LAFHA - food allowance

padrepio

Thought this link might be helpful - http://www.ato.gov.au/businesses/content.asp?doc=/content/76140.htm&page=13&H13.. Basically the bottom line can be paid to you tax free by your company each week, as a result your taxable income decreases and naturally will reduce your tax liability somewhat.

Make sure you also get your rent deducted from your taxable income as LAFHA too. Technically I guess it doesnt even have to be your rent but a reasonable amount, incase the ATO came knocking though Id leave it at rent as you can prove that at least.

As far as I am aware, LAFHA cannot be backdated so get onto your CFO's asap. I have mine plagued about this food allowance since I found out about it.

P.S. As soon as you apply for permanent residency or buy property, you cant claim LAFHA any more.

jank

Also note that some companies do LAFHA and others do not. If they don't do it there is nothing you can do about it

mandrake04

I didn't get it ...probably because I didn't know anything about it until it was too late. To be honest I cant complain I didn't exactly starve.

One of my old house mates got though, was a nice little perk until she stuck in her application for PR and I think she lost it. Sometimes its harder to have something and lose it than never to have had it at all.

hussey

mandrake04 wrote: »

I didn't get it ...probably because I didn't know anything about it until it was too late. To be honest I cant complain I didn't exactly starve.

One of my old house mates got though, was a nice little perk until she stuck in her application for PR and I think she lost it. Sometimes its harder to have something and lose it than never to have had it at all.

actually I was in that boat, I never got it and didn't think twice about applying for PR.

A friend of mine was getting it, and held off PR as didn't want to lose his $1000 a month or whatever, he then lost his job had 30days to leave and panicked for 3 weeks saying how much of an idiot he was for not applying (he got another job in the end)

emfitz

Hi there,

Me and my Boyf just got sponsorship and I'm thinking of applying for Lafha, at the mo no thoughts of PR but when u say lost the Lafha did you have to pay anything back when you apply for/get PR??

Thanks
Em

hussey

emfitz wrote: »

Hi there,

Me and my Boyf just got sponsorship and I'm thinking of applying for Lafha, at the mo no thoughts of PR but when u say lost the Lafha did you have to pay anything back when you apply for/get PR??

Thanks
Em

No once you apply for PR you lose the lafha privilege, you don't have to pay anything back, but you just don't get paid lafha any more.

P.s. text speak is a no no - thanks

Mellor

I would of assume you lose it when you recieve PR, not when you apply (as you aren't a resident until its granted)

What I would of assumed, not saying this is the case

emfitz

Thanks for your help guys..

hussey

Mellor wrote: »

I would of assume you lose it when you recieve PR, not when you apply (as you aren't a resident until its granted)
What I would of assumed, not saying this is the case

It's when you apply you lose it, well that was the rule our company (and I know of two others that are the same) has, whether this is by law or just the company I am not sure.

I'm guessing since you are applying to migrate to Australia you can no longer really say you are away from home

mandrake04

That's it when you apply to live in Austrlia permanently your intention is making Australia your home and you lose the LAFHA, also I think once you apply for PR you are eligible for Medicare.

hussey

mandrake04 wrote: »

That's it when you apply to live in Austrlia permanently your intention is making Australia your home and you lose the LAFHA, also I think once you apply for PR you are eligible for Medicare.

Correct about medicare (if you hold a working visa in oz)

Mellor

I suppose I better check what this medicare is all about. Gonna have to pay 11 days of it this year,

emfitz

According to my boss ( i work in an accounting firm) theres gonna be a big crack down on LAFHA soon as there are so many people applying.
I'm living in regional Australia and their understanding of it is because I'm at my own home every night I'm not technically living away from home. My boyf works for a bigger company so must get him to get on to it!!

Mellor

If you are in australia on a WHV, you are away from home. Entitled to LAHFA.

emfitz

Sponsorship came through yest.. No real intention of going for PR so from my understanding we should be eligible. Will get OH on to his payroll people...

jank

hussey wrote: »

It's when you apply you lose it, well that was the rule our company (and I know of two others that are the same) has, whether this is by law or just the company I am not sure.

I'm guessing since you are applying to migrate to Australia you can no longer really say you are away from home

Same in my company.

mandrake04

Mellor wrote: »

If you are in australia on a WHV, you are away from home. Entitled to LAHFA.

It's just not that black & White.

http://www.boards.ie/vbulletin/showpost.php?p=71623020&postcount=13

ballooba

emfitz wrote: »

According to my boss ( i work in an accounting firm) theres gonna be a big crack down on LAFHA soon as there are so many people applying.
I'm living in regional Australia and their understanding of it is because I'm at my own home every night I'm not technically living away from home. My boyf works for a bigger company so must get him to get on to it!!

Apply to whom? As far as I am aware you do not apply for LAFHA, nor would you apply to pay your employees any other fringe benefit. Company's self assess fully for tax so it sounds a bit ridiculous.

Are you an accountant btw? Because your post is a bit ambiguous.