Hi All,

I've been offered a job with a 457 visa ay $60k plus 9% super. Can someone please let me know what my take home pay would be. Also if I ask for LAHFA is this added to my pay i.e. rent and food or does this part of my pay become tax free? If LAHFA is added to your pay, does this stop as soon as you apply for PR.

Regards

Ged

Hi there - without LAFHA your take home salary would be approx. $47,250 PA or $3937 PCM.

If you receive LAFHA this will reduce the amount of tax you pay. So if you for example had a rent component of $400 per week and food of $300 per week then your NETT salary would be $57,006 PA or $4750 PCM.

Hi Colin,

Thanks for the answer, but the employer only wants to pay me the 60k and thinks LAFHA will cost him more. So my question is does LAFHA cost him anything apart from FBT on the food part and what happens to my pay (if it has LAHFA)if I stop claiming it due to applying for PR.

Many Thanks

Ged

Ged think of it this way. Your employer is prepared to pay you $60k per annum. Using Colin's numbers your employer will consider $36400 as LAFHA and your salary as $23600 and you will be taxed only on your salary.

Your employer will have nothing to pay extra - not even FBT provided the LAFHA figures are within the current ATO guidelines set out on their web site.

If you claim PR then your employer can no longer assess part of your salary as LAFHA and will have to revert to taxing you on the full $60k. See Colin's first figures.

You really need to read this thread carefully and the others dealing with LAFHA as it is not something that you claim but something you agree with your employer up front before you start work. Your employer does not have to give it to you.

Ged,

Have you seen this article from Go Matilda News:
http://www.gomatilda.com/news/...le.cfm?articleid=564

Check the current required minimum salary rates too.

Best regards.

Hi Guys, I am confused.com
I am trying to get to grips with Lafha and also trying to to get my company to understand it. Am i correct in saying this is not an extra expense to my company, but a tax relief on my salary? So for example if I negotiate a base salary of say $100,00.00 and they agree to Lafha then all that happens is I get better tax break on this salary. If so is it just a admin process my company needs to adhere to? Please can someone also perhaps post a link to the ASO or the likes so my company can review this and see it’s not a financial burden on them.

LAFHA is included as part of a salary package - ie your gross salary is apportioned between a tax free LAFHA and the remainder which is taxed under the PAYG system.

See also: http://www.ato.gov.au/business...c=/content/52023.htm

Best regards.

so i have had a frustrating day trying to figure out who organises LAFHA, who administers it, who approves employers etc..
and the information gap with the whole thing is just frustrating...

so ill give you what i have and know to understand and hopefully someone out there can help me!

i have been working as a financial accountant on contract for the last 10 weeks with a company in melbourne and have just got sponsored.

i have been paid through a payroll company for the last 10 weeks and they have been claiming my LAFHA up front and sending it all into my bank account. so no problems there.

but now that i am going permanent it is up to the employer to "administer" the LAFHA. and yeah to say that they dont know what LAFHA is would be an understatement. but thankfully they have no problem paying me and claiming LAFHA but they just handballed the organising of it to me....

so if anyone knows ANYTHING about how i can learn about administering LAFHA in the workplace in a payroll department. im desperate here!! think the savaings are in teh region of $6k im not sure need to do some calcs..

the other option i found out today is to use a payroll company. the ATO actually advised me to call a payroll company because they are so clueless there!
so the payroll compnay would set it up and guarentee you $300 per week in LAFHA for 3% gross of your salary. they would cover all income tax payments too .... not sure if this is such a good deal as again i need to do some calcs...

anyways im throwing this out there with a tiny hope that someone somewhere knows something about LAFHA!!