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As part of this week’s Commonwealth Budget, the Australian Government has announced a major concession for people currently claiming the Living Away From Home Allowance (LAFHA).

The government had previously announced that the LAFHA would be closed to most temporary visa holders from 1 July 2012.

However, this week’s announcement effectively preserves the status of people currently claiming LAFHA until 1 July 2014. This concession applies to people who were claiming LAFHA prior to 7:30 AEST on 8 May 2012.

People not eligible for the concession will no longer be able to claim LAFHA unless they have a second home already in Australia, from which they are living away. In this case, LAFHA can only be claimed for a maximum of 12 months.

Concessions for “fly in, fly out” employees will continue, as will the current tax treatment of travel and meal allowances for short periods of travel (up to 21 days).

The announcement will be a major relief to 457 holders currently claiming LAFHA and their employers. Whilst we are still awaiting release of the legislation, employees already claiming LAFHA prior to the Budget announcement will be able to continue to do so until 1 July 2014.

Refer : Government Announces Extension of LAFHA Arrangements | Acacia Immigration Australia
 
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Thanks for that. There will still be a huge amount of people not yet granted or planning on migrating soon who will be unhappy. But I hope employers will stop under paying and under valuing migrant employees now they can't use this to top up wages. Only time will see if that happens.
 

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This isn't true. As much as It should be true. The treasury have confirmed that LAFHA will go away for anyone currently receiving LAFHA in the UK who does not maintain a property inside Australia that they live away from. A usual residence overseas does not count. As outrageous as this sounds...this is the current situation.
 
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This isn't true. As much as It should be true. The treasury have confirmed that LAFHA will go away for anyone currently receiving LAFHA in the UK who does not maintain a property inside Australia that they live away from. A usual residence overseas does not count. As outrageous as this sounds...this is the current situation.
Why should anyone living in the UK be entitled to claim an Australian tax break?

But would you like to provide a link to what you are claiming? Because I've read the information provided by the ATO which confirms a temporary reprieve for those already claiming it.
 

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The Australian Government have not been very clever in this press release - it is open to all sorts of interpretation. I am on a 457 Visa - a temporary resident - but a permanent resident for tax purposes - do I continue to get LAFHA till 01-Jul-14 - goodness knows - I hope I find out by 01-Jul-12 !!!!!!!............
 

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ignore the UK bit...a typo. I don't yet have permissions to post a link but will do soon hopefully. If you go to facebook there is a page called 'you're having a lafha' which has got a lot of the details around this particular issue.
 

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The Australian Government have not been very clever in this press release - it is open to all sorts of interpretation. I am on a 457 Visa - a temporary resident - but a permanent resident for tax purposes - do I continue to get LAFHA till 01-Jul-14 - goodness knows - I hope I find out by 01-Jul-12 !!!!!!!............

I spoke to the treasury and they said that the rules only apply to permanent residents and not temporary residents.
 

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As part of this week’s Commonwealth Budget, the Australian Government has announced a major concession for people currently claiming the Living Away From Home Allowance (LAFHA).

The government had previously announced that the LAFHA would be closed to most temporary visa holders from 1 July 2012.

However, this week’s announcement effectively preserves the status of people currently claiming LAFHA until 1 July 2014. This concession applies to people who were claiming LAFHA prior to 7:30 AEST on 8 May 2012.

People not eligible for the concession will no longer be able to claim LAFHA unless they have a second home already in Australia, from which they are living away. In this case, LAFHA can only be claimed for a maximum of 12 months.

Concessions for “fly in, fly out” employees will continue, as will the current tax treatment of travel and meal allowances for short periods of travel (up to 21 days).

The announcement will be a major relief to 457 holders currently claiming LAFHA and their employers. Whilst we are still awaiting release of the legislation, employees already claiming LAFHA prior to the Budget announcement will be able to continue to do so until 1 July 2014.

Refer : Government Announces Extension of LAFHA Arrangements | Acacia Immigration Australia
Bad idea, i dont believe in government payouts especially for non citizens. Only gonna make companies pay less salaries. They should've axed it
 

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The big problem here is that noone is representing the LAFHA community. It is taxation without representation. This group needs to get a unified voice and make a very very loud noise about what is going on very quickly. The new rules are discriminatory and frankly outrageous.
 
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