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Fact Sheet
LAFHA and Fringe Benefits Tax
The Living Away from Home Allowance (LAFHA) is paid to employees who live away from home to work for their employer to compensate them for additional expenses or disadvantages that arise from doing so.
Expatriates working in Australia may be eligible to receive LAHFA, and as part of their salary package, one element of LAFHA that has Fringe Benefits Tax implications is the food component.
Under the LAFHA scheme, people in receipt of the allowance are able to recover the cost of food incurred while living away from home.
How much FBT applies to the food component of LAFHA?
FBT applies to a ‘reasonable food component of LAFHA and from 1 April 2011, the amount considered acceptable is listed as follows:
| Who |
Per Week |
|
| One adult |
$233 | |
| Two adults |
$373 |
|
| Three adults |
$419 | |
| One adult and one child |
$301 | |
| Two adults and one or two children |
$419 |
|
| Two adults and three children |
$488 | |
| Three adults and two children |
$558 | |
| Four adults |
$588 |
‘Adults’ for this purpose are persons who had attained the age of 12 years before the beginning of the FBT year.
In relation to larger family groupings, the Commissioner accepts a food component based on the above figures plus $140 for each additional adult and $68 for each additional child.
More information
Contact Matt Zhou on 0432 772 292 or via our contact form. Alternatively, contact Bates Cosgrave on (02) 9957 4033 to find out more about our services, and to discuss your specific requirements.
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