h2oskineil

Hi
Anyone know anything about the "Living away from home allowance"?
My friend in Sydney received this and it was quite a substantial saving for him and he insists I should be entitled to it over here in WA.
I'm on a 457 five year visa, and have a primary residence in the UK, so I am therefore living away from home. Sounds simple.... anyone know???


Thanks

Neil.

Sandra

There are lots of thread on the site about different aspects of the LAFHA - do a seach on LAFHA and you will have a morning reading.

Couple of points LAFHA is country wide not just NSW - it is something your company should work out with you and you usually get it organised before starting work.

The ATO website www.ato.gov.au has a certain amount of information but you need to hunt around for it.

Your payroll department is a good place to start asking questions about your company provisions.

Cheers

Mrs Jackaroo

We're in NSW on a 457 Visa and dont get it. There are quite a few of us over from the UK too and as far as I am aware none of them get it. I'll quiz hubby about it tonight and get him to ask a few questions tomorrow! Thanks for reminding me.

Cheers

Rach xxxx

steve99

We use this company quite often to look after our contractors that are eligible for LAFHA, check out www.cxc.com.au if anyone in WA wants to speak to the state manager here let me know and i'll put you in touch with him.
Steve

trehere

If you're on a contract then you should be fine. Its when you get a permanent job it becomes difficult. The other difficult thing is getting your company to agree to it, mine refused

h2oskineil

Thanks everyone for all the ideas... I'll start asking around at work and see where I get.

Regards
Neil.

Sandra

It is not on the status of your job - I was a permanent employee transferred from the UK for four years.

It is the company that has to support the LAFHA not the employee. I do not understand why a company would refuse organising it? Perhaps someone can let me know why the companies said no.

LAFHA is also avalaible for employees within AUS who are relocated away from their perm residence for a period of time and intend to move back, eg NSW to VIC.

As a heads up to future 457 people - get this organised before you move over make it a condition of contract and get it all spelt out - it may be that under the regulations organising LAFHA after the event is too late, I did read that somewhere.

If at any point you make an application for PR your right to LAFHA is null and void from the point of submitting the application. This is because you are stating your intention to remain in the country.

Best of luck h2oskineil hope it works out, let us know

Cheers

TrishnMick

Hi Sandra

You seem to know a lot about LAFHA. My hubby got a permanent job here (Brisbane) and his company sorted it out for him....we didnt even know about it till they told us....result!

Do you know anything about getting a mortgage and LAFHA? We recently went to our bank and they would only work out a mortgage on the portion of his salary that he pays tax on. Is this the case everywhere you go?

Any info/advice would be welcome.

Trish

Pomster

Sorry but it seems my info about LAHA for PR visas is now out of date.
A friend at work told me that if she 'intends' to apply for PR, she will not be able to receive LAHA. This ruling seemed to change this year.

So it seems it is only applicable to people with temp visas.

Sorry- the rules just change far too quickly!

Sandra

Hiya - sorry for the delay in response I have been enjoying my weekend

I know a little about LAFHA because we came over on a 457 to start and then converted to PR, also I work in payroll and need to be up on the latest legislation in order to make payments correctly.

Who did you ask for a mortgage - I recommend you use a broker and not just the bank you are currently with and ask them this question up front - then you can compare mulitples and rates being offered across a wider section - some may take LAFHA into account but charge a higher %.

Also find out if the broker is aware of FIRB restrictions you may have for buying a house on a temporary visa so this gets sorted upfront as well.

Your bank possibly will not consider your LAFHA as part of the salary because it is a 'tax free allowance' because of your temporary living arrangements away from home - which means it is not guaranteed as part of salary. I do know a lot of companies actually just pay the same salary but allow part of it to be untaxable under LAFHA this is what clouds the issue.

Good luck with your mortgage.



Our bank at the time

Bluerobot

If you're on a 457, and haven't applied for PR, then you are entitled to LAHFA. Some employers won't give it for some reason though - don't know why - probably crap at their job & don't know the rules/can't be arsed etc. My employer sorted it out prior to my ever setting foot in Australia - I wouldn't have known about it otherwise (except from Sandra - she'd have put me straight). As far as I'm aware:

you don't have to own a house overseas - we sold ours prior to moving over

If you buy a property over here, you will probably loose it

As soon as you apply for PR you will loose it

It costs the employer nothing as far as I'm aware, it is basically the employer reducing your tax threshold. My reportable pay is about half what is in reality - i.e it seems to be paid by increasing your tax-free allowance (in UK speak).

Confused - I am, but still receive it gracefully. Take it while it's on offer, put it to one side for something special, but most of all - don't get used to getting it - I'm sure I'm going to miss it when its gone.

Pomster

After talking to a Perth colleague today, who has resided in Vic for 12 years, it seems as though PR does not stop you getting LAHA. He has been getting it (and still does) since he and family left Perth in 1994!

Maybe the decision for a co to pay/not pay arises because a company does not pay FBT if you are a temp but pays it if you are PR ?

Obviously companies want to minimise FBT, so perhaps few offer it to PR visa holders.


LAHA is great- like having a huge pay rise!