mrsunshine

Hello all on BE,

I have been reading articles quietly in the background as I am in the process of transferring to Sydney on a 457 visa. This may turn into a permanent move and I am currently in talks with company HR.

They have offered me a salary which on paper looks ok, but reading how expensive things are in relation to housing (rent first) and general cost of living I am not sure what I’ve been offered is looking that good anymore. Ok a bit of background first. I will be working in the West Ryde area and hope to live in the Northern Suburbs. Not fussed about commute that much as long as family are happy with area (1st priority)
I’m in discussion with HR about LAFHA, but they seem to be fobbing me off on this because I have mentioned to possibility of going PR. This has only been mentioned as part of my questions on when this could happen for e.g.: timelines, if we settle and want to pursue PR. HR are now getting edgy on the matter saying that once I start talking PR the situation on LAFHA changes as my intent is not move back to the UK. I’ve only just talked about my options, so not sure why they are getting funny about this.

My salary has been agreed and I have done the sums with my payroll dep’t and I will be clearing about $8000.00 p/m. This is after Super and tax deductions. I also have a option to have a company car which will mean another chunk off that total (I have yet to work it out), but I am assuming around $1500.00 on a company owned car. So at a high level that leaves me with around $6500.00 and I haven’t even considered rent. Looking at the areas I want to live in and the house we would like (family of 3 and a pool is nice to have) it looks like we are going to spend between $800.00 - $1000.00 p/w, so again taking the top level figure of $1000.00 this leaves me with $2500.00 for food, utilities and the usual monthly costs. We do not live a lavish life, but that amount doesn’t feel like it’s enough and my wife won’t be looking for work until my child is settled and that means the new year is when she will look for work.

All comments and opinions will be appreciated.

Thank you

E3only

Is that enough? Depends on your lifestyle. Your comments make me infer you are a bit of high flyer – don’t get me wrong please.

1000 pw rent? I lived in western Sydney for around 400 a week. I understand though most of the Poms prefer to live in classy areas line Mosman, Manly or northern beaches where rents are absolutely ridiculous. Even in those areas you can get decent rental so I am not sure where are you coming up with 1000 pw. Remember, more expensive rentals usually mean expensive grocery/food around that area.

With what you are saying, 8k won’t go far for you just based on the math you are putting up.

If it were not for your math, 8k is definitely doable I would say.

mrsunshine

Hi, I’m definitely not a high flyer and the reason I want to live in that area is proximity to the beaches and the train line to the city. I get the $1000 figure on what I’ve been seeing on the 2 real estate website. If I can get something decent for less then happy days. These are figures that I have done some research on. The car for example is pretty correct I think and if not then I would expect the feedback to tell me any different

Thank you for your feedback

spalen

Mate - ditch the company car until you get here and can work out the tax options. Its not always the best . I wouldnt be putting so much disposable income into a car and leaving you with only 2500 - if you forego the car thats another 40% on your disposable income.

i looked at them many times and could never get it to work. There are tax benefits for running your own car for work purposes . The tax system here is a myre of loops and loopholes.

freebo

Rule of thumb I worked to is no more than 30% of disposable income on rent.

stevemich

I recall from my own experiences (about 3 years ago now) that you are only entitled to LAFHA whilst you intend to return to your home location. As soon as you start any PR application, you are announcing you intend to stay, and therefore LAFHA is not available any more. That is probably why they are a bit twitchy about you discussing PR with them as they would have to divulge these discussions to the ATO if they were reviewed.

Also remember (I think it is still the case) that in NSW on a temp visa you have to pay $4,500 per child per year - upfront - for schooling in the public system. That could be a big factor for you.

All the best.

paddyo

See inline.

paddyo

If the OP wants a 3 bed house and pool, 1000 is what they will need in those areas, at least!!!
Commute to West Ryde is a painful and arduous journey.
My salary is similar to OP's, I would restrict myself to 700 max rent per week, look at different areas if they need a pool or lower their expectations.

stevemich

your comment about LAFHA differs from what was told to me by Deloittes who were managing my PR application for me.
However you may well be right

edited to add - it may actually have been a less knowledgable source saying I was not entitled to LAFHA once I decided upon PR (not just when applying). Deloittes did say it was no longer available from date of PR application, but I cant recall if they agreed with my other source

Kooky.

You certainly have a way with words, E3only

OP, the other posters have told you much the same as I would and also know about family stuff that I won't know so I'll leave it to them, apart from suggesting that you search this forum for "Sydney cost of living" and you will find quite a few threads where people have summarised their situation.

The numbers I put up for living expenses still more or less stand, apart from the fact that we now own instead of rent. Phones, Foxtel, insurance, etc., all still very simiilar.

Get the LAFHA! Whilst you are on a 457 you have expenses you wouldn't have as a PR and it comes in very handy. Paddyo can talk for hours about that so I'll leave it to him

mrsunshine

Thanks for the handy feedback. On the point of LAFHA it seems that just the slight mention of PR causes all sorts of problems. I am not sure if this is an auditable issue local HR have, but just because I talked about it to my hiring manager doesn’t mean it’s a done deal. I have discussed many issues and scenarios. I have a meeting with HR AUS tomorrow and what I can tell from the email is this is going to be a bit of a battle for the above mentioned reason. Of course I will push back on the grounds that I have nothing in my contract that I will be going PR at this stage and the fact that I’m on a 457 visa means I am temporary in itself

Kooky.

If you want PR, ask them to give you LAFHA or sponsor you for PR straight away

paddyo

Hey...I resemble that remark!!!!

mrsunshine

Great point!!

paddyo

Ok, 457 is Temp, PR obviously is Permanent. LAFHA only for Temp residence when the intention is to return to original home. Now, you can THINK, PONDER, ENQUIRE as much as you want to about PR without it affecting your 457 status in any way, shape or form whatsoever. Until you APPLY for PR then you can still be assumed to be returning.
It is human nature to plan ahead and know the facts about PR/Citizenship etc etc without committing to anything. Its called being inquisitive and if your HR are worrying about it then they do so unnecessarily and probably because they have had issues in the past, either that or just plain being silly!

Arm yourself with the simple facts: you are being offered a Temp 457 role, which has a contract length and you still have a home in the UK (even if its your parents home, just use that!!). To that end, as you still have UK obligations, LAFHA will be required in order to help you with your food and accom in Oz whilst keeping your UK obligations (mortage etc).

Do NOT let them bully you. Reassure them that the ATO allows for LAFHA particularly for 457 Visa holders and the mention of PR is the same as wondering if New Zealand is a nice place, doesn't mean you are actually going to go there!!!