Dorsetgirl1 Posted October 2, 2011 Share Posted October 2, 2011 Can you advise how much LAFHA i would get on rent of £850 Link to comment Share on other sites More sharing options...
Ian Lindgren Posted October 3, 2011 Share Posted October 3, 2011 Hi, If you received LAFHA based on £850 ($1,355 AUD) per week rent and $289 per week food component (which is the maximum) you would receive increased cash in hand of £1,404 per month or £16842 per year. Unfortunately, or fortunately as it were, £850 would normally be considered too high a rent to claim as LAFHA. The Australian Taxation office would consider it “unreasonable” by a factor of 2 unless your partner was on around $200,000 and a senior executive required to entertain. So, without knowing where you intend to be living in Australia, let’s just use $550 per week as rent, which is considered reasonable (this is £345), and this would increase your monthly cash in hand by £1100 for month or £13200 per year. Check out the LAFHA Calculator, and while this is only based on a fixed rental of $350 per week, the higher the rent you pay, the greater increased cash in hand you receive. Also check out my other posts so you can learn more about LAFHA, and be sure to know that it is not an entitlement, only something you may be eligible for. Your employer must agree to pay it, but look for my other posts for the rationale behind this, because it would be good for you to be aware. Regards, Ian Link to comment Share on other sites More sharing options...
Hats Posted October 3, 2011 Share Posted October 3, 2011 I dont know how it works but I get $500 a week this was already included in my salary when I arrived so I can't comment on anyone else. Get a good tax accountant and they'll make sure you get the most that your entitled to Link to comment Share on other sites More sharing options...
Ian Lindgren Posted October 3, 2011 Share Posted October 3, 2011 I dont know how it works but I get $500 a week this was already included in my salary when I arrived so I can't comment on anyone else. Get a good tax accountant and they'll make sure you get the most that your entitled to Only if they know about LAFHA Hats! It would be a brave person to authoratively make the claim and fomally advise people that all good accountants know about LAFHA unless of course they were formally qualified to do so. By the way Allan Collett at Go Matilda looks after UK and Australian tax services exceptionall well at: alan.collett@gmtax.com.au Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia Partner - Go Matilda Accounting and Tax W - www.gmtax.com.au Regards, Ian Link to comment Share on other sites More sharing options...
Guest RichB Posted October 3, 2011 Share Posted October 3, 2011 What in heavens name does lafhata mean ? Link to comment Share on other sites More sharing options...
Hats Posted October 3, 2011 Share Posted October 3, 2011 Living Away from Home Allowance Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted October 3, 2011 Share Posted October 3, 2011 What in heavens name does lafhata mean ? Living Away from Home Allowance Link to comment Share on other sites More sharing options...
Dorsetgirl1 Posted October 3, 2011 Author Share Posted October 3, 2011 Hi, If you received LAFHA based on £850 ($1,355 AUD) per week rent and $289 per week food component (which is the maximum) you would receive increased cash in hand of £1,404 per month or £16842 per year. Unfortunately, or fortunately as it were, £850 would normally be considered too high a rent to claim as LAFHA. The Australian Taxation office would consider it “unreasonable” by a factor of 2 unless your partner was on around $200,000 and a senior executive required to entertain. So, without knowing where you intend to be living in Australia, let’s just use $550 per week as rent, which is considered reasonable (this is £345), and this would increase your monthly cash in hand by £1100 for month or £13200 per year. Check out the LAFHA Calculator, and while this is only based on a fixed rental of $350 per week, the higher the rent you pay, the greater increased cash in hand you receive. Also check out my other posts so you can learn more about LAFHA, and be sure to know that it is not an entitlement, only something you may be eligible for. Your employer must agree to pay it, but look for my other posts for the rationale behind this, because it would be good for you to be aware. Regards, Ian Thanks Ian - would £700 be considered too high. I'm in Sydney and struggling to get anything less Link to comment Share on other sites More sharing options...
Ian Lindgren Posted October 3, 2011 Share Posted October 3, 2011 Thanks Ian - would £700 be considered too high. I'm in Sydney and struggling to get anything less Oh, did I read your post wrong...do you mean $700 Australian Dollars per week or 700 UK Pounds per week? Regards, Ian Link to comment Share on other sites More sharing options...
Dorsetgirl1 Posted October 3, 2011 Author Share Posted October 3, 2011 Oh, did I read your post wrong...do you mean $700 Australian Dollars per week or 700 UK Pounds per week? Regards, Ian Sorry Ian - put the £ sign out of habit. Can you advise what I would get based on $850 a week. Could I get my company to get in touch with you for advise on processing this Link to comment Share on other sites More sharing options...
Ian Lindgren Posted October 3, 2011 Share Posted October 3, 2011 Sorry Ian - put the £ sign out of habit. Can you advise what I would get based on $850 a week. Could I get my company to get in touch with you for advise on processing this I think you have to laugh sometimes when we do those things! I looked at the UK pounds symbol and thought, wow, I better assist you with Sydney prices and get you down to what they are. OK, $700 - $850/wk is much more reasonable, but $850 gives me the shakes a little,so please read below, But before doing that I only go "so far" in advertising my company’s services in this forum because there is a strict code of ethics I signed up to when I joined; and I respect that. So please be aware that there are a number of other LAFHA advisers in Australia and I’m sure you can see them on Google. As for what PayMe can do, LAFHA is a very complex issue, and in order to answer your question in a way that you and I can relate to in good old fashioned English, our approach is to ask you to go to our website, and just send a LAFHA Enquiry. All you need to do is pop in your contact details and ask for a Free LAFHA Assessment, say no more! The team will send you a questionnaire that asks you all the questions we need to have answers for in order to: Confirm your eligibility (because there is no use raising it with your employer unless you are eligible), and Then see if you would like to engage us to provide a Formal Assessment (no more forms…the first one has it all) The Formal Assessment not only advises you what you could claim, but most importantly, tells your employer and their financial advisers, CFO etc, all about LAFHA and the key references so they know it can be paid to you legally, without a cost to them, and without attracting FBT. Of course it confirms whether or not $850 per week is reasonable. As a rule we don't contact employers, that way you control the communications. That is very important because the employers, in our opinion, should really only get involved after the Formal Assessment, unless og course they want to call us, and have told you so, and then hey....we are happy to take their call, and then we assist them down the same path to the Formal Assessment. Many employers call us when they wants to assist between 1 and 50 odd staff. Our CFO, a Certified Practicing Accountant, then assists them with any other questions and helps set it up with you pay roll staff. That’s all covered in the one off $440 fee for each Formal Assessment, which is chicken feed when you stand to add over $10K to your cash in hand each year. I’m not there at the moment because I am on leave, but it will all happen as I described in two day blocks because we conduct each activity within 2 days due to the volume and quality control requirements. But as I said before, please be aware that there are other LAFHA providers; I just get a kick out of assisting people and that’s why I post lots. Of course I do like to get business every now and again, but with LAFHA there are so many well-intentioned but wrong posts, I just like to politely correct people so the facts are presented. Regards, Ian Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.