towers

I tidied-up/simplified/updated/improved (excuse the modesty) someone else's excel sheet with rules and built in calculations - you can find it attached below.

Have added in the websites you can find the latest info (2011 tax breakdown, 2011 food component etc.) necessary to create an accurate picture of your take home pay before and after LAHFA as well as how it affects your super.

I have it set at $100,000, but tinker away and you might find it useful - if anything it shows just how damn important it is to get LAFHA in your contract.

My new CFO approved it but if anyone spots any errors let me know!

Angel07

HI Towers

Sorry I think I'm still totally confused over LAFHA

But without LAFHA and getting 100k before tax are you saying you will only come out with 3929 a month after tax? That can't be right?

Steve2009

LAFHA is not salary/wages, it's a fringe benefit. So yes, you get $3,929 after tax wages plus your LAFHA fringe benefit of $3,419, which totals $7,348 into your pocket each month. Be careful that your 'salary/wages' does not come in under the minimum for your visa, you may need to limit your LAFHA to ensure you keep above this level.

towers

Steve2009 has hit it on the head there.

Essentially what ever your LAFHA amounts to - in this case $41,028 - is paid as an untaxed sum directly to you. This sum is deducted from your original salary of $100,000; leaving you with a $58,972 salary instead. This is then taxed as per the norm - and as it is significantly less than the original amount it is taxed differently (as you're no doubt aware you tend to get taxed less the less you earn.)

That's a bingo!

Steve2009

Based on the new minimum salary level requirements for 457 holders it seems difficult to claim much LAFHA. If you claim any significant amount then your wages would be significantly less than a comparable Australian worker and your nomination would be denied. How does this work?
http://www.immi.gov.au/skilled/457-m...lary-rates.htm

towers

hang on - does that mean 81k is the base? - bugger

Steve2009

Those were the interim rates for those nominated pre-September 1999. Current rates are supposed to be determined with respect to your comparable colleagues or failing that an industry award.

towers

Still a little confused - from your understanding are my calculations correct - or have I overreached the LAFHA I'm allowed even though my taxable income is around 58k follow the separation?

Steve2009

I think 81k was only for non-english speakers, I assume this is for highly skilled specialists. I don't know how the new system works but under the old system you would have breached the minimum salary requirement for ICT workers for example.

towers

Well as I'm not an ICT worker the $45,220 level for all other 457 visas would have suited me down to the ground - surely the new system cant vary so widely from the original?

Steve2009

If it didn't then they wouldn't have changed it.

I think the new system has a ridiculous level of ambiguity. I was never subject to it so I can't answer your question unfortunately.