• 11.4 Taxable value

    The taxable value of the LAFHA fringe benefit depends on the circumstances of the employee. The calculation of the taxable value falls into three circumstances:

    • the employee maintains a home in Australia at which they usually reside, and the fringe benefit relates to the first 12-month period (note that transitional rules may apply)
    • the employee is working on a fly-in fly-out or drive-in drive-out basis
    • all other cases.
    If your employee Then the taxable value is
    • Maintains a home in Australia at which they usually reside and it is available for their use at all times,
    • Receives a LAFHA fringe benefit which relates to the first 12-month period at a particular work location, and
    • Gives you the appropriate declaration about living away from home

    (transitional rules may apply, see 11.10 of this document)

    The amount of the LAFHA paid, minus:

    • any exempt accommodation component, and
    • any exempt food component.
     
    • Works on a fly-in fly-out or drive-in drive-out basis
    • Has residential accommodation at or near their usual place of employment, and
    • Gives you the appropriate declaration about living away from home
     

    The amount of the LAFHA paid, minus:

    • any exempt accommodation component, and
    • any exempt food component.
     

    Does not fall into either of the above situations

    The amount of the fringe benefit.

    Attention

    The taxable value is not reduced by any exempt food component to the extent the fringe benefit relates to a period during which the employee resumes living at his or her normal residence. This means that if you pay an allowance for food or drink during any days that the employee returns home, the allowance that relates to those days is fully taxable for FBT purposes.

    End of attention
      Last modified: 23 Aug 2013QC 17825