International professionals will seek higher pay or leave Australia to compensate for loss of LAFHA
June 15, 2012 Politics News(PRLEAP.COM) The Australian Government have made the move in the latest Commonwealth budget to abolish the Living Away From Home Allowance (LAFHA) for overseas professionals from July 1st 2012. The latest research from specialist recruitment agency Robert Walters indicates that not only the professionals, but also employers may be affected financially by the changes.
The Robert Walters research team surveyed over 300 professionals to gauge how the changes will affect their career choices moving forward. The findings show that 72% of professionals receiving LAFHA believe that losing the entitlement will make it much harder for them to live in Australia, with 57% of these professionals will consider moving abroad to a country with better tax breaks once LAFHA is abolished.
To negate the reduction of income, 75% will be seeking higher pay from their current employer. Further, 76% of professionals are likely or very likely to enter the job market and look for a better paying role.
Robert Walters Director - Brisbane Sinead Hourigan adds that although there may be a loss of staff, employers can take steps to counteract it.
"At first glance it may seem that without the financial drawcard of LAFHA it may be harder to attract and retain an international work force. The reaction of the removal of their LAFHA benefits for some international professionals might be to look else where for higher remuneration, or pressure current employers for a pay increase which could be difficult in the current economy. To avoid staff retention becoming costly (especially in those industries with a high proportion of overseas professionals) employers should be using non – financial draw cards to retain the best talent. Luckily, this country and industries have a lot of them. The fact 75% of survey respondents would still recommend Australia as a great place to live and work is evidence of that."
Robert Walters has used the research and recruitment expertise to produce a fact sheet on the LAFHA changes and how to best retain your work force. For your copy contact Lillian Hafez – email@example.com
About Robert Walters
Robert Walters is one of the world's leading global recruitment consultancies, specialising in the placement of permanent, contract and temporary positions across all levels of seniority. Our teams of professional consultants are renowned for their professionalism, integrity and exceptional recruitment consultancy services. Using a flexible approach to recruitment, we are committed to matching client needs to candidate aspirations to create mutual benefit for both. In Australia we have offices in Adelaide, Brisbane, Chatswood, Melbourne, Perth and Sydney.