LAFHA on 457

[Mongrel]

Hi bryam99

 

I'm not saying anyone here is misleading because I had never heard of it other than for existing employees going to a worksite remote to their normal Aus home. In this case it would form part of their collective agreement. I am surprised the ATO give away money to foreign nationals to work here. Do you intend to go back to the UK as that maybe the key in proving or not that you ar entitled to LAFHA. But as I say I had never heard of it.

 

Here are some links to other places I have just found. They may help. Happy reading.

 

Living Away From Home Allowance (LAFHA) - update

 

The lowdown on LAFHA - Brainbox.com.au

 

Good explanation here as well

Living Away From Home Allowance LAFHA

 

Cheers

 

This is a 2 year old thread , you dont have to sign owt sayin you are intendin to go back ,you have to be offered it in your contract and obviously you have to supply a home address away from your area of work ,eg an address in the uk if you are a 4577 migrant

[Guest herts1]

Can anyone help

 

I have been in Oz for 9 months and am currently claiming LAFHA. I am on a 457 visa and would like to know how my employer should be paying the tax free contribution to me.

 

At present they are removing the LAHFA component off of my salary prior to me paying tax. This means that when I get a wage slip it shows up at a lower yearly rate of pay than I am contracted on. If I work any overtime it is payed to me at the lower rate, which I think is incorrect. Also my employer is paying my Super at the lower rate rather than my contracted rate which means I am currently getting $195.00 per month less than I should be.

 

Does anyone know how the LAFHA system works, as ther is limited information on this.

 

Ian

I am also on LAFHA and my employer said it was the rule that the super was also reduced to the lower rate. You have to work out which is more beneficial if your rent is high then taking LAFHA more than covers the loss in superdepending on whether your reduced salary takes you into a different tax banding. If you return to the UK you would get the super back.

[Guest nm123]

My employer will offer LAFHA but HR is now out of office until Christmas. My Total Remuneration is $104,500, with a salary of $94,000. We (2 adults) are going to be living in Sydney and estimating $2500 per month in rent. Anyone fancy guestimating my net take home?

 

Also, I presume OH won't be able to claim LAFHA on the same rent??

 

Thanks!

[Guest tasha161096]

my total package was a little higher but taking LAFHA is likely to increase your take home pay by about $800 - $1000 a month. not sure on the double claim on same rent , there is also a groceries allowance and I think it is better to have claim in as soon as possible as I do not think the payment can be backdated.

[Guest nm123]

Another question on LAFHA - will my partner be entitled to LAFHA as a 457 dependent?

[Guest Beastiemum]

Just read through all this and there seems to be various views on LAFHA.

 

With us (on a 457 obviously) only one of us can claim it (the principal visa holder) and with our company it works out at $500 per week that is taken off before tax - but a few posters are spot on - it has to be offered by the employer and isn't something you can 'CLAIM' for otherwise. We have been advised that it is a personal declaration that we have expenses for maintaining a property back in the UK and in theory this can be audited by the tax office - although the HR manager had never had any of the few hundred overseas staff being audited to date - but it is at the employees risk if they fiddle it!

 

It all seems to be another aspect of what they refer to as salary packaging, where your bottom line is reduced by x, y and z (LAFHA, Car, even Airport Lounges!!) so you tax is reduced and bingo - take home per month is more. I suspect though, as one poster said, if you then have a decent amount of O/T you need to watch this - although Super shouldn't be affected??

 

HOpe this helps - we'll be claiming it for the next 2 years (only just arrived!) prior to our intended PR as it does ultimately increase the cash in my pocket each month irrespective of how it's calculated - I'm sure there is something on the Gov website though about this and how the calculation is done - something about how many kids etc etc but maybe wrong?

[Guest me13lake]

Hello!!

 

I was hoping that someone might be able to help me. :notworthy:

 

My situation is this:

 

- I left a job in the UK to accept a new job in Sydney

- The firm in Sydney is not related in any way to the firm in the UK

- I am working on a 457 Visa, on a 4 year contract (thus will return to the UK afterwards)

- My new employer is worried that as I moved firm rather than relocating within the same firm, that I am not eligible for LAHFA

 

However, I understand that I should be entitled to the LAFHA, but I think that I will need to show my employers some evidence to get the allowance.

 

HELP

1) Please can anyone let me know if I am entitled to the LAFHA.

2) Please can anyone actually point to some sort of official or semi-official note that covers my situation to show my employer.

