1. LAFHA is a payment of money made by an employer to an employee who is required to temporarily relocate in order to perform employment duties.
2. To classify for LAFHA, the employee must have a usual place of residence that is available for use at all times. The employee must also intend on returning to their usual place of residence at the completion of the temporary assignment.
3. Must be for a minimum of 21 days and can claim LAFHA for the first 12 month period.
4. Benefits that can be packaged free of FBT:
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- Total rent costs for accommodation for the duration of the LAFHA benefit.
- A fixed dollar figure for food intended to help pay for groceries. The figure is based upon the size of the family and must be deemed as reasonable.
- The exempt food component is the portion of the LAFHA assigned to additional food costs over and above the food costs you would normally incur if you were not living-away-from-home. The FBTAA has set an amount of $42 per week for adults and $21 per week for children (less than 12 years old at beginning of FBT year) as normal food cost.
