Bye bye LAFHA, no more gravy train

ObviouslyJesus

I am on a 417 visa, currently working as a contractor with a company taking over my wages, I pay them a flat fee an di receive lafha.
For people in the same boat as me, are we affected, I read today that its not kicking in for working hol visas until 2014?

ObviouslyJesus

http://www.workpermit.com/news/2012-05-15/australia/living-away-allowance-for-australian-temporary-visa-holders-extended-to-1-july-2014.htm

hussey

ObviouslyJesus wrote: »

http://www.workpermit.com/news/2012-05-15/australia/living-away-allowance-for-australian-temporary-visa-holders-extended-to-1-july-2014.htm

That's from 15th of May, looks like it is gone.

ObviouslyJesus

hussey wrote: »

ObviouslyJesus wrote: »

http://www.workpermit.com/news/2012-05-15/australia/living-away-allowance-for-australian-temporary-visa-holders-extended-to-1-july-2014.htm

That's from 15th of May, looks like it is gone.

For everyone. willy nilly ?

hussey

ObviouslyJesus wrote: »

For everyone. willy nilly ?

Yeah, any foreign worker who is claiming home = Another country, then yeah

Nick Diamond

Any update on this lads? I believe the bill is going to parliment on the 29th

bakedalaska

Pretty much everyone I know including myself have been told by our employers that we are losing it. I dont see any hope left unfortunately!!

mise_me_fein3

When does it kick in..I've noticed no difference

Ianbee123

Never give up hope !! the bill inwhich LAFHA was supposed to be in "Tax Laws Amendment (2012 Measures No. 3) Bill" actually went before both houses back in May...LAFHA was taken out...it was supposed to be put back to parliamnet on Monday...guess what..it wasn't....you would be well advised to read the posts from RaoulDuke66 on pages 8 & 9 of this thread to understand why there maybe a problem particulary for implementing it for UK & NZ citizens as FBT (the tax they are trying to apply to LAFHA) is covered in the tax treaties and the non-discrimination clauses...but I think if they cannot apply it to all apart from Aussies then it becomes too much of a problem to implement at all...it may not save LAFHA persay but it could give everyone who is on it until July 2014...as I said never give up hope!!

bakedalaska

Fair point. If it does come in, you will see the difference in next months pay check!
Hopefully we all do get to keep it. They only have 10 days to get it through parliament.

Nick Diamond

When will we know if it get through parliment? I really want this transition period

Nick Diamond

Just had a lad in work pass me this....

It looks gloomy, but this lad is pointing out some serious issues with this bill...

Can some1 (maybe Raoul) have a look at this and try figure out what's goin on

http://www.linkedin.com/groups/Parliament-Mystery-Strap-yourselves-in-4204722%2ES%2E126102205?qid=b6e05849-df25-4b2c-8050-1e72568920ff&trk=group_most_popular-0-b-cmr&goback=%2Egmp_4204722%2Egde_4204722_member_126102205%2Egmp_4204722

Legend100

bakedalaska wrote: »

They only have 10 days to get it through parliament.

Unfortunately Aussie law allows retrospective implementation so even if the bill is not passed by the 1st of July, it can be applied from 1 July when/if it is passed. crazy system they have here!!

Traq

Looks like there's been a very slight reprieve. The bill just introduced today (link) has deferred the implementation to the 1st October 2012. The transitional period however still doesn't apply to temporary residents so those claiming the lafha on a temporary visa will lose it on 1st October this year (assuming the bill gets passed).

Nick Diamond

Yeah well 3 more months is better than nothing, they've also changed the wording of the transitional period to include Tempory Res - but only those that maintain a gaff here....we'll see how it goes come october

Mikester21

http://www.irishecho.com.au/2012/06/28/expats-land-three-month-reprieve-on-lafha-cut/19420

digiman

That's really good news today. Hoping someone can help me with the following 2 questions as I don't want to start a new thread just for it. I got paid yesterday for last week where I only worked 3 days. Because I only worked 3 days I got barely any of my LAHA allowance according to my payroll company. When I questioned it this is what they told me:

"You have a minium salary you must earn each week before we can apply LAHA, this amount is $1890.5273 including super. Anything you earn above this we can apply to LAHA."

Is this correct?

