Living Away From Home Allowance (LAFHA)
What is LAFHA?
LAFHA is to cover 100% of additional expenses incurred, because you are temporarily required to
live away from your normal place of residence to perform your employment duties.
Access to LAFHA will generally be limited to where:
- The employee maintains a home in Australia in which they usually reside in
- The employee provides employer with a declaration about living away from home
- The fringe benefit relates to the first 12-month period at a particular work location
- An Employee is working on a Fly-In-Fly-Out or Drive-In-Drive-Out basis
What can you claim under Living Away from Home Allowance?
- Rent (This can be the entire amount of rent an employee has to pay as part of LAFHA.)
- Food (This can include groceries but will not include items that are not food.)
What is the process for setting up LAFHA?
Setup
- Click here to get started:
- You will address some questions and provide information to assess if packaging LAFHA is right for you providing you with a quote with estimated tax savings net of fees and tax paid.
- Application documents will be created
- You can get started with eSigned documents
- Your Salary Packaging will commence as scheduled
Information required:
- 2 x consecutive pay slips
- Proof of two recent rent payments
- Copy of current tenancy agreement
If your circumstances change it is important to advise FAA with details such as:
include:
- Change in pay
- Change in employment
- Change in living arrangements
Example:
$24,000 Residential Rent:
- All $24,000 is sent from the Employer to FAA Sal Pac Administrator to paid direct to the accommodation provider or reimburse for the rent paid without any tax deducted (Pre-Tax)