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Thursday, 29 July 2010

The lowdown on LAFHA
Monday, 10 November 2008



Relocating interstate or from overseas for a job can cause a few headaches and a decent sized hole in your pocket. But there is a way to get back some of that hard earned cash from the traditionally tightfisted tax man. Welcome to LAFHA, or the ATO’s ‘Living Away From Home Allowance’.

So what is LAFHA, exactly? Broadly speaking, it is a concession allowing for a range of tax deductions employees and contractors can claim to compensate them for living away from their usual place of residence for work. Whilst designed to cover you for out of pocket expenses, such as relocation, moving and the costs of temporary rental accommodation, and to assist you in maintaining your lifestyle, at the end of the day its more dollars in your pocket, which is good news in anybody’s book.

LAFHA can be claimed for relocation interstate or from overseas, so long as you meet the truckload of other criteria – which we will come to in a minute. What I’m sure is far more pressing is it worth it, and as you rub your hands together gleefully you are wondering, so how much could I potentially get back?
To give an example:

Joe is a 30 year old BA from Sydney working in a large organisation in the insurance and finance sector. Colleague Jill, doing a similar role in the Brisbane office, is about to take 12 months maternity leave, and Joe is asked if he would move up to sunny Queensland to cover her role. He weighs up the added experience it will give his resume and the tempting laidback lifestyle and decides to go for it. His annual salary of $105K gives him $75425 after tax. It costs him $2000 to move his all his things, and after 3 weeks in short term accommodation when he first arrives, he rents a unit at Kangaroo point for $400 per week. Whilst his employer doesn’t pay him any increase in salary, the tax allowance means he gets an extra $10401 take home pay. This not only covers his move and initial relocation but no doubt gives him chance to go out and make the most of his new lifestyle.

Unfortunately like all good things in life LAFHA does not come gift-wrapped on a plate, and there are numerous criteria to fulfill in order to be able to claim the allowance. This includes, for example, distance of move, type of occupation, tax and or visa status, minimum salary levels, time before relocation, length of relocation, accommodation arrangements, family situation, and of course intent to return to your original place of residence, for which you have to sign a declaration. There are also Fringe Benefits Tax implications to investigate. So rather than navigate this minefield yourself, you should seek help from an expert. Recently contractor management specialist One Vendor launched a micro site , where you can download a simple to complete pdf eligibility quote request which will help you find out quickly if you are entitled to claim and how much you can hope to get. What you spend it on is another story.

For those who are eligible, getting your hands on LAFHA is worth pursuing. As Phil Purcell, sales director of One Vendor points out “We constantly get great feedback - for employees with families it helps retain some of the luxuries they had prior to moving, and for singles its often used for Australian travel and entertainment while still maintaining a reasonable standard of living.”
If you think you may be eligible then visit the lafha website for more information, and let the ATO help you take the strain out of relocation.

Julie Spencer


Articles and advice on brainbox are for general interest only. You should never act upon anything you see here without first seeking professional advice. Please see our Terms & Conditions for full details.
Media Releases

Next time get a pro to write your media release. They should make me think of the idea and then your name appears as credible, it shouldn't read as a paid advertisment.

anon, 11/09/2008 08:22:53 AM
what about the IT down turn

If the LAFHA helps, go for it, but as usual there are strings attached, the government is NOT in the buisness of giving free money to high paid workers.

What about the MASSIVE IT down turn, its worst than the DOT com crash of 2000-2003.

sd

sid, 11/09/2008 08:28:59 PM
Spam

Does ketchup come with that?

Hawkwind, 11/09/2008 09:26:10 PM
Sid

The crash is still only early days - wait another 6 months - its gonna be hell.

Hawkwind, 11/09/2008 09:28:34 PM
whoops!

... and here I am toying with the idea of going back to contracting.

What was I thinking!

Laz, 11/11/2008 07:26:54 AM
Laz

You might get in at half the normal rate.

History repeats.

Hawkwind, 11/11/2008 05:16:20 PM
Perhaps correct

Hawkwind crash prediction perhaps correct. Dow Jones fall from cliff. ASX now four years low and Aussie bank big troubles. LAFHA allowance of not matter when bad holidays facing all.

GL, 11/18/2008 07:48:31 AM
New Topic?

How about a new topic? Like the financial crisis and the impact on Aussie IT. How bad is it really out there?

Anon, 11/21/2008 05:20:19 AM
NEW TOPIC PLEASE!!

Please create a NEW topic on something which is affecting all of us at the moment. Big scale outsourcing of our IT jobs to India.

