Living away from home for work? 

In a year that has seen us take up the ‘future of work’ quicker than ever expected, contractors across our community have adapted and excelled in the ‘new normal’.  

As restrictions begin to ease around the country, we are seeing change occur again. This includes contractors looking at work options that include some time in the office, and some time at home.  

For a few, this includes time away from home—but not necessarily in a full-time arrangement. 

Many IT contractors know about Living Away From Home Allowance (LAFHA), and have claimed it at various times as they progress their contracting career.  

As we move to flexible work options, LAFHA is still something contractors can claim, even if they are only required to be away from home on a part-time basis.  

Check out the information below to find out more about LAFHA. 

What is LAFHA? 

LAFHA stands for the “Living Away From Home Allowance”. It is an Australian Tax Office (ATO) allowance for individuals who need to travel away from their permanent residence to perform work. 

For many people, work is difficult to obtain in their hometowns, and they may need to travel to more populated areas, or regions with higher levels of industry. The allowance can support contractors to take up contracts in locations away from their hometown, and help departments and other organisations attract the best talent.  

 

How is it calculated? 

For contractors using Bookssorted payroll services, LAFHA is paid to you by us. You are reimbursed for the cost you incur for your accommodation, and you receive a meal allowance.  

LAFHA is taken pre-tax like any other salary sacrifice expense. 

What do you need? 

Here are some things you need to be aware of before applying for LAFHA. 

• LAFHA can only be claimed for a maximum of 12 months in each capital city. 
• You must maintain your home/primary residence—meaning it must be available to you at any time while you are claiming LAFHA. 
  • You must continue paying the ongoing costs of a mortgage, rent and or maintenance in your home, and cannot rent or sub-let your home out for the period that you are away for work.  
• You must also be able to substantiate your accommodation costs (we need to sight you lease agreement or accommodation receipt). 

If you have any queries or if you want to find out if you qualify for a Living Away From Home Allowance, chat with us! Email hello@bookssorted.com.au or call 02 6161 8580.