This paper has attempted to highlight some economic aspects of government cash benefits (particularly those in Queensland) to isolated rural families which enable children to live away from home (LAFH) to receive their schooling. It has considered allowances as welfare payments and has examined some of their equity and efficiency implications. However, it must be acknowledged that social welfare cannot be rigorously defined, and as a result, the observations about LAFH allowances that are discussed might attract other interpretations. After consideration of the particular circumstances of isolated families, what has been suggested in this instance is that allowances are probably deficient in some ways with respect to equity and efficiency. Nevertheless, better alternatives, judged on these two economic criteria, are difficult to find. (Author/AH)