Fundamental changes will increase LAFHA compliance costs and deny access to LAFHA by foreign nationals. On 29 November 2011, The Australian Treasurer Wayne Swan announced changes to the Living Away From Home (LAFH) Allowance and other associated benefits.
Coming into effect on 1 July 2012, these changes will impact who can claim LAFH benefits and how these benefits will be taxed. These changes have the potential to significantly impact your mobile workforce by increasing the compliance burden and removing the ability for many to access the tax concessions.
This event covered:
- an overview of the current rules applicable to 30 June 2012
- the proposed reforms announced on 20 November 2011 including transitional rules
- flow on impact to other provisions withing FBT regime
- impact on employers
- examples of LAFHA impact post 1 July 2012
- submissions and representations
- key employer actions in the lead up to 1 July 2012.