basil Posted January 15, 2008 Share Posted January 15, 2008 Okay, we are now considering the 457 route and after a few posts on here, lots of use of the search function and ploughing through the diac site I think i have it summed up in my head. There are a few contradictory things i've found when i've searched though- I would be really greatful if anyone can correct any bits i've got the wrong end of the stick with. But i think these are the bits for us on a 457.... *The 457 takes 6 - 8 weeks approx . to process , can be done online. *a perm visa can be applied for before or on arrival or thereafter if your nominated job for the 457 is also on the ENSOL and your employer agrees to sponsor for PR (unless you have 120 points and can do it independently). This is based on meeting the requirement of salary being > $165k (or you could work 2 years or have skills assessed) * on a 457 visa you have to get FIRB approval to buy property but can buy new, used or auction homes. *On a 457 visa you can get a mortgage * spouses can work or set up own business on a 457 visa * You can negotiate to get part of your salary as LAFHA on a 457 visa. This provides tax benefits but LAFHA is taken away if you buy property??? (if your salary was lowered to give LAFHA do employers generally give you a new contract to bump it back up when you buy ir go PR!?) *If you buy property on a 457 visa you are not eligible for a first time buyer rebate ($7k???) nor a rebate on stamp duty (what % or $ is this worth in NSW???) Does that all sound about right? Link to comment Share on other sites More sharing options...
Guest Mrs Braveheart Posted January 15, 2008 Share Posted January 15, 2008 Okay, we are now considering the 457 route and after a few posts on here, lots of use of the search function and ploughing through the diac site I think i have it summed up in my head. There are a few contradictory things i've found when i've searched though- I would be really greatful if anyone can correct any bits i've got the wrong end of the stick with. But i think these are the bits for us on a 457.... *The 457 takes 6 - 8 weeks approx . to process , can be done online. YES *a perm visa can be applied for before or on arrival or thereafter if your nominated job for the 457 is also on the ENSOL and your employer agrees to sponsor for PR (unless you have 120 points and can do it independently). This is based on meeting the requirement of salary being > $165k (or you could work 2 years or have skills assessed) NOT BEFORE YOU ARRIVE * on a 457 visa you have to get FIRB approval to buy property but can buy new, used or auction homes. YES *On a 457 visa you can get a mortgage YES * spouses can work or set up own business on a 457 visa YES * You can negotiate to get part of your salary as LAFHA on a 457 visa. This provides tax benefits but LAFHA is taken away if you buy property??? (if your salary was lowered to give LAFHA do employers generally give you a new contract to bump it back up when you buy ir go PR!?) NOT SURE ABOUT THIS ONE *If you buy property on a 457 visa you are not eligible for a first time buyer rebate ($7k???) nor a rebate on stamp duty (what % or $ is this worth in NSW???) DEPENDS WHAT STATE YOU GO TO CERTAINLY ALL CORRECT IN WA Does that all sound about right? Hi Basil I have answered your questions the best I can remember if you go to NSW you have to pay school fees as well. If you have kids do a search on here or someone will be along to answer that one. Janette Link to comment Share on other sites More sharing options...
basil Posted January 15, 2008 Author Share Posted January 15, 2008 One more bit to check (please be kind to me this is all so new and confusing) The LAFHA amount is free from employment tax. An amount of the LAFHA given is determined as covering rent and excess food costs. The remaining LAFHA is classed as a fringe benefit (and therefore subject to fringe benefits tax- do they have that???) Link to comment Share on other sites More sharing options...
basil Posted January 15, 2008 Author Share Posted January 15, 2008 Thank you so much Janette for taking the time to reply. i'm the 'researcher' in our house at the moment and we want to go with a plan of action so I need to get my facts straight We don't have any children yet (thankfully as that all sounds another chunk of info to digest!). We do have a dog but I'm up to speed on everything there. I didn't realise you couldn't get the ENS perm visa before you arrive. I originally was horrified at entering on the 457 visa as it's temp and asked my husband to negotiate for an ENS perm visa. Good job he ignored that request as he'd have looked a little silly :biglaugh: Link to comment Share on other sites More sharing options...
