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LAFHA - Budget 2012/13

LAFHA - Budget 2012/13

Old May 11th 2012, 2:59 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by rld1177
I was making a comment only around the 'if you don't like it, move' point. There are others here making similar comments. My view is just that I am surprised they didn't do a transitional arrangement at least for families earning say up to a certain income (150K, 100K, whatever someone things is not 'excessive' which given what I have seen of the Aussie thought process here is a pretty low number vs what Americans or Brits think is big money) can have another 6 months, a year, maybe two to adjust and/or make plans to move home in a more ordered manner. It isnt easy for people to pull kids out of school etc all while dealing with a 25% or more effective pay cut. At the least you would have thought they might give companies the ability to write off on their taxes the costs of allowing 457's with families to move back home via an emergency relocation package.

For a single guy like me on good pay that has lived around the world, you are right, I can 'move' easy and will entertain offers in other parts of Asia over time. I moved here to experience Australia as much as anything else- but some of these familes that moved prior to the announcement last year have been shafted.
Yes but I didn't say 'move, even if its with a moments notice'. I think it's important for everyone to consider the cost of living wherever they live. I sympathize with anyone who has to adjust so quickly to this change. But, don't put your kids in school based on your LAFHA income. Don't get a stupid high rental based on LAFHA. If you have to rely on it, you probably can't afford to live here.
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Old May 11th 2012, 3:19 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by knockoff nige
Yes but I didn't say 'move, even if its with a moments notice'. I think it's important for everyone to consider the cost of living wherever they live. I sympathize with anyone who has to adjust so quickly to this change. But, don't put your kids in school based on your LAFHA income. Don't get a stupid high rental based on LAFHA. If you have to rely on it, you probably can't afford to live here.
Can't argue with that - I always looked at it as a bonus to help with the move only since it was ending in June anyway. As an American I have to pay the less of US or Aussie tax anyway so all LAFHA does for me is it means next year I will have to write a big check to the US government instead. Brits though have great tax rules and benefit greatly with tax packages like this (and in parts of Asia as well with lower income rates). It is the classic problem with all tax or government credit that familes in particular get hooked on - they should know better you are right, but they are the first to complain when the perks are taken away and throw out the 'yeah but look what you are doing to my kids' view. Frankly that is why I am surprised familes on lower levels didnt get a transition period.

To be fair also, last year when LAFHA was marketed to people (myself included as I had another option to move out this way early last year) it was pitched by firms as a part of salary - typically they spoke to you in terms of take home pay and talked about low taxes in Australia and that it had been in place for years. So the idea that some firms might (or should) help with transitional funds maybe at least for school fees makes sense to me. I suspect the mining and especially banking firms will do this - I am in banking and many expats on 457s are important to the banks because they are just here for a couple years and then will be repositioned somewhere else like Manila, so the last thing a bank wants to do is piss them off since they are often core international talent with options.
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Old May 11th 2012, 3:45 am
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Default Re: LAFHA - Budget 2012/13

If 457 Visa holders got the same tax rights as everyone else it wouldn't be an issue.

LAFHA barely made up for cost of education and no refund of childcare costs, ditch LAFAH and give us them.
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Old May 11th 2012, 4:11 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by bingobob777
LAFHA barely made up for cost of education and no refund of childcare costs,
But you would have known that.
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Old May 11th 2012, 6:00 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by bcworld
Like everyone I'm pretty confused.

Who does the grandfathering apply to, that then won't be eligible after 2014? I can't see the point in the grandfathering clause at all???
Originally Posted by cubeonly
Yes I have this question too. Who does the 2014 thing apply to? - seems nobody so why is it there?

I honestly think they've lost the plot and don't know their jacksies from their elbows!
I haven't really looked into it as it doesn't affect me, but doesn't the grandfathering apply to people who claim LAFHA due to being relocated from their home base, as these will be subject to a limit of 12 months eligibility under the new rules?

So the ones already claiming LAFHA on that basis will have 2 years to sort their situation out and new claimants will only have 12 months.
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Old May 11th 2012, 9:07 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by bingobob777
If 457 Visa holders got the same tax rights as everyone else it wouldn't be an issue.

LAFHA barely made up for cost of education and no refund of childcare costs, ditch LAFAH and give us them.
What education costs in Brisbane?
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Old May 11th 2012, 1:05 pm
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Default Re: LAFHA - Budget 2012/13

same ole same ole.....'I never had it so ***** you all' posts without any common sense thought of families and those who planned, maybe naively' around that fact that LAFHA was a constant component of the Australian tax system.
'If you don't like it then leave' or 'If the company needs your skill they will pay' crap from those who are not personally affected. Maybe if you WERE personnaly affected then your blunt ripostes may reduce.
p.s. Knockoff Nige, I appreciate your comments BTW
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Old May 11th 2012, 1:22 pm
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Default Re: LAFHA - Budget 2012/13

Originally Posted by paddyo
same ole same ole.....'I never had it so ***** you all' posts without any common sense thought of families and those who planned, maybe naively' around that fact that LAFHA was a constant component of the Australian tax system.
'If you don't like it then leave' or 'If the company needs your skill they will pay' crap from those who are not personally affected. Maybe if you WERE personnaly affected then your blunt ripostes may reduce.
p.s. Knockoff Nige, I appreciate your comments BTW
Fully support your view Paddyo
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Old May 11th 2012, 7:53 pm
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Default Re: LAFHA - Budget 2012/13

