03 Oct 1212 ATO information about LAFHA changes
From 1 October 2012, the concessional treatment of living-away-from-home allowances (LAFHA) will change. LAFHA paid will still be tax-free to the recipient and will not be included as assessable income in the recipient's tax return.
However, there are new LAFHA rules being implemented in two stages - if a person is in:
- a new or changed employment arrangement since 8 May 2012, their employer will only receive concessional treatment if they meet the new LAFHA conditions and give their employer a declaration
- an employment arrangement that has not changed since 8 May 2012, the new LAHFA conditions will apply on the earlier of the date their employment arrangement changes and 1 July 2014.
For more information for employees, go here
For more information for employers, go here