Living away from home allowance (LAFHA)

The Australian Taxation Office (ATO) defines LAFHA as “a living away from home allowance fringe benefit that may arise if an employer pays an allowance to an employee to cover additional expenses incurred because the employee is temporarily required to live away from their usual place of residence to perform their employment duties”.

A very common misconception is that a contractor holding a Working Holiday Visa is able to claim LAFHA. This is not the case. LAFHA is best explained as a benefit that any employee is eligible for who is required to live away from their principle place of residence, whether interstate, international or on a residency visa.

Find out more information on LAFHA in Australia here.

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