Employee Refused LAFHA

[jakc]

I work for a fairly big company in Melbourne.

After finding out that a number of other people on 457 visas are entitled for this LAFHA allowance, i enquired about it with our HR department.

 

I received the below response (with bold bits).

Can someone with a bit more legal background than me, clarify if I can do anything about this?

 

 

**************************

Below are a couple of extracts from the legislation that were considered when assessing the merits of your request to be paid LAFHA.

 

 

Abstract 1:

In the absence of further rulings or amending legislation we have MT2030 and the Fringe Benefits Tax Assessment Act 1986 Division 7 section 30 to refer to. The latter reads:

 

Where,

(a) at a particular time, in respect of the employment of an employee of an employer, the employer pays an allowance to the employee; and

(b) it would be concluded that the whole or part of the allowance is in the nature of compensation to the employee for:

(i) additional expenses incurred by the employee during a period or

(ii) additional expenses incurred by the employee, and other disadvantages to which the employee is subject, during a period;

by reason that the employee is required to live away from his or her usual place of residence in order to perform duties of that employment;

the payment of the whole or the part, as the case my be, of the allowance constitutes a benefit provided by the employer to the employee at that time.

 

Abstract 2:

 

MT 2030 states that

" A person is regarded as living away from a usual place of residence if, but for having to change residence in order to work temporarily for his employer at another locality, the employee would have continued to live at the former place."

-This seems to be the largest stumbling block to paying LAFHA.

[Eera]

Can you prove that you have additional expenses living here than where you were originally, and have you ever mentioned an intention to apply for PR or anything?

 

Our mob basically say that if you have stated you don't intend to return to the UK they don't have to pay it.

[jakc]

not really

Other than rent and food prices seem to be higher over here.

 

I dont want to jeopardize perhaps getting full residency in the future, but at the same time, in theory when my visa runs out, my company has no obligation to reknew it.

 

Its not so much about the money, just on if I am supposed to be getting this and my employer is being cheap, then its something id like to fight.

[Mongrel]

not really

Other than rent and food prices seem to be higher over here.

 

I dont want to jeopardize perhaps getting full residency in the future, but at the same time, in theory when my visa runs out, my company has no obligation to reknew it.

 

Its not so much about the money, just on if I am supposed to be getting this and my employer is being cheap, then its something id like to fight.

 

Basically ,no you cant do FA ,Lafha has to be offered it is not a right ,there is no legal obligation , push em they probably tell you no visa mate, 457 .

[Guest KKipper]

I'm on a 457 and asked, but it's all down to your contract, although I'm on a 457, my role is permanent, so LAFHA isn't available.

 

I'm just glad to be here, so am not pushing it!