What is a Living Away From Home Allowance - Leigh Barker West Pennant Hills

1. Leigh Barker West Pennant Hills What is a Living Away from Home Allowance

2. A living away from home allowance is a payment made by an employer to an employee who due to work commitments is living away from their usual residence.   A living away from home allowance pays for expenses such as accommodation and meals while working away from your usual place of residence for extended periods. Generally, an employee is considered to be living away from home when an employee occupies a temporary residence for greater than 21 days.

3. A living away from home allowance is income tax free and is not declared as assessable income in a tax return. Conversely there is no tax deduction available for expenses that have been covered by a living away from home allowance. A living away from home allowance is a fringe benefit that is paid by the employer, not the employee.

4. As a living away from home allowance is administered by the employer as opposed to the Australian Tax Office, living away from home allowances a generally provided on a timetable set by the employer. Generally, a living from home allowance is deposited into the employee’s bank account at the same time as normal pay. In receiving a living away from home allowance, it is advisable to retain and to give to an employer a record of expenses incurred such as receipts, credit card or bank statements and a declaration setting out information about the expense.

5. Leigh Barker West Pennant Hills Please Note: Prepared by Leigh Barker MWC Group, Accountant, Portfolio Finance, Gordon, West Pennant Hills and Tangible Assets. Note that all content of this blog is general in nature and is not financial or investment advice thus anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance.