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owendoyle

LAFHA and MSL

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Hello all.

I am just looking for anyone with more experience with claiming LAFHA? :unsure:

 

I am wondering if by claiming LAFHA which will reduce my taxable income BELOW the minimum threshold (Temporary Skilled Migration Income Threshold) of $45,200 would I be breaking my visa conditions?

 

Is your market salary based on taxable income or gross income (before any tax or deductions are applied)?

 

I have been granted my 457 visa less than two weeks ago but my employer will lodge for LAFHA since I am eligible.

 

Any advice would be much appreciated. :notworthy:

 

Owen


Trainee442-01/06 WHV-09/08 Bridge-02/10 457-03/10 Tourist-02/11 Student-03/11 Bridge-10/11 457-12/11

ENS-186 Nom: 30/01/12 Grant: 20/09/12, Visa App: 25/09/12. GRANTED!! 10/05/13 :jiggy:

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LAFHA does not reduce your taxable income. It just reduces the amount of tax that is actually removed from your wages. So you will still earn $45.2K, you will just give less of it back to the government in tax.

 

It is brilliant! :-)

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Good question.

 

I think you have to adhere with the salary details as per the approved 457 visa nomination.

 

If the LAFHA was not separately identified on the nomination application I think there is potentially a risk in the event of a 457 compliance check.

 

As a rule, it is best to be up front with DIAC and to disclose the existence of the LAFHA on the nomination application, so you have comfort and do not have to ask this question after the 457 visa has been granted!

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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