LAFHA to go?

[Katkat]

Don't want to panic anyone, but did I just hear correctly on the news that the government has decided to get rid of LAFHA in the up coming budget review? Does anyone know more?

[Katkat]

Penny Wong on ABC news-

The Treasurer's latest economic note says forecast capital gains tax revenues will be down $7 billion over the forward estimates, compared to what was expected in May.

The number of highly paid foreign workers repeatedly receiving tax-free living-away-from-home allowances on top of their salary has recently doubled to more than 60,000 and cuts could deliver $350 million in savings.

Senator Wong says it is an issue the Government is looking into.

"I'm not going to get into detail but I would say that is a particular measure that was raised in the context of the tax forum as being problematic," she said.

"Obviously those issues are issues that the Government is having a very close look at."

 

The finance review is this week, so I guess we'll know more then.

[Ian Lindgren]

Hi,

 

Statements on LAFHA from Labor party members started being released about six months ago as an issue that needs to be considered before the next budget is released.

 

Like most issues printed in the press they sensationalise the issue to get your attention with headlines like “Fat Cat Foreign Workers Receive Tax Breaks Not Available to Australians” and then go on with the actual statement that was released which in this case is really just a statement saying:

 

 

• LAFHA will be reviewed,
• We are going to look at it but do not know an outcome, and
  
• What is not in this extract is that they really are focussing on the foreign workers on greater than $200,000 per year, and they also have stated that LAFHA will remain available to Australians.
  

So the short answer is that no decision has been made to cease LAFHA as a legal allowance.

 

 

My own personal observation is that most media reports have correctly reported the minister’s statement, but then incorrectly and very inaccurately described what they thought LAFHA was in a sensational manner.

 

I also know that most LAFHA recipients are not foreign workers on greater than $200,000. Most would be below the $100,000 salary range.

 

Australians will still be eligible.

 

Australian needs highly skilled foreign workers.

 

So my take on it is that they are likely to put tighter controls around it, if they do anything at all to LAFHA.

 

Regards,

 

Ian

[Guest]

Hi,

 

Statements on LAFHA from Labor party members started being released about six months ago as an issue that needs to be considered before the next budget is released.

 

Like most issues printed in the press they sensationalise the issue to get your attention with headlines like “Fat Cat Foreign Workers Receive Tax Breaks Not Available to Australians” and then go on with the actual statement that was released which in this case is really just a statement saying:

 

 

 

• LAFHA will be reviewed,

• We are going to look at it but do not know an outcome, and

• What is not in this extract is that they really are focussing on the foreign workers on greater than $200,000 per year, and they also have stated that LAFHA will remain available to Australians.

So the short answer is that no decision has been made to cease LAFHA as a legal allowance.

 

 

My own personal observation is that most media reports have correctly reported the minister’s statement, but then incorrectly and very inaccurately described what they thought LAFHA was in a sensational manner.

 

I also know that most LAFHA recipients are not foreign workers on greater than $200,000. Most would be below the $100,000 salary range.

 

Australians will still be eligible.

 

Australian needs highly skilled foreign workers.

 

So my take on it is that they are likely to put tighter controls around it, if they do anything at all to LAFHA.

 

Regards,

 

Ian

 

so is it gone then, looks that way for anyone on a 457 Visa :mad: