robjcamb

Hi,

I think this has been covered before, but I've not seen what looks like a consensus on what the situation is, so here goes:

I've got an application lodged for a 175 PR visa. Its CSL, so lets make an assumption it will be granted sometime late next year.

I now have an employer willing to sponsor me on a 457 visa, and is talking about LAFHA allowances and fixed term agreements to take advantage of this. The employer is talking about a fixed-term contractual obligation as an employee/employer rather than taking me on as an independent contractor, if that makes sense. I presume this will be granted before the 175 visa, so I would be 'using' it.

The 2 questions that come to mind therefore are:

What would the ATO's take on me having applied for, then holding a 175 visa be and applying for LAFHA? I presume they would take this as an indication you were looking to 'set up shop' rather than return 'home'.

Would holding a fixed-term agreement with an employer negate this to an extent and allow LAFHA, regardless of the visa type held?

Are there any restrictions/caveats on employment rights if holding a fixed-term contract compared to a permanent employee?

My gut instinct is that I would probably be ok until the 175 was granted, at which point I might have trouble convincing the ATO that I was intending to return home, regardless of the wording of any contract.

Thanks,

Rob

jimbo_d

Yep you have to prove that your home is not Australia, so by applying for a permanent Australian residents' visa the ATO aren't going to believe you if you and your company make a claim for LAFHA i'm afraid.

Seek professional advice, and most large companies have a department dealing with visas so they should know whether or not your elligible.

Dorothy

Unless your home in Australia is in say Perth and the nature of your work means that you spend more than 50% of the time in say Karratha. PR and citizens can get LAFHA too in these kinds of situations.

(The old man looked into it when he was transferred from SA to WA)

robjcamb

Thanks, that's what I thought. At least, that's certainly the opinion I'd form if I were the ATO!

I've asked their legal/hr dept. to look at this so I'll see what they say. It's primarily Sydney-based with some travel, so perhaps there might be some eligibility not related to immigration/relocation.

Thanks for the input,
Rob

Red_V_Roger

Yes, the 'home' does not need to be overseas.

jimbo_d

For LAFHA on a 457 visa it does, and you need to also prove things such as a foreign pension fund, bank accounts etc. LAFA is something different, and is available to Australians working interstate.

Rosscarbery

If you have school age kids the big one on a 457 is having to pay school fees (for public schools) of approx $5,000 per child in NSW. Depending on the number of kids it can totally wipe out any advantages of LAFHA.