LAFHA - Budget 2012/13
May 13th 2012, 12:29 am
#136
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Re: LAFHA - Budget 2012/13
If they were earning less than this abroad then they are still on a winner regardless of LAHFA. If the company used LAHFA as a "salary top up" then they need to approach their company and do something about it.
May 13th 2012, 12:32 am
#137
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Re: LAFHA - Budget 2012/13
ummm but LAFHA was brought in by the government so why wouldn't employers use it ?? They would be absolutely nuts not to, they would be putting themselves at a distinct disadvantage in the market if they didnt.
The point is not clear because what you are wanting is not reality. In reality we do get tax breaks whether you personally like it or not is irrelevant.
The fact is what they have done and in the time frame done it will cause people to suffer and that is wrong.
if MR swan wanted an extra 15% out of your pay packet in july how would you feel?
The point is not clear because what you are wanting is not reality. In reality we do get tax breaks whether you personally like it or not is irrelevant.
The fact is what they have done and in the time frame done it will cause people to suffer and that is wrong.
if MR swan wanted an extra 15% out of your pay packet in july how would you feel?
The point is LAHFA is not for employers use. It's a tax break for employees. Employers endorse its use by stating the employee is in Australia on a temporary basis. It is in place for the benefit of the employee not the employer
May 13th 2012, 12:47 am
#138
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Location: UK
Posts: 14,284
Re: LAFHA - Budget 2012/13
ummm but LAFHA was brought in by the government so why wouldn't employers use it ?? They would be absolutely nuts not to, they would be putting themselves at a distinct disadvantage in the market if they didnt.
The point is not clear because what you are wanting is not reality. In reality we do get tax breaks whether you personally like it or not is irrelevant.
The fact is what they have done and in the time frame done it will cause people to suffer and that is wrong.
if MR swan wanted an extra 15% out of your pay packet in july how would you feel?
The point is not clear because what you are wanting is not reality. In reality we do get tax breaks whether you personally like it or not is irrelevant.
The fact is what they have done and in the time frame done it will cause people to suffer and that is wrong.
if MR swan wanted an extra 15% out of your pay packet in july how would you feel?
Not the faintest idea what reality you think I want but am not getting, so can't comment on that.
If my company had insisted that part of my package was to be made up by LAFHA and now it was going away, I would be talking to my employer, not complaining about the government. I have not even bothered to look to see how many ways I am impacted by the budget, one thing I am sure about though is that it won't be positive. It is life.
May 13th 2012, 2:01 am
#139
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Joined: Feb 2012
Posts: 56
Re: LAFHA - Budget 2012/13
I agree that a company was bound to take advantage of rules that were not properly set out or implemented. However now steps have been taken to ensure that the rules are more clearly defined and enforced and this is a very good thing, long overdue.
Not the faintest idea what reality you think I want but am not getting, so can't comment on that.
If my company had insisted that part of my package was to be made up by LAFHA and now it was going away, I would be talking to my employer, not complaining about the government. I have not even bothered to look to see how many ways I am impacted by the budget, one thing I am sure about though is that it won't be positive. It is life.
Not the faintest idea what reality you think I want but am not getting, so can't comment on that.
If my company had insisted that part of my package was to be made up by LAFHA and now it was going away, I would be talking to my employer, not complaining about the government. I have not even bothered to look to see how many ways I am impacted by the budget, one thing I am sure about though is that it won't be positive. It is life.
May 13th 2012, 3:23 am
#140
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Joined: Oct 2011
Posts: 1,217
Re: LAFHA - Budget 2012/13
I came here in the hope of persuading my employers to provide me with LAHFA. I had one minor htich - an Aussie passport - which does not demonstrate anything of a temporary nature despite the fact I will be returning to the UK in a few years. Point being I had to make my decision on what "if's". Things change, governments change, policies change, employers go broke, etc, etc
We've been round this before and the employers should have made their sponsers fully aware of the risks and if they are using it as part of the salary, and if their non LAHFA co-workers are earning considerably more, then do something about it.
