Tramps_mate

I cant believe some people are so reliant on LAFHA to the point of not affording to carry on supporting themselves. Were the jobs that badly paid to start with taking normal PAYE tax off of them?

rld1177

A really good point. I just signed an 18 month on the assumption I wouldnt get LAFHA even though our Big 4 tax consultant kept telling everyone there was an 'off the record, strong case' for transitional arrangements. As you point out, we had international hires I understand signing one year leases prior to the reforms being annouced last year - some two years to lock in rent. Most people I know are on reasonable rents but they did it with the assumption they have more extra to do basic things for their kids, take a vacation etc, I dont many 457's will be out on the street with the kids but there will be a lot more eating at home with the family and stay-cations I think.

I am actually interested if there is an legal recourse here - my firm emailed 457's saying the are exploring 'ways to help with the transition' since the government won't. Maybe that means interest free loans or salary reviews - because currently like it or not firms are using LAFHA and thinking about 'take home' when they pay us - I just found out this week I am underpaid by about 1/3 vs two other Aussie's because I didnt fully understand local market rates - with LAFHA this was not so material - now it is. Companies get around the 'fair pay' and banding stuff by just bringing a 457 in as say a senior manager vs a director and paying them near top band, whereas if they had brought them in on the 'true job level' a lot of 457's would be underpaid. Of course someone on here will again trot out the 'I know a guy paying 2000 a week on lafha' etc etc but too much of this argument and government policy seems based on exceptions to the rule - most 457's are not rich.

Again, I would have thought a transition arrangement for at least familes earning up to a cap level - say 120K, of a year maybe, would not have broken the budget. I am single and dont mind losing it - anbd they clearly had enough play in this budget to add yet more handouts to the middle class and families to buy future votes, and to offset the carbon tax making it yet another stealth tax on the 'well off', so I am quite shocked even this wasn't done.

cubeonly

Great point. The companies, by dangling LAFHA as a carrot and putting it in their employment contracts, are selling a net rate/salary to the foreign candidate for a post, and not selling the gross rate/salary. Now that LAFHA is being shelved, they will resort to selling the gross rate/salary, and will attract no-one. Ha ha ha my heart bleeds for them. Sod 'em.

I've just received a positive email on a job I applied for online half an hour ago, for - one year in Aberdeen then on site in Indonesia, on a Saturday! Bye bye Australia!

bingobob777

It's going to cost me $1300 a month, for some people it will be more. My wife works so all it means is we send less back to the UK. But I know two guys who moved over and their partner stay at home looking after the kids, for them it is a case of the LAFHA being their spending money each month. No grannies here to allow the mum to go to work, so they'll be going home.

Can you afford to lose that much?

bingobob777

They're missing the fact that most 457 Visa holders are working in the only industries keeping Australia out of recession, industries that even with LAFHA couldn't attract enough staff.

as someone else said, lots of 457 Visa holders come for money only, without it many won't bother.

Amazulu

adios

Beoz

I came for the money .... without LAHFA. I don't need LAHFA to be paid higher than I was in the UK or any other place in the world at this point in time.

I think your point is a dramatisation. Those industries you refer to are probably decendents of the mining industry, which will continue to pay salaries above the normal, because they have massive profits and can afford to.

LAHFA is not designed to help companies attract staff. Companies will have to find other methods now - like putting their hands in their own pocket.

cubeonly

Correct!

cubeonly

No I guess it wasn't, but that is exactly how they have been using it, by dangling it as a carrot and incorporating it in to employment contracts. The companies have been attracting people by selling NET rates but without LAFHA will be forced to sell GROSS rates as it should have been. The companies have dug their own grave, in this sense.

Beoz

This is really where you should be focusing your argument. No fault lies at the governments feet. For once they are doing the right thing.

Should you feel hard done by then you should approach your company, who sold you a bum steer in the first place. I know my company was very reluctant to support LAHFA in the first place because of the fall out it may attract should the goverment wise up to the unfairness of this tax break.

If you feel a job option is better elsewhere in the world then you should take it. After all, by receiving LAHFA you have indicated the temporary nature of your working stay in Australia and you should be prepared to move with 28 days notice anyway

Tramps_mate

No one in my company gets LAFHA. And Iv spoken to others at HUGE mining companies and most of them dont know anyone on LAFHA.

I would have thought those on 457's are here because of a 'skill'? Is that industry not highly enough paid that it was the incentive to come to OZ in the first place?

Beoz

Depends on how you look at it. In essence they have been able to have a salary outgoing reduction. That additional bonus for companies will now cease. How they deal with it will be interesting, but I suspect it won't make news headlines.

Beoz

I know an Aussie on LAHFA living in Perth working on mining projects. He doesn't work directly for a mining company though

knockoff nige

You keep using the term 'dangling a carrot'. It says to me that you saw the money and so moved to the other side of the world. I expect the idea of living in Australia had something to do with it. Such a move involves serious thought about finances and long term commitment. Companies would expect 457 holders to understand what a temporary visa is and wish to move to a permanent one sooner, rather than later. 'Dangling the carrot' as you put it would be to get you to Australia, sure. But it's up to you to make it work for you. That involves being ready to give up the temporary status. If it's not an option for you because of LAFHA, then there is really noone to blame but yourself.

Again, the timing of this change is not right and unfortunate for those who need it. But, even if this was in two years time, companies would have to adjust as you say. This isn't the crisis that you are making it out to be for Australia.

cubeonly

Agreed apart from the government bit - the root cause lies with the government who should not have introduced such shoddy arrangements as LAFHA in the first place.

I work in a mobile industry with a mobile work force so I'm ok, as you say 1 month's notice and I'm off; plenty of work in other countries currently. But I feel for those not so mobile, with families here, etc. Australia is not a place i would recommend to anyone thinking of emigrating to, unless it or its government changes.