Sydney / 475 visa / LAFHA questions?

.Longshanks.

Apologies it these questions answered before, but I couldn't find the answers I was looking for.

So..... a good while my other-half (wife) posted here about me getting contacted from a company about a potential job position in Sydney and we were trying to suss it all out. Well after about 4 months and 5 interviews later between two separate companies I got offered a job in Sydney yesterday and i'm going to accept it :eek::D:D

The offer is subject to getting a 475 visa and there is a pretty decent relocation package. I've have another skpye conversation with the new boss next Wednesday/Thursday which will answer a lot my questions, but am wondering if anybody help me out in the mean time? My heads going round and round in circles trying to figure it all out!


1. How long does it normally take to process a 457 visa? I've been told its between 3-6 months. That sound about right?

2. Assuming I don't have a criminal record for stabbing somebody etc and have cash in bank account etc, is there much can be go wrong with the visa process?

3. The 457 visa will sort me work wise, but where does the other-half stand? Is she limited on what she can work as / for how long? BTW her uni degree / experience is also on 'the list'.

4. The company is based close to the Belmore Park and the Central Station....think this area is called Surry Hills or is it Darlinghurst? Anyways, I always had to commute at least 30 mins in a car to work so I like the idea of being able to walk to work. So is this an area that would would recommend living in? We don't want to share, so that means an apartment. I'll be willing to pay around the $400+ mark a week (god its expensive!).
If not, where else should i look? The company will put us up for the 1st month and obviously you can't pick somewhere to live online but its not harm in looking at whats available.

5. The LAFHA....we own a house here in Ireland and intend to keep it and rent it out (for now). Is the LAFHA as simple as it it sounds? Say for example I was paying the top rate of tax at 37% and the rent on an apartment was $500 a week. Does this mean that it would only cost me around $315? How is the difference sorted between my wages and the landlord.....do I pay the full amount and then claim it back later?

6. If the other-half gets a job (hope so!), can her earnings count towards the tax break for the LAFHA? Is there anything extras it can include?

Lots of questions.....but cheer for any answers!

hussey

kev_Longshanks100 wrote: »

1. How long does it normally take to process a 457 visa? I've been told its between 3-6 months. That sound about right?

anywhere between 2weeks and 6months, usually 2-4 weeks depending on how quickly company can get their paperwork

2. Assuming I don't have a criminal record for stabbing somebody etc and have cash in bank account etc, is there much can be go wrong with the visa process?

Yes, the company need to qualify for the criteria (I can't tell you what it is but is outlined on immi.gov.au) but if they sponsored before you should be okay, assuming it's a high demand job

3. The 457 visa will sort me work wise, but where does the other-half stand? Is she limited on what she can work as / for how long? BTW her uni degree / experience is also on 'the list'.

No limitations on her work. She won't be able to work for the gov as she is a temporary worker, but she can usually work for who she wants where she wants.

4. The company is based close to the Belmore Park and the Central Station....think this area is called Surry Hills or is it Darlinghurst? Anyways, I always had to commute at least 30 mins in a car to work so I like the idea of being able to walk to work. So is this an area that would would recommend living in? We don't want to share, so that means an apartment. I'll be willing to pay around the $400+ mark a week (god its expensive!).
If not, where else should i look? The company will put us up for the 1st month and obviously you can't pick somewhere to live online but its not harm in looking at whats available.

Surry hills and darlinghurst are pretty nice areas - but $400 quid a week you'll struggle to get a 1 bedroom in surry hills for that! do a search on the forum for 'surry hills' there has been living threads here before, but lots of places around there that are great to live, just watch out for redfern, most of it is fine, but some parts can be dodgy

5. The LAFHA....we own a house here in Ireland and intend to keep it and rent it out (for now). Is the LAFHA as simple as it it sounds? Say for example I was paying the top rate of tax at 37% and the rent on an apartment was $500 a week. Does this mean that it would only cost me around $315? How is the difference sorted between my wages and the landlord.....do I pay the full amount and then claim it back later?

Top rate of tax is 45% not 37%, LAFHA depends on the company what what you negotiate with them, you can get a reasonable rent and food allowance.
have a look here http://law.ato.gov.au/atolaw/view.htm?docid=SAV/FBTGEMP3/00012 both of you have to decide what reasonable rent is an food is. But I think you calculated it wrong there
If someone wants to correct them then please do so,
it is your wages - lafha = taxable income
so if you were earning 2k a week and you had a lafha of 300, your new taxable income is 1700
so 1700 - tax + lafha = net income.

6. If the other-half gets a job (hope so!), can her earnings count towards the tax break for the LAFHA? Is there anything extras it can include?

It can but her lafha would have to be negotiated with her company too, both of you can't claim a rent allowance of 500 each, if she doesn't pay lafha you can claim 500, but if she does, she can't claim 500 also (well she can but it's tax fraud) not all companies pay lafha so bare this in mind.
In sydney you could claim rent and food, there are others you can claim, but since your wife will be with you then you are prob not eligible.

do a search for LAFHA here - lots and lots of threads

Feelgood

Hi Kev, congrats on the job offer exciting times ahead. As usual Hussey's post is spot on and covers everything you need to know. I just recently went through exactly the same scenario as you.

kev_Longshanks100 wrote: »

The offer is subject to getting a 475 visa

With the job offer, did the company say they would sponsor you directly or did they say that they would offer you a job but you have to find your own sponsor?.

1. How long does it normally take to process a 457 visa? I've been told its between 3-6 months. That sound about right?

It took 6 months for mine to come through, but I had to send back to Ireland for a lot of documentation I didn't have with me which took a few weeks. My missus went on my visa also so it takes a little longer to process, though without a doubt it should be completely through within 6 months max.

I'll be willing to pay around the $400+ mark a week (god its expensive!).

Thats actually pretty cheap around these parts!. You definitely aren't going to get that rent rate without sharing. If you have your heart set on living alone I would expect rates of 550-900 a week in the city and even at that most places aren't furnished. Are you expecting to be here in the next couple of months?. If so I might be able to sort you out with a room in the city, PM me for details

Is the LAFHA as simple as it it sounds?

LAFHA confused the hell out of me when I got here and still does. Basically I get a weekly food and rental allowance which comes off my gross pay reducing my taxable income as Hussey mentioned.

Its how its calculated that confuses me and it is down to the employer, they have specific LAFHA guidelines. (Will try find the pdf for you) For me it works out around $650 a week, around $500 for rent and $150 for food. Now my employer asked if I had a wife/girlfriend living with me. The reason for this is that your LAFHA will increase slightly if you have.

Note you still get your LAFHA allowance if you are sick or on hols, this is particularly useful if you are contracting.