Hey all,
I have been offered some temporary contract work interstate. It is initially for 6 months, but could extend out to a year.
I am a bit confused on the matter. I understand that in order to be able to claim lafha you must maintain your primary residence and be able to return to it at any time.
The bottom paragraph of this link;
https://www.ato.gov.au/General/Fringe-benefits-tax/In-detail/Employers-guide/Living-away-from-home-allowance-fringe-benefits/?page=7States something that may be of use to me.
I have been in talks with my REA, and my parents who would be leasing my place off me. If the lease were to specifically include their portion / exclude my portion. Would that allow me to be eligible for LAHA?
Also on the matter, they will not be moving in for this sole purpose, they have actually been with me n this premises for the past 2 years. There bills etc come to this address to be able to prove this.
So would i be able to claim gearing / depreciation on my property?
If not, taking into consideration the following;
Council rates – $315 /quarter
Water – $350 / quarter
Mortgage (interest only) – $2000 / month
electricity – $650 / quarter
Pool maintanence while i’m away – $70 / month
Garden Care – $60 / 6 weeks
Internet (contract can’t cancel) – $125/ monthRentals where i will be – $380 — 420 / week
Electricity – $200 / quarter ?
Gas – $100 / quarter ?
Food – $100 – 150 / weekly
Gym fees interstate – $80/month ( i have my own equipment at home so don’t normally pay this)I will likely be driving in and out every second weekend back to Sydney so petrol.
Not sure if i have missed anything. But what would be the best way to proceed. I have the guy who normally does my accounts looking into this, but it seems complicated.
The job will be $50/hr pre 1st october and $46, after.
Any help greatly appreciated, and sorry for the long winded post!
Cheers
Hi Shank,
Not sure of the answer to your question – it is quite beyond me…..BUT, for a time that I worked in Sydney, I was able to claim LAHA. My accountant had said “NO, it doesn’t apply to you – it is only for politicians” but a colleague pointed me to an agency that DID provide this for me (I became an employee of theirs). They quoted earlier court cases that set precedents showing that my case DID apply.
And it worked – except for the fact that I was in my early investing days and looking to add to my portfolio. What transpired is that my Taxable Income dropped markedly, making it pretty much impossible to borrow any more. I then chose to leave their employ, and went back to being a PAYG with another manpower company. This returned my wage to its former high level.
I’m not sure that I should publish the agency’s name on line, but PM me if I can help further,
Benny
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This reply was modified 10 years, 4 months ago by
Benny.
Thanks for the reply, PM sent
Hi Shank
Not sure about the living away from home allowance, since you are choosing to go to Sydney for work, rather than work requiring you to go to Sydney for their purposes (this could be where your accountant was getting to).
But as far as living outside your PPOR while you are working, as long as you rent while in Sydney, you can rent out your current PPOR, and claim expenses on the house as a rental while you are not living there. You would then come back to live in your PPOR and everything continues.
ChrisA1
Persistence is 'to keep on keeping on, no matter how hard the going may be'
Thanks Chris.
I will not be leaving my current job, i will still be employed but taking leave without pay. And taking up the contract in Canberra.
So i would be able to still rent etc.. ?
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This reply was modified 10 years, 4 months ago by
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