ARTICLE · 03 JUNE 2012

Home and Away Update (or, changes to LAFHA you need to know)

Marque Lawyers

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The LAFHA will be treated the same as other allowances, that is, as part of the assessable income of the employee.

AustraliaTax

Louise Rumble (Formerly With Marque Lawyers)

Amber Sharp (Formerly With Marque Lawyers)

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So I hear you like Home and Away. Well guess what? I think you're going to be staying home a lot more than going away thanks to the Federal Government's changes to tighten up the Living Away from Home Allowance (LAFHA) and benefits.

Taxation

The LAFHA is currently a fringe benefit assessable to an employer. From 1 July 2012, the LAFHA will be treated the same as other allowances, that is, as part of the assessable income of the employee (subject to the employee meeting the eligibility criteria).

Eligibility

The LAFHA is currently available to employees who are living away from their usual place of residence for work purposes. Employees must have an intention of returning to their usual place of residence. From 1 July 2012, the employee's usual place of residence must be "in Australia".

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