One week I still laboured under the delusion that my team was safe. Not any longer. Outsourcing is now being ramped up in a big way.

One of the outsourcers is Satyam. One of their clients was the World Bank. But no longer... have a read of this:

http://www.itexaminer.com/satyam-world-bank-scandal-widens.aspx

Joey, 11/21/2008 05:29:08 AM
Blames and games

Come on Joey. When peoples to accept India now IT strengths? But still remains propogandas. Next will blame for finance crisis.

GL

GL, 11/21/2008 08:43:24 AM
World Bank scandal

GL,

You should pay attention to the fact that this is an INDIAN website, which is reporting on the Satyam scandal.

Unless of course you are a racist, and are going to accuse this indian website of being liars...

Joey, 11/22/2008 03:25:02 AM
writings on the wall

Sacked IT worker attempts suicide

AN EDS Australia employee attempted to take his own life at work after he was told he had lost his job. Hewlett-Packard's acquisition of EDS will result in several hundred local workers, or around 7.5 per cent of the combined workforce, losing their jobs over the next three years.

-------

Probably, someone who couldn't take it that Aussie ICT is going the way of the dodo bird and the manufacturing sector.

In the upcoming years, this kind of desperation will no longer be an anomaly. With the worsening global depression, this is but the tip of the iceberg. Would-be IT students should take note. Pick up IT as a hobby, not a make-belief career choice.

Lets face it, the knowledge capital of most IT workers, is pretty much useless for making a living outside IT.

Starving, 11/22/2008 04:49:23 AM
writings on the wall (link)

Sacked IT worker attempts suicide

Starving, 11/22/2008 04:51:27 AM
HP to cut 24,600 jobs

SAN FRANCISCO (AFP) - US technology giant Hewlett-Packard (HP) said Monday it would cut 24,600 jobs worldwide over the next three years as part of its integration with computer services firm Electronic Data Systems.

The world leading computer maker HP bought the Texas-based business services outsourcing titan EDS in August as part of a 13.9 billion dollar deal that aimed to create a global powerhouse in computer services to compete against IBM.

HP to cut 24,600 jobs

Hawkwind, 11/22/2008 07:54:27 PM
Whos to fix?

Perhaps Kevin Rudd to fix trouble? If not such busy overseas jetsets. More overseas trip than aussie cricket team. 12 months in top job with smiles only not action.

GL

GL, 11/23/2008 07:21:17 AM
End of the road?

For most over 40 ICT workers with a mortagage and a family to feed, getting the sack at this time is pretty much a death knell for their career & quality standard of living. That is not even considering how many actually lost alot of their life savings in those "financial investment" instruments.

Can't get something for nothing.

Starving, 11/24/2008 02:03:47 AM
Mortagages and Credit

Ironic isn't it. The fools wonder why mortgages are not being repaid.

The crux of the economic downturn.

No doubt the US Government will have to prop up Citigroup.

Hawkwind, 11/24/2008 07:03:30 AM
Familiar Story?

Morning Edition, October 9, 2008.

The Nobel Prize in chemistry was awarded this week to three scientists working in the United States with a jellyfish protein that glows in the dark. But the scientist who found the gene for that protein, and gave it to the eventual Nobel winners, is no longer working in the field. He now drives a shuttle bus for an auto dealership.

Glowing Gene's Discoverer Left Out Of Nobel Prize

...and his wikipedia entry

Douglas Prasher

Hawkwind, 11/24/2008 07:37:50 AM
ALP to slash IT

RE:

Razor Gang MKII

I've heard quite a number of contractors at my dept will be dumped in 2009.

Sounds like a gloomy IT year ahead.

Peter

Peter, 11/24/2008 04:36:21 PM
Downturn and recruiters lack of transperency

We need a forum on the lack of IT recruiters transperency.

When i say transperency in mean honesty. Notice when there is a down turn in IT, these vulture simply lie and dont disclose information.

expecially what they earn from the client.

The full amount paid by the client should be informed to the candidate.

mc

macca, 11/25/2008 01:47:07 AM
Vultures

...and thats not the only thing.

There are usually 1,000's of bogus job adverts and the claim that there is a skills shortage despite the fact that there are 1,000's getting laid off.

Avoid them completely and do you own marketing, perhaps some info on FaceBook or similar.

Another alternative is instead of going on the dole, do a course at TAFE and go on AUSTUDY rather than wasting a year or so.

