Pollyana

Following on from a comment in the thread about the loss of LAFHA. Someone commented that it would be interesting to know how many people on here will be directly affected by it, and how they will cope.

This is a thread for the personal repercussions, the other thread here has the general discussion.

Its not an area I know a lot about so if there are other options you guys want on the poll just post in the thread and I'll add them.

bingobob777

I voted for partner will need to return/start work. She already did 6 months ago by choice, but if she hadn't that would be our preferred option.

My wife makes decent money though so it's worthwhile. One kid in daycare and one in afterschool costs $500 a week, taking those into account plus vacation care the partner would need to be earning $50k plus to just break even.

Beoz

My mother and father worked so my siblings and myself could be looked after and schooled from the age of 5 - 18. This was in the 70's and 80's. But we had some pretty nice holidays away as a result. Not something that could have been done on a single salary. It appears that nothing has changed here so what's your point? Children are costly - it's just the way it is.

bingobob777

457 holders are unlikely to have family around to help with childcare, they also don't receieve 50% of childcare costs back like everyone else, hence both parents working becomes an issue. It isn't a level playing field. If they have to work the cost of childcare means working for less than $50k equates to a net loss.

Beoz

Plently of non 457's don't have family around or capable of looking after children. I certainly don't. LAHFA isn't designed for covering child care, but I do agree. If you pay tax regardless of being temp or perm, it should be an equal playing field.

bingobob777

That's all I ask for.

Beoz

I'd prefer all benefits are removed and taxes reduced as a result.

DeepSix

we have been preparing for this since Nov 11.

we have made sure that our outgoings via debts have reduced to the same amount that we will now loose in our incomings. So cashflow will remain unchanged even if the weekly wage packet is lighter.

Also i have been speaking to an accountant to set up a company to be able to use the tax code to my advantage, so we will be no worse off than we were before the loss of LAHFA and if we are fortunate, we will be in a better position.

saintstu

Currently LAFHA is worth about $25k gross to me, so I'm having to move. I did plan for this though, as current lease expires at end of May.

It's a kick in the nuts, to be honest, but I'd still rather be here than back in England.

paddyo

We will be $2000 less per month. So, we haved moved in preparation. Wife is now looking for work. Looking to go PR, sponsored and paid for by company. Seriously looking at selling property in UK, rent is short of mortgage by 400 pounds a month but am loathe to buy in Sydney area due to ridiculous prices. Thankfully we no longer have to pay for child care but may have to pay for after school care dependant on work that wife MAY get. Have other financial responsibilities in UK that we still have to account for.

cubeonly

Oh well, here we go.

My company confirmed on 22 May that they will not increase salaries to offset loss of LAFHA.

On 23 May I resigned; 2 months notice.

New job outside Australia pending but hopeful.

Anybody have experience regarding breaking apartment lease? Can it be done in 28 days or less?

I can't say I'll miss Australia. In general it seems to me that working here is more hassle than it's worth. Australia won't see me again.

Cheers!

Amazulu

Double adios!

steen1976

About $800 a month. Quite a hefty amount of course but we never knew we were getting it when we came so it was always a 'bonus'. We won't be able to save much now.

Got a little one on the way though and now the 457 holds no value to us any more so we'll be applying for PR very soon. Paying less rent is not an option really as we'll need a bigger place in time.

Beoz

My collegues on 457's who collect the tax break have a similar attitude to you as in it was a nice little bonus .... it's a nice attitude to have.

It sounds like a few of the 457's are now going to head down the PR route which really shows how badly this tax break was abused and how much it was unnecessarily costing the tax payer

paddyo

Again you just don;t get it. When you come to a decision point then you make a decision based on circumstances. Going for PR does not 'show' anything, it merely means a decision has been made.