Living Away from Home Allowance (LAFHA)

If your job requires you to temporarily relocate for a period of up to 12 months, you may be eligible to salary package your accommodation and food expenses, and reduce your taxable income in the process.

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Who can access this benefit?

LAFHA salary packaging is available to eligible employees across a range of sectors, including:

  • Not for Profits &Charities
  • Private Education
  • Public Health
  • Government
  • Private Employers

*Importantly, your employer must offer LAFHA as part of their benefits program.

What expenses can I package?

LAFHA allows you to salary package costs associated with temporarily living away from your usual home due to work. This includes:

Accommodation
You may be able to package rent or other accommodation costs for up to 12 months while you’re living away from home for work purposes.

To qualify for this exemption from Fringe Benefits Tax (FBT), you must maintain a home in Australia that remains available for your use, usually reside at that home when not working away, and be expected to return to your normal residence after the temporary assignment.

Food & Drinks
Additional food and grocery expenses incurred due to living away from home can also be packaged for up to 12 months. The Australian Taxation Office (ATO) issues annual guidelines on the maximum exempt food component, which varies depending on your family situation and location.

If your food costs stay within the ATO’s reasonable limits, they may be fully exempt from FBT. Claims exceeding these limits may still be eligible, provided you supply itemised receipts and valid supporting documentation.

Summary of Benefits

Benefit Details Criteria
Accommodation
  • 100% Deductible
  • Can be in varied forms, e.g rent for a home or unit, caravan, hostel costs, etc.
  • Need to maintain their primary place of residence
  • Must declare future intention to return to primary place of residence
  • Both are covered in the Paywise Employee Declaration
Food & Drink
  • 100% Deductible for amounts above the ATO Statutory Food Amount and below the ATO Reasonable Food and Drink Amounts

Summary of Benefits

Benefit

Details

Criteria
Accommodation
  • 100% Deductible
  • Can be in varied forms, e.g rent for a home or unit, caravan, hostel costs, etc.
  • Need to maintain their primary place of residence
  • Must declare future intention to return to primary place of residence
  • Both are covered in the Paywise Employee Declaration
Food & Drink
  • 100% Deductible for amounts above the ATO Statutory Food Amount and below the ATO Reasonable Food and Drink Amounts

Can I package expenses for my family?

Yes. If your spouse and/or children are relocating with you, their eligible accommodation and food costs may also be included in your LAFHA benefits.

Supporting documentation required

To access LAFHA benefits, you’ll typically need to provide:

  • A valid rental agreement
  • A declaration confirming your living-away-from-home status
  • A copy of your employment contract (if relevant)
  • Receipts or other records for food and accommodation expenses (especially if claiming above ATO thresholds)

Get started today

LAFHA benefits are subject to specific ATO rules and employer policies. If you’re unsure whether you qualify, or how much you could save, reach out to your HR or payroll team — or contact Paywise directly and we’ll help you navigate your options.

Salary Packaging.

Salary packaging allows you to save thousands in tax each year, by paying for everyday items using pre-tax earnings.

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