FRINGE BENEFIT TAX – FOOD AND DRINK ALLOWANCE

TD 2017/5 – FBT: REASONABLE AMOUNTS FOR LAFHA BENEFITS

This determination sets out the amounts the ATO considers reasonable for food and drink expenses incurred by employees receiving a living-away-from-home allowance (LAFHA) fringe benefits for the FBT year commencing on 1 April 2017.

Reasonable Australian amount for food and drink – 2017/18

Table 1 sets out the weekly reasonable food and drink amounts for a LAFHA paid to employees living away from home within Australia for the FBT year commencing on 1 April 2017.

Table 1: Amounts of reasonable food and drink – within Australia

Per week
One adult$247
Two adults$371
Three adults$495
One adult and one child$309
Two adults and one child$433
Two adults and two children$495
Two adults and three children$557
Three adults and one child$557
Three adults and two children$619
Four adults$619

Note: ‘Adults’ for this purpose are persons who had attained the age of 12 years before the beginning of the FBT year.

In relation to larger family groups, the ATO accepts the reasonable food and drink amount based on the above figures plus:

  • $124 for each additional adult; and
  • $62 for each additional child.

Reasonable Overseas amount for food and drink – 2017/18

The table below sets out the weekly reasonable food and drink amounts for a LAFHA paid to employees living away from home outside Australia for the 2017/18 FBT year.

  • The Table sets out the reasonable amount for food and drink expenses for each cost group.

Amount by cost group:

Cost Group-Food and drink for one adult-
1$137
2$201
3$273
4$310
5$437
6$537

 

Where the employee is accompanied by other family members while overseas, the reasonable food and drink amount per week for the family is workout out by multiplying the amount shown in Table 3 by the relevant factor in Table 4 below.

Factors to apply for family groups – overseas:

Family Group-Factor-
Two adults1.5
Three adults2.0
One adult and one child1.25
Two adults and one child1.75
Two adults and two children2
Two adults and three children2.25
Three adults and one child2.25
Three adults and two children2.5
Four adults2.5

 

For larger family groups, the reasonable food and drink amounts can be increased:

  • For each additional adult – by a further 50% of the relevant single adult rate in Table 3; and
  • For each additional child – by a further 25% of the relevant single adult rate in Table 3.
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