Guest Mrs Braveheart Posted January 15, 2008 Share Posted January 15, 2008 Hi Basil Welcome to the confusing world of visas it drives us all mad :arghh::realmad: But well done you seem to be getting your head around it. As for the LAFHA I have no idea about it so I just phoned Billy and either does he. We dont know if your entitled to it on a 457 visa lets face it we aren't entitled to anything except to pay taxes of course but cant vote :arghh: We would be very interested in finding out if we are eligable for this (doubt it tho). Maybe others on a 457 visa will know. Janette Link to comment Share on other sites More sharing options...
basil Posted January 15, 2008 Author Share Posted January 15, 2008 My understanding of LAFHA from another thread on here is that it's not an entitlement it's a benefit amount given by some employers, a small employment tax free chunk of money paid as part of your monthly comp while you are on a 457. a perk if you like. I just got confused on another thread as someone said it could be the excess salary over $43k. Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted January 15, 2008 Share Posted January 15, 2008 The LAFHA amount is free from employment tax. Not quite correct, LAFHA is free from personal INCOME tax, i.e. it will not be part of the income your husband needs to declare and pay income tax on. Your employer will still be assessed payroll and other employment taxes based the total value of the package to your husband. An amount of the LAFHA given is determined as covering rent and excess food costs. The remaining LAFHA is classed as a fringe benefit (and therefore subject to fringe benefits tax- do they have that???) I know of no employers that will pay more in LAFHA than is the recognised limits for living, eating and rental expenses. Once an employer exposes themselves to a FBT liability, it is more trouble that it's worth. Hence LAFHA is generally limited to whatever the allowances are for the area you will be living in, or what can be demonstrated (by reciepts) as being actual expenses. Your questions show that you are indeed doing your research well. It can be a tough and long winded process but you seem to be getting there - Well done. One other difference between 457 visas and permant visa is that on a 457 you are not eligible for any government pensions, subsidies ar allowances - things like child care rebates, family tax benefits, sickness benefits or even pensioner discounts !! Link to comment Share on other sites More sharing options...
basil Posted January 15, 2008 Author Share Posted January 15, 2008 you are not eligible for any government pensions, subsidies ar allowances - things like child care rebates, family tax benefits, sickness benefits or even pensioner discounts !! C'est la Vie as they say - I paid my taxes for years in the UK and never seemd to get any benefits or allowances in return. The NHS asides and I'd still be covered on a basic reciprocal arrangement through medicare (we'll take insurance anyway i guess) Okay so I'm no going to get too excited or into the LAFHA, its a small perk and as we want ot feel settles and buy property we probably won't get it for wrong. Good to hear its not going to relevant for fringe benefits tax or whatever. The recruitment consultant seems to be dangling the LAFHA as a huge carrot, the cynic in me now thinks this is to prepare us for a smaller than expected salary package Link to comment Share on other sites More sharing options...
Guest Mrs Braveheart Posted January 15, 2008 Share Posted January 15, 2008 Be very careful what the recruitment company dangle in front of you. Some of them have no scruples & only agree if you have everything in writing from them and are 110% sure its what you both want. Can you not go for a skilled perm visa to start with? We had to go for 457 due to Billy being 45. Janette Link to comment Share on other sites More sharing options...
basil Posted January 15, 2008 Author Share Posted January 15, 2008 No OH only has a 50 point job and it's not on the MODL We considered trying to assess against a 60 point job but it's very difficult announcing to your company that you are looking to leave, some 12 months before you do. (and might not!) I really wish we could. You are so right about recruitment agents. Link to comment Share on other sites More sharing options...
Guest Fiela Posted February 24, 2011 Share Posted February 24, 2011 Thanks all, very usefull! The only risk we see in buying while on 457 is loosing your job for some reason.... Anyone heard of any ugly stories? Link to comment Share on other sites More sharing options...
Guest izzie Posted February 24, 2011 Share Posted February 24, 2011 Hi, I'm just in the process of applying for a 457 visa. All my documents are with the migration agent and I'm just waiting for them to lodge. Getting all the paperwork together has taken a week and I have been advised by my agent that it will then take about 4 weeks. I've been offered $15k LAFHA but it's only for 2 years and it's paid monthly over that time. One thing thing you haven't mentioned is that you have to have health insurance in place BEFORE they will grant you a 457. So I've had to shell out for a couple of months worth of that, before they even say I can go! I will update you if I get any news Ta Link to comment Share on other sites More sharing options...
