Senate Estimates: Economics Legislation Committee

ECONOMICS LEGISLATION COMMITTEE

Estimates

WEDNESDAY, 20 NOVEMBER 2013

CANBERRA 

Senator RHIANNON: The House of Representatives Standing Committee on Regional Australia inquiry
report on fly-in, fly-out and drive-in, drive-out work practices in regional Australia highlighted how the
government's living away from home allowance fringe benefits tax exemption policy provides incentives for
companies to engage in FIFO practices. How much has this exemption cost Australian taxpayers? That is what I
was after: how much revenue has been forgone? Could we have that for each of the past five years?
Mr Heferen: We will have to take that on notice.
Senator RHIANNON: Would you have any figures that you can share with us? Page 124 Senate Wednesday, 20 November 2013

ECONOMICS LEGISLATION COMMITTEE
Mr Heferen: No.
Senator RHIANNON: What studies has the department conducted to evaluate the impact on local
communities caused by this exemption favouring FIFO camps over normal residential housing?
Mr Heferen: Do you mean conducted by the Department of Infrastructure-
Senator RHIANNON: By yourselves-I can only ask you. I am just asking whether there has been any
assessment on what this is doing in terms of local impacts and revenue raised. Considering this problem has been
identified, are you looking at it?
Mr Heferen: When was that house committee report, Senator?
Senator RHIANNON: Last year.
Senator Sinodinos: The government of the day did not respond to it.
Senator RHIANNON: Inadequately-
Mr Heferen: Senator, I apologise, I am not aware of the report. It does sound like the report is focusing on the
effects on regional communities of the policies-housing policy and mining companies and how they are
facilitated by the living-away-from home allowance. The previous government over a few budgets, or maybe
media updates, in a few separate circumstances tightened the access for LAFHA-
Senator RHIANNON: Tightened the access-
Mr Heferen: To the living-away-from-home allowance.
Senator RHIANNON: Can you just give me the figures on that, please.
Mr Heferen: I would have to take it on notice. I guess the germane point about the effect on regional
communities would not be something that we would do any work on. That would be something that our
colleagues in what would now be the Department of Infrastructure and Regional Development with responsibility
for regional services, I suspect, would take the lead on. But Mr Tilley may have some better information.
Mr Tilley: The parts of the recommendations of that report that came to us in Treasury were a couple of
recommendations with regard to fringe benefits tax, and we would take the lead on those. But the rest of the
report was not something we are taking the lead on.
Senator RHIANNON: So when you to say you 'take the lead on' that, can you say what that means and what
you are doing?
Mr Tilley: In terms of advising the government or providing an input into a response to the report, the fringe
benefits tax ones are the ones that would be of direct relevance to us.
Senator RHIANNON: And did you do that? And, if so, what was it please.
Mr Tilley: I do not think that a response has been provided to that report.
Senator RHIANNON: In the first instance, did you give advice that did not go public, or do you mean that
you did not even provide advice?
Mr Tilley: I do not recall where exactly the process was up to at the time of the election. We could take that
on notice.
Senator RHIANNON: You can take that on notice. Thank you.
CHAIR: Before we adjourn tonight, I just note that there has been a change to tomorrow's program. APRA
will not be appearing now and that means that from 10:30 all other agencies that will be appearing will be moved
forward by 30 minutes. There will be a new program tomorrow noting that change.
Senator Sinodinos: We can still start at the same time?
CHAIR: We still start at the same time-this change is at 10:30. There are also, hopefully, some other
agencies that are due to appear at the end of the day that may not be required as well. That will be on the program
tomorrow. So with that, I thank the officers from the Revenue Group of Treasury, Commissioner, and the ATO. I
adjourn until tomorrow morning at nine o'clock when we will have the Australian Office of Financial-
Mr Jordan: Chair, could I take just one moment to mention that it is Bruce Quigley's last appearance here at
estimates-
Senator Sinodinos: And he did not even get a question-
Mr Quigley: Thank you for that, Chair!
Mr Jordan: Maybe I should not have said anything, but-
CHAIR: We do not actually have to adjourn until 11:00 pm