The LAFHA is an allowance which is..
- paid directly by an employer to an employee
- to compensate their additional non-deductible expenses
- because of a requirement to live away from their usual place of residence to do their job.
LAFHA rates meeting this description are a fringe benefit, but are only taxable as such if the benefits exceed “reasonable” limits.
Fringe benefits tax is paid by the employer, and employees do not directly pay tax on amounts which are subject to FBT. However remuneration package calculations will normally take the FBT impact into account as part of the employer’s total cost, negotiated in combination with the employee’s after-tax value.
Note: the spreadsheet LAFHA calculator that was previously made available here has been withdrawn.
Reasonable Food and Drink Components (per week)
| FBT Year Ending 31 March: | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|---|
| Tax Determination | TD2017/5 | TD2016/4 | TD2015/7 | TD2014/9 | TD2013/4 | TD2012/5 | TD2011/4 | TD2010/4 |
| One Adult | $247 | $242 | $241 | $236 | $233 | $250 | $233 | $229 |
| Two Adults | $371 | $363 | $362 | $354 | $350 | $400 | $373 | $367 |
| Three Adults | $495 | $484 | $483 | $472 | $467 | $450 | $419 | $412 |
| One Adult + One Child | $309 | $303 | $302 | $295 | $292 | $325 | $301 | $296 |
| Two Adults + One Child | $433 | $424 | $423 | $413 | $409 | $450 | $419 | $412 |
| Two Adults + Two Children | $495 | $485 | $484 | $472 | $468 | $450 | $419 | $412 |
| Two Adults + Three Children | $557 | $546 | $545 | $531 | $527 | $524 | $488 | $480 |
| Three Adults + One Child | $557 | $545 | $544 | $531 | $526 | $524 | $488 | $480 |
| Three Adults + Two Children | $619 | $606 | $605 | $590 | $585 | $599 | $558 | $549 |
| Four Adults | $619 | $605 | $604 | $590 | $584 | $599 | $558 | $549 |
| Additional Adults – each | $124 | $121 | $121 | $118 | $117 | $150 | $140 | $138 |
| Additional Children – each | $62 | $61 | $61 | $59 | $59 | $75 | $68 | $67 |
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