gardiner

Hello all

I recently approached my company about LAFHA and they agreed to pay my rent every month as my LAFHA. However when i looked at my monthly payslip today I was underpaid by $650.

I was under the understanding that I would benefit and have more take home rather than less or is this after the fact that they paid my $1000 month.

I am struggling to calculate how to work it, I currently earn $49,220 Inc Super annuation.

All help is appreciated, thank you so much

27 Year old female pom !!!!!

Sandra

Did they pay the $1000 directly to your rental agency? That would make sense as it then only cost you 650 net.

Ask the payroll department to explain the results of your payslip.

ABCDiamond

$49,220 package = $45,156 salary

Normal take home should be
$3,763.00 Gross Monthly
$591.40 Tax
$56.45 Medicare
$3,115.16 Net

With $1,000 LAFHA would be:
$2,763.00 Gross Monthly
$339.45 Tax
$41.45 Medicare
$2,382.11 Net
+
$1,000 paid in rent
=
$3,382.11

You being $266.95 better off.

gardiner

Yes they paid it directly to the rental agency

We dont have a payroll department though, effectively that only means they paid $350 towards my rent a month, could that be correct though?

I understood as the take home pay to be better off not less

Thank you for your replies tho, they are appreciated

gardiner

I think that salary includes a bonus of $1500 travel expenses, I am sorry to ask, are you able to calculate it on $47,000 including superannuation.

Overall I should be taking home not less than I am now is that correct?

ABCDiamond

If you calculate your take home as NET paypacket salary + RENT paid for you, then those two figures added together will be (should be) higher than your previous takehome.

$47,000 = $43,120 taxable

=
$3,593.33 Gross Monthly
$540.50 Tax
$53.90 Medicare
$2,998.93 Net


$43,120 less $12,000 pa LAFHA = $31,120 taxable
=

$2,593.33 Gross Monthly
$314.00 Tax
$38.90 Medicare
$2,240.43 Net
+$1,000 rent paid
= $3,240.43

Result = $241.50 extra due to LAFHA

Bermudashorts

I haven't done any sums here, but just based on what you have said, doesn't them paying your rent of 1,000 but only deducting 650 from your salary make you better off?

gardiner

Thank you so much for your great expertise, I will present these figures to my boss, just a quick one tho, I had a look at my contract and this is what it says;

$45,500 + super
$1500 travel expenses - as i travel insterstate quite a bit so would that be ok to include on the lafha or not???

Thank you I really do appreciate this

paddyo

Why $1500 travel expenses??? They should pay ALL your travel expenses not give you an allowance. Also, your salary seems quite low and you should check that you still make your ATO MSL requirements after LAFHA is taken off.
Be very careful with this, I think you are being underpaid.

paddyo

Ditto!!!!

You have less salary but no rental outgoings so therefore you have more money in your hand to spend.

paddyo

Do no such thing, these are figures provided by a BE member and even though I suspect they are accurate, you can NOT quote them to your boss as fact. You ARE better off, if you read what is presented to you correctly.

ronan_in_Oz

Just out of curiosity, A guy on PR visa can't claim LAFHA is it?

paddyo

Nope........er.......unless!!!! If for example you live in NSW and are working for 6 months in VIC, then you can claim LAFHA whilst you temporarily reside there, unless your company have expensed it all.

ronan_in_Oz

Cool! Thanks for the info.

itxrd

I see maths is Gardiners forte