BUSINESS TAX FACTSHEET
Are your employees living away from home?
The Living Away from Home Allowance (LAFHA) is paid to employees who live away from home to compensate for additional expenses or disadvantages that arise while working in a new location.
These employees could include the following:
- Australian residents moving to other locations within Australia
- Overseas long stay visa holders
- Australians working overseas
LAFHA allowances mean your employees increase their take home pay by legitimately reducing tax.
This means that you can:
- Reduce financial stress of relocation for your employees
- Boost recruitment and retention
- Build staff loyalty
- Reduce some on-costs to your organisation such as workers' compensation insurance premiums and payroll tax
- Transfer risk of error to 3rd party
- Free capacity within your organisation.
LAFHA is time consuming to administer, however Bates Cosgrave can offer the benefits to your employees, saving time and resources for your organisation.
LAFHA involves complex tax provisions and other compliance issues. We are licensed tax professionals and possess the necessary knowledge and expertise to remove any doubt on this poorly understood concession.
We offer premium services and can fully package our fees through employees' salaries without triggering any Fringe Benefits Tax.
We can work with you to integrate the packaging calculations into your payroll system to enable streamlined reporting, depending on your requirements.
Contact Bates Cosgrave on (02) 9957 4033 or email us to find out more about our services, and to discuss your specific requirements.
Download PDF Version LAFHA Packaging Services
The Government has announced a number of changes to the LAFHA scheme which are expected to apply from 1 October 2012. Join our mailing list or follow us on Twitter or Facebook for updates
Last updated August 2012. This factsheet is provided for information purposes only and is correct at the time of publishing. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.