tax and sponsorship and nightmares

AngryHippie

I am here on the second half of my 2nd year whv. The company I've been working for (just finished my 6 month limit) have told me they want to keep me on, I fit in on the ENSOL list, just, I'm going to be under the threshold, but in line with industry wages, so my migration agent (mate, not contracted) has informed me I have a good chance of getting my visa granted on appeal to the migration relations commision (for an extra 1400 bucks).
The problem that I have is that my work want me to put my position to head office in the form of a business plan, I've done most of it, but I'm trying to work out the tax implications for both the company, and for myself of proceeding to get sponsored with them, They have provisionally set out form 785 and i have my forms ready to complete, but head office are dragging their heels until I have given them some sort of tax benefit for employing me..
Does anyone know enough about the Australian tax system to point me in the right direction ?
I've tried the website but its immensely vague, I can't afford an accountant to put it together for me, And my friend who is an accountant over here is too busy at the moment to help, and time is of the essence...

mandrake04

I read your post with interest but I do not quite follow what your employer is looking from you!!

I have been sponsored twice (457 & 856) by a large multinational company and I don't think there was any tax benefit for my employer. The whole point of sponsorship is purely to plug a gap for skills that cant be found in the local work force.

If you are asking if employing you as a non-resident would be of a financial tax benefit to your employer compared to them employing an Australian then I doubt it. If that was the case employers would be offering out sponsorship left, right & centre instead of employing Australian citizens or Permanent residents.

The threshold is there to stop exploitation of overseas employees and is line with the minimum pay that would paid to a skilled person. The only real benefit a sponsored person can bring to an employer is skills.


Of course as a sponsored temporary resident you would receive a tax benefit in the form of a LAFHA (Living Away From Home Allowance).

Once you give and indication that you intend to become a PR you would lose that allowance. (eg. as soon as you lodge an application for PR)


PS. It is also a requirement (could say its a law) for your Employer to advertise your position for a certain period of time and conduct interviews with locals (Aussies & PRs) and only if no suitable candidates are found in the local work force can the position be offered to someone overseas. They really clamped down on this since 14th Sep 2009.

Actually I just remembered being a sponsored employee is actually a tax burden, my example being that 2 years ago I was enrolled in a Frontline management course (Certificate IV from TAFE). It was run inhouse and there were 11 of us on the course. The company received a grant of $3500 per person (10 x $3500= $35000) towards the training except for me they had to pay the full $7500 for me be I didn't qualify for the subsidy because I was sponsored.

AngryHippie

Thanks Mandrake,
Thats the kind of info I'm looking for to be honest, I just need to make sure there are no gaps in my application and proposal so that they don't pull the rug out from under me later cos of something I overlooked.
Its not a Multinational company, they are Aussie only, but Aussie-wide. The reason that they can't get anyone else to do the job at the moment is becasue they pay peanuts, and cannot retain staff for the ten or so years it takes to become a trainer, and then end up contracting in trainers for a pretty hefty fee to do training courses that could and should be run in-house. I do need to find out more about LAFHA, A good few of my mates have it at the moment on their sponsorships, but it is just a tax rebate to assist with accomadation and living expenses for people who have had to relocate correct ?
As my pay will be borderline on the threshold, LAFHA won't amount to much for me though, And I may have to do a cert IV to get the job, so its good to know. Thanks for the info. much appreciated.

mandrake04

To be honest the threshold is only about $45K a year.... not much to live on.

And on a 457 you cant work a 2nd job.

AngryHippie

yeah, I know, but I don't have an expensive lifestyle really, I've no kids, and 45k a year here is infinitely better than sitting on the dole back home, wishing I'd taken the chance when I had it:(