ronil

Hi all

Allow me to have a whinge on your gracious forum. So i came to Ozzy on a 457 visa. I was a student before in Australia and i thought life would be great if i went on a 457 and started working. A few things have since put me off. The biggest of all is the fact that you cannot get a personal loan when you are a temporary resident. I dont know how these people think.....it could be reasonable to say that every Australian over 18 currently holds some sort of debt to some sort of financial institution. Thats because you will need a loan to buy that car, to take that holiday, to buy that house! Now how in the hell do they expect 457 holders to live a functional lifestyle if they do not have access to any sort of credit? Are we supposed to somehow live debt-free in a country that has one of the highest costs of living in the world? I just serviced my car and i've got a huge bill (adding to others) that a small personal loan could have helped me pay comfortably. Instead i have to take it all out of my next pay, then live off sardines for the rest of the month. Any unexpected large bill causes a major shock to my standard of living. Is this fair? They wont even give you a credit card.....i had to hustle NAB for a measly $2,000 credit card. I'm starting to wonder if it would've just been better to go home, because right now i'm living a miserable life because i cannot consolidate my debts. And i dont understand the reasoning behind the 2 year temporary status either, is that just meant to lock you into the company you work for, or is it to ensure that you have lived in and experienced Australia before you go permanent? Hell, i'll lived here for 5 years, shouldnt there be some sort of exemption for people like us? Truly speaking, the 457 sucks....

By the way, does anybody know a tax expert who could explain LAFHA to me, maybe that might make my life a bit better. And does anybody know of any financial institutions that give credit to 457ers? That would make my life great!

JAJ

The 2 years in Australia is not mandatory (for ENS) if you have a skill assessment and a total of 3 years work experience.

Alternatively, if in an eligible area, RSMS can provide a more immediate permanent residence outcome.

mark213

The nature of a temporary visa is just that. Temporary. You can just up and leave and getting a loan back would be hard for any company concerned.

IMO talk to your employer. They sponsored you so could provide assistance with supporting yourself locally. If you have security back in your home country why not take a loan against those and move the money over? Or ask your employer to sponsor you for a permanent visa? You are also entiled to get a LAFHA. Use that instead of getting yourself in to debt. Its not its all cracked up to be.

StevenChez

How old are you, you sound like a typical 20something. This isn't meant in a bad way, just that the world over, every 20something will be saying the same thing.

Long term debts can be just as crippling as short term. Where you are right now, the majority of us have been there, and then some, and it makes no difference where in the world you are, in debt is 'in debt' and you have to deal with this now.

How long have you been dealing with your current account bank? Have you been to see (and I mean see, not speak to some idiot on the phone) you bank manager? To the company you owe money to, have you been back to explain your circumstances and asked if you can pay over 2/3/4 months.

I agree that being in this position is unreasonable and undignified, but you can only do so much, don't be so hard on yourself, if the situation is what it is, put your pride in your back pocket and deal with it the best way you can.

Not very helpful I know, just being motherly.

Mind you, if you were my son/daughter I'd be shaking you by the neck! Only joking.

Cheryl

cloughie

LAFHA - In a nutshell you get allowances against your gross pay for rent and food (there maybe others including removal costs and possibly private education we haven't quite sussed this bit out yet). This then reduces your taxable income and you pay less tax.

you definately get accomodation allowance (Rent)

e.g rent at $400 per week = $20,800 (this figure is the actual amount you pay)

Food allowance these are the last figures i have but may have gone up
per week: (these are set )
One adult - $141
Two adults - $227
Three adults - $255
Two adults and one or two children - $255
Two adults and three children - $297
Three adults and one child - $297
Three adults and two children - $339
Four adults - $339
Adults for this purpose are persons aged 12 years or more.

so worked example:

2 adults living in rented accomodation at $400 per week =

rent - $20,800
Food - $11,804

Total - $32604

Assuming a tax rate of 30% you would get $9781 per year extra or $815 per month.

Hope this helps.

Regarding lending - you can get a mortgage on 457 visa, i guess because of security of the property (caveat: if you were claiming LAFHA you would lose it unless you bought a property as investment and rented it out. It would also have to be brand new)

ex_exile

Well, they were happy enough to give me a Credit card with $10,000 limit on a 457 but then I am probably older than you. I was also offered a personal loan, which I declined as I hate debt.

You need to find a bank and personal banker who understand you, shop around, look smart and responsible and you may get what you want. Don't go into to see your banker thinking that they want to say no to to you, they want to say YES! As thats how they make their money.

Its definatly possible to get a mortgage without being a permanent resident in New Zealand.

natal

ANZ gives cards to people on 457. "ANZ first" is the card name. I had a credit limit of 5000 when I was on 457. Did u try them?

Dorothy

Virgin never asked our visa status when we applied. They gave me $11000 after only being here about 6 weeks.

ex_exile

My Credit Card was with HSBC, you get free banking too

ronil

Wow....thanx for the replies guys. The information is quite enlightning, i'm gonna flood the banks with a whole lot of applications.

@StevenChez

Yes i am a typical senseless 20 something, cant really do much about that right now. But i dont think you'll be shaking me by the neck....i'm a pretty large human being.

@cloughie

Thanx for that break down. Now that i know what it is, how do i get it? Like, as soon as i get up from this chair, what do i need to do to get LAFHA? And does it matter what salary scale you're on? I just got out of Uni not too long ago, so my salary isnt so flash as compared to some of you. And i've been on 457 for about 3 months now, is it not too late?

So....so far its Virgin, ANZ and HSBC.....thanx guys, i'll be seeing them very soon. And like Dorothy, i wont answer any questions i havent been asked. Lets hope things work out...

woody1cruiser

I am on a 457 visa. After 2 months I got a credit card and was also offered a loan. 8 months in and I now have a mortgage and a house being built. Once again I am probably older than you but I have experienced no problems at all.

Debs

cloughie

You need to speak to your employer as this is done through them. Depending on the company they may try and bluff out of it if they don't understand it and there payg system may not cope.

But: You are entitled to it and it is not just migrants that are entitled. An australian moving from WA to QLD for example would be entitled.

Your employer would contact ATO for guidance.

And no you are not too late and it would be backdated.

If you have any problems PM me, My husband may be able to get the procedure from his employer

There is also probably a way to do this via your tax return too.

The amount you receive is also limited to your taxable income.


Word of warning though. If you are given too much of an allowance you could end up with a tax bill + interest.

The accommodation and food allowance though are pretty easy to calculate

Pootle

On the first page of the application for a virgin credit card you have to check a box that states you are a permanent resident - so you lied then?

https://apply.virgincreditcard.com.a...%5Fa%5Fcard%2F

Mrs Jackaroo

We got a credit card on a 457 when we first arrived. We applied through NAB online - they only ask if you're 'resident' - they dont stipulate temp or perm

HTH

Dorothy

Never noticed that question. I'm over 40 and it's been 9 months since I filled in the application, so I'm sure I can be forgiven.