Reforms to the Living-Away-From-Home (LAFH) concessions will not only impact foreign nationals (at whom the reforms are aimed) but also domestic Australian employees and their employers.
Employers need to be aware of the potential increased cost to business and changes to administration and reporting obligations arising from LAFH arrangements involving domestic employees. These costs and changes may arise in relation to employees receiving allowances rather than reimbursements.
Domestic employees are those employees that are not temporary residents, for example Australian citizens or permanent residents.
The reforms are expected to apply from July 1, 2012. The final form of the proposed reforms has yet to be announced by the Government.