For LAFHA concessions to apply, employees who are living-away-from-home must provide a LAFHA declaration each FBT year.
If a declaration is not provided the entity will be subject to FBT on the whole of the LAFHA payment and will not be able to reduce the amount by the exempt food and exempt accommodation components.
For more on declarations and other documentation, see subsection 136(1) of the FBTAA definition of exempt accommodation component and exempt food component, and paragraph 9 of Miscellaneous Taxation Ruling MT 2030.
For an example LAFHA declaration, refer to Declarations.
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