Proposed LAFHA Changes – Update
- 14 May 2012
The Federal Government is set to introduce the draft legislation in respect of the Living Away From Home Allowance (LAFHA) changes in the upcoming sitting of the Parliament. Advice from Treasury indicates they propose to issue a LAFHA Exposure Draft in May 2012.
The proposed Tax Laws Amendment (2012 Measures No 3) Bill 2012, which includes the provisions first proposed by the Consultative Paper released in November 2011 will be introduced into the Parliament after the 2012 Federal Budget, which is to be handed down on 8 May 2012.
Commentary suggests transitional rule is unlikely to be introduced as the Government remains concerned about the loss of revenue. In the absence of transitional rules it is expected the revised rules will apply to LAFHA arrangements in place at 1 July 2012, as well as to future LAFHA.
The Federal Government is seeking passage of the Bill on or prior to 28 June 2012 in time for a 1 July 2012 commencement date.