Phil & Vikki Posted August 7, 2011 Share Posted August 7, 2011 We have come out to Australia on a Permanent Residency (PR) visa with the intention of staying on long term. We were originally told that we could not get the working from home allowance (WFHA) as we were on PR. However, after talking to a few people, we have been told that people on PR are entitled to the WFHA, if they can prove that they have not sold their house back in the UK. This is due to the fact that it is seen that you intend to return back there at a later stage. Has anyone come across this before or can tell us if it is true? It is sure something that we would like to look into further as the allowance would help a great deal. If this is not the case, what are people on PR entitled to apart from reduced school costs? Link to comment Share on other sites More sharing options...
AJ Posted August 8, 2011 Share Posted August 8, 2011 We have come out to Australia on a Permanent Residency (PR) visa with the intention of staying on long term. We were originally told that we could not get the working from home allowance (WFHA) as we were on PR. However, after talking to a few people, we have been told that people on PR are entitled to the WFHA, if they can prove that they have not sold their house back in the UK. This is due to the fact that it is seen that you intend to return back there at a later stage. Has anyone come across this before or can tell us if it is true? It is sure something that we would like to look into further as the allowance would help a great deal. If this is not the case, what are people on PR entitled to apart from reduced school costs? I am not trying to be nasty but why should you get an allowance for living away from home. I still have my house at home but wouldnt think of trying to get money because I live over here. You are here on PR so it is not as if your job moved you. It was my choice and yours to come here so why should others subsidise you. Link to comment Share on other sites More sharing options...
Phil & Vikki Posted August 8, 2011 Author Share Posted August 8, 2011 I am not trying to be nasty but why should you get an allowance for living away from home. I still have my house at home but wouldnt think of trying to get money because I live over here. You are here on PR so it is not as if your job moved you. It was my choice and yours to come here so why should others subsidise you. You TOTALLY missed the point of the question (not trying to be nasty here). We have just heard that we may be able to get some help, like others in our position have and was wondering if this was correct or not. If you are entitled to something, is it not best to know all the facts before you to follow something up. That way you can make an educated decision as to the course of action that is best. Is this not a forum for people to get advise and learn from others experiences and not be not be commented on for trying to find out all the facts? Link to comment Share on other sites More sharing options...
AJ Posted August 8, 2011 Share Posted August 8, 2011 You TOTALLY missed the point of the question (not trying to be nasty here). We have just heard that we may be able to get some help, like others in our position have and was wondering if this was correct or not. If you are entitled to something, is it not best to know all the facts before you to follow something up. That way you can make an educated decision as to the course of action that is best. Is this not a forum for people to get advise and learn from others experiences and not be not be commented on for trying to find out all the facts? I did not mean it personally, if others you know can get it why not try. What I mean is I do not see why someone (anyone) who makes the choice to move to another country, entirely their own decision should get an allowance for living away from home. Link to comment Share on other sites More sharing options...
steen1976 Posted August 8, 2011 Share Posted August 8, 2011 What is WFHA? I've not heard of that - do you mean LAFHA? If so then from everything I have seen in my research it points to LAFHA stopping as soon as a temporary resident shows intent to make their move permanent. Applying for PR shows that intent so having it would certainly exclude you from getting LAFHA due to also having a home in the UK if you have Pr already. However having PR doesn't mean you wouldn't be entitled to it in some form - that being if you had a house in say Sydney but had to work for a while in Melbourne. If you do mean that you work from home then I'm sure there are some tax reductions or amounts you can claim back for using your home as a workplace. Obviously need better advice from a tax expert of course. Link to comment Share on other sites More sharing options...
Phil & Vikki Posted August 8, 2011 Author Share Posted August 8, 2011 Hi there, That is what our friend must of meant, the LAFHA. Thanks for clearing that up and it is a good job we asked on here, if only to get the name right. We were always told that on PR you could not, but thought it best to clear these things up. Cheers for that.:chatterbox: Link to comment Share on other sites More sharing options...
Ian Lindgren Posted August 11, 2011 Share Posted August 11, 2011 Hi Phil and Vikki, Yes, as everyone has said it is LAFHA you are referring to! Hey…what’s in an acronym!:biggrin: Whilst there is an argument to say that a person who came to Australia on a Visa with the intent to return home at the start should be able to apply for PR and continue to receive LAFHA until the PR is actually approved (because it may be declined); it is unfortunately a rare employer that will take the risk of failing a LAFHA audit and do it. However if someone in the situation fails a the application and still remains here and then has to return home, they are back where they started so they should recommence LAFHA. However, and very unfortunately in your case, you have always had the intent to stay in Australia, and the FBT Act and MT 2030 is very specific on this situation. I had added Para 14 of MT 2030 which is written in plain English compared to the Act! 14. As the decisions illustrate, the question whether an employee is living away from his or her usual place of residence normally involves a choice between two places of residence, i.e., the place where the employee is living at the time or some other place. 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. It would be relevant in reaching that view that there is an intention or expectation of the employee returning to live at the former place of residence on cessation of work at the temporary job locality. So, sorry, you would not be entitled to it, and if any one suggests that you are, then I would ring the ATO yourself and ask the question just to satisfy yourself. The number is 13 28 65, ring early in the morning and it is open from 8 am to 5pm, ask for the FBT area. The only time you would ever be eligible for it is as for any other Australian Citizen, say you had a home in Sydney, and your employer wanted you to work for, say 2 years in Brisbane, and then return home to Sydney…then you would be eligible. Regards, Ian Link to comment Share on other sites More sharing options...
Ken Posted August 11, 2011 Share Posted August 11, 2011 If you are Working From Home (e.g. you use part of your home as an office) then yes someone on PR (or a citizen) is entitled to a tax break for that. Perhaps that's what you've been told about and somehow confused with the Living Away From Home Allowance (despite that being almost the exact oposite from Working From Home)? Link to comment Share on other sites More sharing options...
Ian Lindgren Posted August 11, 2011 Share Posted August 11, 2011 If you are Working From Home (e.g. you use part of your home as an office) then yes someone on PR (or a citizen) is entitled to a tax break for that. Perhaps that's what you've been told about and somehow confused with the Living Away From Home Allowance (despite that being almost the exact oposite from Working From Home)? Yep, Ken's corrrect. If you work from home it is usually 8% of the cost of running you home that you can claim back as a tax deduction. But this percentage is not financial advice, and would depend on the work your accountant does for you. Regards, Ian Link to comment Share on other sites More sharing options...
Phil & Vikki Posted August 12, 2011 Author Share Posted August 12, 2011 Hi Ian, Thank you so much for your detailed and excellent post, it was most helpful. Just goes to show that whatever you hear you should always check it out as the old case of 'Chinese whisper' comes into it. It is great that you have been able to clear this up for us. Thanks again. Link to comment Share on other sites More sharing options...
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