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Do your employees travel for work?

If you have employees who travel for work, we have new guidance available on our website to help you determine whether to pay them a travel or a living-away-from-home allowance (LAFHA).

There are some key differences between the two allowances:

  • A travel allowance will need to be included as an amount in your employee assessable income and may need to have tax withheld from it. It covers accommodation, food, drink or incidental expenses an employee incurs when they stay away from their home overnight to carry out their duties.

  • A LAFHA payment you provide to your employee may be considered a LAFHA fringe benefit and will need to be reported in your annual fringe benefits tax (FBT) return. LAFHA is paid to compensate an employee for additional living expenses they incur if they're required to live away from home.

Remember, registered tax agents and BAS agents at Addition Accounting can help you with your tax.


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