LAFHA etc.
#1
LAFHA etc.
I'm in the process of securing a move to Sydney, courtesy of sponsorship by an Australian company. In discussions about remuneration/package they have referred to "Living Away From Home Allowance" as a perk of working abroad, which I should factor in to my calculations about what I need to be earning etc.
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
#2
Re: LAFHA etc.
Originally Posted by PorkyDave
I'm in the process of securing a move to Sydney, courtesy of sponsorship by an Australian company. In discussions about remuneration/package they have referred to "Living Away From Home Allowance" as a perk of working abroad, which I should factor in to my calculations about what I need to be earning etc.
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
Are you bringing children of school age? - if so you need to be aware you'll spend most of your LAHFA paying school fees for government schools. AUD4.5k per child per year, approx, in NSW until you get permanent residence. Unless your employer is ok to pick up the tab - or sponsor you for permanent residence straight away (which is quite possible).
Have a look at this thread and decide whether a temporary visa is still right for you:
http://britishexpats.com/forum/showthread.php?t=266447
Jeremy
#3
Re: LAFHA etc.
Originally Posted by PorkyDave
I'm in the process of securing a move to Sydney, courtesy of sponsorship by an Australian company. In discussions about remuneration/package they have referred to "Living Away From Home Allowance" as a perk of working abroad, which I should factor in to my calculations about what I need to be earning etc.
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
I am moving to Sydney at the end of this month sponsored on a 457 VISA. My employer also provides a LAFHA, but it's up to you to negotiate what you can have included. For example, my employer has agreed to include my rent + kid's school/nursery fees within the LAFHA. This basically means that the latter costs are paid out of gross income i.e, every month about $3K of my salary I receive gross (tax free), and only the remainder is taxed. Any bonus/commission I earn gets hammered at usual rates however.
Hope this helps. Feel free to PM if you want more info as I have just been through this whole process.....
Piers.
#4
Re: LAFHA etc.
Originally Posted by Fastfunker
Hi,
I am moving to Sydney at the end of this month sponsored on a 457 VISA. My employer also provides a LAFHA, but it's up to you to negotiate what you can have included. For example, my employer has agreed to include my rent + kid's school/nursery fees within the LAFHA. This basically means that the latter costs are paid out of gross income i.e, every month about $3K of my salary I receive gross (tax free), and only the remainder is taxed. Any bonus/commission I earn gets hammered at usual rates however.
Hope this helps. Feel free to PM if you want more info as I have just been through this whole process.....
Piers.
I am moving to Sydney at the end of this month sponsored on a 457 VISA. My employer also provides a LAFHA, but it's up to you to negotiate what you can have included. For example, my employer has agreed to include my rent + kid's school/nursery fees within the LAFHA. This basically means that the latter costs are paid out of gross income i.e, every month about $3K of my salary I receive gross (tax free), and only the remainder is taxed. Any bonus/commission I earn gets hammered at usual rates however.
Hope this helps. Feel free to PM if you want more info as I have just been through this whole process.....
Piers.
Thanks Piers
#5
Re: LAFHA etc.
Originally Posted by PorkyDave
I'm in the process of securing a move to Sydney, courtesy of sponsorship by an Australian company. In discussions about remuneration/package they have referred to "Living Away From Home Allowance" as a perk of working abroad, which I should factor in to my calculations about what I need to be earning etc.
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
How does this work and how can I establish how much this will be worth to me? Are there any pit-falls I should be aware of?
Any advice on LAFHA (or the comparative cost of living generally) is more than welcome!!
LAFHA is specifically only about food and rent, your employer may offer other tax breaks through 'salary sacrificing' from your 'total remuneration' which may include school costs.
Note- if you buy a house you lose your LAFHA.
Rent is entirely tax free (ie out of gross salary), so if your annual rent is say $20k, then $20k of your salary is tax free. If you would otherwise be paying top rate tax at 48.5%, then your saving is almost $10,000. The food allowance is a more complicated formula and attracts Fringe Benefit Tax (FBT). Typicllay it will be worth about $5000 for a family.
Soooo.... if your TR (Total Remnueration) is say $100,000, then by getting LAFHA it is worth the equivalent of $115,000.
Note that in QLD, (State) school fees do not apply if you have Temp Visa.