$110k...Is this enough ? !
Jan 6th 2011 | 10:40 pm
#20
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Joined: Aug 2009
Posts: 111
Re: $110k...Is this enough ? !
Jesus, how expensive is Perth?
We lived quite comfortably in Brisbane on an initial salary of $68,000 with 2 adults and 2 children aged 10 and 6.
The thing is in every city and Country in the world you will find people who enjoy their lives on a modest income and those that feel that they are struggling on an above average income.
Personally, we would have lived very well on a salary of $110,000.
We lived quite comfortably in Brisbane on an initial salary of $68,000 with 2 adults and 2 children aged 10 and 6.
The thing is in every city and Country in the world you will find people who enjoy their lives on a modest income and those that feel that they are struggling on an above average income.
Personally, we would have lived very well on a salary of $110,000.
Jan 6th 2011 | 10:41 pm
#21
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Joined: Oct 2009
Posts: 2,237
From: Perth
Re: $110k...Is this enough ? !
My OH works while I've been accumulating HECS fees. As I've been studying, we have had to pay for care outside school, which costs a lot if your income is over a certain threshold. If you're only a relatively small amount over, you do not get family tax payments A or B, so no education costs rebate either. I do not consider that we live comfortably. In 2010 we went on our first trip to the UK in 12 years. Our only other trip outside WA was going to NZ for 6 day on FF points 10 years ago. We are only able to save tiny amounts, but some months have to dip into savings for bills.
Jan 6th 2011 | 10:45 pm
#22
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Joined: Oct 2009
Posts: 2,237
From: Perth
Re: $110k...Is this enough ? !
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Jan 6th 2011 | 10:49 pm
#23
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Joined: Feb 2009
Posts: 3,566
Re: $110k...Is this enough ? !
Thanks chrissystevo, it's another factor that migrants have to consider. If you coming over to a low or middle income, some might save on rental costs be moving to a cheaper area, but sometimes that means that the local school is not going to suit. Then people can find themselves in a bit of a trap, and end up having to pay private school fees. If LAFHA allowed for state school fees (for 457 visa holders) or private school fees, it would help families a lot and it's a shame that it doesn't cover it. BTW, I was told that WA state MPs can get private school fees taken off their (considerable) income before tax, don't know if that's true, but it's alright for some.
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Jan 6th 2011 | 11:03 pm
#24
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Posts: n/a
Re: $110k...Is this enough ? !
Non-Regular LAFHA components
• Child Education Expenses
In additional to the regular LAFHA components, international staff members on a subclass 457 visa may also package child education expenses for children in full time education at a school, college or university and who are under the age of 25 years at the time the benefit was provided (it does not include child care).
Education fees relating to the international staff member’s children for the period of time they are on a 457 visa are FBT exempt if the following three conditions are met:
 education is on a full time basis;
 education is provided at a school, college or university or by a private tutor; and
 the child is under the age of 25.
Child education benefits which can be packaged include:
 education costs - school fees including application fees; cost of extra curricula activities held at the school and the cost of tutors; and
 non-fee costs including text books, stationery, calculators and school uniforms.
• Child Education Expenses
In additional to the regular LAFHA components, international staff members on a subclass 457 visa may also package child education expenses for children in full time education at a school, college or university and who are under the age of 25 years at the time the benefit was provided (it does not include child care).
Education fees relating to the international staff member’s children for the period of time they are on a 457 visa are FBT exempt if the following three conditions are met:
 education is on a full time basis;
 education is provided at a school, college or university or by a private tutor; and
 the child is under the age of 25.
Child education benefits which can be packaged include:
 education costs - school fees including application fees; cost of extra curricula activities held at the school and the cost of tutors; and
 non-fee costs including text books, stationery, calculators and school uniforms.
Jan 6th 2011 | 11:16 pm
#25
Forum Regular
Joined: Aug 2009
Posts: 111
Re: $110k...Is this enough ? !
Only going by my own experiences.
We received LAFHA for rent and food allowances. Our children went to Catholic schools where we paid fees. We were expressly told in writing by ATO and a large accountancy firm that we could not include the school fees in the tax free LAFHA element of my pay. It would have to be included in a salary sacrifice scheme and would incur fringe benefit tax. If others have experienced something different to this, good luck to them.
We received LAFHA for rent and food allowances. Our children went to Catholic schools where we paid fees. We were expressly told in writing by ATO and a large accountancy firm that we could not include the school fees in the tax free LAFHA element of my pay. It would have to be included in a salary sacrifice scheme and would incur fringe benefit tax. If others have experienced something different to this, good luck to them.
Jan 6th 2011 | 11:22 pm
#27
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Joined: Aug 2009
Posts: 111
Re: $110k...Is this enough ? !
Colonel,
Be careful.
The food allowance is a statutory allowance, with the figures being set by the ATO based on the number of people in your household. so yes, you do not have to keep a note of your food bills to substantiate this. However, the rent element is considered to be a reasonable amount of rent to pay for a property for your circumstances. I know of a colleague of mine who rented a unit for himself and his girlfriend at $900 per week. At tax return time the ATO looked into his circumstances and decided that a reasonable amount of rent to pay would have been nearer $400 per week. He therefore had to pay the tax calculated on the difference between $900 and $400 per week rent.
Be careful.
The food allowance is a statutory allowance, with the figures being set by the ATO based on the number of people in your household. so yes, you do not have to keep a note of your food bills to substantiate this. However, the rent element is considered to be a reasonable amount of rent to pay for a property for your circumstances. I know of a colleague of mine who rented a unit for himself and his girlfriend at $900 per week. At tax return time the ATO looked into his circumstances and decided that a reasonable amount of rent to pay would have been nearer $400 per week. He therefore had to pay the tax calculated on the difference between $900 and $400 per week rent.
Jan 6th 2011 | 11:25 pm
#28
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Joined: Feb 2009
Posts: 3,566
Re: $110k...Is this enough ? !
Colonel,
Be careful.
The food allowance is a statutory allowance, with the figures being set by the ATO based on the number of people in your household. so yes, you do not have to keep a note of your food bills to substantiate this. However, the rent element is considered to be a reasonable amount of rent to pay for a property for your circumstances. I know of a colleague of mine who rented a unit for himself and his girlfriend at $900 per week. At tax return time the ATO looked into his circumstances and decided that a reasonable amount of rent to pay would have been nearer $400 per week. He therefore had to pay the tax calculated on the difference between $900 and $400 per week rent.
Be careful.
The food allowance is a statutory allowance, with the figures being set by the ATO based on the number of people in your household. so yes, you do not have to keep a note of your food bills to substantiate this. However, the rent element is considered to be a reasonable amount of rent to pay for a property for your circumstances. I know of a colleague of mine who rented a unit for himself and his girlfriend at $900 per week. At tax return time the ATO looked into his circumstances and decided that a reasonable amount of rent to pay would have been nearer $400 per week. He therefore had to pay the tax calculated on the difference between $900 and $400 per week rent.
Jan 6th 2011 | 11:50 pm
#29
Thread Starter
Forum Regular
Joined: Jan 2009
Posts: 208
Re: $110k...Is this enough ? !
Jan 7th 2011 | 6:35 am
#30
Thread Starter
Forum Regular
Joined: Jan 2009
Posts: 208
Re: $110k...Is this enough ? !
Just did an online shopping list at woolworths and the bill came to approx $175 + Beer/Wine which looks to be on course with our $250 per week shopping budget.
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