Budget... LFHA residency restrictions, Baby bonus reduced & frozen, Visa costs rise

[Guest BurgessFamily]

(LAFHA) Living-away-from-home allowance and benefits

• access for temporary residents limited to those who maintain a residence for their own use in Australia, while they are living away from home for work purposes, such as 'fly-in fly-out' workers
  
• individuals required to substantiate actual expenditure on accommodation and food beyond a statutory amount
  
• no permanent resident using the exemption for accommodation and food expenses will lose out
  

SAVINGS: $710 million over forward estimates

Dependent Spouse Tax Offset

• offset restricted to those with spouses born before 1 July 1952
  
• change won't affect those whose spouse is an invalid or a carer, or who receive the zone, overseas forces or overseas civilian tax offsets
  

SAVINGS: $370 million over forward estimates

Tax reforms deferred:

• Standard deduction for work-related expenses deferred until 1 July 2013
  
• Fifty per cent tax discount for interest income deferred until 1 July 2013
  
• Phase down in interest withholding tax for financial institutions be deferred until 2014-15
  
• New tax system for managed investment trusts deferred until 1 July 2013
  

SAVINGS: $2.1 billion over forward estimates

Baby bonus reduction

• bonus cut to $5000, from $5400, from September 1, 2012
  
• indexation paused for three years from July 1
  
• paid parental leaving scheme unaffected
  

SAVINGS: $400 million year one, $1.5 billion year two

Visa charges

• Cost of some non-resident visas to rise
  

SAVINGS $613 million over forward estimates