Beoz

If you pay the same tax you should get the same benefit.

northernbird

Yes they should, if you are resident for tax purposes then the same benefits should apply.

Dreamy

They don't necessarily pay the same tax - they're not taxed (in Australia) on any income from outside Australia.

paddyo

Northern Bird...when you initially came on a 457 did you have LAFHA? Were you offered LAFHA as part of your job offer and did you base your life budget around that? If the answer to both of those is yes then I am extremely suprised at your response as it shows a real contempt for those affected by this.
Also, LOSING LAFHA was not made apparent or informed that it might occur, yes the 457 Visa was always at risk dependant upon the job, but the whole package including LAFHA was NEVER known.

paddyo

nor receive tax offsets for any losses outside of Oz by the same token...there is far more to this then a lot of people realise...again, and I kinda understand this but it still frustrates me at some of the responses on here, unless you are going to be affected by this new ruling (just imagine yourself losing 20-25% of your income and ignore what the reasons are then look at this again) then its all very well pontificating on how commitment to Oz and paying your dues is de rigour.

paddyo

but they don't...hence the issues.......but no one seems to be saying "oh hold on this isn;t fair, let them have those same benefits" like the "stuff them, its only extra cash for them which I"M not getting." comments.

northernbird

I do sympathise, but most countries change tax rates and tax benefits all the time, sometimes you may be affected and sometimes not. The LAFHA has been abused by so many 457 holders that this had to happen in the end. Also I do believe that 457 holders should enjoy the same claim to benefits such as FTB. Also as it was my husbands decision to come to Australia and not a company transfer why should we expect the company or ultimately the tax payer to pick up the tab for us to live here. We didn't know anything about LAFHA when we moved over so no we didn't get it, I don't begrudge those that do but do question the need for the benefit.

cubeonly

I don't think LAFHA should be incorporated in to employment contracts (as it is in mine!). That's where the error lies, in my opinion.

Beoz

Spot on. Employers often include it as a benefit but employers are only supporting the employees claim - not paying for it.

The whole LAHFA system and the rights of 457 holders is flawed and needs a drastic overhaul.

Dreamy

I fully understand how upset and irate you are. I have to say that I'm shocked that the tax break you've received so far has been as much as 20-25% of your income though and ask you - are you not surprised that this is perceived as a rort (although I know for a lot of people its anything but) and so its viewed as an easy target for a cost cutting Government?

I also fully understand why you believe you should have tax relief on your accommodation costs as you're having to upkeep two dwellings.. but I'm not sure how anyone could justify the food component? After all, you're not eating in the UK now, are you?

iamthecreaturefromuranus

I'm backing you mate.

I got LAFHA when on a 457 and realistically it only covered the money grabbed by NSW in school fees... fees that nobody other than 457's have to pay.... and before anybody starts on about Federal vs State crap it makes no bloody difference to the money in my pocket which arm of government was taking it off me.

Dreamy

I understand that people on most temporary visas have to pay school fees in NSW (and some have to pay much higher fees than those we had to on our 457) - but other temp visas aren't eligible for LAFHA. (I think. Happy to be corrected on that though)

I do feel sorry for those who are going to be affected - as always (such as the case with student visas) when it's perceived that it's a rort or being abused, those who really were only covering their out of pocket expenses due to maintaining a residence in their home country are lumped in with every one else. I know several of our friends who are still on 457s are seriously considering going back to the UK.

paddyo

Well.....cheers Dreamy, I do appreciate your understanding and you are right in that I am a tad upset!
It is reassuring that the more people are reading about this, LAFHA, school fees, lack of benefits ect, that they are now starting to see the bigger picture.
Yes I do see how LAFHA can be rorted, yes I also get the food component comment but IIRC its to compensate for the variance in food costs, food is more expensive here than UK, ignoring the 'eat only what's in season' mantra, so again the whole rationale was to level the playing field.
All it needs is for each LAFHA claimant to fully justify their costs/outlay in UK and Oz and then a fair assessment could be made. A simple cut across the board has done more harm and created more financial pain to those that are genuinely going to be massively out of pocket. In fact, if Oz was to be completely fair (which it isn't because they are a bunch of two face tossers) then it would fully reciprocate the same tax and education concessions that the UK gives to Oz citizens. But no, its the usual 'stuff the Poms' attitude of the Oz government.
OK, rants over......thats my last comments on the subject......not getting anywhere here and to be honest even if I didn't agree with some of the comments they have all been given in a fair way based on your own circumstances.

Beoz

Lets be realistic. LAHFA is not about "Poms on 457's". Plenty of residents receive it, with the tax advantages, medical, schooling benefits. So if someone is transferred from Sydney to Hobart, I'm not exactly sure how someone can justify the food component. Same for housing. Rent out a Sydney property compared to what you would pay in Hobart - come on - someone would be making a tasty little profit here. It really is a flawed system.

I will back you all the way when it comes to medical rights (BTW - do 457 holders pay the medicare levy?), school fees in NSW and so forth. This should be an even playing field, but again, not what LAHFA is for.

The thread mentioned similar tax break is available in the UK for Australians (probably not just for Australians). I spoke with a few of my Aussie mates who have recently returned to Australia to take up the larger salaries, who were sponsered in the UK, and none of them knew this break existed.

I mentioned the threat to LAHFA to the guys at work who receive it. The attitude of 4 was "oh well it was nice whilst it lasted". The attitude of the other 2 was "damn - I'll need to get some tenants in my vacant UK property". It's a far cry from some of the anger in this thread.

Also the LAHFA guys at my work get free medical insurance via the company too. Us non LAHFA's don't. Not sure if it's compulsory but this is something that surely can be negotiated with employers before someone commences employment on a 457.

As for food, well I find if I spend $100 dollars in Oz I would spend about £50 in the UK. Then again my salary ratio is about 2.3 so at the end of the day it's nil effect.

If my salary ratio was any less I wouldn't be here, unless of course I had some burning desire to be in Australia that was not related to income. It's a choice after all - you're not tied in.

At the end of the day, you need to understand if you feel it's your right to LAHFA or whether it's a nice little bonus. If it's the former and the lack of LAHFA will just make life in Australia too unbearable then it might be time to return to the UK. I know personally I don't need LAHFA to be well ahead of where I was in the UK - though I wouldn't turn it down if I were to receive it.

Not a big fan of this government but to overhaul LAHFA is the right thing to do, but at the same time they need to take a look at the basic human rights of temporary visa holders.

Chortlepuss

Perhaps this may help address the issue of employers bringing 457ers over on lower salaries than their Australian counterparts due to being compensated by LAHFA? (yeah, I know it's supposed not to happen but it does)

The 457 is a brutal visa - I came in on it because I had no other choice, but got PR sponsorship as soon as I could. I know of only a very few (and very confident) people who stay on 457 to keep LAHFA benefits - most would rather have the security and benefits of permanent residency