Income tax on 457 visa?
Apr 16th 2008, 10:00 am
#16
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Re: Income tax on 457 visa?
I think it is a bit of a grey area to be honest. This said, my understanding is that the LAFHA is available to individuals who are living away from their "usual place of abode." In other words there has to be an intention to return from whence you came and you are being compensated for being away. If you don't have a residence in the place from whence you came (the UK) it could be argued that you may not intend to return to England, irrespective of your visa category (which doesn't provide for automatic permanent residency). I don't think it is as cut and dry as you are making out hence a lot of employers not willing to offer it as the tax liability is with them and not the individual.
straight forward, but the LAFHA seems to be a nightmare, and as we are wanting to buy house and stay in Oz permanently, we thought we would just leave well alone, and just be grateful that we aren't placed in a higher tax bracket on account of being temp. This is all based on the assumption we can actually get PR
Apr 16th 2008, 11:38 am
#17
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Re: Income tax on 457 visa?
I think it is a bit of a grey area to be honest. This said, my understanding is that the LAFHA is available to individuals who are living away from their "usual place of abode." In other words there has to be an intention to return from whence you came and you are being compensated for being away. If you don't have a residence in the place from whence you came (the UK) it could be argued that you may not intend to return to England, irrespective of your visa category (which doesn't provide for automatic permanent residency). I don't think it is as cut and dry as you are making out hence a lot of employers not willing to offer it as the tax liability is with them and not the individual.
Apr 16th 2008, 11:41 am
#18
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Re: Income tax on 457 visa?
I think the income tax is pretty straight forward, but the LAFHA seems to be a nightmare, and as we are wanting to buy house and stay in Oz permanently, we thought we would just leave well alone, and just be grateful that we aren't placed in a higher tax bracket on account of being temp. This is all based on the assumption we can actually get PR
straight forward, but the LAFHA seems to be a nightmare, and as we are wanting to buy house and stay in Oz permanently, we thought we would just leave well alone, and just be grateful that we aren't placed in a higher tax bracket on account of being temp. This is all based on the assumption we can actually get PR
Apr 16th 2008, 11:50 am
#19
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Re: Income tax on 457 visa?
Have you asked about LAFHA from your employer? They may be aware of it and if not may be happy to check it out, it really is of no consequence to them financially. It would be worth you claiming it initially while you rent temp accom and until you buy a house, even then you are still eligible for the food element. Until you apply or ask for PR you can claim LAFHA, it is better having the cash in your pocket than the taxmans!
Have not asked sponsor about it, as I'm not sure really what I'm asking about....didn't want to come across as a big numpty
Apr 16th 2008, 11:55 am
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Apr 16th 2008, 12:02 pm
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Apr 16th 2008, 2:10 pm
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Re: Income tax on 457 visa?
Apr 16th 2008, 2:47 pm
#23
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Apr 17th 2008, 1:37 am
#24
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Re: Income tax on 457 visa?
Apr 17th 2008, 1:54 am
#25
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Re: Income tax on 457 visa?
Sorry, you are so wrong. A 457 Visa is a temp residency so therefore the intention to return is mandated whether you like it or not, irrespective of whether you own in the UK. It is not a grey area at all, it is extremely straightforward but some smaller companies are just scared to talk to the ATO to sort it. The food element is statuted based upon size of family, the rental element is based upon a reasonable rental, i.e a single guy renting a 5 bed penthouse at $2000 a week is NOT reasonable, but that is for the company to moderate. The company suffers no tax liability as the food element is completly no Fringe Benefit Tax and the rental element is taken as essential and all it takes is a decent HR/Mobility Coordinator to set it up and agree it with new migrant employees.
Apr 17th 2008, 5:53 am
#26
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Re: Income tax on 457 visa?
Its a pity that this causes so much confusion because it is a valuable source of extra income, for want of a better phrase, to those on a 457. Without it I would not of been able to come over and have my financial obligations met in the UK as well.
A good website to understand all this is the Go Matilda website which has extensive discussions and advice on this. It is run by a ATO registered accountant who is an ex pat himself.
Apr 17th 2008, 6:07 am
#27
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Re: Income tax on 457 visa?
lol.....no need to be sorry!!! But the whole point of being a 457 is that you are only temporary resident, vis a vis Living Away From Home. Therefore ALL 457 visa holders ARE eligible, but, not necessarily all employers are aware or will support that fact! Remember that for an employer to sponsor an employee on a 457 they have to satisfy certain ATO/DIAC/DOE conditions and by satisfying those conditions they automatically make future migrant temporary employees eligible for LAFHA.
Its a pity that this causes so much confusion because it is a valuable source of extra income, for want of a better phrase, to those on a 457. Without it I would not of been able to come over and have my financial obligations met in the UK as well.
A good website to understand all this is the Go Matilda website which has extensive discussions and advice on this. It is run by a ATO registered accountant who is an ex pat himself.
Its a pity that this causes so much confusion because it is a valuable source of extra income, for want of a better phrase, to those on a 457. Without it I would not of been able to come over and have my financial obligations met in the UK as well.
A good website to understand all this is the Go Matilda website which has extensive discussions and advice on this. It is run by a ATO registered accountant who is an ex pat himself.
Apr 17th 2008, 12:28 pm
#28
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Re: Income tax on 457 visa?
I can only comment on our circumstances, NB, but we don't have a house ANYWHERE, the company is viewing it as a permanent move, i.e., relocation was a one-way deal, but it has got us a 457 to get us there quickly, and is arranging a LAFHA for us.
Our original intention was to go for PR ASAP but due to the LAFHA we're going to take advice from a third party tax accountant; it's possible that we'd be better off on the 457 as long as practical (no kids to school).
It sounds possible that you've been badly advised or intentionally misled.
Our original intention was to go for PR ASAP but due to the LAFHA we're going to take advice from a third party tax accountant; it's possible that we'd be better off on the 457 as long as practical (no kids to school).
It sounds possible that you've been badly advised or intentionally misled.
Apr 17th 2008, 12:33 pm
#29
Gutter Gob!!
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Re: Income tax on 457 visa?
I can only comment on our circumstances, NB, but we don't have a house ANYWHERE, the company is viewing it as a permanent move, i.e., relocation was a one-way deal, but it has got us a 457 to get us there quickly, and is arranging a LAFHA for us.
Our original intention was to go for PR ASAP but due to the LAFHA we're going to take advice from a third party tax accountant; it's possible that we'd be better off on the 457 as long as practical (no kids to school).
It sounds possible that you've been badly advised or intentionally misled.
Our original intention was to go for PR ASAP but due to the LAFHA we're going to take advice from a third party tax accountant; it's possible that we'd be better off on the 457 as long as practical (no kids to school).
It sounds possible that you've been badly advised or intentionally misled.
Apr 17th 2008, 12:38 pm
#30
Auntie Fa
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Re: Income tax on 457 visa?
Yup, something we'll have to weigh up - and my original reason for wanting to go straight for PR, as I know from our first few years in Sg (pre-PR) just how insecure you can feel.