I have been with my employer for a while and it has just come to my attention that my $300 per week LAFHA allowance is being used by my employer to make up my $65,000 inc salary. My actual pay rate is $23 per hour gross which makes my salary including super, less than $50,000 gross. $300 is added on top of this each week which brings my gross salary up to $65,000. They say they are supporting LAFHA yet it would appear they are using this to pay my annual salary. Are they allowed to do this?
What were you offered in your contract of employment ?? Did they say that they would give you $65k inclusive of super and LAFHA ??
They should have told you what your base salary was as this is the baseline for them to calculaye your super contribution upon. I assume that this is the $23 per hour you mention. Are you paid hourly ?? If so do you work a fixed number of hours per week with a fixed number of weeks leave etc ?? Or are you a contractor ??
What they are doing is OK providing they said it was all inclusive in your contract. They must also ensure that the amount you earn gross per year exceeds the minimum salary level for your occupation. So if your gross salary (for ATO purposes) is $45k and the minimum salary is $50k then they have a problem.
Posts: 680 | Location: Sydney | Registered: 18 November 2005