In media release No 2012/029, issued 15 May 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced the release of exposure draft legislation to implement reforms to the tax concession for living away from home allowances and benefits as announced in the 2011-12 Mid-Year Economic and Fiscal Outlook (MYEFO) and the 2012-13 Budget.
As announced in the 2011-12 MYEFO, the following reforms will apply from 1 July 2012:
- access to the tax concession for temporary residents will be limited to those who maintain a residence for their own use in Australia, that they are required to live away from for work (such as 'fly-in fly-out' workers); and
- all individuals will be required to substantiate their actual expenditure on accommodation, and food beyond a statutory amount.
As announced in the 2012-13 Budget, the following reforms will apply from 1 July 2012 for arrangements entered into after 7.30pm (AEST) on 8 May 2012, and from 1 July 2014 for arrangements entered into prior to that time:
- access to the tax concession for permanent residents will be limited to those who maintain a residence for their own use in Australia, that they are required to live away from for work; and
- a 12 month time limit will be imposed on how long an employee can receive the tax concession at a particular work location.
Further details on the exposure draft bill are provided in the Attachment to the media release.
Submissions on the exposure draft close on 29 May 2012.