Hi,

Please could someone let me know if LAFHA is considered a beneift or can be included in the base salary amount? - just need to know for a 457 application and it specifically requests base salary amount not including any benefits ie health, car allowance etc. I understand this base salary amount also has an implication on any future attempts to apply for PR which I intend to do under the ENS so would like to keep the base salary number higher rather than lower...

many thanks in advance

Scott

The reason they ask for the base salary is becasue there is a minimum salary limit for each occupation group.

The gross salary that is declared to the tax office at the end of the tax year must exceed this amount.

So if your gross salary is $80k and you have $20k per year of LAFHA then your taxable income is $60k. If your minimum salary is $65k then there would be a problem.

Base salary should NOT include the compulsory 9% superannuation contribution. So if they have quoted you a salary inclsuive of super then you need to deduct the 9% first.

So your base salary should be the gross amount you earn less super if it has been considered as inclusive.

If they have quoted you a salary inclusive of LAFHA then you need to find out how much LAFHA they are giving you and deduct that too. Although LAFHA is not really a cash amount - it is a means to reduce the amount of tax you pay on a proportion of your salary.

If you have a document from the employer which details what they are giving you then just refer to that and attach it with your application.

I received PR via ENS and I dont recall base salary being an issue unless you fall into the realm of earning more than $150k.