Hi,

I am currently claiming LAFHA on a 457 visa. My company has offered to sponsor me asa permanent resident which is great, however they have told me that I will lose the LAFHA as soon as I start the application process.

However I have also heard there has been a law change which means that you are able to claim LAFHA until residency is granted.

Can anyone confirm which is true, do you lose LAFHA on application for Permananet Residency or can you claim it until it is granted? If you can claim ut until it is granted is there any official documentation proving this?

Many thanks!

Great question

Waiting for the same answer from my OZ accountant but he seems to be struggling, anyone else have this info?

ws2048t
457 temp visa

Take a look at this Hays web site which states that LAFHA only applies for the duration of your first sponsored visa and in any event you lose it as soon as you apply for PR.

http://www.hays.com/legal/legal-australia.aspx

Also look at MT 2030 which is the tax ruling on LAFHA benefits. I think if you check this carefully you will see that you will not be able to give the declaration under section 32 as your residence in Oz becomes your permanent residence when you apply for PR.

http://law.ato.gov.au/atolaw/view.htm?locid='MTR/MT2030/NAT/ATO

Still a bit grey around the edges on this one./.
Didnt i read somehwere that the PR/LAHFA thing was being looked at as if you apply for PR and it takes 12 months you should be able to claim the lahfa back for that period? IF you scoure the IMMI/ATO websites like i have you cannot find it anywhere in black and white that you should loose your lahfa when you apply for PR.

It wouldn't be in the DIAC website as it is nothing to do with them. The ATO are the ones who make the rules on LAFHA. I guess you will have to ask the ATO.

quote:

Originally posted by ws2048t:
Still a bit grey around the edges on this one./.
Didnt i read somehwere that the PR/LAHFA thing was being looked at as if you apply for PR and it takes 12 months you should be able to claim the lahfa back for that period? IF you scoure the IMMI/ATO websites like i have you cannot find it anywhere in black and white that you should loose your lahfa when you apply for PR.

Who are you going to claim the LAFHA from?

The LAFHA is a salary packaged item that has to be agreed with your employer.

I think you need to do some more research ...

Best regards.

quote:

Originally posted by ws2048t:
....you cannot find it anywhere in black and white that you should loose your lahfa when you apply for PR.

That may well be true but it does say that LAFHA is for people who INTEND TO RETURN TO THEIR HOME COUNTRY. Surely once you apply for PR it is no longer your intention to return home and you should therefore not receive LAFHA.

My feeling is that whilst I'd like to stay in Australia, they may not want me, therfore the intent and assumption of intent is a little premature.

Assuming I apply for PR, and it gets turned down for some reason then where would I be left...2 years on my 457 without LAFHA?

Why do you think we might not want you ?? If you are so sure that you might get knocked back then why would you bother applying and wasting your money ??

Im with Arthur on this one..It does seem odd that once you apply you loose the LAHFA, im still living away from Home whilst the application goes through.

Just regarding Alans Comments, i take it the employer decides if it takes LHAFA away from you ? Or award it in the first place. Surely this is based on Hard and fast guidelines from the ATO, which i think is what we are all questioning.Its not Black and white in this case..

There are no "hard and fast" guidelines I'm afraid. It is up to your employer to decide whether they want to salary package, and whether they include LAFHA in the offering.

Take up your concerns with your employer - it is the employer you have to persuade after all, not me!

Best regards.

Arthur, any news on this from your side? I heard a very similar story, I believe that person took it to court actually as he did not want to pay his LAFHA back: he claimed that he would only intend to stay in Australia if he would get PR. So applying for PR was (in his defence) not a sign that he planned to stay, it only showed his willingness/wish to stay. The debate was whether or not he was entitled to LAFHA awaitening PR. Not sure about the outcome of the case though.

Still no clear answer on this sorry. My friend who told me about this apparently uses Freespirit as his agency. When I mentioned this to my company they made it obvious what they thought of Freespirit e.g. that they have a bad rep so don't trust what they advise(completely unsubstantiated and I've nothing against Freespirit).

Aumelle, it would be great to hear what the outcome was of that case as that would provide the answer to the original question