Expenses covered for Visiting Academics (residents of Australia)

The Dean will be responsible for specifying any payment including Fee for Service/Remuneration, cost of Visa, health insurance, travel and Living Away From Home Allowance.

All payments can be paid either through payroll or the visitor may elect to invoice Monash University, see Payment Procedure for more information. All costs associated with the Visiting Academic are to be charged to the Department/School, Faculty.

Living Away From Home Allowance (Meals & Accommodation)

Guidelines

Various benefits can be provided free of both Income Tax and Fringe Benefits Tax provided that the visitor qualifies for the Living Away From Home Allowance (LAFHA) and signs the relevant declaration forms.

For the purposes of the visit, the LAFHA may consist of:

• Accommodation Allowance
• Additional Food Allowance

See Payment Procedure for payment details.

The University policy is that the visit is for a maximum of up to 12 months. In exceptional circumstances the Director Human Resources may approve that this period be extended. If this is the case the visitor is required to sign a LAFHA declaration annually.

Accommodation

An allowance to cover expenditure on accommodation in Monash (excluding the cost of utilities in the rental accommodation) will be exempt from tax provided that the ATO consider the amount to be a 'reasonable' allowance.

Whilst there are no fixed guidelines as to what is 'reasonable', provided the Department/School, Faculty can substantiate that the visitor spent the entire allowance on rent the monies will be exempt from FBT. In this regard, quotes from real estate agents or landlords based on the visitor's family size and income level would form a good basis for such an estimate.

Where University accommodation is provided, the cost may be debited directly against any payment made to the visitor for a period not exceeding six weeks.

As a guide, based on residential renting in the local area around Clayton, a house will cost approximately $400 per week to rent.

Additional Food

This allowance is for additional food costs and is deemed to be compensation for expenses over and above normal private food costs.

The following table should be used when deciding on the amount of the LAFHA that is to be paid to the visitor as the food component ie. if the period of stay is 4 weeks, then the maximum food component to be paid would be $176 x 4 = $704. Any payments over this amount will attract FBT.

However, if the visitor can substantiate a greater level of expenditure on food than the amount specified in the schedule, a larger allowance may be paid. Amounts paid in excess of those outlined that cannot be substantiated by receipts or for which there is no LAFHA (FBT) Declaration may attract FBT.

Reasonable Food Apply from (ATO approved) Year Commencing 1st April 2004

Currently the ATO deems weekly private food costs to be $42 for adults and $21 for children 12 years of age. The figures above is the maximum allowance for additional food costs.

Airfares

Guidelines

The University may pay for, or reimburse, relocation travel expenses for visitors up to the level of a return airfare at the cheapest readily available rate at the time of booking, plus necessarily incurred ground transport & government charges. Travel must be by the most direct route.

The Vice-Chancellor may approve, in exceptional circumstances, a higher level of airfare.

Any amount above what would be deemed as reasonable (cheapest readily available rate) will attract FBT.

Accompanying Family Members

The Vice-Chancellor may approve, in exceptional circumstances, the travel costs, or part thereof, for accompanying family members.

Booking through the Universities preferred supplier

Tickets may be supplied through the University's preferred travel supplier.

Where this is the case a copy of the Letter of Invitation/Appointment must be kept on file by the Department/School, Faculty to support the exemption from FBT.

See Monash University’s Travel Policy.

Bookings through visitors own supplier

The visitor may wish to make a booking through his/her own travel supplier. Where this is the case travel expenses may be reimbursed through the Corporate Finance Division following the visitor's arrival at the University.

Reimbursement of relocation Expenses

Corporate Finance will reimburse relocation travel expenses such as airfares, taxis and Government charges.

Corporate Finance Division will require:

• a properly authorised claim form with original proof of payment
• complying tax invoice (if the visitor is from within Australia), and
• a copy of the Letter of Invitation/Appointment.

See Payment Procedure for payment details.

Kilometric Allowance

Guidelines

Kilometric Allowance may be paid to the visitor as an allowance for relocation travel or for use of personal vehicle for authorised business purposes during the period of stay.

• Relocation A visitor from within Australia who lives outside the Melbourne metropolitan area, who drives a motor vehicle (whether owned or leased) to the University may be paid a Kilometric Allowance. The University will pay this allowance for a return journey by the most direct route at the kilometric rate provided this does not exceed the amount payable for air travel. Amounts in excess of this will attract FBT.

• Business Use If the visitor is required to use their own motor vehicle for authorised business purposes a Kilometric Allowance may be paid.

See Payment Procedure for payment details.

Kilometric Rate

Such travel allowances will be paid at the following rates:

• 1600cc (800cc Rotary) 45.9 cents per kilometer
• 1602-2600cc (801-1300cc Rotary) 54.9 cents per kilometer
• 2601cc + (1301 + cc Rotary) 55.8 cents per kilometer

Attending Conferences and Seminars

Guidelines

Subject to approval by the Dean, the academic may attend conferences and seminars locally and interstate at the expense of the University.

Other Benefits

Other benefits would not normally be offered. Specialist advice on any further benefits would need to be sought because of the associated taxation expense/s to the Department/School, Faculty or insurance implications and associated risk exposure to the University. More information on FBT