Friday, January 29th, 2010 - One Vendor
Unravelling the Living Away from Home Allowance – LAFHA

A lot of confusion surrounds the administration and eligibility of Living Away from Home Allowance, more commonly referred to as LAFHA. One Vendor has a free online eligibility checklist and can help Employers facilitate this allowance to their eligible employees.

Question
I’m an employee who is living away from my usual place of residence, from interstate or overseas, and have heard I can claim living away from home allowances (LAFHA) through my employer. How does it work?

Answer

Most employees that are living and working away from their usual place of residence are eligible to claim certain living away allowances, or LAFHA as it is more commonly referred to. This could mean that you are from overseas and sponsored by your employer on a 457 visa or simply transferring from another office within Australia.

If eligible, you are able to reclaim your current rental amount plus a predetermined food allowance as a pre-tax expense from your existing salary. This can save you up to 45% of the cost of rent alone plus add additional value through your food allowance claim. This is done as part of your total employment cost so your current package from your employer remains the same.

What does this mean to me financially?

Whilst every situation is obviously slightly different, an employee on an annual salary of $100,000 could typically expect to be take home an additional $10,000 per annum in their annual pay. This figure will vary depending on the individual situation, however virtually every person who is able to claim a LAFHA through their employer will receive a significant increase in their take home pay each pay period.

What now?
Contact One Vendor by email at [email protected] or on 1300 792 914 for a FREE online eligibility assessment or visit us at www.lafha.com.au and complete the assessment online.

Contact Profile

One Vendor


One Vendor is a service provider specialising in the administration of employee living away from home allowances on behalf of the employer.

One Vendor provides a FREE checklist online to assess an employees eligibility to receive LAFHA as part of their salary package. It can provide significant increases to their take home pay without increasing the total employment cost to the employer.
Lorne Lee
P: 0414 225580
W: www.lafha.com.au

Keywords

LAFHA, Living Away from Home Allowance, 457 visa

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