No transition, no rules for one not for the other. It's gotta go.The goverment should ensure that all taxpayers, regardless of perm or temp should have equal benefits.
We've been round this before and the employers should have made their sponsers fully aware of the risks and if they are using it as part of the salary, and if their non LAHFA co-workers are earning considerably more, then do something about it.
No transition, no rules for one not for the other. It's gotta go.The goverment should ensure that all taxpayers, regardless of perm or temp should have equal benefits.
May 13th 2012, 6:28 am
#141
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Re: LAFHA - Budget 2012/13
Yes, that would only be fair as they pay taxes the same as everybody else. Bear in mind that a lot of those benefits are means-tested or only apply to 2-working parents family. If this was implemented though, same as PRs and citizens, temporary residents would not get the chilcare rebate for example if one parent was a stay-at-home parent.
Citizens and PRs don't all get handouts and some temporary residents on here seem to think that we all live on the plentiful benefits. Not so. Before I went back to work, we got no childcare relief, whether we were on a 457 or a PR visa.
Having been on both side of the fence, I do think that temporary residents should be entitled to some benefits since they pay their taxes. But I also believe the LAFHA was abused by too many to not be tightened and I am glad to see it go. Shame the government is not making a gesture towards those with families by giving them some benefits though.
I agree with those that say that the changes are too drastic too quickly but maybe people should have heeded the November warning rather than think it would never happen.
Citizens and PRs don't all get handouts and some temporary residents on here seem to think that we all live on the plentiful benefits. Not so. Before I went back to work, we got no childcare relief, whether we were on a 457 or a PR visa.
Having been on both side of the fence, I do think that temporary residents should be entitled to some benefits since they pay their taxes. But I also believe the LAFHA was abused by too many to not be tightened and I am glad to see it go. Shame the government is not making a gesture towards those with families by giving them some benefits though.
I agree with those that say that the changes are too drastic too quickly but maybe people should have heeded the November warning rather than think it would never happen.
May 13th 2012, 6:32 am
#142
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Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
It isn't up to anyone to provide tax breaks to select employees to provide even more profit for booming industries or even to prop up failing industries. It is up to the employers to pay the required salaries. Not sure why this point is still not clear, it has been said enough times.
2. Whether LAFHA was right or not is irrelevant. The fact is that it WAS available for so many years and is now being pulled out from under people's feet.
3. Companies have abused LAFHA by selling net rates not gross rates, and incorporating the LAFHA in to employment contracts. They can't do this anymore - hah! Note - go online and you will see agencies STILL advertising packages with LAFHA! Poor show, Aus companies, poor show!
4. You can not look at LAFHA in isolation. You have to look at all the differences how 457s are treated compared to Aus nationals/PRs. Removal of LAFHA tips the balance and means 457s are disadvantaged compared to Aus nationals/PRs in terms of taxes/benefits.
May 13th 2012, 6:36 am
#143
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Location: Sydney
Posts: 4,404
Re: LAFHA - Budget 2012/13
1. The notice given was less than 2 months - between the budget day and 30 June. Prior to that was just consultative.
2. Whether LAFHA was right or not is irrelevant. The fact is that it WAS available for so many years and is now being pulled out from under people's feet.
3. Companies have abused LAFHA by selling net rates not gross rates, and incorporating the LAFHA in to employment contracts. They can't do this anymore - hah! Note - go online and you will see agencies STILL advertising packages with LAFHA! Poor show, Aus companies, poor show!
4. You can not look at LAFHA in isolation. You have to look at all the differences how 457s are treated compared to Aus nationals/PRs. Removal of LAFHA tips the balance and means 457s are disadvantaged compared to Aus nationals/PRs in terms of taxes/benefits.
2. Whether LAFHA was right or not is irrelevant. The fact is that it WAS available for so many years and is now being pulled out from under people's feet.
