Guest crystalrose Posted August 19, 2008 Share Posted August 19, 2008 We are going over on a 457 and I have heard about this "LAFH" tax that you can claim. From what I can make out we will be paying a really high tax on a 457 has anyone actually claimed this tax before if so how much is it worth this is all new and like a foreign language to us help!!! Times are going to be really tight in OZ so every penny helps.:biglaugh: Link to comment Share on other sites More sharing options...
Guest Liam Posted August 21, 2008 Share Posted August 21, 2008 You should read the background on the LAFHA and do a search here or read Alan Collets article on his website about it http://www.gomatilda.com/news/documents/The_Living_Away_From_Home_Allowance.pdf I thne recommend you see/email a good accountant like Alan to see if you should negotitate your contract to include the LAFHA. The see a good Financial Planner ...like me! Hope this helps Liam Link to comment Share on other sites More sharing options...
Guest cbr1100XX Posted August 21, 2008 Share Posted August 21, 2008 We are going over on a 457 and I have heard about this "LAFH" tax that you can claim. From what I can make out we will be paying a really high tax on a 457 has anyone actually claimed this tax before if so how much is it worth this is all new and like a foreign language to us help!!! Times are going to be really tight in OZ so every penny helps.:biglaugh: Hi I claimed LAFHA whilst on my 457. It covers things like: Rental of houses, flats Rental of furniture until yours arrives Food expenses for the whole family for so much per person Purchase of business related goods, eg laptops, internet routers Don't worry about paying over the odds on your tax when you arrive as you must fill in a tax return at the end of the tax year,(July down under). Then you should get a good tax rebate, I did!! Just contact an accountant when you arrive. I usually pay about $100 for the tax return service which isn't bad. The agency I worked for sorted out my LAFHA for free (well probably a hidden charge) but I'm sure your accountant would do this too.. cbr1100xx Link to comment Share on other sites More sharing options...
Guest crystalrose Posted August 21, 2008 Share Posted August 21, 2008 Thanks Guys for your great advice. I have contacted the company my OH is going to work for, they contacted their Accountant who asked and basically stated you can only claim this tax if you are maintaining a home in the UK, which we will be at least until I leave to go out in November. OH goes September, BUT I guess although not completely sure that if I sell before I go out then we would no longer be able to claim this as I say this is only a guess. It is nice to know how to use this tax and what household items you are able to claim for. So we would need to employ an Acoountant when we go out to do OH tax return each year is that right? sorry never had to use an Accountant before so all new stuff to me. As ever a great bunch of helpful people I so love this site!!!! Link to comment Share on other sites More sharing options...
Guest BullcreekBob Posted August 21, 2008 Share Posted August 21, 2008 Hi I claimed LAFHA whilst on my 457. It covers things like: Rental of houses, flats Rental of furniture until yours arrives Food expenses for the whole family for so much per person Purchase of business related goods, eg laptops, internet routers Don't worry about paying over the odds on your tax when you arrive as you must fill in a tax return at the end of the tax year,(July down under). Then you should get a good tax rebate, I did!! Just contact an accountant when you arrive. I usually pay about $100 for the tax return service which isn't bad. The agency I worked for sorted out my LAFHA for free (well probably a hidden charge) but I'm sure your accountant would do this too.. cbr1100xx G'day I don't think that this is quite right. You will need to arrange a LAFHA with yor employer before any employment contract is signed. It is impossible for an accountant (no matter how good) to change things after the fact then get you a tax refund based on a LAFHA. When coming on a 457 visa, your employer must pay at least a minimum wage, these amounts vary a bit with location and type of job. If the employer is going to pay more than the minimum amount ($50K is a good guideline) then there may be scope for everything above the minimum to be paid as a non taxable allowance. So in an example of an employer wanting to pay $70K, they could pay you $50K as salary and $20K as LAFHA. This would mean you a saving of $6,000 tax ($20K * 30% tax rate) so you are better off by over $100/week Using a tax accountant is good advice though , unlike the UK there are often a number of things that can be claimed here as an expense which can reduce your tax somewhat. Take care Bob in Bull Creek Link to comment Share on other sites More sharing options...
Guest crystalrose Posted August 21, 2008 Share Posted August 21, 2008 Hi Guys My hubby has already signed the contract, would they not now be able to revise it? even though he has not started working for them he should have started on 18th August but because of the delay of the Visa he is not now starting until September is there absolutely no way around it now:-( Link to comment Share on other sites More sharing options...
