Not too long ago I wrote how wonderful it was that we would be eligible for LAFHA (living away from home allowance) and that it would make our lives in the money pit, aka Australia, much more affrordable. For those that have forgotten that post or lost interest after the 4th syllable, here it is:
http://theklamersofoz.blogspot.com/2011/11/death-taxes.html
Just yesterday, the Australian federal government announced the following:
"...the government will crack down on misuse of the living-away-from-home allowance tax exemption by highly-paid executives and foreign workers..."
Source: http://www.perthnow.com.au/business/business-old/treasurer-wayne-swan-finds-115-billion-in-new-savings/story-e6frg2qu-1226209022079
Nobody told me that I was a "highly paid executive" although as a "foreign worker" I am guilty as charged.
The timing is bad. We just rented a home based on the LAFHA scenario's and we can't back out of the lease now without losing a lot of money. Fortunately, the proposed cuts don't go into effect until July 2012 but that still means there could be a potential for paying a very large rent for 5 months (July - November). We assumed the rent only because of the tax breaks. We'll see what happens. There could be a push back from businesses when they have even more trouble recruiting overseas workers because of the new LAFHA rules. Otherwise, I may have to speak to my employer about other possible remuneration options.
I thought it would take longer for me to hate the Australian government but their timing is impecable.
No comments:
Post a Comment