paddyo

The point I am making is that they are making wholesale changes without proper consultation and no weak assed new south walian seems to want to do anything about it.

paddyo

It is, it has. But I have made a decision, luckily I had some options unlike some other poor buggers, and am going the PR route.
That doesn't mean I will stay in Oz permanently, I am still not sure yet, but it will reduce the 28 day threat and also cancel out NSW school fees and quite frankly without going back to UK right now there is not much else I can do.
A lot of belt tightening going on....but in truth I would rather be skint and living by the beach here than skint and living in muddy, foggy middle Hampshire.

Beoz

Well that is kind off true .... there are no mass protests of any type that I've seen ... excepts for a few fella's camping out in MArtin Place

Beoz

yeah sure Bingobob .... why don't I just sue my employers now, nothing to lose, hey they pay the legal costs anyway.

pegleg999

I'm hearing LAFHA is postponed until the 1st of October!

Finally some common sense

Bermudashorts

Oh right ... so it was just a July vs October thing for you?

To be honest I expect people will continue to not believe it will happen until the night before and will still say they didn't see it coming and have not had enough time to adjust to the idea.

paddyo

You may be right there, but also SOME people do not access forums, do not have information passed to them from their HR and without a massive LAFHA IS CANCELLED banner as a newspaper headline may still not be aware of it.
For example, they are also changing the Skills list for those over 50 wanting to go ENS, basically unless you are a nuclear scientist then you have no chance. This takes effect, or rather is planned to take effect, on 1 July 2012. I have had no notice of this on forums, nothing seen, that is obvious, in the news. It was only because my Mobility supervisor called me up and told me about it that I heard. Unfortunately when I queried this with a colleague of mine in a similar age situation he knew nothing about it and is now in a tricky situation.
Its all about proper communication and unless you are fortunate enough to be on forums like this (yes we bicker and banter sometimes but we all genuinely try and help each other) then some may not get to hear of this stuff.

pegleg999

Yeah, that was all I cared about... I just really really really really wanted to lose the LAFHA in October.. thats all I wanted, pop the champagne, blow up the balloons

... or maybe I just feel it gives time for people to leave AU in a reasonable time frame if they want to...hence some common sense...

Beoz

Cubeonly ...... right?

rld1177

http://ministers.treasury.gov.au/Dis...&Year=&DocType

Formal press release.

My Bank has spent a ton of money briefing staff, changing systems to pull this July 1st, and even a Big 4 firm briefed everyone a few days ago and clearly didnt see this coming. Now of course staff is asking HR to quickly adjust things back to keep LAFHA coming for 3 more months haha.

What a total joke - could they really not decide this until a few days before the end of June?

Tockalosh

Thanks for the heads up on this. Need to move fast on this one

towers

My firm increased the salaries of some so we'd at least keep the same take home pay from July 1st; raises which were planned just got swallowed up by this manoeuvre.

Though not ideal the October extension is good news - we might get a little bit extra in our pocket after all.

I do have concerns though as to whether HR teams will stick their neck out again, at this late stage, to make even more arrangements for what is essentially a non-compulsory tax allowance for the few.

I live in hope, but seriously, what a ****ing debacle!

saintstu

Apaprently they're going to delay the introduction of the new legislation until October!

http://mumbrella.com.au/lafha-gets-t...medium=twitter

saintstu

LAFHA gets three month reprieve

The Government has made a last gasp decision to delay its reforms to the Living Away From Home Allowance which were due to take place from Sunday.

The changes – which will see the axing of a perk worth thousands of dollars a year will now be put off until October 1.

The issue has triggered huge debate on Mumbrella’s comment threads because of the large number of workers from overseas and particularly the UK employed within the media and marketing industry.

The end of the allowance – which effectively allows recipients to claim living costs tax free – will see claimants thousands of dollars a year worse off. Even if employers do not increase salaries to make up the shortfall they will be hit with an increased super bill.

However, the three month extension does at least partly address criticisms during the consultation period that LAFHA was axed on too short notice, leaving workers with little time to cut costs by moving to cheaper accommodation.

Today’s announcement from the treasury stated: “In response to the submissions received, the Government has taken the decision to defer the start date of the reforms from 1July 2012 to 1 October 2012.”
It quoted assistant treasurer David Bradbury as saying: “This deferral will give employers and employees more time to prepare for the new arrangements.”

The announcement in full:

A Bill introduced into the Parliament today will implement a range of improvements to Australia’s tax laws, including those relating to living-away-from-home (LAFH) allowances and benefits, said Assistant Treasurer David Bradbury.

The Tax Laws Amendment (2012 Measures No. 4) Bill 2012 will reform the tax concession for LAFH allowances and benefits, clarify GST rules relating to incapacitated entities, and ensure that interest and penalties are not payable on changes as a result of recent amendments to the Consolidation regime.

The Bill will implement the two reforms to the tax concession for LAFH allowances and benefits that were announced as part of last year’s Mid-Year Economic and Fiscal Outlook, and also the two reforms that were announced in this year’s Budget.

“These reforms will better target the tax concession for LAFH allowances and benefits to people who are legitimately maintaining a home away from their actual home in Australia for an initial period,” said Mr Bradbury.

The Government announced the following two reforms on 29 November 2011 as part of the Mid-Year Economic and Fiscal Outlook, and said on announcement that they would apply from 1 July 2012:

Temporary residents will need to be maintaining a home for their own use in Australia that they are required to live away from for work, to be able to access the tax concession; and

All individuals will need to substantiate their actual expenditure on accommodation and food.

The Government announced two additional reforms to the tax concession in this year’s Budget on 8 May 2012, and said on announcement that they would apply from 1 July 2012 for arrangements entered into after Budget night, and from 1 July 2014 for arrangements entered into prior to that time:

Permanent residents will need to be maintaining a home for their own use in Australia that they are required to live away from for work, to be able to access the tax concession; and

There will be a 12-month time limit on how long all individuals (other than fly-in fly-out workers) can access the tax concession.

These reforms will not affect:

the tax concession for fly-in fly-out arrangements, as these employees will not be subject to the 12-month time limit;

the tax treatment of travel and meal allowances, which are provided to employees who have to travel from their usual place of work for short periods (generally up to 21 days);

the tax concessions that are provided for remote area fringe benefits.

The Government has held two extensive consultation processes in relation to these reforms.

In response to the submissions received, the Government has taken the decision to defer the start date of the reforms from 1July 2012 to 1 October 2012.

“This deferral will give employers and employees more time to prepare for the new arrangements,” said Mr Bradbury.

In addition, a number of technical changes have been made to the amendments in response to feedback on the exposure draft of the legislation.

“Our reforms to the tax concession for LAFH allowances and benefits will ensure that this taxpayer-funded tax break can’t be misused or exploited,” said Mr Bradbury.

“The tax concession will continue to support people who are bearing additional costs because they have to maintain a home away from their actual home in Australia for work purposes, for up to 12 months.”

Beoz

So doesn't this suggest that those doing the right thing get to maintain LAHFA - or am I missing something?