Home topics workplace hr-and-staff Advice News Staff Advice Six ways to prepare for LAFHA changes Philip Price August 24, 2012 If you have staff from overseas claiming a Living Away From Home Allowance (LAFHA) you need to get up to speed with some changes coming on 1 October. The Government changes to the Living Away From Home Allowance (LAFHA) will become a reality from October 1, 2012. The changes will affect Australian citizens, permanent residents, temporary visa holders and New Zealanders who are not protected special category visa (SCV) holders. The concept of providing tax-free housing and food to an employee who is living away from home has largely been scrapped compared to the level Australia has known over the past 25 years. Businesses need to start preparing now for the changes ahead. From 1 October, the provision of a LAFHA will be treated as income to employees. If employees meet the criteria for LAFHA there will be no tax exposure for food and accommodation provided they can substantiate the expenditure. The legislation incorporates both of the Government’s earlier announcements regarding LAFHA changes in the Federal Budget on 8 May 2012 and the Mid-Year Economic and Fiscal Outlook in November 2011. The Government also introduced a bill on 28 June 2012, which maintained the former statutory food amounts of $42 for adults and $21 for children as opposed to the higher amounts proposed in the Exposure Draft released on 15 May. Unfortunately the ability to claim deductions for living away