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457 work visa holders can claim rent, food and relocation expenses as a tax deduction…..

Holders of 457 visas are regularly asked to live away from their usual place of residence in order to perform the duties of their employment.

It costs money to relocate, and these expenses are deductible because they are incurred in the pursuit of income.

To be eligible, your sponsoring employer needs to allocate a component of your salary for the Living Away From Home Allowance (“LAFHA”).

This component will be tax exempt, and covers rent, food and relocation costs for yourself, and any accompanying spouse or children.

To qualify for LAFHA:

  1. There must be an intention or expectation that you will return to your former residence when you finish your temporary work assignment.
  2. Payment of the LAFHA must not result in the payment of any Fringe Benefit Tax.
  3. The LAFHA must not be an allowance paid in addition to the applicable salary.

The taxable value of LAFHA is determined by calculating the amount of the allowance less any “exempt accommodation” component less any “exempt food” component.

At ‘The Migration Place’ we help you with all aspects of your visa – including working out ways to make your salary as tax effective as possible.

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