Archive for July, 2012

Understanding the Living Away From Home Allowance Changes

There’s still a lot of buzz about recent changes to the Living Away from Home Allowance announced in this year’s budget – especially given the recent extension to the LAFHA benefit.

We thought it would be good to give customers a rundown of the facts so that everyone is clear about the new rules and when they are due to commence.

Under the current rules you can be eligible for LAFHA benefits if you’re living away from home (that is, living away from your usual place of residence) and:

  • The sole reason you are living away from home is in order to perform the duties of your employment; and
  • Your employment in the new work location is on a temporary basis only; and
  • You have not established permanent ties with the temporary work location such that it has become your ‘usual place of residence’.

After 1 October 2012, the following additional rules apply, depending on your employment circumstances.

Additional LAFHA Rules

Domestic Employees with LAFHA arrangements in place before 9 May 2012

The additional rules (see below) will not apply to you until you are due to reapply for the benefit or until 1 July 2014, whichever comes first.

All Other Employees (including Domestic Employees applying for LAFHA after 9 May 2012 and International Employees)

The following additional rules will apply from
1 October 2012:

  • Your usual place of residence (i.e. the home you are “living away from”) must be within Australia; and
  • Your usual place of residence (i.e. the home you are “living away from”) must remain available for your immediate use at all times during the period that you are living away from home – that is, it cannot be rented out or otherwise made unavailable for your use at any time during the LAFHA period; and
  • Your LAFHA eligibility period will be restricted to a maximum of 12 months from 1 October 2012

Leave a comment here.


Deven Billimoria
Chief Executive Officer
Smartgroup

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