Guest cbr1100XX Posted August 22, 2008 Share Posted August 22, 2008 G'day I don't think that this is quite right. You will need to arrange a LAFHA with yor employer before any employment contract is signed. It is impossible for an accountant (no matter how good) to change things after the fact then get you a tax refund based on a LAFHA. When coming on a 457 visa, your employer must pay at least a minimum wage, these amounts vary a bit with location and type of job. If the employer is going to pay more than the minimum amount ($50K is a good guideline) then there may be scope for everything above the minimum to be paid as a non taxable allowance. So in an example of an employer wanting to pay $70K, they could pay you $50K as salary and $20K as LAFHA. This would mean you a saving of $6,000 tax ($20K * 30% tax rate) so you are better off by over $100/week Using a tax accountant is good advice though , unlike the UK there are often a number of things that can be claimed here as an expense which can reduce your tax somewhat. Take care Bob in Bull Creek Hi I signed my contract in the UK and faxed it over to the Agency in Sydney. When I arrived for work I popped in to the agency and sorted out my LAFHA allowances in the office. Obviously, I could n't do this before hand as I had no idea what my accommodation expenses were going to be or what additional work expenses I would incur. Anyway this is my experience. You do need to maintain a property elsewhere otherwise your not living away from it. regards cbr1100xx Link to comment Share on other sites More sharing options...
Guest adey Posted August 22, 2008 Share Posted August 22, 2008 we get LAFHA and we don't have a property back in the UK, we sold ours, our accountant hasn't brought this up as an issue. He said it was assist you moving to a new country and is basically a tax allowance. You can only claim it if your sponsor is willing to provide it as they have to do paperwork each month to substantiate the claim apparently and some employers find this a nuisance. I'd ring the employer and enquire about it they may not be aware of it if they haven't sponsored before. It sure helps with the rent etc. Link to comment Share on other sites More sharing options...
Guest cbr1100XX Posted August 22, 2008 Share Posted August 22, 2008 we get LAFHA and we don't have a property back in the UK, we sold ours, our accountant hasn't brought this up as an issue. He said it was assist you moving to a new country and is basically a tax allowance. You can only claim it if your sponsor is willing to provide it as they have to do paperwork each month to substantiate the claim apparently and some employers find this a nuisance. I'd ring the employer and enquire about it they may not be aware of it if they haven't sponsored before. It sure helps with the rent etc. Hi I would be very careful if I were you then. My friend from NZ did this exact thing, with his Accountants full backing, and got stung hard last financial year when the Tax people caught up with him. Unfortunately, I have found that accountants are not always right. regards cbr... Link to comment Share on other sites More sharing options...
Guest adey Posted August 22, 2008 Share Posted August 22, 2008 god I hope that the NZ rules are different to here then as the company bring in people all the time and pay everyone LAFHA and most of them have sold their houses. We'll ask around and check. We didn't have to provide any evidence of having a house and I know the company were recently audited by the tax/accountants people and they had to adjust a few people's salary because the LAFHA was taking them under the earnings threshold so hopefully its ok. Thanks for the tip. Link to comment Share on other sites More sharing options...
Guest adey Posted August 22, 2008 Share Posted August 22, 2008 Just looked it up on the internet, lots of conflicting info as usual, but it looks like they won't allow it for Holiday visa's or if you move sponsors it has to stop as you haven't moved home for the new job as you were already here in Oz. If you go permanent or purchase a home then it also stops. Going to check it out further though. Link to comment Share on other sites More sharing options...
Guest cbr1100XX Posted August 22, 2008 Share Posted August 22, 2008 god I hope that the NZ rules are different to here then as the company bring in people all the time and pay everyone LAFHA and most of them have sold their houses. We'll ask around and check. We didn't have to provide any evidence of having a house and I know the company were recently audited by the tax/accountants people and they had to adjust a few people's salary because the LAFHA was taking them under the earnings threshold so hopefully its ok. Thanks for the tip. Hi Adey Sorry to confuse you. My NZ friends was working in Australia and claiming LAHFA but had sold his property in Wellington. His accountant gave him some bum advice and it cost him dearly. I would check the validity of your claim just to make sure. After all, a living away from home allowance means just that. If you are living in your only residence then you can't be living away from home. cbr... Link to comment Share on other sites More sharing options...
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