james6

Dear all

Me and my family were granted 457 visa and we are looking at going to Queensland in December.

My question is about nursery costs. While on a 457 visa - are we entitled to any kind of rebates towards a nursery? Or is it full fee? If so, what are nursery costs across Queensland per day?

Also, as my wife is pregnant - can we get a free hospital care and avoid paying for private medical insurance which is required at the time of the visa lodgement? I've read couple of things about reciprocal health care agreement but I'm not too sure if we can get it for a something scheduled (is it not only in emergencies?) ?

James

bingobob777

Assuming you are from UK, yes you are entitled to reciprocal health care.

On a 457 you get no childcare rebate, expect to pay $65-$75 a day. In my case my LAFHA makes up for it easily, but that may not always be the case.

james6

Hi bingobob777

Thanks for the answer.
In therms of LAFHA - what's being understood as 'living away from home'?
Do we mean your place of residence in Australia and then when you're working away you can apply for it?

About nurseries. My boy is 3.5 year old, so he attends a free nursery in UK of course. How does it work down under? Are there only private nurseries and then you claim portion of costs from government, providing you're eligible?
Is there an equivalent to pre-school nurseries in UK?
I'm simply afraid that if I send my boy to a creche, I'll no money left, or worse will not be able to send him there at all.

Cheers
James

elice_in_oz

Unfortunately, on a 457 visa, you will not be entitled to ANY government benefits. You cannot claim any childcare rebate at all so you will have to factor in the full cost. If your son goes to a public kindergarten (preschool for 4-year-olds), the fees are not as high as long daycare, but the hours are minimal (think 3 to 4 hours a day for 2 to 3 days a week) and they usually shut down during school holidays. I am in Melbourne so the system might be a bit different in Queensland, but here long daycare can cost anything from $65 to $100/day. Fees are set to rise dramatically in the new years because of new regulations about qualifications of childcare workers and ratios.

You might be able to claim LAFHA through your employer as you will be living away from your usual home home in the UK to work in Australia. Not all employers agree to set it up though though so make sure you check before you fly...

bingobob777

If you're on a 457 you will normally be considered living away from home. This means you may (your employer must administer it) receive an allowance for rent and food that significantly increases the tax free part of your salary, leading to an increase in take home pay.

My oldest was getting 15hrs a week free nursery in Glasgow before we left, but as far as I know it doesn't exist here, especially for temporary visa holders.

On a 457 you are entitled to no benefits at all, none

If I was you I'd get confirmation from your employer if they will administer LAFHA, it will make a decent change to your take home pay and give you a better idea of your budget every month.

Is the nursery for the baby to come or do you have one already, if so what age?

james6

We have a son (3.5 year old). My wife is currently 16 weeks pregnant and she is due on 01/04/2012.
It is absolutely necessary that our son goes to a nursery when we have a new baby.
I really need to check with my employer that they do LAFHA, as it will make a difference.
elice_in_oz has mentioned above that there is a public Kindergarten for 4 year olds. I don't mind that it is not a full day, as long as my son spends time with other children.
Does it mean that for children under 4, there is no public pre-school nurseries?
Also, I thought that it would make a bigger difference if I tell what money I'm on, then you'll be able to advice mo more.
My start salary will be $97.5, then after 5 months 102.5k, and after another 5 months 106.5k
In effect 10 months from a start date I should be at $106.5k (all figures include superannuation) - is that enough so I don't have to worry and mainly if it comes to pay for nursery, will we have enough cash?

Cheers

bingobob777

Can't help you with the public pre-school, never investigated it.

bingobob777

Can't help you with the public pre-school, never investigated it.

On 106k, with two kids, I would expect you to take home about 1k extra a month with LAFHA, so you need to chase it up.

106k is definitely liveable, the biggest chunk of your money will go on rent so you need to start searching on www.realestate.com.au for an idea on what you want and what you are willing to pay.

12 months ago I was going through the same as you and researched over and over, the budget I had has ended up being blown mainly because with the budget of $600 a week I had for rent I couldn't find anything I'd live in, but that was just us, plenty do.

Budget blowers are

rent
shopping - expect $200 a week with 2 young kids, mine are 5 and 3 and we average $230.
gas/electricity - last quarter was $700 for electricity, although that would come down to about $500 without pool pump running

everything else came in pretty much as expected.

elice_in_oz

The public kinder I mentioned is an approved program that gets subsidised by the government as there is a push to have more kids in pre-school although I can't remember whether it is now compulsory or still optional... There are federal funds allocated to childcare (the benefits you can't get on a 457) and state funds that subsidise approved kinder programs. It is different from state to state so don't take my info as gospel as I have only dealt with Victoria.

Have a look at the Queensland Department of Education and Training website and at the CareforKids website. They should give you a starting point but you will most likely have to call the childcare providers directly to check availability and fees.

james6

Sorry to hassle you again
Weekly rent is there anything else included (I heard that you do not pay for water, sewerage, bin collection and pretty council tax is included too)
Cheers
James (Alloa)

bingobob777

My rent includes everything above, I think most do.

Dreamy

With water, you would need to check leases on an individual basis to see what is included. The rental we had (Queensland), the water charges were included upto a very generous usage amount. Some places, you will be responsible for all water usage charges.


With sewerage, it may well depend if you're on a septic tank or connected to the mains I'd imagine that paying for septic tank emptying would be the renter's responsibility, but this would mainly be in more rural areas.

james6

My employer says there is no problem with setting up LAFHA for me.
They has sent me couple of questions, but it's probably just to cover themselves in front of the taxman:

1. Do you intend to stay beyond the 457 visa? (i.e what are your current intentions at this stage)

2. Do you own property or have assets in your current location?

3. Do you own property or have assets in Australia?

4. Are you intending to return to your current location?

I take it's a standard procedure and I should get it no problem on 457 visa?

Now, when deducting rent and food allowance from my original contract - do they substract values according to their factors or is it down to ATO?

Cheers
James

Bermudashorts

I don't understand what you mean by substracting values according to their factors. Can you elaborate...?

And no it is not standard procedure to get LAFHA on a 457, if you have intentions to stay in Australia and apply for a permanent visa for example you are not entitled to LAFHA.

james6

I don't know my intensions right now (we have 457 visa, and believe need some time in there to figure out if we like or not), so at the moment I do not intend to stay permanently in Australia.

But providing that I answer 'No' to that, and all other answers to above questions will be Ok to get it, are there any ohter criteria we have to meet to be eligible for LAFHA?

What I meant is what rent and food allowance my company is going to put in to the amended contract?
Everything varies accross the market, so for rent you could put $400, but may as well $800 pw.
Shall I leave everything to them?
It's just to make sure that they put genuine numbers that reflect the local market.

Also, do they require a confirmation that I do possess a property in my current location?