Hi there, My fiance and I are French and came to Australia under the Working Holiday Visa some months ago. The company I am working for (a small company without HR department) has accepted to sponsor me and I am now under the 457 visa with my fiance as a de-facto.
My employer has asked me to take on a private health insurance to cover both my fiance and I. However, we have been told that the employer was responsible for paying the equivalent of the medicare minimum and we would just have to pay the difference. Is this true? Also, we have been told that we could ask for the LAFHA. I have read a whole lot about it on the forum and the government website, however I am still a bit confused. The lady from the DIAC who processed my visa application told me I wouldn't be liable for the LAFHA as I was in the country when I found the job. However, a lot of people around me arrived in Australia with a working holiday visa and are receiving the LAFHA with their 457 visa. And I have also been told that as long as I have a bank account in France and an address to refer to, I could ask my employer for the LAFHA. I know my employer has to organise this, but who does he have to lodge the application with? he has never done this before neither has the company's book keeper. If we have to pay for the health insurance, the LAFHA (even if covering the rent part only) would be of great help! I hope someone out there has the answer for me!
Hmmm - LAFHA is a huge grey area with a number of unanswered questions - particularly the one about whether or not you can claim LAFHA if you arranged the job after arriving in Oz. The jury is still out on that one I am afraid. It's possible that the people you refer to who have LAFHA have received it in error and run the risk of having to repay it should the ATO ever audit them. If you can prove that you are eligible I would suggest that your employer seeks the help of an accountant who knows how it works.
Your employer is responsible for looking after your health. However some employers get round this by getting you to take out Private Health Insurance. Does France have a reciprocal agreement with Oz ?? Can you be a part of the Reciprocal Medicare Scheme ?? My understanding is that it is your responsibility to have adequate cover. We found the reciprocal cover was sufficent as this would ensure you get to see a GP when you are sick and can attend a public hospital if you are very sick. It even covered us for the birth of our son.
Posts: 677 | Location: Sydney | Registered: 18 November 2005
Thanks Colin for your quick reply and sorry for my late answer! I do appreciate your effectiveness! unfortunately France is not part of the countries with reciprocal cover... Thanks for suggesting it though and I will keep looking into the different options and maybe negotiate with my employer if he can participate to the health insurance (or increase my salary!).