All change in LAFHA
As from 1st July next year the government will be reforming the Living Away From Home Allowance. Canberra have reported the cost of LAFHA to the Australian taxpayer increasing from 162 million in 2004-05 to $740 million in 2010-11.
Whats gonna change?
? Access to the tax exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as ‘fly-in fly-out’ workers; and
? Individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount.
No permanent resident legitimately using this tax exemption for accommodation and food expenses will lose any entitlements.
These changes will ensure that a level playing field exists between temporary residents and permanent residents, and that Australian taxpayers are not funding the unfair exploitation of concessions.
So if your a temporary visa holder and your on LAFHA make the most of it until July 1st.
More info here