Hi all,

I am currently emplyed in the UK and I have been offered a job in Melbourne starting August 08 with a gross annual pay of $83000 + 14% superannuation contribution from the employer. I will be on a 457 visa. I am married and my wife is unlikely to work at least in our first few months in Melbourne. I was wondering what will be my net fortnightly or monthly pay and if it will be a decent enough salary to live on for two of us? We are not the partying kind and we don't spend too extravagantly when shopping, eating out etc. Ideally, I would like to save at least $2.2K a month. Thanks in advance for your comments.

Hi there,

First question is are you aware of Living Away From Home Allowance generally known as LAFHA ?

If not - ask your prospective employer if they are willing to include it as part of your contract of employment - it will make a huge difference to the amount of money you bring home. If you don't know what it is then just search the posts on here for 'LAFHA' - then enjoy the next 3 hours while you read all the comments !

If they have offered it then tell us how much you are getting as this affects your after tax pay.

The Australian taxation system is similar to the UK's.

By the time you get here the new government will have issued their first budget so the rates might well change but as a guide here is what it is likely to be assuming your DO NOT get LAFHA - so this is the WORST case scenario if you like.

The first $6,000 is taxed at 0% = $0
The next $24,000 is taxed at 15% = $3,600
The next $50,000 is taxed at 30% = $15,000
The last $3,000 is taxed at 40% = $1,200

So total tax would be $19,800.

In additon you will pay 1.5% Medicare Levy = $1,245.

So your total take home would be $61,955 PA or $5163 PCM or $1191 PW.

I would say that this is a very comfortable salary especially as you didn't mention children so I assume you don't have any !

If you can get LAFHA of say $40,000 (food - $330 PW and housing say $450 PW) then you would have a net income of $74,855 or $6238 PCM.

Hope this helps !

Hi Colin and everyone,

Many thanks for your help. I have sent a note to my prospective employer about the LAFHA. I went through the various posts on LAFHA and I am still not sure if I understand it completely!!! My contract is a permanent one and not a temporary one. Does that make me ineligible for LAFHA? Also is anyone technically "away from home" when working entitled to it or is it offered at the employer's discretion?

Thanks again in advance for your comments and replies!

Your job may well be a permanent one but it will only be for as long as you have a visa !

As you will have a 457 visa, at some point you will have to return to your home country or become a permanent resident.

As long as your are a holder of a 457 visa and have NOT indicated your desire to stay in Oz permanently then you can claim LAFHA. Once you apply for a permanent visa then you must stop claiming LAFHA.

It is offered at the employers discretion and they dont have to give it to you.

Thanks again Colin!

I am still waiting to hear from my prospective employer about the LAFHA.

Hiya

$87k is a great staring salary, Melbourne is an average place to live in terms of cost of living and Im sure you will manage well on that income.

Do you know where in Melbourne you will be living yet??

There are many lovely area's, I have just been there and filmed a new reality dvd for livingdownunder, it may be of use to you to see visually the areas you may be living houses, schools shops etc...are on there.

Good luck with your journey

thanks a lot. I will certainly take a look at the dvd. We have not yet decided where we will be living. But we are considering renting slightly away from the cbd since it looks like we might find a bigger house for our budget (about $1400 a month).

quote:

Originally posted by Living Down Under:
Hiya

$87k is a great staring salary, Melbourne is an average place to live in terms of cost of living and Im sure you will manage well on that income.

Do you know where in Melbourne you will be living yet??

There are many lovely area's, I have just been there and filmed a new reality dvd for livingdownunder, it may be of use to you to see visually the areas you may be living houses, schools shops etc...are on there.

Good luck with your journey

If you are the same northern woman with atrocious vocabulary and poor technique then your DVD of Sydney was absolutely appalling. I did not expect a professional product but yours really was painful to watch and I turned off after 10 mins, it was totally embarrasing!!