Is it true that the LAFHA in Australia is being done away with?

Expert Info

Posted by

on 27 Apr 2012

I'm an expat in Australia and am trying to find out about the LAFHA. I've heard different things about the possibility of the LAFHA in Australia being abolished. Is it true? Please help!

Anonymous (not verified) on 30 Apr 2012 - 08:42

Yes, it is finished for foreign workers (except if they own property in Australia and then relocate for work in another Australian state). This means you get fully taxed like any other Australian resident but don;t have access to services like free schooling for children, medicare, etc...

Anonymous (not verified) on 3 May 2012 - 04:00

The government has announced that it is being reviewed with the view to not allowing it for overseas workers, no final decision has been made yet.

Anonymous (not verified) on 29 Apr 2012 - 11:17

hey David for all the latest information on different incentives call your local MEGT Australian Apprenticeship Centre as each state can differ.

Anonymous (not verified) on 2 May 2012 - 05:14

Hi David - Yes, expats will no longer receive LAFHA benefits starting on July 1. That means that we will receive no tax deductions on rentals or food.

Anonymous (not verified) on 2 May 2012 - 05:15

Yes it is going away for Ex-pats. We are no longer going to receive those benefits on July 1.

Anonymous (not verified) on 14 May 2012 - 15:04

Hi DavidC

There's a new article on the changes to LAFHA on the Expat Arrival site. I'm afraid it looks like it is being done away with, although nothing is technically final yet. Under the proposed changes, you will no longer be eligible for the allowance unless you are a permanent resident and maintain two homes in order to work. Even then, you can only claim it for 12 months.

The most controversial aspect of the change is that there seems to be no transitional period for those working on a 457 long-stay business visa. If approved in parliament, this means many expats will start paying tax from 1st July 2012.

Anonymous (not verified) on 15 May 2012 - 18:46

Hi Everyone, Have your say about the LAFHA reform. Here is a link to the Treasury with an address to send in submissions. Please share this with others you know that will be affect by the loss of LAFHA. Closing date for submissions: Tuesday, 29 May 2012. http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/Fringe-Benefits-Tax-FBT-Reform-living-away-from-home-benefits

Anonymous (not verified) on 26 May 2012 - 15:40

I have recently accepted a position in Brisbane and will be there on a 457. I'm a US Citizen and want to know how this change in the law will affect me? I'm a little confused.

Anonymous (not verified) on 28 May 2012 - 07:46

Hi Bernie

Basically, expats on a 457 visa used to be able to get significant tax breaks, but the law is in the process of being changed so that now you get virtually none. Expats used to be able to save a lot more on the 457 than you'll be able to when you go.

You have something of an advantage over expast already in Australia as you'll never know the difference!

For more details, see this article on changes to LAFHA. Keep an eye on the Australian news for a couple of days - there should be formal announcements about LAFHA this week.

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