LAFHA - Budget 2012/13
#227
Re: LAFHA - Budget 2012/13
Okay trying to get back on topic here, as a follow up to my earlier post about these changes actually being illegal, here's a further post that was recently made in the other forum:
" 'Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected.'
The reforms breach all of these treaties because, for the first two years, only foreign workers under existing arrangements will be required to show that they maintain a home for their own use in Australia. Australians under existing arrangements will not be required to do this until July 2014. "
Regardless of the merits or otherwise of LAFHA or removing it, it seems fairly clear that the reforms breach this treaty.
" 'Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected.'
The reforms breach all of these treaties because, for the first two years, only foreign workers under existing arrangements will be required to show that they maintain a home for their own use in Australia. Australians under existing arrangements will not be required to do this until July 2014. "
Regardless of the merits or otherwise of LAFHA or removing it, it seems fairly clear that the reforms breach this treaty.
Or maybe I'm reading it wrong.
#228
Re: LAFHA - Budget 2012/13
Do me a favour. I bet not a single 457 holder on BE is maintaining a home *UNLET* whilst here "temporarily". Some don't even have a house anywhere else, the rest are renting it out and I have seen many sell up before coming over on a temporary visa. It is one of the many reasons why LAFHA is / was a joke.
We came on a 4 year 457 and will go home at the end of it.
We don't make anything from our flat in the UK and LAFHA was helping cover our rent here while we're still paying the mortgage at home.
Last edited by monkeyalan; May 15th 2012 at 2:41 am.
#229
Just Joined
Joined: May 2009
Posts: 9
Re: LAFHA - Budget 2012/13
The point is the Aussie nationals are being treated differently (in the transitional arrangements for LAFHA) from non-residents, which goes against this treaty. Not sure where you picked up the Medicare bit from?
#230
Re: LAFHA - Budget 2012/13
I picked up the medicare levy as british citizens on temporary visas get reciprocal medicare. Which is actually better than what I get as a resident of Australia. I believe you don't have to pay the medicare levy, which is in keeping with the above 'law'.
Tax benefits are not tax.
#231
Just Joined
Joined: May 2009
Posts: 9
Re: LAFHA - Budget 2012/13
I think you are totally missing the point but I don't see any mileage in continuing.
#232
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: LAFHA - Budget 2012/13
You brought it up???? The way I read it and I could be wrong and we'd all admit that, is that Aussies on temp visas in the UK are treated the same as Brits in Oz. I can't think of any situation where there is uneven treatment.
#233
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: LAFHA - Budget 2012/13
I'm quite surprise that someone who articulated their argument so well has had to retort to name calling. Anyhow .... you do rent your place in the UK out, whether it be for profit or not is not abiding by the LAHFA guidelines. I'm quite surprised that you don't get close to breaking even between mortgage repayments and rent but that's your choice ..... your choice is not the responsibility of all of us, including you, the taxpayer.
#234
Re: LAFHA - Budget 2012/13
I'm quite surprise that someone who articulated their argument so well has had to retort to name calling. Anyhow .... you do rent your place in the UK out, whether it be for profit or not is not abiding by the LAHFA guidelines. I'm quite surprised that you don't get close to breaking even between mortgage repayments and rent but that's your choice ..... your choice is not the responsibility of all of us, including you, the taxpayer.
AS for close to rent vs mortgage, we bought when prices were sky high and due to personal circumstances at the time had to go for a high percentage of mortgage and we picked a small house but in good location. Since then, although we still have positive equity, prices have dropped and the rental market in UK is not as strong as Oz. Due to the size of the house there is a limit to the rent you can bring in, irrespective of location. When we bought we did not envisage moving so quickly so its a combination of circumstances.
As for responsibility, thats not an issue is it. The issue is an understanding that something was there to be provided fairly within the rules which guided our decision making. There was never any inkling that it may not be a permanent facility, it could change on a whim (8 months whether you like it or not is not enough notice when it is 'in a consultation period' even when you do START to make preparations) or that IF things changed that the company would 'see you alright'.
