ginstwin

Hi
I am about to get my 457

My employer offers LAFHA however they say they only offer it to individuals who own a property in their home country. They say its company policy.

Surely if its allowable by the Revenue my co shouldnt have a restriction on it. I wonder if they dont understand that its not a requirement from a tax position.

Has anyone come across this before?

thanks

ozhappy981

Sounds like your company does not understand the eligibility requirements for LAFHA.

There is no requirement to own property in your home country.

If you are here on a 457 visa, which in its nature is a temp visa, you are eligible for LAFHA. The nature of your visa means that you must eventually return to your home country (or apply for a permanent residency visa).

It is however up to the employer whether they want to give you LAFHA. So, if you can't persuade your employer to be reasonable then there is really nothing else you can do.

ginstwin

Thanks for the quick reply.

I agree , i dont think they understand .

My problem is being a "newbie" its hard for me to explain that its quite ridiculous to have company policy that is not the same as the revenue requirements.

I think a gentle word with HR is in order but its very delicate.

ldouglas68

Hi there, i've just been doing a lot of research re LAFHA and found lots of info on the ATO website. You need to go into Tax Topics and select F for FBT then select guide for employers which is under Advanced. This gives you and your employer all the info they need for administering LAFHA. You are right, you don't need to own a home in your normal place of residence to get LAFHA and the info is listed in the above. You will find all sorts of items that are claimable under the LAFHA scheme which a lot of people don't know about. Good luck!

ginstwin

Thanks very much. Thats great info .

Really appreciate it. Certainly is clear.

Cheers