tommya

Hi all, nice site here ,
has anyone ever got LAFHA as an aussie citizen?
I was in oz for a while a few years back , got married ( to an aussie ) , got oz citizenship , returned to UK ,and am now back to oz for a contract. It was suggested to me to try for LAFHA but it seems a bit dodgy but maybe worth a try?
To be honest I don't know if we are here for good or not this time and we dont own property here or there but as dual citizens it seems a bit cheeky !
cheers for any advice

lonndongeek

LAFHA isn't exclusively for immigrants, it's applicable if you're Living Away From Home.

Speak to an accountant if you're unsure.

Cheers

Steve

ABCDiamond

This is an interesting one, but I am sure the rules will be enforced rigidly for an Australian citizen, unlike a temp visa holder.

The main rule is that it is applicable as long as it is your intention to return back to your normal place of residence after the contract expires.

itigo

It's just a living away from home allowance. So if your intention is to return back to your original city/town, then you can claim.............Doesn't matter if you're Australian or not.

Vegemite Kids

As far as I'm aware, LAFHA is for anybody employed by a company in Australia who is living away from their main residence (house / physical building - not country) regardless of their nationality.

I work for a large multinational company with offices on both East and West Coasts and its standard practice for us to pay LAFHA to any employee asked to transfer cross country to a different office. We have quite a few Sydney people in our Perth office at the moment that are being paid LAFHA, and they are mainly OZ born and bred.

The main criteria for if you get LAFHA is not your nationality, or your visa class. Its paid out based on the assumption that you are temporarily living away from home and have the intention to return to your point of origin at the end of the job.

So if you plan to move here permanently and have already sold your home in UK, then regardless of your visa class or nationality, you wont get LAFHA. (Cos you have no home that you are living away from. You sold it). But if you have kept your home in UK and can show that you intend to return there at a certain point, then it will be easy for you to demonstrate that this is a temporary move and thus you can claim LAFHA.

Vegemite Kids

Not quite true

You have to still have a physical residence in your original city / town to claim LAFHA.

Its paid to cover the cost of running a second home temporarily and ensure you suffer no hardship by making the temporary move on behalf of and at the request of your employer. If you've sold the first house in your orginal location then you dont have those costs and aren't eligible for LAFHA. Simple really.

tommya

Ta for all advice.
i suppose its dodgy that i own no property in the UK but its not fair on lifetime renters then!
I'm currently thinking that the worst that can happen is I am audited and have to pay it back.

Vegemite Kids

... and receive a fine and possible prison sentence for deliberate fraud????

Still its your call. If you are that desperate for money that you would consider doing something you KNOW is fraudulent, then you need more help than I or anyone here can give. Go see a financial advisor.

ABCDiamond

and don't forget the interest...

That's the best advice.

AlliF

Not true - if you are here on a temp visa you do not need to have a physical presence in your original city/town to claim LAFHA. We did and had both sold our properties prior to coming across. It is the intention to return that counts - and that is proven by the fact that the visa is temporary, therefore move is only temporary. If you apply for a permanent visa you then become ineligible for LAFHA. You could still have a house in the UK or not.
Obviously the temp visa situation doesn't apply to the OP but if his company deems his contract is for a finite period of time he may be eligible(but would def seek professional advice on it and not just chance it!)

ABCDiamond

Whereas if you are an Australian citizen, residing in Australia, you may well need to prove that you do have something to return to...

eg: If we sold up in QLD and went to work in WA, could we claim LAFHA, even if we said we would buy again when we return ? Something that many Australians do all the time, yet do not claim LAFHA, but could they, using the same rules as overseas temp workers ?

iamthecreaturefromuranus

Not quite the same though is it? WA isn't going to kick you out of the State at the end of a temp contract... unlike those on 457's.

ABCDiamond

The OP is not on a 457, but an Aussie citizen, hence the interest in this particular situation.

The rules do state though that it is the intention to return that counts.

Following these rules to the letter can open an interesting can of worms.