You could use that responsibility argument to say that servicemen and woman are not entitled to payouts for disabilities from 'us' taxpayers because it was their choice to join up and they knew the risks.....if you said that you would be accused of non patriotism.....so...think on laddie!!
#235
Re: LAFHA - Budget 2012/13
You could use that responsibility argument to say that servicemen and woman are not entitled to payouts for disabilities from 'us' taxpayers because it was their choice to join up and they knew the risks.....if you said that you would be accused of non patriotism.....so...think on laddie!!
AFAIK, you have not chosen/been asked to give up limb or life so that others (like you and yours) could actually come to the other side of the world freely and ask a foreign nation to support your unwise financial choices. Paddy, I like you, but you are fast losing all of the sympathy I had for you...
#236
Re: LAFHA - Budget 2012/13
I think comparing 457 visa holders to servicemen is going a bit far.
AFAIK, you have not chosen/been asked to give up limb or life so that others (like you and yours) could actually come to the other side of the world freely and ask a foreign nation to support your unwise financial choices. Paddy, I like you, but you are fast losing all of the sympathy I had for you...
AFAIK, you have not chosen/been asked to give up limb or life so that others (like you and yours) could actually come to the other side of the world freely and ask a foreign nation to support your unwise financial choices. Paddy, I like you, but you are fast losing all of the sympathy I had for you...
#237
Re: LAFHA - Budget 2012/13
I think comparing 457 visa holders to servicemen is going a bit far.
AFAIK, you have not chosen/been asked to give up limb or life so that others (like you and yours) could actually come to the other side of the world freely and ask a foreign nation to support your unwise financial choices. Paddy, I like you, but you are fast losing all of the sympathy I had for you...
AFAIK, you have not chosen/been asked to give up limb or life so that others (like you and yours) could actually come to the other side of the world freely and ask a foreign nation to support your unwise financial choices. Paddy, I like you, but you are fast losing all of the sympathy I had for you...
#238
Re: LAFHA - Budget 2012/13
I still think your comparison is far-fetched though
The sympathy factor has gone back up, but not necessarily on the LAFHA front although I do agree with the outrage about the lack of notice and the way it is being handled.
I am also completely in favour of giving 457 visa holders the same/similar rights/benefits on an everyday basis (that would exclude one-off things like baby bonus) as PRs, since both pay taxes and neither vote.
#239
Re: LAFHA - Budget 2012/13
Indeed, I didn't know
I still think your comparison is far-fetched though
The sympathy factor has gone back up, but not necessarily on the LAFHA front although I do agree with the outrage about the lack of notice and the way it is being handled.
I am also completely in favour of giving 457 visa holders the same/similar rights/benefits on an everyday basis (that would exclude one-off things like baby bonus) as PRs, since both pay taxes and neither vote.
I still think your comparison is far-fetched though
The sympathy factor has gone back up, but not necessarily on the LAFHA front although I do agree with the outrage about the lack of notice and the way it is being handled.
I am also completely in favour of giving 457 visa holders the same/similar rights/benefits on an everyday basis (that would exclude one-off things like baby bonus) as PRs, since both pay taxes and neither vote.
I did say that the patriotism factor would kick in if the government tried to reduce/take away sevicemen allowances, also they have the right to vote against the government..457 peeps don't!
#240
Forum Regular
Joined: Sep 2011
Posts: 168
Re: LAFHA - Budget 2012/13
Back to the original issue, I think we have talked this to death and to be honest nearly everyone here agrees LAFHA was implemented poorly and was used by companies as a bargaining tool incorrectly and really LAFHA in it's current state definately needed the reforms they have brought in.
I'd like to add I 100% agree with the reforms in their entirety it 100% makes sense.
The problem is the way the reforms are being implemented with 1 set of people getting 2 years to sort out their affairs and 1 set getting 6 weeks.
Either everyone should get 2 years or no one.
I'd like to add I 100% agree with the reforms in their entirety it 100% makes sense.
The problem is the way the reforms are being implemented with 1 set of people getting 2 years to sort out their affairs and 1 set getting 6 weeks.
Either everyone should get 2 years or no one.