site living facilities for essential supervising staff who must live on site.
It is critical that the Federal Government change the policy on FBT as it currently applies to essential boarding school staff required to “live in” who perform their duty of care for residential students in metropolitan boarding institutions. This tax negatively impacts on the cost of an equitable education for isolated students.
The removal of the FBT on residential accommodation for essential supervisory staff employed by boarding schools will significantly reduce the costs incurred by some boarding schools. Staff accommodation is a fundamental necessity of a boarding school. Boarding school staff must live on site to supervise the boarders in their care.
During the ICPA(Aust) Federal Conference, held in Sydney in July 2024, a motion was presented and carried therefore providing the policy enabling ICPA (Aust) to pursue this issue at the highest level. (Motion S2. 2024)
In early October 2024, ICPA(Aust) Federal Councillors attended face to face delegations at Parliament House in Canberra where we met with several Senators and Ministers to discuss this particular issue and the best action to take moving forward.
On the 4th February 2025, a follow-up letter was sent to The Hon Anthony Albanese, Prime Minister of Australia (and included many other members of the Australian Government) to outline our findings on the impost the FBT places on Boarding Facilities and in turn, Families. ICPA(Aust) has been supported with data collection by Members, Australian Boarding Schools & Members of the Australian Government.
ICPA(Aust) believe that ABSA is best placed to continue the advocacy and lobby for a Fringe Benefits Tax (FBT) exemption for schools/boarding facilities providing on site living facilities for essential supervising staff who must live on site.
ICPA(Aust) will support ABSA with their ongoing lobby by sharing data and support letters that have been collected to date.
Recommendations:
1. The Federal Government support and advise the Treasury to change the policy on Fringe Benefits Tax (FBT) to provide an exemption for schools with boarding facilities for essential boarding school staff required to live on site to perform their duty of care for residential students in metropolitan boarding institutions.
2. The Treasury enable all Boarding Facilities who have students enrolled from rural and remote areas (identified through the Assistance for Isolated Children, AIC) to require that they are exempt from FBT under the existing guidelines: 58ZC Exempt Benefits – Remote Area Housing Benefits (on campus accommodation).