 

I found a link to the NTLG FBT minutes of May 2008, that was suppose to cover my situation: http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00153964.htm&page=11&H11=&sf=1

 

However, maybe I'm going cross-eyed from reading, but I couldn't really see it.

 

Thanks very much for any help!!

 

Mike

[Guest Ista]

Hello!!

 

I was hoping that someone might be able to help me. :notworthy:

 

However, I understand that I should be entitled to the LAFHA, but I think that I will need to show my employers some evidence to get the allowance.

 

HELP

1) Please can anyone let me know if I am entitled to the LAFHA.

2) Please can anyone actually point to some sort of official or semi-official note that covers my situation to show my employer.

 

I found a link to the NTLG FBT minutes of May 2008, that was suppose to cover my situation: FBT minutes, May 2008

 

However, maybe I'm going cross-eyed from reading, but I couldn't really see it.

 

Thanks very much for any help!!

 

Mike

 

SORRY MIKE - ignore what I have written below, I just realised that it sounds as though you got the job before moving to Australia? If so then ignore the below. You could still see the pdf below as I think you should be able to claim LAFHA on it, if your employer agrees.

 

 

Hi Mike, I was under the impression that you can only claim LAFHA on a 457 if you arrange this BEFORE you come to Australia. Because you need to show that you are relocating for the job ie. "An employee is regarded as living away from their usual place of residence if they would have continued to live at the former place if they did not have to work temporarily in a different locality."

 

Also there is no 'should' be entitled to LAFHA in that it is at the employer's discretion, it's just it isn't any skin of their nose as it doesn't cost them anything.

 

You can claim on a 457 but you need to organise it before you go...I found this in a go-matilda page:

"Where a person is working in Australia on a temporary basis (say under a 457 longterm temporary visa) a LAFHA may be available for the whole period of the visa (ie 4 years) so long as the placement in Australia was obtained before arrival in Australia, and so long as there is an expectation on the part of the employee to

return to a home outside Australia at the end of the period or work in Australia."

See the link here: http://www.gomatilda.com/news/documents/The_Living_Away_From_Home_Allowance.pdf

[Guest me13lake]

I found this useful paragraph in miscellaneous Tax Ruling 2030 (MT 2030): MT 2030 - Fringe benefits tax : living-away-from-home allowance benefits (As at 30 September 1986)

 

22. Examples of employees on appointments of finite duration who will generally be living away from their usual place of residence are foreign nationals employed in Australia on a temporary basis and Australian residents (e.g., export consultants, diplomats, immigration officials, etc.) stationed in a foreign country for a time. Provided the appointment is for a limited period and the employee can be expected in the normal course to return to the same city or district of the home country to live, the employee may be treated as living away from his or her usual place of residence.

I think this paragraph seems to clarify the matter i.e. that LAFHA will apply to foreign nationals employed in Australia so long as the arrangement is on a temporary basis (i.e. a 4 year 457 visa).

[Guest ldouglas68]

Hi there, i've got a couple of questions re lafha if anyone knows the answer

 

1. My husband's employer has agreed to administer lafha for him but only the accomodation element, is there any thing we can say to get them to administer the food element of it for him also?

 

2. His salary is plus super but they are also saying that as he will be claiming lafha then his super cont. will be paid on his reduced taxable salary rather than his . I assumed that they could only do this if he agreed to this as it is actually salary sacrificing. They will in effect be paying less super for him which isn't what we wanted. He obviously will not be seeing the benefit of the extra money for this in his pay as they will be making the payment not him. Is this right?

[Guest herts1]

Hi there, i've got a couple of questions re lafha if anyone knows the answer

 

1. My husband's employer has agreed to administer lafha for him but only the accomodation element, is there any thing we can say to get them to administer the food element of it for him also?

 

2. His salary is plus super but they are also saying that as he will be claiming lafha then his super cont. will be paid on his reduced taxable salary rather than his . I assumed that they could only do this if he agreed to this as it is actually salary sacrificing. They will in effect be paying less super for him which isn't what we wanted. He obviously will not be seeing the benefit of the extra money for this in his pay as they will be making the payment not him. Is this right?

 

I receive LAFHA and it is treated as a salary sacrifice and it has reduced the amount that super is paid on. On the bright side - i am going back to UK so super can be taken back to UK after tax is applied so it will have been better to take the LAFHA as the tax paid is less this way round.