PLEASE NOTE: THIS INFORMATION HAS BEEN FURTHER UPDATED FOLLOWING NEW INFORMATION FROM TREASURY REGARDING THE TRANSITIONAL ARRANGEMENT THAT WAS CONFIRMED IN THE 2012-13 COMMONWEALTH BUDGET
- Two reforms were announced in the budget. These are additional to the reforms proposed in November 2011’s Mid-Year Economic and Fiscal Outlook (MYEFO).
- The transitional arrangements outlined in the budget are only applicable to the additional reforms.
- Treasury has confirmed in new information that it is the Government’s intention to enact on the reforms outlined in the MYEFO with no transitional arrangement.
- For more information on the reforms refer to the Employee or Employer sections of this website.
The Bill containing the proposed living away from home allowances (LAFHA) tax changes was passed by Senate without further amendment on 19 September 2012. It is expected the Bill will receive Royal Assent before the end of September, meaning the new tax rules for LAFHA concessions should apply on schedule as previously detailed, from 1 October 2012.