Living away from home due to work? You could package your accommodation and food costs.
Need to move away from home for your job? You could salary package your accommodation and food costs for the first 12 months if your employer requires you to move for work purposes.
Who can package the Living Away From Home Allowance (LAFHA)?
You could salary package accommodation and food expenses if you work for a:
- private organisation
- government department or agency
- charity or other not-for-profit organisation
- public or private not-for-profit hospital
- private school, club, association or religious institution
and your employer offers this as part of your workplace benefits program.
What exactly can I package?
Exempt accommodation component:
You could package accommodation costs incurred for the first 12 months while living away from home. This benefit is exempt from FBT provided:
- You or your spouse have an ownership interest in a home in Australia at which you usually reside;
- The home is available for your immediate use and enjoyment at all times while you are living away from it; and
- You are reasonably expected to return to your home once you’re no longer required at your work location.
Exempt food component:
You could package food costs for the first 12 months while living away from home.
Each FBT year, the ATO issues a Tax Determination on reasonable amount for food and drink for employees living away from home. Based on this, the exempt food component is calculated.
This benefit is exempt from FBT if your food costs do not exceed the maximum exempt food component.
Where your food costs exceed the maximum exempt food component, exemption may be available if valid tax invoices and receipts are provided for the full amount claimed.
The maximum exempt food component amount for the current FBT year is provided on the Maxxia LAFHA application form.
Still not sure if you can package this benefit? 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 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 (refund on GST) are excluded. Maxxia may pay and receive commission or rebates in connection with some services and products it provides or arranges to be provided by third parties. Maxxia Pty Ltd ABN 39 082 449 036 Authorised Representative (No. 278683) of McMillan Shakespeare Limited (AFSL No. 299054).