What is LAFHA?LAFHA is an allowance, approved by the Australian Taxation Office (ATO) which reduces your taxable income to assist with food, rent and other removal costs when you are genuinely working away from home. LAFHA is paid in two main components, the Food Component and the Accommodation Component – however there are also additional travel, removal and storage of household effects and connection of utilities components.
Who is eligible?All employees working in Australia who can demonstrate that employment requires them or themselves and family to live away from his or her normal residence to discharge their employment duties. You must continue to have unconditional use of your primary residence at any time whilst receiving LAFHA.
What are the eligibility considerations?
- You must be living away from home for work-related purposes;
- The period you will be away from home is greater than 21 days;
- Your employment contract or temporary move, must be of fixed-term defined by date or completion of work no greater than 12 months with an employer.
- At the time of applying for LAFHA and while you are being paid LAFHA, you must intend to return home;
- You must be formally assessed as complying with LAFHA legislation, rulings and precedents.
What else can be claimed under LAFHA?
- Travel expenses from your permanent residence to your new (temporary) location. This includes flights, transport, meals and accommodation costs based on receipts.
- Temporary accommodation at the permanent location up to 21 days.
- Temporary accommodation at new location limited to an occupancy period that begins seven days before you start work at the new location and ends when you could reasonably be expected to occupy long-term accommodation by lease; this is four weeks.
- Connection or reconnection of gas, electricity and telephone services to your new home so long as you had these connected at your permanent home.
- The costs of removal, storage, packing, unpacking and insurance of household effects, including pets.
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