Thread: Loans on a 457
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Old 02-05-2008, 08:03 AM   #27 (permalink)
AndrewL
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Quote:
Originally Posted by BullcreekBob View Post
Technically speaking, you are "elligible" to negotiate a LAFHA with your employer for as long as your are living away from home.

For people who come on a temporary 4 year visa but after three years change to a new employer with another 4 year 457 temporary visa, they could be paid a LAFHA for the whole 7 years.

If at any stage you buy a house here, or create a "home" then technically you are no longer living away from home. In such a situation the ATO could decide that you are not eligible for a LAFHA and tax you on the amount so paid. In most practical senses however, the ATO will not know about your home situation so things will be at the discretion of your employer.
Sorry, but you can't claim LAFH for generally greater than 4 years, ie the maximun duration of a 457 visa. The 5th year is an exception, after this proving LAFH is very, very difficult.

You also do not note that individuals must complete a LAFH declaration each year, so either you lie or...well... :-)

You can also have an inputed rent value if you can still prove you are LAFH, ie after a house purchase.
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