2011/12 Mid-Year Economic and Fiscal Outlook

The government has released the 2011/12 Mid-Year Economic and Fiscal Outlook (MYEFO), which forecasts solid economic growth, low debt and a return to surplus in 2012/13, despite recent global economic downturn cutting $20b from government revenues.

The government has also announced reforms to stop individuals from being able to exploit the tax exemption for living-away-from-home allowance and benefits. This tax exemption is being increasingly misused by a narrow group of people, particularly highly-paid executives and foreign workers, at the expense of Australian taxpayers.

It is proposed that, from 1 July 2012:

• • access to the exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as “fly-in fly-out” workers, and
• • individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount.