28 April 2013

Employees that temporarily live away from home can salary package some of the expenses and save money by paying with pre-tax dollars.

The Living Away from Home Allowance (LAFHA) is eligible to employees who are Australian residents moving to a new town or working overseas (for less than four years).

It is also only eligible to those whose employer is one of the following and who offers this as part of their workplace benefits program including:

  • government department/agencies
  • charities
  • not-for-profit organisations
  • private organisations

The LAFHA assists to cover additional costs that have been incurred while working away from home including:

  • food
  • rented accommodation (on providing rental agreement and employment contract)
  • expenses of spouse/children who also relocate

Employees should contact their employer to see if this benefit is available to them.