LAFHA - Budget 2012/13
#436
BE Forum Addict
Joined: Apr 2012
Posts: 1,603
Re: LAFHA - Budget 2012/13
So ultimately what is the benefit still available?
If I maintain a place of main residence in Melbourne and for 12 months are away for work living in Coffs Harbour in $3000 a week house.
If I maintain a place of main residence in Melbourne and for 12 months are away for work living in Coffs Harbour in $3000 a week house.
#439
Re: LAFHA - Budget 2012/13
The LAFHA is just a portion of your pay that is tax-free.
So yes, you benefit by not paying the tax (at your marginal rate) on the LAFHA amount.
However, just because you want to rent a $3000 a week house in Coffs Harbour does not mean that $3000 is automatically tax-free. The ATO will allow a reasonable accommodation cost. If you're living in a 1-bedroom flat at home theres no way that the ATO will allow the rent on a 5-bed mansion (say) in Coffs Harbour. They are not that daft.
So yes, you benefit by not paying the tax (at your marginal rate) on the LAFHA amount.
However, just because you want to rent a $3000 a week house in Coffs Harbour does not mean that $3000 is automatically tax-free. The ATO will allow a reasonable accommodation cost. If you're living in a 1-bedroom flat at home theres no way that the ATO will allow the rent on a 5-bed mansion (say) in Coffs Harbour. They are not that daft.
#441
BE Forum Addict
Joined: Apr 2012
Posts: 1,603
Re: LAFHA - Budget 2012/13
The LAFHA is just a portion of your pay that is tax-free.
So yes, you benefit by not paying the tax (at your marginal rate) on the LAFHA amount.
However, just because you want to rent a $3000 a week house in Coffs Harbour does not mean that $3000 is automatically tax-free. The ATO will allow a reasonable accommodation cost. If you're living in a 1-bedroom flat at home theres no way that the ATO will allow the rent on a 5-bed mansion (say) in Coffs Harbour. They are not that daft.
So yes, you benefit by not paying the tax (at your marginal rate) on the LAFHA amount.
However, just because you want to rent a $3000 a week house in Coffs Harbour does not mean that $3000 is automatically tax-free. The ATO will allow a reasonable accommodation cost. If you're living in a 1-bedroom flat at home theres no way that the ATO will allow the rent on a 5-bed mansion (say) in Coffs Harbour. They are not that daft.