3. Companies have abused LAFHA by selling net rates not gross rates, and incorporating the LAFHA in to employment contracts. They can't do this anymore - hah! Note - go online and you will see agencies STILL advertising packages with LAFHA! Poor show, Aus companies, poor show!
4. You can not look at LAFHA in isolation. You have to look at all the differences how 457s are treated compared to Aus nationals/PRs. Removal of LAFHA tips the balance and means 457s are disadvantaged compared to Aus nationals/PRs in terms of taxes/benefits.
May 13th 2012, 6:37 am
#144
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Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
I don't think there's any dispute that the loss of this benefit will upset a few. But you are in a small minority of the entire tax paying population. You can't just have a benefit for a small few who may have naively made a poor decision, based on incorrect advice from employers, a few years back.
May 13th 2012, 7:01 am
#145
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Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
Ok;
> I was negotiating the employment contract for this Aus job in Nov/Dec - from the start the agent and the company sold LAFHA and put it in the employment agreement.
> In Dec I learned of the LAFHA rumblings and tried to negotiate to get the LAFHA clauses out of my employment agreement plus an uplift to my day rate. They wouldn't budge.
> In January I came to Aus to start the job; on my own - the ex wife and kids are in UK.
> Now it (seems to be) confirmed that my net pay will go down by GBP 12k pa from 1 July. Although my gross pay exceeds AUD 400k pa, I will not accept this pay drop without a fight, not because I agree with LAFHA or do not agree with it, but because at negotiation time they insisted on selling me a net rate with LAFHA incorporated in to my employment agreement.
> I have commenced negotiations for an uplift to my day rate from 1 July, however late last week I heard through the vine that the company won't budge for anyone.
> If they do actually budge and uplift my day rate, fine. If they don't, I will move on, mainly because I know that presently there are other opportunities available to me in other parts of the world.
So for me it's not a big deal (I can upsticks tonight if I really want), but as I said before I feel for the 457s who have established more commitment to staying in Australia - e.g. younger people with young families here - what the government have done is in my eyes criminally negligent towards these people. Consequently I am NOT a fan of Australia and how its government treats people, so if my agent/company doesn't budge and I end up leaving in the next 6 weeks or so, I will strike Australia off the list and will not consider future employment opportunities here.
> I was negotiating the employment contract for this Aus job in Nov/Dec - from the start the agent and the company sold LAFHA and put it in the employment agreement.
> In Dec I learned of the LAFHA rumblings and tried to negotiate to get the LAFHA clauses out of my employment agreement plus an uplift to my day rate. They wouldn't budge.
> In January I came to Aus to start the job; on my own - the ex wife and kids are in UK.
> Now it (seems to be) confirmed that my net pay will go down by GBP 12k pa from 1 July. Although my gross pay exceeds AUD 400k pa, I will not accept this pay drop without a fight, not because I agree with LAFHA or do not agree with it, but because at negotiation time they insisted on selling me a net rate with LAFHA incorporated in to my employment agreement.
> I have commenced negotiations for an uplift to my day rate from 1 July, however late last week I heard through the vine that the company won't budge for anyone.
> If they do actually budge and uplift my day rate, fine. If they don't, I will move on, mainly because I know that presently there are other opportunities available to me in other parts of the world.
So for me it's not a big deal (I can upsticks tonight if I really want), but as I said before I feel for the 457s who have established more commitment to staying in Australia - e.g. younger people with young families here - what the government have done is in my eyes criminally negligent towards these people. Consequently I am NOT a fan of Australia and how its government treats people, so if my agent/company doesn't budge and I end up leaving in the next 6 weeks or so, I will strike Australia off the list and will not consider future employment opportunities here.
Last edited by cubeonly; May 13th 2012 at 7:16 am.
May 13th 2012, 7:01 am
#146
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Joined: Feb 2010
Location: Amongst Melbourne's tall gum trees
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Re: LAFHA - Budget 2012/13
And again, a few years ago the new Labor government changed the means-tested thresholds for many benefits when announcing their first budget in May, most changes effective from 1st July that same year. It only gave people a few weeks notice that they were losing benefits they'd been getting for years. How is that different? Isn't it the nature of politics?
