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LAFHA - confused


Guest NeilEB

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Guest NeilEB

Ok, so I'm in contact with a company regardign a role, and in the package they mentioned LAFHA.

 

Now I'm confused - I thought I wasn't entitled to LAFHA as I have a 176 visa?

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  • 3 weeks later...
Ok, so I'm in contact with a company regardign a role, and in the package they mentioned LAFHA.

 

Now I'm confused - I thought I wasn't entitled to LAFHA as I have a 176 visa?

 

Hi,

 

I agree with Alan above. However I can see that you have doubts and as you will have seen, there are many opinions on blogs, all of them well intentioned, however unfortunately not all are correct. Lucky for you that you have an employer that is across the complex issues surrounding LAFHA. Just to set your mind at ease I will provide you with the following information.

 

LAFHA can be claimed primarily by 457 Short Stay Business and 417 Working Holiday visa holders. Other subclasses may be eligible for LAFHA (such as yourself on a 176 Visa), and each of these cases, as with any case, must be considered on its merits before a determination can be made. This is particular true for those such as yourself if your sponsor offered you a visa that requires that you apply for PR, even if you do not intend to stay in Australia.

 

In fact, the legislation does not list by Visa subclass which visas are eligible for LAFHA; it simply lists the conditions that must be met in order for an employer to find you eligible for LAFHA.

 

So, the questions you must ask yourself are:

 

 

  • Is my intent to return home at the end of this employment contract?

  • If it was not for this employment contract, would I still be at home? (Think of this in isolation; don’t think “well, I could have applied for other jobs in Australia”)

If you answer is Yes to both, then while I do not know the thought processes your employer went through, it is very likely that you are eligible for LAFHA.

 

If your answer is No to both….I would be having a serious chat with my employer because you might find yourself in the position that you would have to repay all LAFHA paid to you, and your employer may have to pay 46.5 cents in each dollar they paid you (and anyone else they employ who might not be eligible for LAFHA)

 

If your answer is No to intent to return home, and Yes to the second question, see my comments above because you would not be eligible, and

 

If you answer is Yes to intent and No to the second question, you are probably OK.

 

Does that give you a better insight?

 

Regards,

 

Ian

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