Publish Date: April 13, 2026
In Australia, many workers in industries such as mining, oil and gas, construction, and large infrastructure projects operate under FIFO (fly-in fly-out) arrangements. Under this setup, employees travel to remote job sites for rostered periods and stay there temporarily, while maintaining their usual home in another location—often in a major city.
Because FIFO workers are required to live away from their normal residence for work, employers may provide a living away from home allowance (LAFHA) to help cover additional accommodation and food costs. However, for the employer to access concessional fringe benefits tax treatment on this allowance, strict compliance requirements must be met—and one of the key requirements is obtaining a LAFHA declaration from the employee.
A FIFO LAFHA declaration is a formal statement confirming important details such as the employee’s normal place of residence, the temporary location they are staying in for work, and the period during which they are living away from home. This declaration supports the position that the employee is genuinely living away from home on a temporary basis, rather than relocating permanently.
If this declaration is not obtained, the employer may not be able to apply the available exemptions, which could result in the full allowance being subject to fringe benefits tax. For this reason, while it may seem like a simple form, the LAFHA declaration is a critical document to ensure the FIFO arrangement remains compliant and tax-effective for both the employer and the employee.
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