# Lafha



## NickSuzy (Jun 2, 2008)

Please help

I understand that on my move to Brisbane i will receive a living away from home allowance.

What is this and how much will i get.

Cheers for your help

Nick


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## Dolly (Feb 17, 2008)

Hi there Nick,

I've searched the ATO website and can't find a thing on the LAFHA. Perhaps you may have more luck.... Australian Taxation Office Homepage

If you do, let us know what you find!

Dolly


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## Dolly (Feb 17, 2008)

OK,

This website pretty much explains what it's all about PayMe - Living Away From Home Allowance (LAFHA)

Just found these 2 links:

NAT 1054 - Chapter 11 - Living away from home allowance fringe benefits

http://law.ato.gov.au/atolaw/view.htm?locid='MTR/MT2040/NAT/ATO'&PiT=99991231235958

Not sure if they will help. The only other thing I can think of is to contact the HR department of the company you will be working for and they'll be able to sort it out for you.

Dolly


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## TGM (Jul 12, 2008)

The allowance is administered by your employer and comes in two parts - rent and food. You need to ensure that your employer has a good understanding of it so get it clarified in writing before you start.

The food allowance is set by the ATO and the amount depends on the number of people in your family and how many of them are children. You will have to pay fringe benefit tax on this amount. Fringe benefits tax (FBT) rates and thresholds


The rent allowance depends on how much rent you are paying every week. If you have a mortgage you will need to find out how much comparable properties are being rented out for in your area and use that figure. That proportion of your salary is then paid to you as if income tax has not been deducted at source. The actual amount you get is therefore dependent on what rate of tax you are liable for.

For some people the allowance is equivalent to having an extra £30,000 - £40,000 gross salary.


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## Gail (Mar 23, 2008)

I get a LAFHA payment and to be honest I only just understand it. Basically my work pays my rent directly, at source, so I am not taxed on that portion of my wages. They deduct an amount from my wages and then pay some back (this is where I get confused but I trust them!). Essentially you are getting paid gross for the portion of your pay destined to pay for your rent and food. It can work out at quite a sizeable amount.


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## TGM (Jul 12, 2008)

The LAFHA is something that's shrouded in mystery isn't it!  I think most of the problem is that employers don't really understand it themselves half the time. As you can see information on the net is pretty ropey.

By the way Gail, you should ask your employer about the food element. If they're giving you the rent allowance they should be doing that too. The rates are all on that link to the ATO website.


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## Alan Collett (Feb 13, 2008)

Go Matilda - Your Gateway to Australia - News

Best regards.


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## Alan Collett (Feb 13, 2008)

TGM said:


> <snip>
> 
> You will have to pay fringe benefit tax on this amount. Fringe benefits tax (FBT) rates and thresholds
> 
> ...


Remember that FBT is payable by the employer, not by the employee - though some employers may want to recover the FBT out of gross salary.

Best regards.


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