Claiming one return flight to UK off tax for 457?
Jul 8th 2009, 8:10 am
#1
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Claiming one return flight to UK off tax for 457?
I heard a rumour you can write off the cost of one return flight home a year if you are a 457 visa holder against your tax. Has anyone actually done this?
Jul 8th 2009, 9:58 am
#2
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Re: Claiming one return flight to UK off tax for 457?
However, my doubt is based on the requirement for a 457 visa holders travel to be paid by the employer.
Your employer is responsible for ensuring that the cost of return travel to your home country for you (and accompanying family member/s) is met.
http://www.immi.gov.au/skilled/faq-subclass-457.htm
http://www.immi.gov.au/skilled/faq-subclass-457.htm
Jul 8th 2009, 10:48 am
#3
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Re: Claiming one return flight to UK off tax for 457?
Worth checking out.
J
Jul 9th 2009, 2:07 am
#5
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Re: Claiming one return flight to UK off tax for 457?
Busy time of year ....
It's not claimable in the way jimbo_d and James_SC think! They can't book flights to the UK - and then include the cost as "travel" on their tax return. That's not possible.
But when the employer sets up the LAFHA before the employee starts, they could theoretically and if the circumstances are right include "a reasonable amount" for a flight back home once a year. You know that LAFHA has set rates for food. But for accommodation and other things, it needs to be a "reasonable" amount - and this is of course open to interpretation. In the case of a married person, who comes to Oz, but leaves their spouse and kids behind, it could be argued that it is "reasonable" they fly home once a year - and hence "a reasonable amount" to cover the flight cost could be included in the LAFHA.
In reality, few employers are likely to do that though. With LAFHA, if the ATO investigate someone and decide certain amounts included in the LAFHA were "not reasonable", the employer has to then pay Fringe Benefit Tax. In other words, the risk is entirely on the employer! Therefore, employers tend to stick to food and rent for inclusion in the LAFHA as there is very little risk that the ATO would argue against them.
It's not claimable in the way jimbo_d and James_SC think! They can't book flights to the UK - and then include the cost as "travel" on their tax return. That's not possible.
But when the employer sets up the LAFHA before the employee starts, they could theoretically and if the circumstances are right include "a reasonable amount" for a flight back home once a year. You know that LAFHA has set rates for food. But for accommodation and other things, it needs to be a "reasonable" amount - and this is of course open to interpretation. In the case of a married person, who comes to Oz, but leaves their spouse and kids behind, it could be argued that it is "reasonable" they fly home once a year - and hence "a reasonable amount" to cover the flight cost could be included in the LAFHA.
In reality, few employers are likely to do that though. With LAFHA, if the ATO investigate someone and decide certain amounts included in the LAFHA were "not reasonable", the employer has to then pay Fringe Benefit Tax. In other words, the risk is entirely on the employer! Therefore, employers tend to stick to food and rent for inclusion in the LAFHA as there is very little risk that the ATO would argue against them.
Last edited by ozhappy981; Jul 9th 2009 at 2:09 am.
Jul 9th 2009, 3:26 am
#6
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Re: Claiming one return flight to UK off tax for 457?
Busy time of year ....
It's not claimable in the way jimbo_d and James_SC think! They can't book flights to the UK - and then include the cost as "travel" on their tax return. That's not possible.
But when the employer sets up the LAFHA before the employee starts, they could theoretically and if the circumstances are right include "a reasonable amount" for a flight back home once a year. You know that LAFHA has set rates for food. But for accommodation and other things, it needs to be a "reasonable" amount - and this is of course open to interpretation. In the case of a married person, who comes to Oz, but leaves their spouse and kids behind, it could be argued that it is "reasonable" they fly home once a year - and hence "a reasonable amount" to cover the flight cost could be included in the LAFHA.
In reality, few employers are likely to do that though. With LAFHA, if the ATO investigate someone and decide certain amounts included in the LAFHA were "not reasonable", the employer has to then pay Fringe Benefit Tax. In other words, the risk is entirely on the employer! Therefore, employers tend to stick to food and rent for inclusion in the LAFHA as there is very little risk that the ATO would argue against them.
It's not claimable in the way jimbo_d and James_SC think! They can't book flights to the UK - and then include the cost as "travel" on their tax return. That's not possible.
But when the employer sets up the LAFHA before the employee starts, they could theoretically and if the circumstances are right include "a reasonable amount" for a flight back home once a year. You know that LAFHA has set rates for food. But for accommodation and other things, it needs to be a "reasonable" amount - and this is of course open to interpretation. In the case of a married person, who comes to Oz, but leaves their spouse and kids behind, it could be argued that it is "reasonable" they fly home once a year - and hence "a reasonable amount" to cover the flight cost could be included in the LAFHA.
In reality, few employers are likely to do that though. With LAFHA, if the ATO investigate someone and decide certain amounts included in the LAFHA were "not reasonable", the employer has to then pay Fringe Benefit Tax. In other words, the risk is entirely on the employer! Therefore, employers tend to stick to food and rent for inclusion in the LAFHA as there is very little risk that the ATO would argue against them.
