An employee has received a LAFHA allowance. This LAFHA allowance is less than the travel expenses detailed in TD 2024/3. Can I claim the difference in the allowance received and the amount calculated as per TD 2024/3 as a travel expense on his tax return?
LAHFA Allowances, depending on the work and location, are typically defined as paid for board and lodging, or camping (Refer to Fair Work Act) 2024/3 refers to Fair costs of Meals and Travel.
As such they are different entitlements as conditions of employment. Rather than try to offset one against the other as a deduction, the employee should be encouraged to check their Award, Enterprise Agreement, or contract as to their entitlements for travel for work purposes, as they are very likely to be entitled to full reimbursement of the cost of meals and cents per kilometre for any travel in work time. Travel before or after work hours, for work purposes may be specified as TOIL. The employee could get advice from their Union, or Fair Work.
Hi @Babalu,
If an employee receives a Living-Away-From-Home Allowance (LAFHA), they generally can’t also claim a deduction for the same expenses the allowance is intended to cover (like accommodation, food, or incidental costs). Those expenses have already been compensated.
The amounts listed in TD 2024/3 are the reasonable amounts for travel expenses, not LAFHA. These reasonable amounts apply when an employee is travelling for work (not living away from home) and receiving a travel allowance. If the employee is receiving a LAFHA, they’re considered to be living away from home, which is treated differently for tax purposes. The two are separate categories with different rules.
You can find more about the differences between LAFHA and travel allowances on our website.
22 Apr 2024 · 6 min read time
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