iamthecreaturefromuranus

http://www.abc.net.au/news/2011-11-2...2?WT.svl=news0

Try this then "highly-paid executives and foreign workers". I believe its going to impact everybody currently claiming LAFHA. It's not being removed as such, just being made MUCH harder to claim

Swerv-o

Yup, looks to be the case. I hadn't seen the "and foreign workers" part on the report I read. Indeed, it looks like the jig is up, unless you are maintaining an Aus property and are engaged in FI-FO work.

Thanks for the link.


S

saintstu

From everything I've read I agree that it only mentions 'Executives'.

Based on this I'm assuming that it relates to individuals who are claiming the LAFHA tax break whilst their employer pays for their housing, or are claiming the tax break whilst being in camp/offshore accomodation and not paying for property in Australia.

The proposed saving of $710m pa suggests that it is not a case of LAFHA being lost to everyone as I'm going to guess that it costs the taxpayer a lot more than that per year.

Amazulu

I think it's $710m over 4 years

newjersey

But was not the allowance capped? I think the "highly paid" terminology used is to get the electoral base blood boiling, I can't be 100% sure but "executive" would be getting as much tax break as a regular worker?

paddyo

cheers mate

paddyo

ah...but the difference is you Emigrated, thus not on a Temporary assignment. There are options for all, some you will agree with, some you won't. But to keep this country working it does need immigration...maybe not highly paid executives I grant you, but immigration is extremely important to Australia and to encourage it, even if only for short term skill fixes, sometimes means that the taxpayer has to subsidise others. I pay tax along with everyone else but I suppose as a Temp Visa holder I only see it from my viewpoint.

Beoz

I wonder if the Oz govt needs LAHFA to encourage the temporary migration of foreign skills at present? I mean, if it wasn't available would it stop you from working in Oz?

paddyo

I am still a bit confused, 'maintaining a home in Australia' pretty much excludes ALL Temp Visa holders. That is if 'maintaining a home' means Owning a home. I maintain a home but its rented!!
The bland statement seems to indicate a complete scrapping of LAFHA for ALL 457 Visa holders, which is quite draconian and does not seem to be based on any factual data. Rorting happens in all aspects of Australian financial systems and companies, but a genuine LAFHA claimant who is NOT an Executive 'seems' to be punished here for poor mangement by the ATO. I think I'll wait until the full ATO criteria is published by them.,......thats when they get their heads around it.
If it is all true and is imminent, there will be a mass exodus of 457 Temp Visa holders due to the loss of 'earning's. Whether you care or not, it will have an impact on several businesses.

paddyo

It is certainly an incentive.....I am on a temporary assignment and I still own and maintain my home in UK and have other financial obligations there. LAFHA offsets that, without LAFHA I lose considerable take home earnings and thus lose some of my lifestyle. Who would seriously REDUCE their lifestyle for another country doing the same job, irregardless of the sun and beaches??

Beoz

Those who can earn more in that other country without the added financial LAHFA incentive. I would say that at this point in time, with the current economic state of Europe, and the exchange rate the way it is, most jobs would pay more here, without getting into a "cost of living" discussion.

Perhaps that's the angle of the government right now. Perhaps they feel with the factors above they don't need to attract temporary foreign workers anymore with an incentive.

bingobob777

If it is removed it's in effect a 18k wage cut for me. At the same time I still pay the same amount of tax as everyone else yet I'm entitled to nothing.

If my employer doesn't compensate me for the loss I'll move jobs to someone who will. I expect I won't be the only one.

bingobob777

It's a backward move by a backward Government. Sitting on a fortune yet risking driving away the workers they need to get it out, whilst at the same time introducing a Carbon Tax.

Whilst the AUD is so strong they should be pumping the country with money on major infrastructure projects, not cutting back.

steen1976

Works out about the same for my wife's income. However we came here with no promise of support for LAFHA so didn't factor it in. We got it and now it looks like it may go. She doesn't earn any more than she did in the UK but I'm on way more here so we're still better off. Bit of a blow but it just means we go for the PR sooner

But I know of a couple of people at least who I reckon would quit and head home losing that. And I reckon with the fragile nature of the 457 visa that without LAFHA many coming from the UK may not see it as such a good prospect.

Could well bite them on the arse and cost the economy more.

paddyo

I don't earn more...I am on an intra company transfer on the same salary package and scale. If I had come over a couple of years earlier than the exchange rate would of been a pleasant suprise, but, it wasn't so all is equal...ish!!