Review of Living-away-from-home Allowance by ATO

(last updated 2/04/2014)

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The ATO has just announced they are reviewing living-away-from-home allowance benefits and believe some employers may be claiming excessive amounts for exempt accommodation and food components.

The ATO said "In April 2011, we will be writing to some employers who are paying this allowance, requesting information for each employee receiving the allowance, including:

  • a copy of their Living away from home declaration
  • their tax file number
  • the amount of salary and wages paid to them
  • the total value of the allowance paid to them
  • the amount of exempt accommodation and food allowances paid
  • the basis used for ascertaining any exempt accommodation and food component amounts."
This will concern some readers of this blog as living-away-from-home allowance is the largest topic to receive questions and comments from readers. 

The review could affect how some employers are paying employees this allowance. Stay posted for further updates.

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