LAFHA
#16
BE Enthusiast
Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: LAFHA
As my lease hire is via a company Novated Lease scheme and is thus a benefit tax wise, it was easy for me and my company have a decent set up now. It works out for us cost wise and we chose a 2nd hand over a brand new in order to keep within my salary levels. We have a 2006 Nissan XTrail and costs me $750 dollars out of my salary but is inclusive of EVERYTHING!! Fuel, insurance, tax everything!! I was tempted to get a brand new Honda CRV but at the end of the day, practicality and tax rules pushed us the other way!
#18
BE Enthusiast
Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: LAFHA
by the way..did you get an accountant to advise you or did the company hr people sort you out?
#19
Re: LAFHA
My original offer included LAFHA plus Novated Lease options and my whole package, including pay and Super, was wrapped around it. I am fortunate in that my package was devised by ex pats colleagues who have been in the same position so knew what to look for and also our HR is very familiar with foreign employees coming in.
You have to understand that I am over here in a consultancy role and was head hunted by former colleagues to join them. I am not saying that to look grand but to emphasize that everything was put on a plate for me to make it more attractive.
#20
BE Enthusiast
Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: LAFHA
advise me on what?
My original offer included LAFHA plus Novated Lease options and my whole package, including pay and Super, was wrapped around it. I am fortunate in that my package was devised by ex pats colleagues who have been in the same position so knew what to look for and also our HR is very familiar with foreign employees coming in.
You have to understand that I am over here in a consultancy role and was head hunted by former colleagues to join them. I am not saying that to look grand but to emphasize that everything was put on a plate for me to make it more attractive.
My original offer included LAFHA plus Novated Lease options and my whole package, including pay and Super, was wrapped around it. I am fortunate in that my package was devised by ex pats colleagues who have been in the same position so knew what to look for and also our HR is very familiar with foreign employees coming in.
You have to understand that I am over here in a consultancy role and was head hunted by former colleagues to join them. I am not saying that to look grand but to emphasize that everything was put on a plate for me to make it more attractive.
#22
BE Enthusiast
Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: LAFHA
advise me on what?
My original offer included LAFHA plus Novated Lease options and my whole package, including pay and Super, was wrapped around it. I am fortunate in that my package was devised by ex pats colleagues who have been in the same position so knew what to look for and also our HR is very familiar with foreign employees coming in.
You have to understand that I am over here in a consultancy role and was head hunted by former colleagues to join them. I am not saying that to look grand but to emphasize that everything was put on a plate for me to make it more attractive.
My original offer included LAFHA plus Novated Lease options and my whole package, including pay and Super, was wrapped around it. I am fortunate in that my package was devised by ex pats colleagues who have been in the same position so knew what to look for and also our HR is very familiar with foreign employees coming in.
You have to understand that I am over here in a consultancy role and was head hunted by former colleagues to join them. I am not saying that to look grand but to emphasize that everything was put on a plate for me to make it more attractive.
#23
BE Enthusiast
Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: LAFHA
read your comments..
we are heading out to manly..how are you finding it? is it safe enough on the whole..(of course everywhere will have issues)
#24
Just Joined
Joined: Aug 2008
Location: Aberdeenshire, Scotland
Posts: 2
Re: LAFHA
Eligibility is based upon temporary residency in the first place, if you are coming over on a perm res then you will not get LAFHA.
Secondly, a mininum taxable salary (MTS) level will have been set by the ATO for your particular trade/profession, ostensibly this means that this MUST be your taxable salary after all other fringe benefits and allowances have been accounted for. For example, your MTS is $42500 p.a. and you had a Novated Lease vehicle and LAFHA and those amounts equate to say $55000 p.a., then that means that you would have to earn $97500p.a. as a base package, before Super, to be able to have full LAFHA. If your package was lower then you could still be entitled to LAFHA but the rental element would be reduced to ensure you keep within the MTS level.
All that may not make too much sense unless you have a full breakdown of your salary etc, but, suffice to say, if you can get LAFHA and you are on a temp visa then grab it!!
If their own HR have no experience or knowledge of LAHFA use then it will be complicated only because of their ignorance. It is very common incentive and there will be lots of advice about it. Alan Collett of go matilda dot com might be able to offer a far more eloquent reply than the once I have tried to provide.
Secondly, a mininum taxable salary (MTS) level will have been set by the ATO for your particular trade/profession, ostensibly this means that this MUST be your taxable salary after all other fringe benefits and allowances have been accounted for. For example, your MTS is $42500 p.a. and you had a Novated Lease vehicle and LAFHA and those amounts equate to say $55000 p.a., then that means that you would have to earn $97500p.a. as a base package, before Super, to be able to have full LAFHA. If your package was lower then you could still be entitled to LAFHA but the rental element would be reduced to ensure you keep within the MTS level.
All that may not make too much sense unless you have a full breakdown of your salary etc, but, suffice to say, if you can get LAFHA and you are on a temp visa then grab it!!
If their own HR have no experience or knowledge of LAHFA use then it will be complicated only because of their ignorance. It is very common incentive and there will be lots of advice about it. Alan Collett of go matilda dot com might be able to offer a far more eloquent reply than the once I have tried to provide.
Do we make sure the LAFHA is mentioned in the Contract and sort out all the details once we get to OZ?
or
Do we get in touch with the ATO now, to see if we are eligible , so all details/values etc are in the agreed Contract?
My gut feeling is to make sure LAFHA is mentioned in the final Contract and arrange all the final details once we get to Oz......but I would like any other opinions before we make our final decision.
Cheers
Gill
#25
Re: LAFHA
i got offered the job on the phone..and lafha was mentioned..but when the paperwork turned up there was no mention of the lafha..so have spoke to the company and they said they will sort out lafha when i arrive..but its all a bit confussing in trying to work out how much i may or may not be entitled to..
#26
Re: LAFHA
It is great in Manly, they have reduced pub hours to shut at 2.30am to try and combat drink related issues, but, no worse than any UK seaside town. Bear in mind, if you are out and about at 1 in the morning drinking then you are going to see stuff going on, just like anywhere else. I have not seen any problems at all but then again I am not too much of a night owl these days when it comes to drinking! Its an age thing!! lol
#27
Re: LAFHA
Thanks for your response Paddyo, We are heading over on a 457 Visa (for 4 years) and my OH's salary will be more than the $97,500p.a after Super. We will also be keeping leasing out our house in the UK ....incase we ever come back to the UK, so from what I have read on BE I don't see why we would not be entitled to LAFHA. The company my OH has as offer from is a worldwide engineering company, and I know they have already employed several expat's so I am presuming we not the first to mention LAFHA. That's why I was a little confused about their response and hence my original questions:
Do we make sure the LAFHA is mentioned in the Contract and sort out all the details once we get to OZ?
or
Do we get in touch with the ATO now, to see if we are eligible , so all details/values etc are in the agreed Contract?
My gut feeling is to make sure LAFHA is mentioned in the final Contract and arrange all the final details once we get to Oz......but I would like any other opinions before we make our final decision.
Cheers
Gill
Do we make sure the LAFHA is mentioned in the Contract and sort out all the details once we get to OZ?
or
Do we get in touch with the ATO now, to see if we are eligible , so all details/values etc are in the agreed Contract?
My gut feeling is to make sure LAFHA is mentioned in the final Contract and arrange all the final details once we get to Oz......but I would like any other opinions before we make our final decision.
Cheers
Gill
I have attached a couple of files which may help, play with the figures on the net pay example to match your salary expectations and see what the results come up with!Net Pay Calc 2008_Example.xls
The_Living_Away_From_Home_Allowance.pdf