G'day everyone,

Just posting up some useful information, as many have immigrated to Australia without realising they could be assisted with their food & living expenses in Australia via LAFHA.

Expats relocating to Australia because of a new position (and a new 457 visa) may find that they can be assisted via the ATO's Living Away from Home Allowance. This is essentially a non-taxable allowance which considers your rental expenses; and how many people you are supporting in the property when determining an amount.

Usually people on packages above $80000 AUS can find benefits in excess of $6000 per annum as result of receiving the LAFHA. Generally the larger your package the greater benefits which can be accessed. The benefit is usually arranged for every pay cycle through your employer; once they are agreeable to installing it for you.

Not the greatest deal of literature exists atm about the allowance unfortunately; but if you seek out a specialist expat tax firm such as EasyTax (http://www.easytax.com.au/LAFHA) it should be a lot easier. Once you find an accounting firm who manages LAFHA daily for employees and employers, you can find out first if you are eligible and how much benefits you can receive. Be sure that they will also interface with your employer to help install the allowance.

Some firms can charge you an ongoing percentage for the services ie;1.5% of your salary, while others will charge just a set fee for a full service. Ask if they can complete your tax returns as  well to make sure they’re professional and can assist you with all your Australian tax obligations; as the penalties for miscalculating the LAFHA can be quite significant.

Hope this helps out with your stay here in Australia. Just my 2 cents

Stuart,

Aussie Accountant