Emma_Par

Living Away From Home Allowance - (LAFHA)
I am currently a UK resident and looking to move to Australia. There is a job on the table for my husband which his company will sponsor us on a temp visa to go out there on a 4 year contract. His job will entail him to work 3 weeks away and then 1 week at home (Home being Australia where we would locate too).
Now how i understand it is that he gets this LAFHA because we are away from UK home, however on the ATO website it say if you work away from home. Now if we got residency in Australia and he still did the same job (working of shore for 3 weeks) would we still be entitled to it ( http://www.ato.gov.au/businesses/con...tent/52023.htm )
I hope i have made sense

Thanks for any help xx

Turban Explorer

Predictions are that LAFHA will disappear for temporary visas as of July 2012. When your OH is An Australian citizen/PR and works away from home (presumably in a few years?) it may be possible to claim for that time away.

Emma_Par

Thanks for the help. Is it generally a lump sum added to wages or tax relief?

bcworld

My reading of the proposed new rules is that you would need to maintain 2 homes in Australia to be eligible for LAFHA - your normal home and one that you maintain for working away. So for example if the 3 weeks your OH was away they had accomm and food provided there would be no eligibility for LAFHA.

Emma_Par

Thanks for that

bcworld

Given the upcoming changes you'd be strongly advised to negotiate a contract where LAFHA doesn't form an integral part of the remuneration package...if it so happens there is some eligibility for it, treat it as a bonus rather than something you factor into your calculations.

asprilla

bcworld is spot on.

To be honest, if I was in the UK right now and was negotiating a move to Australia, I would be assuming that LAFHA does not exist.

cubeonly

Fully agree. Assuming OP on 457 visa temporary resident, I would say the LAFHA should not be in the employment contract because the tax benefits LAFHA currently attracts are set to disappear in July 2012 for temporary residents; i.e. employers should no longer be waving LAFHA around at salary negotiation time.

cubeonly

Fully agree. Employers should no longer be waving LAFHA around at salary negotiation time.

Emma_Par

So is it tax relief on a salary or is it an uplift on salary I'm a bit confused :/

Turban Explorer

It was a tax relief allowance. It stops in July 2012 so irrelevant really. Make sure the employer provides a decent salary without telling you to include lafha

Beoz

Employers should not be waving it in the first place. It's not their money to wave.

asprilla

Don't get confused Emma - just make sure that the salary does NOT include LAFHA. I don't know your exact circumstances but I am 99.9999% sure that you or your partner won't be able to claim it post July 2012.

Do not make the mistake of accepting a salary + LAFHA component...

Unfortunately there will be people in the UK right now, making plans to come to Australia, who are not aware of this upcoming change...

Emma_Par

Thanks peeps. Here is why I am confused, this is what is being put on the table
Basic Salary
super
of which both of them come to the total package value (as i believe it we can claim the super back if we come back minus tax!)
and then then confusion...
Site allowance
this is described as ' to compensate you for working in accordance with site conditions additional hrs inclusive of weekend and BH
Is this nothing to do with LAFHA or is that is or does LAFHA effect the basic salary and tax code associated with that.....

have i lost you yet, cos I know i nearly am lol

Thanks for all your help peeps x

newjersey

Site allowance does not look like LAFHA at all to be honest. LAFHA reduces your taxable base for the value of extra accommodation and food, some other items, while you work away from home. By the sound of the site allowance it looks like extra cash thrown in for weekend work, off hours work and horrendous living conditions.