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LAFHA Guidance


Guest wokster

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Hi there - Ian in particular!

 

Ive been getting lafha for the last few months and at first the amount was less than I thought, my company hasn't done it before but she basically said that because the minimum salary had gone up from 42 to 49k for a 457 visa that I would only get lafha on the amount between the 49 and 60 (my basic wage). Not knowing anything about this I accepted it as true.

 

Has anyone else heard of the calculation being done this way? I personally think its wrong and I'm going to approach them today. An external company did a calculation and I'm being short changed about 1100 per month.... Frustrated is not the word!

 

Any thoughts appreciated. I thought lafha was a calculation of rent and food no matter what the salary,

 

Thanks!

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wow... they have that badly wrong.

 

Its got nothing to do with how much you earn..

LAHFA is a calculation based on how much your housing costs..

and then there is a seperate allowance for food per person..

 

add those 2 costs up * 52 weeks and that is the LAFA allowance for the year..

you pay tax on the residual amount between your salary and your LAHFA allowance

eg.. if you earn 100,000 and you have a LAHFA allowance of 48,000 a year... your salary would drop to 52,000

divided 52000 by 12 (4333) taxed = $3540 then + 4000 (48000/12) a month LAHFA allowance = 7540/month in your pay packet

 

hope that makes sense

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Guest Guest4575
I understand that bit, but they are saying my gross salary would drop to below the TSMIT limit for a 457 visa. So I'm only allowed lafha on the amount between the 49k and my salary.... Just doesn't seem right....

 

Sorry, I can't ask my employer - I'm the first (and only) employee they've ever done LAFHA for, so I had to do all the pushing!

 

I'm very worried though if its going to disappear from 1 July - it makes the all the difference!

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