Living Away From Home Allowance (LAFHA), according to the ATO, is:
"
A living away from home allowance within the meaning of the Fringe Benefits Tax Assessment Act is specifically excluded from assessable income and so does not have to be shown on your return."
Basically it means that certain living expenses can be paid to you as tax free payments rather than normal taxable salary, based on the fact that you are only working in the area on a temporarty basis, and are not permanent.
ATO Links:
http://www.ato.gov.au/businesses/con...tent/52023.htm
http://www.ato.gov.au/corporate/cont...t/mr200283.htm
Quote:
|
Examples of employees on appointments of finite duration who will generally be living away from their usual place of residence are foreign nationals employed in Australia (expatriate employees) and Australian residents stationed in a foreign country for a time (for example, export consultants, diplomats and immigration officials). In the case of the expatriate employees having to reside in Australia for the term of their employment, each year the Tax Office publishes a taxation determination outlining what is considered a reasonable food component.
|
Application for
PR would normally terminate any LAFHA.
