Dear Sir/Madam,

Following further clarification on the reforms to the Living Away From Home Allowance, I would like to have some questions I have clarified for me. Upon reading the draft for the legislation it becomes very clear that temporary residents are being treated differently to residents. Residents do not need to maintain a home in Australia but temporary residents do to be eligible for the transitional period. This to me sounds like you are treating me differently because of my origin. I had the understanding that I should be treated equally as Australia has a Tax Treaty with the UK (my nationality) and this appears to be in complete breach of this. I have attached a copy of the UK/Australia Double Taxation Convention 2003 (article 25). This then leads to my first question: Why are temporary residents being treated differently to residents when tax treaties prevent this?

My next point is I am classed as a permanent resident for tax purposes and willingly pay tax accordingly. The LAFHA I receive helps me pay for the high rental costs of living in a city as well as having to pay a mortgage back in the UK. If I lose LAFHA I now find myself in a position where I pay full Australian tax for fewer benefits that an Australian receives. This again sounds like it is in breach of the tax treaty Australia has with the UK. How can I now be asked to pay more tax but still not receive childcare allowance, school fee assistance, schools books and baby bonus? My second question is: If you want me to pay the same tax as Australians now, can we receive the same benefits? We too only ask for a ‘Fair Go’.

I have been left with a very bitter taste in my mouth with the whole ordeal. I came to Australia feeling this country gave people a fair go, now I just feel targeted as we have no vote in the next election. I do however have one vote and that is with my feet. I am more than happy to move on from here as if I wanted to feel racially discriminated I could move anywhere in the world.  You may save some money by removing this benefit, but with people leaving because of this you will lose in the long term with loss of skills and income tax. Before you decide to target temporary residents I would suggest you seriously think again. We may not be able to vote but the loss of our skills and rental income will hit Australia hard at a time when it needs people like us. My third question: Why are there not transitional rules applied to temporary residents as there are for residents? Do you feel that racially discriminating temporary residents encourages people to bring their skills to your country?

As I mentioned, I really hope you consider these reforms for the people who already have agreements in place based on their income with LAFHA. 

I look forward to hearing a response from you in due course.

Best Regards,

Christopher Downs
christopherdowns@btinternet.com