clarkie7000

Hi,

I need tax advice - sorry for the long email.

My company has offered me a position in Aus (which i have accepted) and I will enter on a 457 visa (subject to approval).

I asked the HR manager if I could have some of my salary as LAFHA, but she stated that "because you are coming in with the intent to stay, we cannot give you LAFHA".

Does anyone know if this is correct?

My contract states that they will support me in an application for PR at the earliest opportunity, but I will be keeping my property in Singapore until I get PR (at least).

Is losing the LAFHA a payoff for the guarantee of being supported for PR (which I know that some others on here have had problems with), or are my company misinformed?

I look forward to your replies.

Clarkie

Katherined0

That sounds about right unfortunately. I am no expert but do know that LAFHA is only for as long as you intend the move to be temporary, once you even hint that the move is permanent you loose the entitlement to be considered as living away from home. As your contract states that they will support you for PR at the earliest opportunity you are entering with the intent to become a permanent resident and are therefore not eligible for LAFHA.

To be honest the whole LAFHA thing is a nightmare! I would suggest you get professional advice and dont take my word as gospel! Good Luck!

clarkie7000

Thanks Katherine.

I read from your posts that you have been through the same thing, so i take your word for it.

I was kinda looking forward to an extra $500 per month in my pocket, but hey - you cant have everything....

I guess that I can ask an accountant when I get down there. I don't want the PR clause reoved from my contract, as it is one of the draws for me to transfer.

JAJ

Why are they not sponsoring for PR directly, if this is intended to be permanent?

clarkie7000

I am not sure why.

I am 43, and going over in a management position that needs to be filled quickly.

I am not sure if that has anything to do with it, or what.

I think the forms have gone in now, so there is not much i can do about it.

Kooky.

JAJ - I realise you have the migrant's best interests at heart but you always make us (me, at least) feel like we shouldn't accept a 457, as if the employer can't be bothered to go for PR or is doing something underhand, leaving himself a get-out clause, etc.

Maybe that is sometimes the case but, as I have responded previously, there are many more of us that come on a 457 purely because it's fast. The company needed us ASAP; we're grown-ups, we know the risks.


clarkie - mentioning the LAFHA always opens a can of worms. Search the archives, read all the info, then verify it for yourself. We're here on a 457, hope to go Perm (although have to do our sums to decide when), don't have a property anywhere, and are getting it.

JAJ

There are good employers out there, but lots of "underhand" ones too. And others in the middle who don't have bad intentions but simply have no comprehension of the day to day issues some 457 holders face.

As for 457 holders, some have eyes open to the risks and issues, and have a good plan to get permanent residence. Others do not and find themselves in a mess (agents in Australia see these all the time, sometimes they can be helped, often they just have to go home).

And 457 is not always quick, incidentally.

Red_V_Roger

Agree with other comments - timing is everything...going from 457 to PR trying to judge loss of LAFHA v 1st Time House Buyers Grant in NSW, etc, etc...

457 is working fine for me...I knew the risks compared to PR and for me its working well.

I don't know really the details, but one of the guys at my office was telling me that LAFHA is not only paid to people who own a house outside Oz or intend to live in Oz only temp. He was saying that a lot of the mining guys heading over to WA from QLD & NSW can also claim it if they are living in digs in WA, but still have a house in QLD for example.

You certainly will have it stopped as soon as you apply for PR, because teh intention is to stay in OZ. I think it depends how willing your company accountant is - have another go at him/her.