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LAFHA under threat

LAFHA under threat

Old Nov 29th 2011, 9:56 am
  #61  
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Default Re: LAFHA under threat

I'm sure the government is aware it's about to render the 457 visa considerably less attractive to immigrants. Isn't it starting to put up the barriers to immigrants a little on the expectation the Aussie economy looks more fragile?
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Old Nov 29th 2011, 10:02 am
  #62  
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Default Re: LAFHA under threat

Originally Posted by steen1976
Works out about the same for my wife's income. However we came here with no promise of support for LAFHA so didn't factor it in. We got it and now it looks like it may go. She doesn't earn any more than she did in the UK but I'm on way more here so we're still better off. Bit of a blow but it just means we go for the PR sooner

But I know of a couple of people at least who I reckon would quit and head home losing that. And I reckon with the fragile nature of the 457 visa that without LAFHA many coming from the UK may not see it as such a good prospect.

Could well bite them on the arse and cost the economy more.
well...we are on a 2 stage process of looking at maybe going PR. Ist stage is complete, wife has given up work and we are seeing how we can cope without her salary. Her loss of salary has been offset by the non requirement for after school care and an increase in personal happiness...money can't buy that!!
The next stage would be to apply for PR and deal with the loss of LAFHA, that would of been offset by some reduction in financial obligations coming up and looking at the sale of our UK property. I suppose if this does happen then for us a personal choice is taken away, and if it comes in soon then our only choice may be to go back from whence we came. It would be better to go back to our own home and my old job then struggle out here and feel bitter about how things could of been.
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Old Nov 29th 2011, 10:03 am
  #63  
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Default Re: LAFHA under threat

Originally Posted by Turban Explorer
I'm sure the government is aware it's about to render the 457 visa considerably less attractive to immigrants. Isn't it starting to put up the barriers to immigrants a little on the expectation the Aussie economy looks more fragile?
Possibly.....I just think the reported statements are a bit confusing and appear rather sweeping and miss the whole point of LAFHA for those who are genuine non abusive claimants.
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Old Nov 29th 2011, 10:22 am
  #64  
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Default Re: LAFHA under threat

Originally Posted by paddyo
well...we are on a 2 stage process of looking at maybe going PR. Ist stage is complete, wife has given up work and we are seeing how we can cope without her salary. Her loss of salary has been offset by the non requirement for after school care and an increase in personal happiness...money can't buy that!!
The next stage would be to apply for PR and deal with the loss of LAFHA, that would of been offset by some reduction in financial obligations coming up and looking at the sale of our UK property. I suppose if this does happen then for us a personal choice is taken away, and if it comes in soon then our only choice may be to go back from whence we came. It would be better to go back to our own home and my old job then struggle out here and feel bitter about how things could of been.
Main thing for us is we want to have kids. It's not something we want to do on a 457 for various reasons so the PR application was always going to happen within the next year anyway. So it was always only going to be a short term benefit. Going back while at present I couldn't dream of it due to having such a ball here wouldn't be an option as I can't earn anywhere near what I do - not without moving to London.
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Old Nov 29th 2011, 3:25 pm
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Default Re: LAFHA under threat

I am probs being soo thick, but I really don't understand what this means. I have read the links and am not too sure if LAFHA only covers workers constantly flying in and out. my partner is looking into a 457 sponsorship to Auz as his job is on the list we have a 4 month old baby and would all be looking to move. Would this affect us? Does this mean we won't get help with school fees in the future etc?
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Old Nov 29th 2011, 7:10 pm
  #66  
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Default Re: LAFHA under threat

Originally Posted by chrissyb
I am probs being soo thick, but I really don't understand what this means. I have read the links and am not too sure if LAFHA only covers workers constantly flying in and out. my partner is looking into a 457 sponsorship to Auz as his job is on the list we have a 4 month old baby and would all be looking to move. Would this affect us? Does this mean we won't get help with school fees in the future etc?
LAHFA doesn't cover school fees. Only rent and food. From what I understand school fees are only payable in NSW and ACT.
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Old Nov 29th 2011, 10:26 pm
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Default Re: LAFHA under threat

Glad LAFHA is gone. More money for the country. Working in recruitment for example which lots of British do, there is no reason why it's needed. Not a highly skilled and sort after profession, it's a nice perk but giving this 'free' money is outrageous.
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Old Nov 29th 2011, 11:14 pm
  #68  
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Default Re: LAFHA under threat

