Living-Away-From-Home Allowance Changes

[Flashback]

Just received this from my accountant:
Significant changes have been announced. The
changes will:
• Mean that employees, rather than employers,
will be liable to tax on any LAFHA received that
is not exempt;
• Limit access to LAFHA to temporary residents
who maintain a residence in Australia and who
are required to live away from it for work
purposes;
• Require individuals to substantiate their actual
expenditure on food and accommodation in
excess of the statutory amount.

 

[Solid]

Your accountant is about two months behind from when the announcement was made.

 

[Pleb Status]

Just received this from my accountant:
Significant changes have been announced. The
changes will:
• Mean that employees, rather than employers,
will be liable to tax on any LAFHA received that
is not exempt;
• Limit access to LAFHA to temporary residents
who maintain a residence in Australia and who
are required to live away from it for work
purposes;
• Require individuals to substantiate their actual
expenditure on food and accommodation in
excess of the statutory amount.

Sensible changes as I know people who have been ripping off the government for years using dodgy LAFHA claims.

 

[Flashback]

Your accountant is about two months behind from when the announcement was made.

Given I've only just decided to get their newsletter, it's probably more a timely reminder given the change is about to take effect.

 

[Oneworldplus2]

I love the generous LAHA allowance my work offers me when l'm away. Nice little earner.

 

[cove]

Does generous have a number??

 

[michaelj]

For people heading o/s from Australia, the allowances that ATO will accept are published on the ATO website. The rate depends on salary, where you are and what is being covered (eg incidentals/meals/accom.) I don't think that the recent changes have targeted these allowances, rather I think it is those paid to expats living in Australia where part of their package is dressed up as a LAHA to minimise tax.

 

[Oneworldplus2]

Does generous have a number??

LOL.
Yeah, she does. Now, where was that single rich girl Cove?

 

[cove]

In Budapest??

 

[Solid]

Announced today that the changes will be deferred until 1 October 2012