The Living Away from Home Allowance (LAFHA) has two components:

1.    Accommodation;

2.    Food and Drink.

From 1 October 2012, the accommodation component must be substantiated. 

The food and drink component only needs to be substantiated where it exceeds the Commissioner’s reasonable limits.  The Commissioner issues an annual Taxation Determination specifying the reasonable food or drink amount.  Refer Taxation Determination TD 2016/4

Refer to Fringe Benefits Tax Assessment Act 1986, Section 31G Substantiating Related Expenses.

What is a Living Away from Home Allowance (LAFHA)?

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