Hawkwind, 11/25/2008 03:10:51 AM
British Telecom axes 6000 IT Contractor jobs

http://www.contractoruk.com/news/004073.html

And this is just one story amongst many. Hundreds of thousands of IT jobs are being axed all over the world.

Joey, 11/25/2008 04:44:29 AM
Sacked IT worker shoots dead 3 bosses in revenge

The only funny thing about this, is that some news outlets were reporting that IT executives at otehr companies became nervous when they heard about these killings.

Hmmm... wonder why?

Joey, 11/25/2008 04:46:55 AM
3 dead bosses - the URL

http://www.contractoruk.com/news/004076.html

Joey, 11/25/2008 04:47:37 AM
Hewlett Packard Shares

The slide since the announcement of the layoffs in September.

Hewlett-Packard Company (HPQ)

Hawkwind, 11/25/2008 07:17:24 AM
Removed

This comment was removed as it contained offensive content.

Mua, 11/25/2008 08:29:23 AM
PLEASE!!!! Tone it down guys!!!

Some of us are extremely successful IT professionals, and we do not appreciate your negativity. The overall tone of the comments on this forum has become increasing dismal and appalling.

Joey - we are not interested in your stories of gloom.

Starving - please do not tell us about IT workers committing suicide. Again, we are not interested.

Hawkwind & Peter - if you have not anything positive to say, then please refrain from saying anything at all.

Macca - please do not denigrate the integrity of those professionals, who like myself, are doing extremely well in IT.

Joey - as I said to Starving, we are just simply not interested in these types of stories.

Mua - please wash out your mouth with soap. Your school playground language is not appreciated in this forum.

To conclude: guys, if you have not got positive, upbeat story about how great the IT industry is, then please refrain from saying anything at all.

Thank you.

Charles. (MSCE)

Charles, 11/25/2008 03:51:53 PM
To the Paper Tiger

Listen up 'Lil Paper Tiger:

THE TRUTH HURTS!!!!!!!!

Hawkwind, 11/25/2008 07:07:45 PM
listen to Charles

yep listen to charles, its not negativity its FACT.

The IT recruitment industry needs to be regulated, They should not have the right to determine if you have a career or not, they act like the gate keepers.

They shut out out siders simply looking for work when there is an IT down turn.

Also they use fake job ads on SEEKIT to update there resume database.

If you see huge $$$'s in the ad, its likly to be a fake ad.

I never use seekIT, but tap into the hidden job market.

sid

sd

sid, 11/25/2008 09:06:15 PM
Indeed

Yep!!!!!

Hawkwind (ABCDEFG)

Hawkwind, 11/25/2008 09:21:44 PM
sid

If you see one of them BOGUS job adverts - report it to The Australian Competition and Consumer Commission.

Misleading & deceptive conduct

Recruitment advertising

Case History

Hawkwind (CNE)

Hawkwind, 11/25/2008 09:44:34 PM
Industry job trends

“Horror” year for IT jobs continues

“On a state by state basis [for the IT sector ], NSW is down 22.75 per cent for the year, Victoria is down 27.32, even WA is down 9.8 per cent… IT in QLD is down 23.43 per cent, and the other big one that I think is also accounting for some of the difficulty in the IT sector is the ACT which is down 17.56 per cent…and its going to be more of the same we fear.”

chas, 11/25/2008 10:05:11 PM
50% contractor cuts: Tanner

Minister for Finance and Deregulation, Lindsay Tanner, has defended the decision to proceed with a 50 per cent cut in government ICT contractors as part of the Federal Government’s acceptance in full of the Gershon review recommendations.

Gershon contractor cuts the right approach: Tanner

Hawkwind, 11/25/2008 11:55:01 PM
IT losers abound

MCSE = loser

CNE = loser

Worthless IT certs in general = loser

MBBS = WINNER !

Gloomyshoes, 11/26/2008 12:16:08 AM
Certified

Yep, threw mine in the garbage bin ages ago Gloomyshoes.

In the middle of a psychology degree right now.

Hawkwind aka CodeCutter (WXYZ)

Hawkwind, 11/26/2008 12:24:54 AM
Hawkwind - Change of career

Excellent news. You'll be busy tending to suicidal and depressed IT losers.

Gloomyshoes, 11/26/2008 12:38:09 AM
Gloomyshoes

Exactly.

Took me a little while to adjust to the life and work of a student as a mature age entry, but now I enjoy it and have made many good friends. I even have a social life now!

Hawkwind, 11/26/2008 12:42:44 AM
I'm interested

Joey,

just to let you know that I am interested in reading about both positive and negative stuff. Keeps this forum interesting so feel free to keep posting (relevant) links.

