Removing LAFHA no laughing matter

PAWAN LUTHRA

Contributors

Usha Ramanujam Arvind, Sujith Krishnan, Malavika Santhebennur, Sydney Srinivas, Asha Chand, Chitra Sudarshan, Noel G deSouza, Tim Blight, Petra O’Neill, Sudha Natarajan, Uttam Mukherjee, Shafeen Mustaq, Malli Iyer, Rani Jhala, Geeta Khurana, Nancy Althea, Avijit Sarkar

ADVERTISING MANAGER

Vivek Trivedi 02 9262 1766

ADVERTISING ASSISTANT

Nitika Sondhi 02 9279 2004

DESIGN Danielle Cairis

Indian Link is a fortnightly newspaper published in English. No material, including advertisements designed by Indian Link, maybe reproduced in part or in whole without the written consent of the editor. Opinions carried in Indian Link are those of the writers and not necessarily endorsed by Indian Link. All correspondence should be addressed to

Indian Link

Level 24/44 Market St, Sydney 2000 or GPO Box 108, Sydney 2001

Ph: 02 9279-2004 Fax: 02 9279-2005

Email: info@indianlink.com.au www.indianlink.com.au

While on one hand the government is keen to build its credentials promoting Australia as a good place to do business for Indian and other multinational companies, on the other hand, a grab for cash by removing the tax benefits related to Living Away From Home Allowance (LAHFA) as per the current budget, will be a serious detriment to Indian companies sending their top professionals to work in Australia.

In a global marketplace where countries are competing for top talent to enhance their local workforce skills and business opportunities, shutting this perk could be another shortsighted measure by the Gillard government. LAFHA is paid to overseas workers on a tax-free basis to allow them to meet their expenses and to an extent, compensate them for other charges (such as cost of children’s education even in the public school system) which they pay as overseas residents.

It is to be remembered that it was under Julia Gillard’s tenure as the Minister for Education that the private college system was reviewed and effectively dismantled, which not only affected the future of a number of overseas students but also had an adverse impact on the export earning capabilities of the education sector. Enrolments have fallen, colleges have closed, students have faced and continue to face uncertainties, and a number of Indian businesses have closed down due to the slowdown in new student arrivals.

Indian IT companies such as Infosys, Wipro, TCS, HCL and other NASSCOM Australia members are active contributors to the Australian economy. With a combined workforce of over 10,000, these companies employ Indian IT workers to work on projects in Australia. By doing so, they are able to crossover Indian IT skills with their local Australian workforce, and allow for a high level of skills transfer. NASSCOM Australia member companies have currently invested upwards of $100m to set up more than 20 development centres in Australia; they have strong links with many universities in Australia to recruit students for global projects, run student internships programmes and have established scholarships.

All this is under scan now as these companies, which provide back up services to various Australian companies such as Telstra, Qantas, Westpac,

Commonwealth bank etc., scramble to make the employment opportunities here more exciting for their potential employees from India. Not being able to package part of their salary package under LAFHA and still bearing the full costs of public school education for their children or their Medicare costs, makes Australia a less attractive destination for these employees whose skill sets are in demand globally.

As an Indian Australian community, we lose out on a new set of educated and ethical future migrants; as Australians, we miss out on attracting top talent down under.

The Minister for Immigration and Citizenship, Chris Bowen MP, has just returned from India where he reaffirmed the importance Australia places on its longstanding bilateral relationship with India.

But it seems that his colleagues in Canberra are not of the same mind as they implement new taxes on a large number of Indian workers on 457 visas, by taking away their LAFHA benefits.

Whether this effects the Australian economy in a similar way as the changes to the education policy, only time will tell.

But one suspects, these increased costs will be passed on to the Australian clients by their Indian IT suppliers, which then will be paid by the local consumer.

Get A Headstart

Get a Headstart today, to ensure HSC success

If you’re in Year 10, Our Headstart Programs gives students a competitive advantage in Year 11 and 12, by teaching them the core concepts in Maths, English, Physics and Chemistry one year early.

YEAR 11 & 12 PROGRAMS

Weekly classes in Maths, Physics, Chemistry, Economics & English that help you develop strong understanding, and perfect your examination technique: Personalised Learning in small Groups, Complete review of every syllabus point to a full marks standard, Comprehensive exam practice with HSC-Style Questions

Try our courses for FREE!

We are offering 3 weeks free trial for our Year 9 to 11 courses for a limited time only. Try our courses in Mathematics, Science, Physics, Chemistry, English and Economics and see how our students are scoring such exceptional results!

SPIRITUAL

Bhagavad Gita classes by SVT Learn Chapters 7 to 13 of the Bhagavad Gita as taught by Sri Vasudevacharya, a senior disciple of Sri Swami Dayananda Saraswati, and a respected Vedanta Guru. Darcy Road Public School Hall, Darcy Road, Wentworthville, 3:00pm to 5:30pm. No prior knowledge is required. The course is in English and all materials will be provided. The course is free of charge; donations are accepted. Details at www. srivasudevacharya.org

Shree Ram Sharnam society

The Shree Ram Sharnam society’s Sydney headquarters are located at 23 Sheba Crescent, South Penrith. One-hour prayer sessions featuring the recital of the Shree Amritvaani are held daily between 7:30pm and 8:30pm (except Saturday and Sunday when prayers are held from 6pm to 7:15pm). The society’s next prayer-meditation sessions are scheduled for May 13 and June 3 from 9.00am to 10.00 am at the Woodcroft Community Centre on 65 Woodcroft Drive.

Bhajan event

Sat 26 May Gayatri Parivar