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Re: LAFHA allowance

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Megastar

Views 2472

Replies 4

Hi, if an employer reports LAHA allowance as Travelling expenses in the payment summary, then can i claim the food and travelling expenses as deduction.

 

Thanks

1 ACCEPTED SOLUTION

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Best answer

ATO Certified

Community Support

Replies 0

Hi @Pushkar_Bhusal

 

Thanks for your question!

 

Initially, you should discuss this with your employer to see what the intention of the payment was. If the payment was a LAFHA, this is considered a fringe benefit and they would need to report this in their annual FBT return, and not as an allowance in your payment summary. Your payment summary will need to be amended so it is not reported as an allowance.

 

It the payment was intended as a travel allowance or another type of allowance, your payment summary will still need to be amend so it shows the correct payment type. Your employer will need to amend the information and provide you with a correct summary.

 

The intension of the payment, will determine whether you can claim food and travel expenses as tax deductions.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

4 REPLIES 4
Highlighted

Taxicorn

Replies 3

A LAFHA paid to you is income tax-free and should not be included as assessable income in your tax return. Conversely, you cannot claim a deduction for expenses which have been covered by a LAFHA.

Highlighted

Megastar

Replies 2

Hi Macfanboy, 

Thanks for reply, LAFHA is indeed tax exempt allowance, but the issue is employer has reported it as travel allowance in the payment summary, instead of LAFHA, now travel allowances are fully taxable. Now my query was that can I claim the meal, accomodation and travelling expenditure as deduction, when I was working away from home for 300 days a year, and got an allowance to cover the expense, and my employer reported this allowance as travelling allowance instead of LAFHA.

 

Thanks 

Highlighted

Taxicorn

Replies 0

No they should ammend your payment summary.

Best answer

ATO Certified

Community Support

Replies 0

Hi @Pushkar_Bhusal

 

Thanks for your question!

 

Initially, you should discuss this with your employer to see what the intention of the payment was. If the payment was a LAFHA, this is considered a fringe benefit and they would need to report this in their annual FBT return, and not as an allowance in your payment summary. Your payment summary will need to be amended so it is not reported as an allowance.

 

It the payment was intended as a travel allowance or another type of allowance, your payment summary will still need to be amend so it shows the correct payment type. Your employer will need to amend the information and provide you with a correct summary.

 

The intension of the payment, will determine whether you can claim food and travel expenses as tax deductions.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.