Sorry, Charles, I've been visiting this site often and it fills in a ... erm ... "void" or niche.

Where else would I find about such things? This is my "one-stop-shop" for all vaguely IT-related mumbo jumbo.

Sure, there are trolls contributing but you learn to skim over these when you begin to recognise the copied/pasted rant time and time again (especially from would-be doctors and caviar-craving dole-bludgers)...

There are characters the likes of Hawkwind, Gloomyshoes, GL, etc. And, yes, there were discussions about how many of these were from the one person - but I don't care.

This site has "found its way" and I'm comfortable with it.

What I have noticed of late, however, is the lack of topics. And that's not good.

Laz, 11/26/2008 05:58:20 AM
Attitude is survice

Laz incorrect. GL == Iron Leopard king technicals never paper tiger. Gloomyshoe mad medine man only happy for finance crunch. Hawkwind very bitterness man. Both wrong attitude only loss and fails. Similar as spring lamb flee great wall street bear... When tech career fail best leave without complains.

Good attitude bring karma keys to life success. Bring great happy, top job and fortune. Credit crunch then easy surivals... and more relaxation than Andrew Symond on fishing trip.

Stay easy mates.

Great Leopard

Midnight Wisdom

Great Leopard, 11/26/2008 07:54:25 AM
Charles,

Like you I'm run a very successful IT company. To be honest we have never had it better.

I mainly come on here to see hawkwind try to dazzel us with his "industry experience" (yes, he wrote the book on the 10 things you don't do to remain employeed, each of the 10 things was personally tested by him, just to make sure they got you fired.) And gloomy thinking the medical industry will be better.

Now assuming gloomy is even a real person, I bet he won't be able to hack 10 minutes as a Dr when he graduates. Losers like him whom hang around a forum based on an industry which he couldn't hack it in, hanging shit on the still successful ones, don't tend to do well in life period.

In fact, for all the people who comment here, and yet have left the industry I'd suggest the dole is a better use of your time, at least you can stop pretending your actually contributing to society.

PS, Paul, what ever you imagined this forum to be, you have failed, big time. you do yourself and the industry no favours by allowing this to be the shit dumping ground of a whole heap of trolls.

anon, 11/26/2008 10:07:22 PM
Nothing to do with Paul

With regard the final comment about the forum failing - and the blame being squared at Paul..... not sure about that. The reason it is failing (if in fact it is) is the narrow minded, stupid comments posted by the regular users, who would probably be better of actually doing some work rather than surfing the net all day!!

Get over yourselves! All of you.

A lot will find this type of advice useful - you know-all so called IT Professionals obviously do not, so move on....and quit your bitching!

rubbish!, 12/15/2008 02:19:15 AM
There are things Paul can do

Like seriously moderate the forum (or give certain users the ability to moderate). I know that he doesn't want to step in to much, but serious, make a set of rules and force people to stick by them (or posts deleted \ 24 hour bans \ permanent bans) The trolls will leave before too long. I've seen internet forums be turned around by doing it.

And when that happens I'll be more than happy to use my real name again, because there are every so oftan gems.

anon, 12/16/2008 03:05:51 AM
New Employment LAFHA

I understand the numerous eligibility requirements to receive LAFHA, however one point still remains unclear.

If a contractor from NSW, voluntary decides to relocate to ACT for 12 months for a contract position with the intention to return back to NSW. Will they qualify for LAHFA?

So in the scenario, the person decides to resign from current position to take up new short term employment interstate as a contractor? Does he/she qualify for LAFHA?

Thanks all!

James, 01/21/2009 02:13:50 AM
What are you doing james?

James, this isn't the place for that. Keep your intelligent questions to yourself thanks. This zoo is for trolls and their feeder’s only.

anon, 01/21/2009 09:59:46 PM
that just about sums it up

no intelligence here - just bitter twisted unemployable relics!

Employed!, 03/12/2009 02:45:01 AM
LAFHA on a Defacto Spousal Visa

I'm living in Melbourne with my girlfriend on a Dafacto Spousal Visa, so i guess i'm a temporary resident.

I'm not sponsored with work as i'm here by defacto so am i still eligible for LAFHA?

I also have an apartment with a mortgage back in the UK which i currently rent out. I'm currenty renting here in Sydney which costs me more than the mortgage didd back in the UK.

I dont want to jeapordise my visa situation when it comes to the permanent residency side of things next year by applying for LAFHA.

Can anyone answer this?

richie, 03/18/2009 09:06:08 PM





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