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  • Living away from home allowance fringe benefits

    A living-away-from-home allowance (LAFHA) fringe benefit may arise if the employer pays an allowance to their employee to cover additional expenses and any disadvantages suffered due to them being temporarily required to live away from their normal residence to perform their employment duties.

    However, the taxable value of the LAFHA fringe benefit can be reduced by certain amounts relating to accommodation and food and drink expenses where:

    • your employee maintains a home in Australia at which they usually reside
    • your employee provides you with a declaration about living away from home
    • the fringe benefit relates to the first 12-month period at a particular work location.

    Employees who work on a fly-in fly-out or drive-in drive-out basis don't have to maintain a home in Australia and don't have the 12-month limitation.

    Where these conditions are not met the taxable value of the fringe benefit is the amount of the allowance paid to the employee.

    See also:

    Last modified: 29 Mar 2019QC 43863