I have been offered a job in Sydney on a temporary visa (business - 4yrs) with the following package:

Base: 103,000
Bonus: 15,000 (Paid Quaterly)
Car Allowance: 15,000
Super: 9%

I am finding it difficult to assess whether I am better off in taking this offer. I have a couple of questions:

1.) I asked about LAFHA and the employer said, yes your rent would be deduced from your taxable income. This sounds a bit dodgy.

2.) Any ideas on what my take home pay would be? I figure around $7,300. Is this enough to live in Sydney(I am married, no kids)? Wife will not be working.

I know it's hard to say what is enough. But I figure the more views I have the better off I will be. I also understand that rent/mortgage payments and car costs will be the biggest expenses. The position is in the North Ryde area. I hear traffic is horrible but what big city isn't plagued with that these days.

I appreciate any responses and have to say that this a great forum with excellent contributions.

Regards,

Xulu

Nothing dodgy about LAFHA as long as it is included as part of your contract. Basically the amount you pay in rent is deducted from your gross income before tax is calculated - so it basically reduces your taxable income thus reducing the tax you pay.

The salary you will be on will be plenty (especially if you get LAFHA). However it all depends on the lifestyle you chose. If you decide to live somewhere really expensive, eat out every night and drink lots then it won't go very far.

However if you are sensible with your money & live near work then you will be able to save heaps to put towards holidays or buying property here should you decide to stay.

I am not sure how a car allowance is taxed so I have ignored that for now. However assuming you rent somewere for $600 per week (which is plenty for a couple with no kids even in a really nice area), you get LAFHA and I have added your bonus in so that it is spread over the year rather than quarterly, your monthly take home is $7,600 PCM.

We survive on 1 income of about $4K pcm and have 1 young child.

Thanks very much Colin. I appreciate the quick response. I think the key here is LAFHA and I really have to watch for that in my agreement. The pcm changes significantly based on this.

Regards,

Xulu