LAFHA ......Confused
Mar 31st 2005, 5:21 pm
#1
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LAFHA ......Confused
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
Apr 1st 2005, 3:50 am
#2
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Re: LAFHA ......Confused
Originally Posted by FVC
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
Jeremy
Apr 1st 2005, 3:58 am
#3
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Re: LAFHA ......Confused
Originally Posted by FVC
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
Apr 1st 2005, 5:30 am
#4
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Re: LAFHA ......Confused
Originally Posted by FVC
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
The one you are referring to is the Tax benefit one.
You may get some info here:
http://www.ato.gov.au/taxprofessiona...&page=40&H2_38
http://www.ato.gov.au/print.asp?doc=...t/mr200283.htm
The basic Tax office definition is:
What is a living away from home allowance fringe benefit?
The payment of a living away from home allowance is a living away from home allowance fringe benefit.
For FBT purposes, a living away from home allowance is an allowance you (the employer) pay to an employee to compensate for additional expenses incurred and any disadvantages suffered because the employee is required to live away from their usual place of residence in order to perform their employment duties. The term 'additional expenses' does not include expenses the employee would be entitled to claim as an income tax deduction.
Usual place of residence
An employee is regarded as living away from their usual place of residence if they are required to do so in order to perform their employment duties and could have continued to live at the former place if they did not have to work temporarily in a different locality.
The payment of a living away from home allowance is a living away from home allowance fringe benefit.
For FBT purposes, a living away from home allowance is an allowance you (the employer) pay to an employee to compensate for additional expenses incurred and any disadvantages suffered because the employee is required to live away from their usual place of residence in order to perform their employment duties. The term 'additional expenses' does not include expenses the employee would be entitled to claim as an income tax deduction.
Usual place of residence
An employee is regarded as living away from their usual place of residence if they are required to do so in order to perform their employment duties and could have continued to live at the former place if they did not have to work temporarily in a different locality.
Apr 1st 2005, 10:34 am
#5
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Posts: 18
Re: LAFHA ......Confused
Originally Posted by FVC
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
I am moving to Brisbane with my wife on a 457 visa (employer sponsored) to work for a large Accountancy firm. I am a qualified accountant myself.
I have found it difficult to get a definative answer to the question but I will gladly inform you of how I understand it works.
Having agreed a remuneration package with your employer, included is an amount equal to actual accommodation costs that will be treated as a LAFHA. The benefit being in simple terms that this element is not taxable i.e. the higher the LAFHA element, the lower your tax bill (and hence higher take home pay).
I believe it is a similar arrangement for food but on this there is some FBT (fringe benefit tax) payable.
Hope this helps
Apr 1st 2005, 11:15 am
#6
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Joined: Feb 2005
Posts: 134
Re: LAFHA ......Confused
Originally Posted by FVC
Having read a number of previous threads am I correct in thinking the LAFHA is a discretionary payment by the Company to the employee and NOT by the Gov't. We have been told a number of different things from various sources including Aus Accountants who had not heard of the arrangement.
I am aware that it is a tax benefit and accomm, food etc can be offset, but can someone please explain it in simple terms
Thanks for your help.
Log onto www.aussiemove.com and go to the discussion board. You will see a thread started by me (Tracey32) regarding this same issue entitled Living Away From Home Allowance. A few people have explained it really well especially Stark.
Good luck
Tracey
Apr 1st 2005, 11:54 am
#7
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Joined: Mar 2003
Posts: 142
Re: LAFHA ......Confused
Originally Posted by TraceyandPeter
Hi FVC,
Log onto www.aussiemove.com and go to the discussion board. You will see a thread started by me (Tracey32) regarding this same issue entitled Living Away From Home Allowance. A few people have explained it really well especially Stark.
Good luck
Tracey
Log onto www.aussiemove.com and go to the discussion board. You will see a thread started by me (Tracey32) regarding this same issue entitled Living Away From Home Allowance. A few people have explained it really well especially Stark.
Good luck
Tracey
am i right in thinking ( i am blonde mind) that LAFHA can only be used on money you earn after your first $35000
Apr 1st 2005, 1:55 pm
#8
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Re: LAFHA ......Confused
Originally Posted by kyliecuteass
great thread tracey!!!
am i right in thinking ( i am blonde mind) that LAFHA can only be used on money you earn after your first $35000
am i right in thinking ( i am blonde mind) that LAFHA can only be used on money you earn after your first $35000
). I haven't read anywhere that it can only be claimed after your first 35,000. Can anyone else help?Tracey
Apr 1st 2005, 2:27 pm
#9
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Joined: Mar 2003
Posts: 142
Re: LAFHA ......Confused
Originally Posted by TraceyandPeter
I'm not sure about that Kyliecuteass (it feels strange typing your name being a female too, no offence but you know what I mean!!??!! )
) i named myself after the famous ''kylie'' from Australia and her cute ass lol
Apr 1st 2005, 2:36 pm
#10
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Posts: 142
Re: LAFHA ......Confused
this is taken from another post about LAFHA.......
''Your salary after LAFHA and some other allowances need to exceed about $35k. i.e. if you got $20k worth of LAFHA you would need a Total Remuneration of $55k (or otherwise you need to reduce the LAFHA).''
someone help please......is this the case???
''Your salary after LAFHA and some other allowances need to exceed about $35k. i.e. if you got $20k worth of LAFHA you would need a Total Remuneration of $55k (or otherwise you need to reduce the LAFHA).''
someone help please......is this the case???
Apr 3rd 2005, 6:29 pm
#11
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Location: Basingstoke > Melbourne
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Re: LAFHA ......Confused
Thanks for the link, it is really useful and now makes alot more sense!
