babyface

Hi there, I've been through a number of posts regarding the LAFHA allowances but am still confused as to whether I could claim.

I have just arrived in Sydney initially on a working holiday visa which will be converted to a long stay business visa as i have found a business sponsor. I will start work for the company next week as I'm eligible to work for them for at least 3 months while my sponsorship application is processed.

I am also looking for a flat but what I can afford depends on whether I will be able to claim LAFHA.

So, can I claim LAFHA at all, and if so could I include the period I am still on the WHV.

All advice gratefully received.

Thank you.

ABCDiamond

A very common misconception is that a contractor holding a Working Holiday Visa is able to claim LAFHA. This is NOT the case and is clearly stated in the ATO draft legislation for this allowance

Overpayment will have to be paid back to the ATO by the contractor/employee in all cases, without exception. Most contractors/employees are not told of this when they sign up for LAFHA with a management company. It's a big shock when you get a $25,000 tax bill with payment required within 30 days to the ATO.


These quotes are from The Brainbox website