TGOC

Hi All,
I was hoping someone could help? I was speaking to someone the other day who said if you are on LAFHA you can ask your employee to salary sacrifice flights home for people on your 457 Visa. I was wondering if anyone has done this and what the process is?
Thanks.

iamthecreaturefromuranus

Not saying it's not the case, but I was on a 457, and know plenty of others who were as well and it's the first time I've heard that mentioned as an option.

medwaymark

I think anyone can sacrifice for any "holiday" if you work for a public hospital. You also have a higher FBT limit.

Steve2009

Certain public hospitals are tax exempt entities and hence don't pay FBT, I believe. This is a separate issue. I have heard of flights home as a LAFHA but don't know of anyone who has claimed. I was always on my min income for my 457 after my food and board so had no scope for this regardless.

hoofie2002

Never heard of this. My wife works at RPH and sacrifices for the mortgage and an entertainment allowance but I've never heard of that. Unless you mean sacrificing towards an entertainment card which you CAN use abroad but only for eating at restaurants etc.

medwaymark

Just looked it up......

About Private Travel
You can Salary Package private travel for you and your dependants as a Full FBT Benefit Item. This is limited to fares, accommodation and travel insurance and excludes entertainment and meals.

Maybe this is only for Queensland, I don't know. I also don't know what implications the "Full FBT Benefit" statement has.

I sacrifice for the mortgage & electricity, so I use all my allowance anyway.

Steve2009

Ordinarily FBT items are taxable in the hands of the employer, not the employee. As you work for a tax exempt employer, no one pays the tax.

Pollyana

Not sure if this is what the OP is thinking of, but worth a look - http://britishexpats.com/forum/showthread.php?t=701657 -- claiming back tax for flights to return to the UK to sort out rental issues.