LAFA once 457 granted

[Guest Queerasfolks1]

Hi All,

 

I came over on a 457 about 12 months ago on what was meant to be short term secondment. I now want to stay and have found a new employer who is willing to take over my sponsorship/have the 457 obligations transferred to it.

 

The question i have is in relation to LAFA.

 

I never got LAFA with my old employer (they met my living costs). How do I go about getting LAFA now and do I need to get anything written into my new contract saying they will help with my LAFA application ( i have not got rental sorted yet but will once I have a contract with the new employer - just dont want to do anything to stuff up chance at LAFA)

 

Cheers.

 

QAF

[Guest guest36187]

LAFHA is not an entitlement, you are not guaranteed to get it. You can ask your new employer but they are not necessarily going to get it.

 

If you don't ask.....

[Guest Queerasfolks1]

cheers - it is up to the ATO isnt it? my thinking is just to get some form of assurance from my employer that they will try and help me.

[_shel]

cheers - it is up to the ATO isnt it? my thinking is just to get some form of assurance from my employer that they will try and help me.

 

Yes and no, your employer has to wiling and able to process it as it comes through their payroll department. Not all employers understand it, and some have not got HR depts big enough to process it. But even some big employers dont seem willing to put the effort in to process it I've seen from other posts.

[Ian Lindgren]

Hi All,

 

I came over on a 457 about 12 months ago on what was meant to be short term secondment. I now want to stay and have found a new employer who is willing to take over my sponsorship/have the 457 obligations transferred to it.

 

The question i have is in relation to LAFA.

 

I never got LAFA with my old employer (they met my living costs). How do I go about getting LAFA now and do I need to get anything written into my new contract saying they will help with my LAFA application ( i have not got rental sorted yet but will once I have a contract with the new employer - just dont want to do anything to stuff up chance at LAFA)

 

Cheers.

 

QAF

 

Hi QAF,

 

You will not need anything written into your contract because LAFHA is simply a tax free allowance that is paid to you by reducing your taxable salary. It has nothing to do with your contract unless you are close to the TSMIT limit, and then your employer needs to know that LAFHA can now contribute to the market salary rate. DIAC changed this 18 months ago but have not published it on its web site.

 

LAFHA can only be paid if your employer agrees to pay it, and to do this, as Shel says they actually need to know about it, and do not assume that they, their payroll department, CFO or accountant will because they generally do not know.

 

There are a number of companies you can engage to assist you with passing the facts and references to your employer and assuring then LAFHA is legal and can increase your cash in hand by $10,000 to $15,000 per year. Most charge between 3 – 10% of your salary each pay day to do so, others charge a one off fee which is a sound value for money option.

 

A good way to sell it to your employer is to present it as an issue, and solve the issue in one sweep. You can also show them how they can attract and retain eligible employees at a higher cash in hand rate, without having to pay them any more gross salary. Set out the win at the outset, and add to their capability.

 

Regards,

 

Ian