I'm glad its going, or at least getting tighter. The strength of the dollar and high wages means theres enough incentive for people to come for a few years and earn good money if they are planning on going home again. Its slightly galling to see people swan in, earn good wedge, pay no taxes (whilst still using many public services) and then bugger off again. If people want to go somewhere to make a quick buck they can go to a shithole like dubai.
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Old Nov 29th 2011, 11:32 pm
  #69  
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Default Re: LAFHA under threat

Originally Posted by JoeBloggs80
I'm glad its going, or at least getting tighter. The strength of the dollar and high wages means theres enough incentive for people to come for a few years and earn good money if they are planning on going home again. Its slightly galling to see people swan in, earn good wedge, pay no taxes (whilst still using many public services) and then bugger off again. If people want to go somewhere to make a quick buck they can go to a shithole like dubai.
Joe, you are talking crap.

I am on a Temp Visa, I get LAFHA to compensate for my temporary expenses andI PAY TAXES here. I don't swan in live a life of yahoo charlie and then swan out again. My salary is the same as it was in UK and I have no better standard of life. What I do have is decent weather and an outdoors life which my son revels in. If you have a life of high wages then lucky you.

To the poster saying 'free' money that is also crap. It was a tax concession for a reason and that reason for some is completely and utterly genuine.

Those nay sayers are mostly borne out of jealousy "why can't I have a tax concession like he does?", misunderstanding "Well they don't pay any taxes anyway" or just sheer spite. If you have PR then great, if you have Temp Visa then there is a life of work and visa instability and extra financial costs, which you are aware of before coming over.

Believe me people, if I was making any money out of this then my house in UK would of been paid off by now or I might at least have saved enough for a mortgage down payment over here. I have not, by any means.

So please, before you make any,"I'm ok cos I'm PR and I done it the hard way and I didn't get any tax concessions so stuff all them Temp Visa people" statements, think on and make sure you FULLY understand how this may affect others livelihoods.

Oh, one other thing, if the burden shifts from the government to the company, how do you think they are going to cover it? Fringe Benefits will be applied and they will offset their tax or reclaim against other tax liabiliteis...so saving taxpayer money will it? I don't think so.
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Old Nov 30th 2011, 12:17 am
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Default Re: LAFHA under threat

Fair enough Paddy - your case sounds legitimate and I wasn't having a pop at you. Its different if you have a family too I imagine.

But still the majority of people I've spoken to on LAHFA have come here on a transfer from their company back in the UK. They get relocation paid for (flights, temp accomodation) and then when they get here they get a massive tax break which can equate to a huge pay increase relatively speaking. The only downside is that they are tied to that particular job which isn't partiuclarly nice I suppose. And like someone said above, these are often jobs like recruitment and the like - not particularly skilled jobs that locals could easily do.

As you explained, there are for sure some legitimate cases but I don't think tightening the system is a bad thing. A lot of the tmie I just don't see what losses there are to compensate.

Last edited by JoeBloggs80; Nov 30th 2011 at 12:21 am.
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Old Nov 30th 2011, 1:14 am
  #71  
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Default Re: LAFHA under threat

Originally Posted by JoeBloggs80
Fair enough Paddy - your case sounds legitimate and I wasn't having a pop at you. Its different if you have a family too I imagine.

But still the majority of people I've spoken to on LAHFA have come here on a transfer from their company back in the UK. They get relocation paid for (flights, temp accomodation) and then when they get here they get a massive tax break which can equate to a huge pay increase relatively speaking. The only downside is that they are tied to that particular job which isn't partiuclarly nice I suppose. And like someone said above, these are often jobs like recruitment and the like - not particularly skilled jobs that locals could easily do.As you explained, there are for sure some legitimate cases but I don't think tightening the system is a bad thing. A lot of the tmie I just don't see what losses there are to compensate.
457 Visas are only available to specific professions, dictated by the Australian Government. If they aren't skilled and locals could do them why are foreigners brought in on 457 Visas?

You're just buying in to the Govt hype. The majority of people on 457 Visas relocate here under company sponsorship, they then pay the same tax as residents with none of the benefits, while at the same time living with the risk of having to leave the country in 28 days if they lose their job. This could mean having to somehow dispose of cars, find replacement tenants and countless other things.

