Career Mobility for Australian Employees

Have you been relocated or seconded for work? If so, we can help with our Career Mobility service - known in Australia as LAFHA.

LAFHA, or the Living Away From Home Allowance, helps you cover the additional costs of relocating and living away from your usual place of residence for employment. LAFHA is provided through employers and means you pay less tax which increases your take home pay.

Eligible employees can include:

Australian residents moving within Australia
Overseas long stay visa holders
Australians working overseas

For example, an annual salary of $100,000 can mean an extra $9,400* per annum in additional take home pay with LAFHA applied.

* This example is based upon averaged amounts. Please note: Each individual’s circumstances are different and will therefore deliver different results.

Not only does this reduce the financial stress of your relocation, but it provides extra money to cover relocation costs and other out of pocket expenses. Our unique service also facilitates the LAFHA benefit to you and other eligible employees at no cost to your employer.

Are you eligible? Find out here!

Did you know there are tax allowances that provide substantial financial.

Find out if I’m eligible

We encourage you to introduce to your employer, with clear benefits to both parties.

LAFHA will help your employer build staff loyalty, and help them enhance their recruitment strategy and staff retention. We pride ourselves on a no cost, no hassle service to our clients, and our world class technology ensures accurate on time payments to employees every pay period. Our compliance team also ensures clients remain up to date with any legislative or regulatory changes relating to LAFHA.

We are industry experts who manage LAFHA across a wide number of companies and industries. We guarantee to maximise benefits to both you and your employer with no cost to either party. We’ll also help your company establish the necessary systems in the workplace, including setting up payment and scheduling requirements to ensure employees are paid accurately and on time, and keep your company up to date with latest legislative and compliance issues.

LAFHA Case Studies

Australian Resident Relocates Interstate

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The Facts

Joe is a 30 year old BA from Melbourne working in a large organisation in the insurance and finance sector. Colleague Jill, in 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 he will gain and the better weather and decides to go for it.

The Figures

Joe's annual salary of $105,000 gives him $75,425 after tax. It costs him $2000 to move all his things, and after three weeks in short term accommodation when he first arrives, he rents a unit at Kangaroo Point for $400 per week. Without his employer paying him any increase in salary, the LAFHA tax allowance means he gets an extra $10,401 take home (after tax) pay. This not only covers Joe's move and initial relocation but also gives him a chance to go out and make the most of his new lifestyle.

The Results

Employee Advantages

Increases take home pay
Recoups most of the cost of relocation and other out of pocket expenses
Is motivated and happier at work with additional LAFHA benefits
Improves work experience with new role and remains loyal to employer rather than moving on
Does not change employment status

Employer Advantages

Pays no extra salary or super
Has no reportable FBT liability (with LAFHA applied correctly)
Retains satisfied, motivated personnel, becoming an Employer of Choice
Improves recruitment and retention and builds staff loyalty
Sees no change in employees' employment status

International Relocation (457 Visa Holder)

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The Facts

Patrick is a 33 year old Systems Engineer from Dublin who decides to immigrate to Australia with his family. He finds a job with a large retail head office in Sydney, and his employer sponsors him on a schedule A 457 Visa for four years. He has brought with him to Sydney his wife and two children, aged 4 and 8.

The Figures

Patrick's salary of $95,000, exclusive of super, gives him $69,575 take home pay after tax. It costs him $5000 in airfares and additional moving costs, over and above the relocation reimbursement provided by his employer. They move into a two bedroom unit in Randwick which they rent for $400 per week, and they pay $4000 per year in school fees. When LAFHA is applied, without his employer increasing his salary, Patrick's take home (after tax) pay increases by $13,247 in the first year, and $10,412 for the subsequent 3 years. This allows him and his family to enjoy a good standard of living and take advantage of their new outdoor lifestyle.

The Results

Employee Advantages

Increases take home pay
Recoups a reasonable proportion of the cost of relocation and out of pocket expenses
Is motivated and happier at work with additional LAFHA benefits to remain loyal to employer
Is committed to fulfilling contract and performs at his best
Does not change employment or visa status

Employer Advantages

Pays no extra salary amounts, including super or cost
Has no reportable FBT liability if applied correctly
Retains satisfied, motivated personnel and becomes known at Employer of Choice
Improves recruitment and retention of key staff who remain loyal to the company
Sees no change in employees' employment or Visa status

NB. All figures provided are representative of 09/10 taxation guidelines, and are estimates against individual circumstance.

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