Originally Posted by paddyo
same ole same ole.....'I never had it so ***** you all' posts without any common sense thought of families and those who planned, maybe naively' around that fact that LAFHA was a constant component of the Australian tax system.
'If you don't like it then leave' or 'If the company needs your skill they will pay' crap from those who are not personally affected. Maybe if you WERE personnaly affected then your blunt ripostes may reduce.
p.s. Knockoff Nige, I appreciate your comments BTW
Got nothing to do with I never had it so neither should you, I think it is a bit insulting to suggest nobody here is capable of more rational thought than that.

And company's will, and should, pay for the skills they need. Nothing crap about that.
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Old May 11th 2012, 8:36 pm
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Default Re: LAFHA - Budget 2012/13

Can you advise the difference in salary packagaing vs LAFHA as presumably salary packaging continues and therefore would prove beneficial. and they appear to be very similar ???
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Old May 12th 2012, 12:26 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by cubeonly
Fully support your view Paddyo
I don't

This is a first time this government has stopped an unecassary handout. It is the opposite to what's happening with the mining and carbon taxes. I condone state welfare of any type and fully endorse a policy of supporting the achievers.

Quite frankly I don't want my taxes supporting the extra benefits, LAHFA included. If it affects you that greatly speak to your employers. They should help you, not the taxpayer.
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Old May 12th 2012, 1:11 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by paddyo
same ole same ole.....'I never had it so ***** you all' posts without any common sense thought of families and those who planned, maybe naively' around that fact that LAFHA was a constant component of the Australian tax system.
'If you don't like it then leave' or 'If the company needs your skill they will pay' crap from those who are not personally affected. Maybe if you WERE personnaly affected then your blunt ripostes may reduce.
p.s. Knockoff Nige, I appreciate your comments BTW
I think 'naively' is the operative word in your rant above. As others have said, if you planned your life and finances around the LAFHA, you should also have kept in mind that NOTHING is constant in politics and finances. The GFC has shown us that. Previous governments have shown us that too, by moving many of the goalposts for handouts and tax relief over the years.

I remember when Labour first came in and some of the means-tested handouts became unavailable to many because the income thresholds were lowered. It annoyed me at the time (although we were still on a 457 awaiting our PR then) because we fell in that murky area of being just over and so not really wealthy, but as I had never counted on that money to finance my lifestyle, I didn't find it a big deal. It would have been a nice bonus to get it but it made no difference not to get it. LAFHA should have been looked at in the sameway by recipients from foreign lands.

And yes, I did find it annoying that a tax relief that was meant for people who were sent interstate for work and had to MAINTAIN 2 homes was being used by people who were coming from overseas and renting out their house (or even worse, not even having a house any more - I have friends who did that) in the UK or elsewhere. Those people were lucky it lasted as long as it did. It's over now, build a bridge and get over it.

Now for the million $ question: which government will have the balls to reform negative gearing?
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Old May 12th 2012, 1:17 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by elice_in_oz
I think 'naively' is the operative word in your rant above. As others have said, if you planned your life and finances around the LAFHA, you should also have kept in mind that NOTHING is constant in politics and finances. The GFC has shown us that. Previous governments have shown us that too, by moving many of the goalposts for handouts and tax relief over the years.

I remember when Labour first came in and some of the means-tested handouts became unavailable to many because the income thresholds were lowered. It annoyed me at the time (although we were still on a 457 awaiting our PR then) because we fell in that murky area of being just over and so not really wealthy, but as I had never counted on that money to finance my lifestyle, I didn't find it a big deal. It would have been a nice bonus to get it but it made no difference not to get it. LAFHA should have been looked at in the sameway by recipients from foreign lands.

And yes, I did find it annoying that a tax relief that was meant for people who were sent interstate for work and had to MAINTAIN 2 homes was being used by people who were coming from overseas and renting out their house (or even worse, not even having a house any more - I have friends who did that) in the UK or elsewhere. Those people were lucky it lasted as long as it did. It's over now, build a bridge and get over it.

Now for the million $ question: which government will have the balls to reform negative gearing?
Good post and well put

As for which government will have the balls to sort negative gearing. None. Too many politiians have multiple investment properties where the mortgage repayments aren't covered by rent. It's a shame because it keeps the property prices high and 8 times the average salary which is so far different to most other places in the rest of the developed world
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Old May 12th 2012, 5:13 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by martin1978
Good riddance to it. Why should my tax subsidise someone elses wage when it's them that chose to come and live here and work on the 457.
Simply by reading this single sentence I can tell with certainty that you know sweet f**k all. Go join Julia you will excel.
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Old May 12th 2012, 5:32 am
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Default Re: LAFHA - Budget 2012/13

Originally Posted by cubeonly
Simply by reading this single sentence I can tell with certainty that you know sweet f**k all. Go join Julia you will excel.
Really? I think a lot of people would agree with that single sentence. What f**k all is it we are missing? Please do enlighten.
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