Construction Jobs with Per Diem and Living Away From Home Allowance (LAFHA) in Australia

For construction professionals in Australia, job opportunities with per diem and Living Away From Home Allowance (LAFHA) offer significant benefits. Both allowances help offset the costs of working remotely, covering accommodation, meals, and other essentials. This guide explains the difference between per diem and LAFHA in construction, how they work, and the tax implications. We’ll also provide comparisons to similar allowances in the UK and Ireland, and link you to some FIFO job opportunities that include these benefits.

Understanding Per Diem and LAFHA in Construction

In Australia’s construction sector, per diem allowances and Living Away From Home Allowance (LAFHA) are common incentives, especially for workers on fly-in, fly-out (FIFO jobs) and remote assignments.

1. Per Diem Allowance

Per diem is an allowance provided to cover daily expenses for accommodation, meals, and incidentals when working away from one’s primary residence. This allowance is especially beneficial for temporary projects in high-demand areas, such as remote construction sites in Western Australia and Northern Queensland.

Typical Rates: Per diem rates can vary widely. Employers may offer anywhere between AUD 90 to AUD 150 per day depending on the project’s location and company policy.
Tax Implications: Per diem allowances in Australia can be tax-free if they meet the Australian Taxation Office (ATO) guidelines and remain within the specified limits.

2. Living Away From Home Allowance (LAFHA)

LAFHA is a fringe benefit designed specifically to support employees who need to temporarily relocate for work. In addition to covering accommodation and meal expenses, LAFHA also considers the employee's family situation and the financial strain of living away from home.

For more detailed information on eligibility and tax guidelines, visit the Australian Taxation Office’s (ATO) official page on LAFHA.

LAFHA Benefits: This allowance can cover rent, food, and other essentials, making it highly attractive for FIFO and remote construction jobs.
Tax Considerations: LAFHA may be tax-exempt if certain criteria are met, including the duration of the assignment and proper documentation of expenses.

How LAFHA and Per Diem Benefit Construction Workers

Both LAFHA and per diem allowances provide substantial support to construction workers, helping them maintain financial stability and comfort while working away from home. These benefits are particularly valuable for FIFO & DIDO roles and those in remote areas, where the cost of living and travel can be higher.

Comparison with the UK and Ireland’s Allowances

For workers from the UK and Ireland, understanding Australian per diem and LAFHA is simplified by similarities in each country’s travel allowances:

United Kingdom: The per diem in the UK is typically known as a “subsistence allowance,” covering meals and accommodation when working away from home. Receipts are often required for tax-exemption.
Ireland: Ireland offers a “subsistence rate” similar to Australia’s per diem, with specific allowances for meals and accommodation. As in Australia, allowances are generally tax-exempt if they fall within set limits.

Where to Find FIFO Jobs with LAFHA or Per Diem Benefits

If you’re interested in exploring opportunities with LAFHA or per diem benefits, browse our listings for FIFO jobs in Australia. These roles are in high demand and offer competitive allowances to support skilled construction professionals.

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