From 1 July, 2012, Employers and HR professionals should be aware of changes to the Living away From Home Allowance (LAFHA). The changes apply from 1 July 2012 for arrangements entered into from 9 May 2012, and from 1 July 2014 for arrangements made prior to then.
The new reforms mean the LAFHA can only be used for the expenses of people who are legitimately maintaining a second home in addition to their actual home, the concession will be limited to a 12 month period only, and individuals are now required to substantiate their actual expenditure on accommodation, and food beyond a statutory amount. Additionally, temporary Australian residents will no longer have access to the concession unless they can establish that they are living away from an Australian based home which is maintained for their personal use.