paddyo

I am pretty up to speed with all LAFHA things but still happy to learn every day!! The one sticking point I keep coming to and find no easy answer is the official duration that you can continue to receive LAFHA for, with all other entitlements intact.
Most people have the assumption of 4 years in their head, but I think that's just borne out of assumption as a LAFHA duration is NORMALLY 4 years. I have asked others on here, have read the ATO site till my eyes bleed and still can not find one single reference to the 'duration of entitlement'.
As far as I can tell, as long as you are eligible for LAFHA and meeting all the ATO requirements, there is NO finite date. Nowhere can I find it, nada, zip, stuff all references.
If you DO KNOW of a reference please respond.
Oh, BTW, I don't need any 'if you go PR you lose it' stuff or 'its a risk being on 457 with LAFHA' comments either, I just need a reference or some confirmation that there is NO reference and thus you can continue to receive ad infinitum.

Sorry if some of that sounds a bit blunt, but hey, that's me, that's the way I roll...I'm a Lone Wolf baby!!!

moneypenny20

Not trying to be smart or anything - I'd fail today anyway but have you rung the ATO up and asked? They're actually fairly on the ball - each time I've had to ring them anyway. They 'may' know definitively.

Hey, you know you'll lose it if you get PR don't you?????

paddyo

I don't want a verbal answer, I want a written reference but yes I have tried and they pointed me to MT2030 which I already have read, numerous times and does NOT provide that info. Basically they didn't know either and I was trying to avoid an actual ATO Ruling course of action.
As for your PR comment...Bog Off!!

moneypenny20

Happy to help. Hope you get the info.

Another thought you've probably already had - does the employer have a pile of bumpf shoved in a file somewhere that may hold the info? I'm sure if there's an 'expiry' date, most employers would make sure they know about it.

paddyo

No they don't, they used the 'its 4 years max' statement to me and when I queried it they said 'its our policy'. As usual I take bland answers rather glibly and pressed them into providing me where that policy was introduced, by who and under what references. 2 days later they came back with,'We have reviewed our policy and as there is no ruling by ATO that we can find we will continue to provide LAFHA as long as you are eligible, but, as soon as you apply for PR you lose it.'
So I got one win from them....now the 'apply for PR you lose it' is on my radar as I can also find no ruling from the ATO on that either!! Oh I love challenging assumptions!!

Shellyj

I've seen these peoplehttp://www.payme.com.au/lafha.html post quite a bit and agents recommending people use them if they have LAFHA issues. Their info seems pretty clear.


Who is eligible?

* All employees working in Australia;
* Contractors working in Australia;
* Visa holders working in Australia (such as 457 Visa, 417 Working Holiday Visa and other Visa classes where the Visa holder was required to apply for permanent residency but can also prove their intent to return home);
* New Zealand citizens working in Australia temporarily on a fixed-term employment contract.
* Australians working overseas and being taxed in Australia.

What are the eligibility considerations?

* You must be living away from home for work-related reasons;
* The period you will be away from home is greater than 21 days;
* Your employment contract or temporary move, must be of fixed-term defined by date or completion of work;
* At the time of applying for LAFHA and while you are being paid LAFHA, you must intend to return home;
* You must be formally assessed as complying with LAFHA legislation, rulings and precedents.

paddyo

Shellyj....appreciate your post but for gods sake read my preamble...I know all that stuff and what you have written does not address or answer my query at all.

northernbird

I think she is referring to the lose it when you apply for PR bit not the duration question, perhaps.

paddyo

Nope, you do NOT have to lose it when you apply for PR. A lot of companies use that as a policy but again, it is not referenced anywhere. Its an assumption and is used by companies, like my own, as a ATO Audit risk mitigation exercise. Its all to do with terminology and interpretation, e.g. if I apply for PR then my HOPE is I can stay permanently but only if successful, if unsuccessful then I INTEND to stay on for the remainder of my 457 and then return from whence I came. Its all down to semantics and hence I understand why a company will err on the side of caution, but a simple ATO Ruling would make life a lot easier and avoid presumptions.

paddyo

BTW I did send her Karma and explain I was being particularly blunt today!! I just need a reference and there is none.

Shellyj

Thanks for the gratitude but understanding tax rules and precedents is not that easy. Hence the link. They have given some general rules in which you might lose it. If you contact them, pay their fee which is not that much considering the benefits, they will give you the legal info you need to show your employer to get it sorted.

paddyo

Again Shelly....I know all that and again it still does NOT answer my question.

Plus please understand, I already am in receipt of LAFHA, I already am over the 4 year mark and so is a colleague. I just want to know the answers for future reference as I cannot abide assumptions, when/if I apply for PR my company policy is to stop LAFHA. Again I understand why, for risk mitigation, but if I can educate them into the true LAFHA facts then I will have completed my mission. I also understand that LAFHA is not an entitlement and your company does NOT have to offer it so I will only go to our Mobility Team when I have the facts and references with me. As for paying a fee...why?? I already have the benefits. I think they would be better suited to self employed and SME company employees where there is no Mobility Team.

moneypenny20

From reading the last bit of Shelly's post, it would 'appear' that as long as you are on a fixed term contract you will be paid. If you're past the initial four year contract and are just being employed on a general basis, I read it that they can stop paying but if you went on another fixed term contract they'd have to keep paying. Am I reading it wrong? Are you going to start shouting at me as well? Only trying to help

paddyo

I am still on a 457, it was extended in October for another 4 years. Nowhere in the ATO website does it state that the length of my 457 affects LAFHA. Thats what I argued to my Mobility Team and hence the change of 'policy'.

BTW, hope you all realise I am shouting sarcastically...I appreciate all inputs but only those which have the answer!! Which, thus far.....none have!

I need 2 line references that says something along the lines of ;
1)"LAFHA will continue ad infinitum as long as all criteria is met" or "LAFHA will cease after 4 years as mandated in ref xxxx".
2)"LAFHA will cease upon successful gain of Permanent Resident status for those on a 457 Visa" or "LAFHA will cease when an application for PR status is received by DIAC for those on a 457 Visa"

Anything which would provide an actual statement will suffice.

paddyo

Bump......still no one can answer my query.