Hi,

I am currently filling in an e457 application. My future employer has carried out their side of the application process, and provided me with a transaction reference number.

If I don't include a deduction for LAFHA in the declaration of base salary, will there be a problem if I subsequently claim LAFHA?

As with many others, my employer is currently looking into LAFHA with their accountants/lawyers, but as I am moving over in 13 weeks time (starting with them 2 weeks later), I don't want to delay submitting my application much longer.

Making a reasonable deduction for accommodation, my basic salary less LAFHA will be in excess of the new minimum salary levels.

Even though I will be the primary applicant, my wife will be earning $20k more than me, so it would be more tax efficient for her to claim LAFHA instead of me. Is this possible, or can LAFHA only be claimed by the primary applicant?

Many thanks,

Ian Hudson

LAFHA is not a deduction or a "claim". It is a component of a salary package.

I recommend you seek clarity from your prospective employer as to whether the LAFHA will be included, before you lodge the visa application.

Note also that the nomination application will have made reference to the proposed salary, which if lodged with DIAC already is likely to disregard the LAFHA element => if the salary package is changing there may be a need to submit an amended nomination and have this agreed before you lodge the visa application.

Best regards.