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employment contract / job offer advice HELP!

employment contract / job offer advice HELP!

Old Jul 3rd 2010, 7:46 am
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Default employment contract / job offer advice HELP!

husband just received his job offer and contract on a 457 visa for a senior role in a construction company but we have some questions.....
the salary figure shown is gross but then subdivided with the following additions:
salary $111k + 10% super
$20k + 10% super car allowance
$26k lafha
total $170k (packaging)
20 days holiday
basic medical insurance for husband only
(relocation package good inc 6 weeks accom flights container)
6 months probation / full repayment of relocation costs ?!


can anyone explain lafha for me as I thought it was an allowance paid by the goverment to offset total tax payable ie to cover rent and food etc. For example 150k salary only taxed on 80k therefore the gov pay the allowance. Our offer seems to imply the company pay the allowance as the 26k is paid as a tax free amount each month????
if we decide to go for PR we would loose the lafha giving a basic salary of 110k.
the car allowance seems generous but will this be taxed at the higher rate and can we claim mileage rate for petrol on top

the 20 days hols is low compared to the 26 we currently get, is 20 days normal. also sickpay seems capped to a max number of days ?!
There is also no death in service just ship his remains plus family home!!!

I think the company have every loophole covered.....

I would appreciate any help/advice on any of the above matters as we have a lot to consider before we commit..
thanks
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Old Jul 3rd 2010, 8:57 am
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Default Re: employment contract / job offer advice HELP!

Originally Posted by heldownunder View Post
the 20 days hols is low compared to the 26 we currently get, is 20 days normal. also sickpay seems capped to a max number of days ?!
There is also no death in service just ship his remains plus family home!!!
20 days is usual here for holidays and sick pay is capped (generally at 10 or 12 days although if you don't use it you can usually carry it forward).

Life insurance is normally paid for using Super money here (you can opt out of that and get it separately if you want) but I have never seen anything like death in service.

Can't help around LAFHA.
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Old Jul 3rd 2010, 8:59 am
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Default Re: employment contract / job offer advice HELP!

$110k seems low for a senior role in a construction company...
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Old Jul 3rd 2010, 4:41 pm
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Default Re: employment contract / job offer advice HELP!

LAHFA = living away from home allowance, what was is it you are unsure about on that? Check out http://www.lafha.com.au/Home.aspx should answer any questions?

What company is it, role type and where based? Sounds like they envisage fair bit of working away. PM me if you'd rather not post info like this.

He's done well to be offered construction position before arriving in the country , did he go through telephone interviews etc?

All the best
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Old Jul 3rd 2010, 7:49 pm
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Question Re: employment contract / job offer advice HELP!

Hi all. thanks for all your responses...

Job offer with one of the biggest contactors in Aus ?!, the role is planning manager for a major scheme.... yes have had a couple of phone interviews and numerous references, then emailed offer..

Regards LAFHA, I thought it is a % of tax relief given for living away from home by the gov to compensate for food and accommodations costs ?? i.e. I simply have a high tax free allowance, therefore reducing my tax bill and giving me more money in my pay check. My package seems to imply that the Lafha is paid entirely by the company and not as tax relief from the gov...is my understanding correct ?? I believe the company are trying to boost the appearance of my salary by making out it is their money ??!

Regards the car allowance, I assume the figure stated is gross of tax and will be greatly reduced as a take home pay amount ?
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Old Jul 3rd 2010, 9:21 pm
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Default Re: employment contract / job offer advice HELP!

[QUOTE=heldownunder;8675566Job offer with one of the biggest contactors in Aus ?!, the role is planning manager for a major scheme.... yes have had a couple of phone interviews and numerous references, then emailed offer..
[/QUOTE]

You are vulnerable on a 457 visa. Why are they not sponsoring you to migrate?
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Old Jul 3rd 2010, 9:55 pm
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Default Re: employment contract / job offer advice HELP!

Originally Posted by JAJ View Post
You are vulnerable on a 457 visa. Why are they not sponsoring you to migrate?
Am just 45.... I think we need it written in contract in someway if they are happy with me...???? Although at the mo we see it as a 3-4 year plan not as a forever..... But having two young children does make us seem vulnerable....
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Old Jul 3rd 2010, 9:58 pm
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Default Re: employment contract / job offer advice HELP!

If you have kids and the offer is for NSW/ACT then budget an extra $4.5k/$10k pa per child respectively into those figurings
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Old Jul 4th 2010, 6:34 am
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Default Re: employment contract / job offer advice HELP!

what scheme and where if you dont mind me asking? I ask as i work for one of the major construction companies in a senior management role feel free to PM me, and I may be able to give you some advice..

i know in my HR they got a little confused with Aus LAFHA and International LAFHA and it took alot (and I mean alot) of explaining until the GM of HR realised what was going on and sorted it out...
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Old Jul 4th 2010, 10:51 am
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Default Re: employment contract / job offer advice HELP!

Companies love 457 LAFHA because it essentially allows them to pay an employee less with the employee actually receiving more money. How it works is you will have your base salary, then the LAFHA is taken away and you are taxed on that amount, then the LAFHA is paid directly without paying tax. It is beneficial to you as essentially you earn more because you pay less tax, the company also effectivly pays you less than someone without LAFHA with the tax free amount making up the payment. Look at the base salary, that's your wage, they're making the LAFHA look like an amount paid on top but it isn't extra. Either way you're better off on LAFHA, however you will lose it when/if you apply for PR.

