If you have to live away from home temporarily for work purposes, you could salary package some of your expenses and reduce your taxable income.
The Living Away from Home Allowance (LAFHA) helps you to cover additional costs for food and accommodation you may incur when you move to a new location temporarily for work purposes. To salary package this expense you must intend to return to your usual place of residence once you finish your work away from home.
What exactly can I package?
Living Away from Home expenses can include your expenses for rented accommodation at your new location and additional food costs while you work away from home.
If your spouse and children relocate with you, their expenses can also be salary packaged.
Each month you can claim up to a maximum amount on extra food costs, depending on who lives with you while you're working away from home.
Note: to claim accommodation costs from your salary packaging account, you must provide us with a copy of your rental agreement and contract of employment.
Who can package this?
LAFHA can apply to:
- Australians working overseas (for no more than four years)
- Australian residents moving to a new town, city or state.
You could salary package LAFHA if you work for a:
- charity or other not-for-profit organisation
- private organisation
- government department or agency,
and your employer offers this as part of your workplace benefits program.
Still not sure whether you can package living expenses? Contact your employer to find out if this benefit is available to you.
Things you need to know: The above information is not intended to constitute taxation or financial product advice. Your benefits and savings will vary depending on your personal objectives, financial situation and needs. We recommend you obtain independent financial or taxation advice before making any financial decisions.
Eligibility criteria and terms and conditions apply. All salary packaging proposals are subject to the requirements of your employer. Administration fees will apply. The actual administration fee that applies to you may vary depending on your employer. ITCs (Input Tax Credits or refund on GST) are excluded. RemServ may pay and receive commission or rebates in connection with some services and products it provides or arranges to be provided by third parties.