Guest Fiela Posted February 24, 2011 Share Posted February 24, 2011 Does employers not normally cover health insurance? Link to comment Share on other sites More sharing options...
Guest izzie Posted February 24, 2011 Share Posted February 24, 2011 I guess it would depend on which company, but mine is a large multinational, who are paying me a good salary £10k (yes, pounds!) more than I earn here. However, they don't pick up the health insurance for whatever reason. Its cost me £45.00 a month and I will have paid for a couple of months before I even arrive. Link to comment Share on other sites More sharing options...
Rudi Posted February 25, 2011 Share Posted February 25, 2011 I think the requirement to have private health cover when you are on a 457 visa is an urban myth! The UK and Australia have a reciprocal health agreement so you are covered by medicare. Certainly to be told you have to have it in place before the visa is granted is not correct. Maybe someone else can confirm this, but I know of several people on 457's who do not have private health cover for this reason. Love Rudi x Link to comment Share on other sites More sharing options...
RockDr Posted February 25, 2011 Share Posted February 25, 2011 I think the requirement to have private health cover when you are on a 457 visa is an urban myth! The UK and Australia have a reciprocal health agreement so you are covered by medicare. Certainly to be told you have to have it in place before the visa is granted is not correct. Maybe someone else can confirm this, but I know of several people on 457's who do not have private health cover for this reason. Love Rudi x Actually you do need proof of health insurance before they will grant the visa. However, it can be a delayed contract that will kick in the day you arrive. It just needs to be long enough to cover you until you've registered with Medicare under the reciprocal agreement. The reciprocal agreement is deemed to fulfill the health insurance requirements, so any additional private health insurance is optional. Link to comment Share on other sites More sharing options...
Rudi Posted February 25, 2011 Share Posted February 25, 2011 Actually you do need proof of health insurance before they will grant the visa. However, it can be a delayed contract that will kick in the day you arrive. It just needs to be long enough to cover you until you've registered with Medicare under the reciprocal agreement. The reciprocal agreement is deemed to fulfill the health insurance requirements, so any additional private health insurance is optional. AH, ok, that's really useful for people. I was confused because as I say, most people I know on 457's do not have insurance. Love Rudi x Link to comment Share on other sites More sharing options...
munchkinpie Posted February 25, 2011 Share Posted February 25, 2011 Actually you do need proof of health insurance before they will grant the visa. However, it can be a delayed contract that will kick in the day you arrive. It just needs to be long enough to cover you until you've registered with Medicare under the reciprocal agreement. The reciprocal agreement is deemed to fulfill the health insurance requirements, so any additional private health insurance is optional. Yip this is what we have been told and is so far true to what we are experiencing. My other halfs 457 was lodged earlier this week and our agent and employer (who employs lots of people on 457) warned us at the very start to get Health Insurance Certificate arranged asap as in a lot of "Further Info Required" referrals from DIAC in relation to employee application it is to chase up the Health Ins Certificate. Our agent now says to have it submitted to them with all the documentation ie Degree certs etc. In terms of actually forking out upfront we just gave our anticipated arrival date and had to pay a month installment value and then the next installment isnt due until the month after we arrive. The company we used had plans from $66 per month. Another thing to note when it comes to it is that a lot of companies have disclaimers in their contract re health insurance - because they are liable for you and if you end up requiring any sort of healthcare attention and have cancelled your Ins Policy but not yet sorted out Medicare and they have to pay the costs they will them recover costs from your wages! Link to comment Share on other sites More sharing options...
rammygirl Posted February 25, 2011 Share Posted February 25, 2011 Just to say you CAN get PR visa before you go . Employer sponsored ENS or RSMS can be granted from the outset or later. Most employers use temp one first to sus you out and also because it is quicker to process. Your OH could ask for PR from the start if he meets the requirements. Have a look here Skilled Workers Permanent Visa Options- Employer Sponsored Workers - Workers - Visas & Immigration Link to comment Share on other sites More sharing options...
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