457's pay less tax ???
Jul 18th 2008, 4:29 pm
#1
Just Joined
Thread Starter
Joined: Jul 2008
Posts: 16
457's pay less tax ???
Hi,
Do people on a 457 visa pay less income tax ? Because they don't get all the state 'benefits' or healthcare, do they ?
Just wondered.
Do people on a 457 visa pay less income tax ? Because they don't get all the state 'benefits' or healthcare, do they ?
Just wondered.
Jul 18th 2008, 7:18 pm
#2
BE Forum Addict
Joined: Jun 2007
Location: Peregian Springs, Sunshine Coast
Posts: 1,872
Re: 457's pay less tax ???
There is something called LAFHA - Living Away From Home Allowance which is at the choice of your employer if they apply it or not...do a search on LAFHA on here.
Basically, it means that you can earn the equiv. of your rent and food tax free...so in real terms you are taking home more.
As soon as you get a mortgage or start the PR process you will loose the LAFHA.
There's quite a lot of other conditions and your employer may not want to give it to you, like a say do a search there's loads on here.
For Medicare (the state health system) generally your employer has to pay the full amount (if you are a country with a reciprical health care agreement e.g. the UK) but you do not get all the benifits e.g. some metal health and pregnancy care is excluded. If you are from say Japan, there is no reciprical agreement and so the employer pays no Medicare and you have to get everything private.
Jul 19th 2008, 12:54 am
#3
Just Joined
Thread Starter
Joined: Jul 2008
Posts: 16
Re: 457's pay less tax ???
No, not because of the benifits.
There is something called LAFHA - Living Away From Home Allowance which is at the choice of your employer if they apply it or not...do a search on LAFHA on here.
Basically, it means that you can earn the equiv. of your rent and food tax free...so in real terms you are taking home more.
As soon as you get a mortgage or start the PR process you will loose the LAFHA.
There's quite a lot of other conditions and your employer may not want to give it to you, like a say do a search there's loads on here.
For Medicare (the state health system) generally your employer has to pay the full amount (if you are a country with a reciprical health care agreement e.g. the UK) but you do not get all the benifits e.g. some metal health and pregnancy care is excluded. If you are from say Japan, there is no reciprical agreement and so the employer pays no Medicare and you have to get everything private.
There is something called LAFHA - Living Away From Home Allowance which is at the choice of your employer if they apply it or not...do a search on LAFHA on here.
Basically, it means that you can earn the equiv. of your rent and food tax free...so in real terms you are taking home more.
As soon as you get a mortgage or start the PR process you will loose the LAFHA.
There's quite a lot of other conditions and your employer may not want to give it to you, like a say do a search there's loads on here.
For Medicare (the state health system) generally your employer has to pay the full amount (if you are a country with a reciprical health care agreement e.g. the UK) but you do not get all the benifits e.g. some metal health and pregnancy care is excluded. If you are from say Japan, there is no reciprical agreement and so the employer pays no Medicare and you have to get everything private.
Thanks for the informative reply.
Jul 19th 2008, 3:51 am
#4
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: 457's pay less tax ???
No, not because of the benifits.
There is something called LAFHA - Living Away From Home Allowance which is at the choice of your employer if they apply it or not...do a search on LAFHA on here.
Basically, it means that you can earn the equiv. of your rent and food tax free...so in real terms you are taking home more.
As soon as you get a mortgage or start the PR process you will loose the LAFHA.
There's quite a lot of other conditions and your employer may not want to give it to you, like a say do a search there's loads on here.
For Medicare (the state health system) generally your employer has to pay the full amount (if you are a country with a reciprical health care agreement e.g. the UK) but you do not get all the benifits e.g. some metal health and pregnancy care is excluded. If you are from say Japan, there is no reciprical agreement and so the employer pays no Medicare and you have to get everything private.
There is something called LAFHA - Living Away From Home Allowance which is at the choice of your employer if they apply it or not...do a search on LAFHA on here.
Basically, it means that you can earn the equiv. of your rent and food tax free...so in real terms you are taking home more.
As soon as you get a mortgage or start the PR process you will loose the LAFHA.
There's quite a lot of other conditions and your employer may not want to give it to you, like a say do a search there's loads on here.
For Medicare (the state health system) generally your employer has to pay the full amount (if you are a country with a reciprical health care agreement e.g. the UK) but you do not get all the benifits e.g. some metal health and pregnancy care is excluded. If you are from say Japan, there is no reciprical agreement and so the employer pays no Medicare and you have to get everything private.
Jul 19th 2008, 4:11 am
#5
Forum Regular
Joined: Apr 2007
Posts: 124
Re: 457's pay less tax ???
NO..and i can prove it every fortnight when i c my wage slip!..less tax/ where the xxxx did u get that from?..on a 457 yr one step bellow the pavement....just above the gutter!!
Jul 19th 2008, 5:25 am
#6
BE Forum Addict
Joined: Oct 2006
Location: Adelaide
Posts: 3,162
Re: 457's pay less tax ???
Geee, calm down!
Jul 19th 2008, 10:54 pm
#7
BE Forum Addict
Joined: Jun 2007
Location: Peregian Springs, Sunshine Coast
Posts: 1,872
Re: 457's pay less tax ???
Yes that is true, you just have to be Living Away From Home...so if you work in WA and your home is in QLD then you can claim it, but if you are claiming LAFHA allowance on a 457 and then by a house right next to your work, its gone...as I understand.
Jul 20th 2008, 12:51 am
#8
you lucky, lucky b'stard!
Joined: Aug 2006
Location: Secret Harbour
Posts: 381
Re: 457's pay less tax ???
nope, you just pay the tax, and get none of the benefits.
Jul 20th 2008, 4:09 pm
#12
Retired
Joined: Apr 2004
Posts: 34,649
Re: 457's pay less tax ???
1.5% of income, plus a further 1% if the surcharge is at stake.
But beware - even if you only get the limited reciprocal Medicare coverage that some former residents of the U.K. can claim, you pay the full levy.
But beware - even if you only get the limited reciprocal Medicare coverage that some former residents of the U.K. can claim, you pay the full levy.
