Originally Posted by bingobob777

Once I rent I will receive 75k taxable and 45k non taxable, that will give me a take home pay of $104,350.

If and when I come off LAFHA I'm not going to take a 20k paycut so for me to still take home $104,350 my company would need to pay me just short of 150k salary. An increase of nearly 25% for them.

Originally Posted by paddyo

What???? It is still of no consequence to the company if you have LAFHA or not, your salary will be the market rate for your role. If they had your skill in country then that skill would get the same salary.

Originally Posted by bingobob777

so you're telling me an australian or an expat with pr with the same qualifications and experience would work for 20k less than me doing the same role just because I get LAFHA?

and that if I want to take pr I'll be taking a 20k wage cut?

Originally Posted by ABCDiamond

Yes (talking net income). But then again, they would be getting the same gross pay as you. Very few people realise how much tax benefits are available with LAFHA, as it is intended to help you with running both your households.

But also, they may be getting other benefits that you can't get, which may make up some of the difference in your tax benefits.

Originally Posted by bingobob777

so you're telling me an australian or an expat with pr with the same qualifications and experience would work for 20k less than me doing the same role just because I get LAFHA?

and that if I want to take pr I'll be taking a 20k wage cut?

Originally Posted by paddyo

No mate, I think you misunderstand how it works, to them they are working for the same salary as you, which they are. You are confusing your 'take home' pay with salary. Bear in mind that while you get LAFHA, they also get childcare rebate, family care and, in NSW anyway, do not have to pay for schooling.
If you go PR, if they offer it to you, you stay on the same salary and take the loss of LAFHA but offset by other gains.
DO NOT base all your future plans on gaining a big pay rise to cover LAFHA if, and its a big if, you go PR. It won't happen.

Originally Posted by Meligy

So, again, for 90-100K salary (w/o super), you think how much I can get deducted from taxes for LAFHA given it's me, wife, and an infant?

My real target is trying to define how much I can budget for the rent when I'm searching, based on how much I'll get saved from paid taxes using LAFHA.

Originally Posted by Meligy

Sorry guys, just brining up my last question (hope this is OK here):

Originally Posted by bingobob777

LAFHA for food is the same for 2 adults & 2 kids as it is for 2 adults & 1 kid, so you'll get approximately 15k for that.

Rent will depend on location, but have a look around at cost of renting a 3 bed house in a decent area in whatever city you're looking at and plan on that (52*weekly rent)

Originally Posted by bingobob777

so you're telling me an australian or an expat with pr with the same qualifications and experience would work for 20k less than me doing the same role just because I get LAFHA?

and that if I want to take pr I'll be taking a 20k wage cut?

Originally Posted by jimbo_d

As someone who just had my first paycheck without LAFHA I can vouch for this, and it's quite a substancial hit, my recent payrise of quite a bit only offset it slightly.

Originally Posted by paddyo

2009/10 Fringe Benefit Tax Food component figures are now available at: www.law.ato.gov.au

Originally Posted by Meligy

Thanks. What I'm asking is rent not food.
You think in this 90-100 annual range (b4 super) how much I can get "maximum" for LAFHA so I adjust my rent search for it.

Originally Posted by paddyo

How do you figure that out???

The company pays your salary, the LAFHA aspect is managed by them but is a tax incentive by the ATO for those who have a Permanent residence somewhere else and only intend to stay here temporarily. The salary is the same to the company irrespective of your LAFHA, if anything, with FBT aspects it may work out slightly more expensive for them.

To simplyfy, your salary gets calculated, 9% Super taken off, LAFHA element taken off plus Novated Lease, then you get taxed, then LAFHA and Novated Lease put back on and you are paid.

Here is a basic spreadsheet of the figures you can expect. Just amend the figures to suit your circumstance and LAFHA amounts.

Remember, the food amount is set by ATO depending on family size (if I remember correctly its $371 per week for a 2 ad 1 ch family for Food). The rental amount varies and is agreed between you and your company. Generally for a 2 adult 1 child family I would use $500 per week as a rental example.