Hi there,
I have recently gained employment within Australia on the 457 visa.
I am working for a small company that does not have a HR department. I would like to approach my employer to organise LAFHA (just claiming the preset government tax break amounts meaning employer pays no fringe benifit tax).

I want to know what exactly I need to supply to my employer (presume rental cost receipt and declaration of living away from home) and more importantly what exactly my employer needs to do from there.

I have read the factsheet on the ATO website (1054) but it does not contain this type of detail.

If no one here is aware of this specific info maybe you can point me in the direction of where to find it; accountant etc. I live in Melbourne and have already skopen to 1 accountant but he was in the dark!

Appreciate your assistane with this.

Many thanks,
John Mac

LAFHA is something that you cannot arrange/claim - the employer has to do it for you. Their accountant would have to advise them on how this is achieved and what they have to do in order to pay you LAFHA.

Basically you are permiited a rent payment as well as a payment for food (which varies dependent on whether you are single, married and how many kids you have).

G'day

The 457 visa is a way of bringing in overseas labour to help in areas of shortage for those skills.

To prevent exploitation of the migrants and to protect the wages and conditions of locals, there are minimum wages specified for the various professions or skills of 457 visa holders.

If an employer chooses to pay a LAFHA or any other benefits like health insurance, car allowance, shares, incentives, bonuses, commissions etc they must all be in ADDITION to the prescribed minimum wage.

As most employers are using the 457 visa as a way of getting cheap labour, they are not usually interested in paying out for any extras above the legal minimum. Employers just don't have the option of reducing your salary and paying you an equal amount in lafha.

Cheers
Bob in Bull Creek

Hi again, thanks for the replies.

Is it not possible for the employer to provide/organise LAFHA at no cost to themselves. That is they claim for the employee the amounts laid out on the government website which would mean no fringe benefit tax to them the employer?

[QUOTEIs it not possible for the employer to provide/organise LAFHA at no cost to themselves. That is they claim for the employee the amounts laid out on the government website which would mean no fringe benefit tax to them the employer?[/QUOTE]
G'day

Yes, that's possible and entirely up to the employer if they want to do that. However, they MUST still pay you at least as much in wages as is stipulated by the minimum salary for your occupation code.


Cheers
Bob in Bull Creek

I was in the same position as the OP; small company, never done this before.

I haven't provided them with anything other than a signed statement of how much I spend on food / accommodation. I also detailed my relocation expenses.

My understanding is there is sometimes Fringe benefit Tax payable on some of the food element, but if you only claim "additional" food (or something like that) this can be avoided.

Essentially my salary is the minimum it can be, with the rest of what was originally offered to me as LAFHA / expenses.

jux

Hi

I've just been granted a 457 Visa and am in the process of sorting LAHFA with my employer.
I'd be grateful for some clarifications

My salary is 60k per annum however i'm also provided with a vehicle.

I'm in the Schedule A salary bracket per (http://www.immi.gov.au/skilled/skilled-workers/sbs/occupations.pdf) so am i correct in saying that my max LAHFA is restricted to

60000- 41850(schedule a)= 18150 per annum?


Or can I include the value of the vehicle in the package (circa 10k)?