You can check out the LAFHA section of the ATO website here.
http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/52023.htm&page=1&H1

It is possible to structure a LAFHA accommodation benefit so that it does not attract FBT to the employer. This is done by only reimbursing the employee for their reasonable accommodation costs. Reasonable is determined based on a variety of factors such as the type of accommodation they are accustomed to, their position within the company and so on. Food costs can also be packaged as part of the LAFHA also free of FBT so long as you don't pay above the reasonable food component amount reduced by the statutory food amount.

Both the accommodation and food allowances if structured correctly can be income tax exempt to the employee and FBT exempt to the employer.

You need to make sure that you meet the definitions for living away from home. Have a look on the ATO website but the main points are that you have moved to a new work site to enable you to carry out your job. The position is for a finite period, and you will be returning to your usual place of residence at the end of the contract. Generally if you have sold your home at the old location and brought your family with you and purchased a new home you will not be considered as living away from home. You will be considered to have moved permenantly.

Have a chat to your accountant to see what options are available to you then present your employer with your findings. You will find they will be more willing to listen if you have already done all the hard work in getting the advice!

Good luck