Also, they sent me my yearly payment statement today even though my wages for this week are not included in it, again is this correct?

karl bracken

LAFHA works like:

your on 100000
you get 30000 LAFHA
so your only taxed on 70000

I would imagine that every wage you get takes this into consideration unless you earn so little in a week that you dont get taxed

karl bracken

Is there any links on something someone could go to their wage department who are about to stop their LAFHA because of the original format it was proposed in and prove they are still elligible?!

Thanks.

digiman

digiman wrote: »

"You have a minium salary you must earn each week before we can apply LAHA, this amount is $1890.5273 including super. Anything you earn above this we can apply to LAHA."

karl bracken wrote: »

LAFHA works like:

your on 100000
you get 30000 LAFHA
so your only taxed on 70000

I would imagine that every wage you get takes this into consideration unless you earn so little in a week that you dont get taxed

Karl, my question is where does the $1890.5273/week above figure come from? I don't understand that at all, shes basically saying that if I was earning under $98k I wouldn't be getting any LAFHA at all which I don't get and surely can't be right.

karl bracken

I have no idea where it comes from sure i dont know your contract agreement hourly, daily rates whatever....
My clairvoyance is weak in the southern hemisphere!

How i posted is how LAFHA works there is no min that it kicks in at some figure, you either get it or you dont

Gross wage - LAFHA = what you get taxed on, your net wage equals that figure after tax, if you want your weekly rate divide it by 52 or 48 depending on contract agreement and holidays

digiman

karl bracken wrote: »

I have no idea where it comes from sure i dont know your contract agreement hourly, daily rates whatever....
My clairvoyance is weak in the southern hemisphere!

How i posted is how LAFHA works there is no min that it kicks in at some figure, you either get it or you dont

Gross wage - LAFHA = what you get taxed on, your net wage equals that figure after tax, if you want your weekly rate divide it by 52 or 48 depending on contract agreement and holidays

Don't know what all your sarcasm is about but whatever, if anyone else can help as to where they get that figure it would be appreciated. Thanks

karl bracken

Digi this is a public forum not an accountancy forum expect some humour, anyways it usually works when someone answers your question you say thanks.

It really cant be made much simpler

Gross wage - LAFHA = taxable income

BrilloBallz

I am currently receiving LAFHA, if I change job and sponsorship within these 3 months will i lose my LAFHA payments or can this just be transfered over to new employer?

kfc1210

Dragging this bad boy up again!

So my "friend" (de facto 457) has been made redundant after being on unpaid maternity leave and the offer was 1 month wages because she was just there 10 months
When the money came through they did not include LAFHA as they said LAFHA does not count for redundancy so theres about 800 short, she has had LAFHA since February 2012.
Anyone know if this is waffle?!

Thanks.

Mikester21

Just got an email from finance, LAFHA to be cut in my next paycheck, everyone else in the same boat?

sponge_bob

Can permanent residents claim LAFHA, if they are travelling away from there main residence to work and paying rent,food and transport out of there own pocket.?

hussey

sponge_bob wrote: »

Can permanent residents claim LAFHA, if they are travelling away from there main residence to work and paying rent,food and transport out of there own pocket.?

Yes that what it was designed for, but your company needs to approve.

Mellor

sponge_bob wrote: »

Can permanent residents claim LAFHA, if they are travelling away from there main residence to work and paying rent,food and transport out of there own pocket.?

LAHFA is intended for permanent residents and short durations away from home. The whole 417/457 situation, where people where paid LAHFA every week as they were away from "home" was a bit of a loophole (especially if they were resident for tax purposes).

But, you don't "claim" LAHFA, its a specific payment from your employer, either you are paid it or you aren't. In your case money it would be money for rent and food while you are away, which is then tax free. If you employer isn't paying for that, then you aren't getting LAHFA. You can still put it down as a work expense on your tax return next july.

sponge_bob

hussey wrote: »

Yes that what it was designed for, but your company needs to approve.

Mellor wrote: »

LAHFA is intended for permanent residents and short durations away from home. The whole 417/457 situation, where people where paid LAHFA every week as they were away from "home" was a bit of a loophole (especially if they were resident for tax purposes).

But, you don't "claim" LAHFA, its a specific payment from your employer, either you are paid it or you aren't. In your case money it would be money for rent and food while you are away, which is then tax free. If you employer isn't paying for that, then you aren't getting LAHFA. You can still put it down as a work expense on your tax return next july.

Excellent:)
So I will just whack that out with them prior to statrting.
If they don't agree to it, I would presume I could claim it at the end of the tax year when I do my Taxes?
also is there a limit on this?