There has been a lot of discussion about LAFHA changes over the past year, which were due to be in effect by July this year. However those changes were deferred until 1 October and the House of Representatives Standing Committee on Economics released its report on 15 August with more changes proposed for LAFHA.
While in principle the Committee has preserved the eligibility criteria, 12-month rule and proposed transitional rules, of the nine recommendations it has posed, we think two are worth paying special attention to:
- Support for introduction of tightened eligibility criteria for tax concessions
- Retention of LAFHA within the Fringe Benefits Taxation system
Other minor changes are explored in the nine recommendations.
LAFHA is complex and in a state of flux while the Government and ATO nail down the changes before October. For now, we recommend you contact us on 02 9957 4033 if you're unsure of how changes to LAFHA will affect you and your employees.
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Last updated August 2012. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.