May 13th 2012, 7:09 am
#147
Forum Regular
Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
And again, a few years ago the new Labor government changed the means-tested thresholds for many benefits when announcing their first budget in May, most changes effective from 1st July that same year. It only gave people a few weeks notice that they were losing benefits they'd been getting for years. How is that different? Isn't it the nature of politics?
May 13th 2012, 7:15 am
#148
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Joined: Jul 2007
Location: Sydney
Posts: 4,404
Re: LAFHA - Budget 2012/13
Ok;
> I was negotiating the employment contract for this Aus job in Nov/Dec - from the start the agent and the company sold LAFHA and put it in the employment agreement.
> In Dec I learned of the LAFHA rumblings and tried to negotiate to get the LAFHA clauses out of my employment agreement plus an uplift to my day rate. They wouldn't budge.
> In January I came to Aus to start the job; on my own - the ex wife and kids are in UK.
> Now it (seems to be) confirmed that my net pay will go down by GBP 12k pa from 1 July. Although my gross pay exceeds AUD 400k pa, I will not accept this pay drop without a fight, not because I agree with LAFHA or do not agree with it, but because at negotiation time they insisted on selling me a net rate with LAFHA incorporated in to my employment agreement.
> I have commenced negotiations for an uplift to my day rate from 1 July, however late last week I heard through the vine that the company won't budge.
> If they do actually budge and uplift my day rate, fine. If they don't, I will move on, mainly because I know that presently there are other opportunities available to me in other parts of the world.
So for me it's not a big deal (I can upsticks tonight if I really want), but as I said before I feel for the 457s who have established more commitment to staying in Australia - the younger people with young families here - what the government have done is in my eyes criminally negligent towards these people. Consequently I am NOT a fan of Australia and how its government treats people, so if my agent/company doesn't budge and I end up leaving in the next 6 weeks or so, I will strike Australia off the list and will not consider future employment opportunities here.
> I was negotiating the employment contract for this Aus job in Nov/Dec - from the start the agent and the company sold LAFHA and put it in the employment agreement.
> In Dec I learned of the LAFHA rumblings and tried to negotiate to get the LAFHA clauses out of my employment agreement plus an uplift to my day rate. They wouldn't budge.
> In January I came to Aus to start the job; on my own - the ex wife and kids are in UK.
> Now it (seems to be) confirmed that my net pay will go down by GBP 12k pa from 1 July. Although my gross pay exceeds AUD 400k pa, I will not accept this pay drop without a fight, not because I agree with LAFHA or do not agree with it, but because at negotiation time they insisted on selling me a net rate with LAFHA incorporated in to my employment agreement.
> I have commenced negotiations for an uplift to my day rate from 1 July, however late last week I heard through the vine that the company won't budge.
> If they do actually budge and uplift my day rate, fine. If they don't, I will move on, mainly because I know that presently there are other opportunities available to me in other parts of the world.
So for me it's not a big deal (I can upsticks tonight if I really want), but as I said before I feel for the 457s who have established more commitment to staying in Australia - the younger people with young families here - what the government have done is in my eyes criminally negligent towards these people. Consequently I am NOT a fan of Australia and how its government treats people, so if my agent/company doesn't budge and I end up leaving in the next 6 weeks or so, I will strike Australia off the list and will not consider future employment opportunities here.
Me personally, I love Australia.
May 13th 2012, 7:21 am
#149
Forum Regular
Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
But I'm not in a predicament - better opportunities in other parts of the world; Australia was a gamble from the start because of the taxes and red tape. So all it's done is confirmed my nervousness about this place.
No worries!
May 13th 2012, 7:23 am
#150
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: LAFHA - Budget 2012/13
I think you are over dramatising the removal of LAHFA and the effect it will have on Australia. It will go unnoticed. I'd be very surprised if an equivelent scheme existed for you in Indonesia