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Living away from home allowances

You cannot claim a deduction for the cost of financing, holding and maintaining your home. Brianna spends her travel allowance on accommodation, meals and incidental expenses when in Canberra for work. April Book an appointment With over offices staffed by over experienced tax accounting professionals, our tax accountants have the knowledge to walk you through the tax refund process with ease. You must also keep your documents to substantiate the expenses incurred for a period of five years from the declaration date. Toggle navigation Our people Newsroom Contact us.

The Living Away From Home Allowance (LAFHA) is an allowance for eligible Australian Apprentices of any age during the first three years of training if they are required to move away from their parents’ or guardians’ home in order to take up or retain an Australian Apprenticeship.

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If you choose to provide a declaration to your employer, you must do so by the date on which your employer's FBT return is due to be lodged with the ATO or, if they don't have to lodge a return, by 21 May.

You must also keep your documents to substantiate the expenses incurred for a period of five years from the declaration date. However, you do not need to keep the documents if you provide documentary evidence of the expense to your employer. Any food or drink expenses you incur while living away from home only need to be substantiated where the expenses exceed an amount considered to be reasonable by the Commissioner.

If your food or drink expenses exceed the reasonable amount, you must be able to substantiate the full amount of these expenses, not just the excess amount. Call 13 23 25 or find you nearest office. With over offices staffed by over experienced tax accounting professionals, our tax accountants have the knowledge to walk you through the tax refund process with ease.

We are committed to offering expert and personal service year-round at a location convenient to you. Find an office and book an appointment online. Living away from home allowances. John receives a travel allowance from his employer to cover the costs of accommodation, meals and incidental expenses for the periods he is required to stay in Bendigo. The travel allowance is shown on his payment summary. The costs of financing, holding and maintaining the apartment in Bendigo for the year are not disproportionate to the cost of John obtaining suitable short-term commercial accommodation for the periods he is required to stay in Bendigo.

John does not use the Bendigo apartment for private or domestic use during the year. John must include the travel allowance as income in his tax return because it is shown on his payment summary.

John can claim a deduction for the costs of financing, holding and maintaining the Bendigo apartment for the year. John is required to apportion the costs of financing, holding and maintaining the apartment for the year to take into account this private use, because his costs are not wholly for work-related travel. The apartment is left vacant when Brianna is not using it for work. Brianna receives a travel allowance to cover the costs of accommodation, meals and incidental expenses for the periods she is required to stay in Canberra.

Brianna spends her travel allowance on accommodation, meals and incidental expenses when in Canberra for work. Brianna did not use the Canberra apartment for private or domestic purposes during the year.

Brianna chooses not to declare her travel allowance on her income tax return and does not claim her expenses. Geoff works and lives in Perth. Geoff's employer requires him to travel to a company branch in Karratha for two working weeks in every four. When he is not in Karratha for work, the apartment is left vacant. Geoff receives a travel allowance from his employer to cover the cost of accommodation, meals and incidental expenses for the periods he is required to stay in Karratha.

Geoff spends his travel allowance on accommodation, meals and incidental expenses when in Karratha for work. Geoff did not use the Karratha apartment for private or domestic purposes during the year. Geoff must include the travel allowance as income in his tax return because it is shown on his payment summary. Geoff can claim a deduction for the costs of financing, holding and maintaining the Karratha apartment for the year.

Alanna cannot claim the costs of financing, holding and maintaining the apartment in the Melbourne CBD because the travel to Melbourne is not part of her employment duties. Whether serving public sector organisations, owner managed businesses, private individuals or listed companies with overseas operations, our goal is to help our clients achieve their ambitions.

Those changes have now been legislated, with effect from 1 October The final version is fundamentally different to the initial version announced in the Federal budget in May The key objective of the LAFHA reforms was to close the loophole that allowed individuals to receive benefits despite not genuinely incurring the costs associated with maintaining two homes.

After months of uncertainty legislators have back-flipped on their initial indications and chosen to address the issue by shifting the tax burden of the amendments onto employers. This means that arrangements that do not represent bona-fide LAFH arrangements as newly defined will be subject to FBT in the hands of the employers.

FBT is levied at The liability accrues to employers and falls due on 28 April in respect to a 31 March year end. Transitional arrangements — permanent residents of Australia and Australian citizens.

To reduce the immediate burden of the reforms for Australian employees i. Under the transitional arrangements, the conditions to:.

Have a question about LAFHA?

The Living Away From Home Allowances Scheme (LAFHAS) supports eligible Queensland families whose children need to live away from home to attend a state school or an accredited non-state school. A Living Away From Home Allowance is intended to compensate you for expenses incurred whilst you are working away on secondment or on a contract. These expenses include such costs as accommodation and meals. Australia: Living Away From Home Allowance 1 October In an earlier edition of Border Crossing - 1st Quarter - we reported on significant and adverse changes to the Living Away From Home Allowance (LAFHA) provisions.