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:
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