Just wondered if anyone can clarify this point for me. I am moving to a totally new job in Sydney on a 457 visa i.e. nothing to do with my old employer in the UK. Can I still claim LAFHA? If so, does it cost my employer anything extra in tax? It sounds too good to be true! Thanks guys.

Oh - where to begin.

Try seaching for LAFHA within this site - there will be many references.

Basically it is a perk that MUST be administered by your employer in Oz (your previous employer has nothing to do with it).

Not all employers will do it for you and they will need to assess their tax position if they offer it as part of your salary package, as I believe they will have to pay Fringe Benefit tax on it. However I am sure there is some way that they can come out on top too !!

It is really worth having and you should really push your new employer to do this for you.

Are you aware of what it does and how it works ??

Hi Juliet,

As Colin has already mentioned it is definately worth trying to push for it.

I am in a similar situation to yourself in terms of starting a new job (in this case Melbourne) on a 457 class visa.

However, in my case I was told by the company that I would not be eligible for LAFHA due to the fact that (i) as I was emigrating to Melbourne from the UK, Australia would then become my usual place of residence and (ii) because my contract was to be a permanent one and not a temporary one.

Was worth a try though..... ;-)

Regards,

Chorlton

Thanks for your advice, I will definitely speak to my new employer.

Chorlton, from what I have seen, unless you have got permanent residency, then Australia is not your usual place of residency, and you are therefore entitled.

I am going to do some digging about Fringe Benefits Tax now, because if it is going to cost my employer a fortune in tax then there is no incentive for him to provide LAFHA.

Hi All

Not knowing what LAFHA was I just did a quick search and found this article that seems to explain it quite well

http://www.brainbox.com.au/brainbox/home.nsf/0/AD47B03F...0369615?opendocument

So looking at this it seems that it is only payable if you are losing out by 'having to' relocate, so would not apply if you are relocating anyway and getting a new job - I Think!

Tracey

I resigned from my job in London and started work in Sydney 2 weeks later. I didn't have to relocate. I was on a 457 visa and received LAFHA.

It is payable to anyone who moves here on a 'temporary visa' but must stop once you have indicated your intentions (to DIMIA) that you want to stay permanently.

Chorlton - I think your employers are telling you bull-s@@t. I agree with Juliet as my understanding is that the nature of the job position is not applicable - at the end of the day you have only a temporary visa and will have to leave in 4 years time unless they get you another one. If your contract of employment promises you PR in due course then you may have a problem I would think.

See also here

http://www.gomatilda.com/news/article.cfm?articleid=61