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Living away from home allowance

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Newbie

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hi

my husband is a traffic controller ( road works).  He is currently working away from home - his accommodation is paid by employer and he's being paid a LAFHA - 70.00 per day, to cover food etc.

We noticed on last pay slip ( first one for this work) that he was taxed on this allowance?? 

Is this correct. 

Thanks in advance

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Former Community Support

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Hi @Lh1,

 

Thanks for your question! It's hard to answer your question because there's a few things to consider - for example, is your husband working under a labour-hire agreement? Is this a genuine living away from home allowance (which is a fringe benefit, where the employer pays tax) or a travel allowance mistakenly called a living away from home allowance (which is assessable income, and on which your husband pays tax).

 

We'd encourage your husband to check in with his payroll and ask them whether they're treating his payment as a fringe benefit. We'd also encourage him to check the terms on his employment contract and industrial award to confirm the treatment agreed upon when he started work. If there are any issues, your husband can contact the Fair Work Ombudsman for more advice. Thanks!

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @Lh1,

 

Thanks for your question! It's hard to answer your question because there's a few things to consider - for example, is your husband working under a labour-hire agreement? Is this a genuine living away from home allowance (which is a fringe benefit, where the employer pays tax) or a travel allowance mistakenly called a living away from home allowance (which is assessable income, and on which your husband pays tax).

 

We'd encourage your husband to check in with his payroll and ask them whether they're treating his payment as a fringe benefit. We'd also encourage him to check the terms on his employment contract and industrial award to confirm the treatment agreed upon when he started work. If there are any issues, your husband can contact the Fair Work Ombudsman for more advice. Thanks!