Be careful with construction companies too where you are working. A lot of construction requires you to relocate to places outside of your city etc and a LAFHA will also apply, usually a lot more than 457 LAFHAs. Companies can't pay you two so you may find you'll have to give up one or pay tax on it.
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Old Jul 4th 2010, 11:09 am
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Default Re: employment contract / job offer advice HELP!

Originally Posted by JAJ View Post
You are vulnerable on a 457 visa. Why are they not sponsoring you to migrate?


Being a current 457 holder and one who has had the contract terminated, without any warning, I strongly recommend you ask for PR.

I will never ever advice anyone to come here on 457, specialy when you have a family...

No safety net, when you are most likely to leave everything to come over...

Also a lot of backstabbing in this country...You need some assurances.
'
Good luck
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Old Jul 4th 2010, 4:52 pm
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Default Re: employment contract / job offer advice HELP!

Syedney sorry to hear about your predicament - how common is that and can I be cheeky and ask what profession you are in??

Thanks for all the other advice

Working it out we feel the salary can work for us but are still confused with the whole two salary thingy of salary and lafha -

so still more questions:

do we need an overall salary in the contract in case we do decide to stay?

also should the contract specify four years and include return flights and shipping??

what is the difference between australia lafha and worldwide lafha?

do people pay into private pensions and can we take that home without losing too much or are we best just saving and investing on our return??? I believe we get super - tax on return to UK?

the contract seems very precise about x and y but that probably is because we read it in more detail as obviously more vulnerable in Oz than here...

can I also ask does any one else have the experience of just coming over for 3/4 years for a lifetime experience as most people seem to want permenant residence or are we as my parents say just 'irresponsible and selfish' to go away with young children and at our age (39-45)???

many thanks for all the useful advice - we have a week to come to a huge decision - and my parents have already disowned us as they cant stand the pain- and will definately say I told you so!!!

thanks again for all the useful advice
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Old Jul 4th 2010, 6:09 pm
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Default Re: employment contract / job offer advice HELP!

Originally Posted by Syedney View Post
Being a current 457 holder and one who has had the contract terminated, without any warning, I strongly recommend you ask for PR.

I will never ever advice anyone to come here on 457, specialy when you have a family...
Good advice, normally. The 457 is really only for those cases where the move has a definite time limit and everyone is ok to go home at the end.

Also one should bear in mind that while the company's sponsorship is normally needed for PR, that on its own isn't enough. It's quite hard for many 45+ persons to get PR (not impossible but better to get it straight away) and immigration rules can and do change over time. Family circumstances also change.
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Old Jul 4th 2010, 8:19 pm
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Default Re: employment contract / job offer advice HELP!

I have also not realised we have to pay medicare.....this is not dubgeted for

husband - basic hospital basic medical costs only - does he need private??

but no cover for myself and two young children.... what will we be charged for medicare ??? plus private??? dental?? optician??
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Old Jul 5th 2010, 12:19 am
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Default Re: employment contract / job offer advice HELP!

Originally Posted by heldownunder View Post
Syedney sorry to hear about your predicament - how common is that and can I be cheeky and ask what profession you are in??


I am .net specialist, with skills stretching to BizTalk, JQuery, JQTouch, Java, Android, CSS3, Ajax, Unity3D, CRM etc... I built so many apps for this sponsor, apps that are STILL making money both here and in UK. Built them Android App that stream World Cup games, which is being shown as Optus ad during the World Cup fixtures.

Thanks for all the other advice

Working it out we feel the salary can work for us but are still confused with the whole two salary thingy of salary and lafha -

Don't be confused about LAFHA...That's the one good thing about 457. MAKE SURE YOU GET LAFHA WRITTEN DOWN IN BLACK AND WHITE

I had a verbal agreement in UK but when I came over here the company turned on its word, and even though I hired an expert to explain to them that it doesn't cost the company anything apart from admin fee to setup - which I was prepared to pay anyway! -- they still refused to pay LAFHA.






so still more questions:

Make sure you understand that if you're coming to NSW ypu have other fees to pay, like child's schooling is $4,500 per year



do we need an overall salary in the contract in case we do decide to stay?

also should the contract specify four years and include return flights and shipping??

Return flights is part of the 457 obligations that DIAC imposes on the sponsor, so they like it or not, they must pay for it! But get it in writing as immigration laws changes so much here!

Shipping cost is a great plus and has to be negotiated, so go ahead add to the contract!


what is the difference between australia lafha and worldwide lafha?

do people pay into private pensions and can we take that home without losing too much or are we best just saving and investing on our return??? I believe we get super - tax on return to UK?

When you leave AUS, DIAC give you a certificate which you give to the super company, they will pay you straight away (so I am told, not there yet!)



the contract seems very precise about x and y but that probably is because we read it in more detail as obviously more vulnerable in Oz than here...

can I also ask does any one else have the experience of just coming over for 3/4 years for a lifetime experience as most people seem to want permenant residence or are we as my parents say just 'irresponsible and selfish' to go away with young children and at our age (39-45)???

Coming here, even with all the problems we had, has been an eye opener, a joy in lifestyle, and my little girl has absolutely turned from shy and withdrawn to being forthright, outgoing and sociable so don't be so hard on yourselves -- just make sure you cover all basis


many thanks for all the useful advice - we have a week to come to a huge decision - and my parents have already disowned us as they cant stand the pain- and will definately say I told you so!!!

thanks again for all the useful advice

Mate, no worries. I really wish you the best and don't want to be frightened but be cautious.

Please see my answers in bold above.

Last edited by Syedney; Jul 5th 2010 at 12:38 am.
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