Beoz

Hello - First Post - Great Site.

Will be relocated to Australia soon in an inter-company transfer and whilst researching, I stumbled across LAHFA, which I believe I qualify for as I will be relocated from my usual place of residence which is the UK. I approached the Aussie HR who are dealing with the contract and transfer about LAHFA and they say it will not be part of my package as the move has no fixed timeframe and is ongoing. The HR say that LAHFA is only for those who have an engagement of a fixed period of time.

I get the feeling the company are trying to avoid supporting LAHFA in my case.

As far as I can tell it costs a company nothing and requires minimal paperwork to set up. Does anyone know if LAHFA has any disadvantages to a company?

colonel

Hi,

In order for your company to sponsor you, they will need to provide a 457 visa for you. The maximum stay on this temporary visa is four years.

LAFHA does not cost anything however, your companies payroll system will need to be able to accommodate tax adjustments etc.

As Australia will not be your permanent place of residence, you should be entitled to LAFHA as part of your remuneration.

Beoz

Thanks Colonel

I'm lucky enough to have a dual citizenship as I was born in Australia. My father is Australian and my mother is British and they divorced when I was 4 and I returned to the UK with my mother. I have lived in the UK ever since. As I understand it, LAHFA is NOT visa dependent but insists the applicant must demonstrate the intention to return home. At this stage I intend to return home to the UK but I can't rule out the possibility that I might enjoy living in Australia and want to stay permantly - it's too early to make that kind of life changing decision. My company does have the facility to accomodate LAHFA as they provide this for some of their 457 visa holders. Are there any tax implications like FBT that might affect my company? They are very insistent that I don't qualify but all information I've researched suggests I do. I suspected some type of tax implication or other cost or complication may be preventing them offering LAFHA.

colonel

I think this one might be one for an registered immigration agent. I would imagine your dual citizenship may affect your entitlement to LAFHA but to be honest, I am not sure...hopefully, someone on here better qualified than me can answer your question

Beoz

Thanks Colonel ... I'm thinking this is one for the ATO rather than an immigration agent.

As I understand it, LAFHA is available to Australian residents that are moved interstate or abroad and on that basis I'm assuming citizenship is irrelevent. But then again I really don't know.

I think 457 visa holders are typical candidates but a 457 visa is not a requirement. I think it's a matter of Living Away from Home - which I certainly will be doing.

Icecube

correct. It is more common with 457 visa's but you can still apply to the ATO for a tax ruling. I would suggest you get the company you will be joining to agree to it in principle and then get the ATO ruling to support it. Worth the effort especially as a lot of companies simple say it is not possible for an Oz citizen as it means the HR department have to go outside their comfort zone and put some effort in.

killerhales

I work for one of the best companies in Australia, but for some reason they are really not keen on LAFHA. I don't know why, but I guess one possible downside is that you have people doing the same job who are being treated differently with different financial outcomes.

I had an employee who was clearly eligible but I couldn't get any traction with HR to make it happen. At the time we had a pretty poor payroll (which has since improved) so maybe their capability to deal with it was an excuse.

If your company isn't keen then I wouldn't push it, might damage the relationship from the outset.

On a more general note, as an expat who has worked in several countries, I have a problem with the concept that one can "live away from home", except for short-term/temporary employment. For me, home IS where you are living and working at any particular time.

That hasn't stopped me and the family, however, from making a plan to return "home" after 17 years away!!

Beoz

That's my problem. I can't get them to agree to it in principle and the only answer I get is "NO - you are no eligible" when it appears that I am.