LCT

Hi there,

Can anyone offer any advice on the eligibility for LAFHA of people on a working holiday visa and also whether it is financially beneficial for people to apply.

Does claiming LAFHA have an adverse effect on tax rebate entitlements when leaving the Country?

Many thanks!

ABCDiamond

Not available on a working Holiday visa.

This visa is designed for a holiday, supplemented by short-term employment.

Geelong Gent

What about people sponsored on a PR visa?

ABCDiamond

PR = Permanent resident, therefore if they don't need to work away from home, their new home, they would not get LAFHA.

However, if they moved to Sydney, but worked in Perth, then they would get it.

lapin_windstar

Naughty recruitment agencies in Sydney have been pushing LAFHA on non-PR/non-citizen employees even when they are not entitled to it. It will end in tears...(or maybe it won't, actually, but all the same it shouldn't be done).

comet555

There's nothing wrong with temporary residents on a 457 visa getting LAFHA.

paddyo

Naughty??? I don't understand. As a Non Pr/Citizen then you MAY be eligible if you are on a sponsored business visa e.g. 457 Visa. Obviously working holiday visa doesn't get it because the 'holiday' aspect of it cancels it out.

Steve2009

Perhaps it might happen, but given that the practice is widespread I'm not sure how the ATO would resolve it. The administration costs would outweigh the revenue generated. You will have been taxed less, so will have less to claim back obviously. Perversely, you may be elligible for a hardship rebate because your taxable salary will be so low. LAFHA is deducted from your salary at source meaning that it comes out of your before tax salary.

lapin_windstar

Sorry - I phrased that ambiguously. I mean that agencies had been recommending that people claim it even when they were not entitled to it for the simple reason they hadn't been living away from home! Not directly to do with visa status (although they were also recommending claiming LAFHA to working holiday visa holders too).

I don't know - there are lots of little scams and dodges that "everyone does" but it doesn't mean that they're legit, all the same. Presumably some of them get caught. I have no idea what the audit rate for income tax returns is and no idea if it's a hot topic with the ATO. I know practically nothing about the ATO and how it works, frankly - hence my reference to maybe it won't end it tears after all.