Norskie

Hi,

I'm just wondering how to calculate whether or not I will go below my minimum allowable salary (on a 457 visa) after I take up a novated lease.

Is it taxable salary minus the entire value of the vehicle I want to buy? Or taxable salary minus the cost of the lease just over the tax year?

For example:

Taxable salary: $75000
Minimum allowable salary: $50000

The above example leaves $25000 a year of "wiggle room", right? Is it perhaps better to calculate it on a monthly basis (i.e. monthly taxable salary minus novated lease cost per month)?

How does LAFHA play into this? Can you decide not to apply for LAFHA, and choose a novated lease instead (so as not to go below the minimum allowable salary of $50000)?

Thanks,

Norskie

Bikergirl

From what i know (Ive not heard any reports saying the government has changed its mind), LAFHA wont be available after the middle of this year. Dont know how this will impact your calculations