LAFH Allowance


Question:Posted 13th of January, 2016I am enquiring if when l pay a LAFH Allowance, if this should be taxed or paid gross (no tax) and where does it sit on the payment summary (if at all)?Answer:Do not report these amounts on the payment summary, unless it forms part of the reportable fringe benefits amount, because living-away-from-home allowance fringe benefits are not assessable income for the payee. Also, you should not withhold tax from these amounts. Just pay them gross.Further reading