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LAFHA – who’s issue?

So with all this LAFHA reform – who’s issue is it?

It’s definitely a tax issue, but ultimately it’s an HR business issue and a payroll process issue.

Whilst the tax changes are not finalised and some of the detail requires better clarity, here are some immediate steps to be taking:

Residence Type

Separate your LAFHA receipients in to Temporary v Permanent

Temporary – time to deliver the tough news

Permanent – separate between pre & post Budget LAFH arrangements

Permanent – those with pre Budget LAFH arrangements

Determine if the LAFH tests are still met

Permanent – those with post Budget LAFH arrangements

Determine if they have are maintaining a usual place of residence