The LAFHA tax break barely compensates me for not getting half my childcare costs paid like all permanent residents, never mind anything else.
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Old Nov 30th 2011, 1:20 am
  #72  
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Default Re: LAFHA under threat

Originally Posted by bingobob777
The LAFHA tax break barely compensates me for not getting half my childcare costs paid like all permanent residents, never mind anything else.
Should have tried the 457 in NSW. I didn't get child care paid... I got a bill... and a ******' big one at that.
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Old Nov 30th 2011, 1:21 am
  #73  
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Default Re: LAFHA under threat

I think the removal of LAFHA would be hugely relevant to places dependent on 457 visas. A big part of the workforce in Mackay are on 457s as there is a problem recruiting Aussies - they know it's not that great a place, that it's very expensive and difficult to get accommodation. Take the LAFHA out and the 457s would need compensating by the employer as they just couldn't afford to be here there's often so little margin to manouvre.

Last edited by Turban Explorer; Nov 30th 2011 at 1:27 am.
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Old Nov 30th 2011, 1:22 am
  #74  
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Default Re: LAFHA under threat

Originally Posted by JoeBloggs80
Fair enough Paddy - your case sounds legitimate and I wasn't having a pop at you. Its different if you have a family too I imagine.

But still the majority of people I've spoken to on LAHFA have come here on a transfer from their company back in the UK. They get relocation paid for (flights, temp accomodation) and then when they get here they get a massive tax break which can equate to a huge pay increase relatively speaking. The only downside is that they are tied to that particular job which isn't partiuclarly nice I suppose. And like someone said above, these are often jobs like recruitment and the like - not particularly skilled jobs that locals could easily do.

As you explained, there are for sure some legitimate cases but I don't think tightening the system is a bad thing. A lot of the tmie I just don't see what losses there are to compensate.
Joe, no worries fella, I did not take any personal offence at all.
The relocation is standard for a lot of companies, irregardless of Visa status and occurs in the UK as well. That is nothing to do with LAFHA.
What LAFHA does is compensates those on a Temporary assignment away from their Permanent home. You can get LAFHA if you are Australian and posted from Sydney to Brisbane for example. The most common known LAFHA is for Temp Visa holders, this compensates for you keeping a home in the UK (or insert parent country) and having top keep temporary accomodation in Oz. Now, if you wanted to rort the system it IS easily done. You 'declare' that you have a permanent home in UK but in fact use your parents address, and claim for accomodation in Oz. You could own a home in UK that you have had for years, mortgage paid off and are able to rent it out whilst in Oz, again you may ';make' money on this. But, the majority are not in that position and have to maintain two homes, even renting out makes a loss, as well as other financial commitments. Bear in mind that as a Temp Visa holder I am fully liable for paying Oz tax but I can NOT claim any offset for losses which occur overseas, unlike PR or Citizens.
Some cases are different to others and I would fully support a 'means test' where you only get a LAFHA concession which enables you to break even so that you are still able to contribute to the Oz business without profiting from a poorly managed tax system. I do know of some very highly paid executives who do extremely well out of LAFHA, thats who Wayne Swan wants to stop doing the rort, but to caste that dispertion across the whole LAFHA entitlement is insulting and frankly defamatory.
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Old Nov 30th 2011, 1:29 am
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Default Re: LAFHA under threat

Originally Posted by iamthecreaturefromuranus
Should have tried the 457 in NSW. I didn't get child care paid... I got a bill... and a ******' big one at that.
Yes, when our son was in pre school years our child care costs were exhorbitant. But, we knew it would be so hence my wife having to work, albeit for half her salary at best!!
Now its just the NSW school fees we have to pay, even though it is against UN policy to deprive all school children of free public schooling, and no offset for that.
If this all goes ahead as planned, not only will Temp Visa holders suffer a loss in take home pay, they will also suffer a dramatic loss in spending ability and MAY force some into poverty. While some of you may mock this thinking , "yeah right, poverty on 80k +, wish I was on that", remember that all PR and citizens get child care rebate and fre schooling. 3 kids, all under school age, all paying roughly $70 per day for child care, get real people. Temp Visa holders with kids, especially below 5 years of age, will not come here unless their is some parity put in place.
Sweeping tax reforms? I don't think so! Poorly thought out and now will give the poor pen pushers in the ATO a massive headache to put into context.
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