What LAFHA actually means
A worker temporarily relocates to another location AND establishes a second home.
Key criteria:
- maintaining a home in original city
- working in another location for a limited time
- employer pays an allowance specifically for living costs
Mining camps normally fail this test.
Why FIFO is usually NOT LAFHA
Most FIFO arrangements are treated as work travel rather than living away from home because:
- you are travelling for work rather than relocating
- the employer usually controls the accommodation
- you are not setting up your own second home near the work location
- the arrangement is roster-based and temporary
- the accommodation is usually part of a work travel arrangement, not a relocation arrangement
Most FIFO workers are travelling workers, not relocated workers.
Many workers confuse allowances with taxable overtime and allowances.
Tax impact difference
- LAFHA: may have concessional treatment in some cases, but strict eligibility rules apply
- FIFO travel allowances: are usually taxable, with deductions depending on the actual expense
- Employer-provided camp accommodation: is generally an employer-provided arrangement, not a personal deduction
When FIFO CAN become LAFHA
FIFO may start to look more like a LAFHA arrangement where the worker is genuinely living away from their usual home for a temporary period and establishing accommodation near the new work location.
Examples:
- office relocation role
- long-term project secondment
- moving town for months at a time
- renting your own place near site
What you can claim instead
- meals & accommodation deductions
- travel between worksites
- flights to site
- FIFO meal allowances
- FIFO overtime, allowances and bonuses
Summary
Most FIFO workers are travelling for work rather than living away from home in the LAFHA sense, so LAFHA usually does not apply.
Employer-provided camp accommodation is generally not something workers claim as a personal tax deduction. Instead, FIFO workers should focus on the normal rules for travel, allowances and other work-related expenses.
Understanding the difference between LAFHA and ordinary FIFO travel can help avoid incorrect claims and confusion at tax time.
Read the Complete FIFO Tax Deductions List
For a broader overview of FIFO deductions, allowances and common work-related expenses, read the Complete FIFO Tax Deductions List (2026).