Living Away From Home Allowance

Living Away From Home Allowance

Living Away From Home Allowance (LAFHA)

The Living Away From Home Allowance is a tax free allowance approved by the Australian Tax Office to offset additional expenses whilst living away from your usual place of residence for a period in excess of 21 days.

The allowance is frequently used by temporary overseas skilled workers, working holiday makers, New Zealand residents and Australian residents working interstate.

In broad terms, a LAFHA benefit arises where an employer pays a tax free allowance to an employee as compensation for additional non-deductable expenses that would be incurred by the fact the employee is required to live away from their usual place of residence in order to perform the duties of their employment.

If you are temporarily residing in Australia or an Australian resident who has temporarily relocated interstate to fulfil employment opportunities, GNC can provide you with a free LAFHA eligibility assessment.