Income tax
 

I am negotiating a total income of $150k. I anticipate at least 50k would be for accomodation. Is there any way I could get a tax break for this?

Alternatively, if my employer paid me less and effectively paid for my accomodation, would I have to pay tax on the total rental?

Thanks.

Re: Income tax
 

We need a few more clues, tamaja.

Will you be on a 457 or PR, for starters? If you are on a 457, you need to ensure your employer sets up LAFHA for you; it's worth a fair bit, tax-wise.

Search the site for previous discussions.

Re: Income tax
 

I would prob be on PR visa. I was on the impression that LAFHA would not be applicable because I am voluntarily leaving my employment in UK to take a new employment in Sydney.(?)

Re: Income tax
 

If you are on a PR visa, you are correct - no LAFHA - but coming voluntarily is not relevant, just the type of visa.

Sorry I don't know anything about tax breaks as PR - I'm sure people in a similar position will comment but your best bet is to employ a good tax accountant as it really is all about minimising it here.

Re: Income tax
 

Talk to your prospective employer about the LAFHA but regardless if they pay for the accomodation you get a benefit by salary sacrifice. ie instead of paying higher rate of tax on 150k you pay a lower rate on the $100k

When you select a vehicle apply the same logic ie annual lease of say $3k per month $36k lowers the $100k to $64k

Also review FBT implications, but I am sure your prospective employer will provide more specific details on this.

Re: Income tax
 

As my employer does not usually make overseas appointments, I'm not sure how much advice I will get from them.