LAFHA losers threaten to quit country

A survey of overseas professionals affected by the abrupt axing of the Living Away From Home Allowance tax benefit suggests that more than half of them are considering leaving the country.

The survey of 300 people included 20 marketers, seven people working in communications and media, and eight in advertising. It was carried out by recruitment agency Robert Walters.

The perk allows people to claim the cost of rent against tax, effectively giving them a bigger spending power when choosing where to live, and at the same time reducing the amount of super that employers pay.

However, the government pointed to widespread rorting of the system and axed the LAFHA. For those living in Australia and claiming the allowance based on living in other cities, it gave a two year transition period. But for those from overseas, it said the perk would be axed from July 1.

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