The Australian dream continues....

ysun062

Many IT professional in this forum are thinking about heading to Australia. Recently I've been negotiating a contract deal in Aus.

The employer gave me two options, either form a company and handle all tax issue myself or use PAYG (Pay as you go = same as personal income tax).

I find that LAFHA (Living away from home allowance) - a government policy to reduce taxable income is the kings road.

This is how it work,, lets say your rent is $600 a week, and food is 300 a week, then that is $900 per week which is about 45k a year. Essentially you can offset this 45k against your annual income. which means you get 20k extra take home money ! what a legendary policy !! we can all use it !

Any advice folks ? should i form a company or go with PAYG ?

好事之徒

你一个人能住600 吃300？

花天堂

sounds good ah.

好事之徒

我算过公司税跟个人税没多大差别 除非你在18万往上很多很多
不过可以有些expense claim

你说的这个away from home, 是适用于个人还是两种都可以？

呼啸寒风

吃住也能抵税？？？那水电宽带电话汽油路税罚单应该都可以

ysun062

你一个人能住600 吃300？
好事之徒 发表于 2011-4-5 14:21

they have a standard,, for one person it abit less,, but not by much,,, check on google, search for LAFHA, it'll give u all the detail.

And yes,, LAFHA is for both company and PAYG. So its a perfect thing for people like us. (wanting to go there to work for few years and then come back to NZ or elsewhere)

LAFHA can be used for upto 4 years. And you loss it if you want to buy a house or apply for Aus PR.

ysun062

吃住也能抵税？？？那水电宽带电话汽油路税罚单应该都可以
呼啸寒风 发表于 2011-4-5 14:24

LAFHA is for rent and food only, other expense you have to do through a company structure.

好事之徒

sounds perfect for new zealanders!

ysun062

sounds perfect for new zealanders!
好事之徒 发表于 2011-4-5 14:31

Yes,, i find out last week ! its a perfect thing for us !
Still alot of thing i need to find out,, like how to get the money out of superannuation etc.

But yea,, I am contacting accountants in australia to work out if forming a company is really worthwhile in terms of tax incentive.

ysun062

sounds perfect for new zealanders!
好事之徒 发表于 2011-4-5 14:31

I am in similar situation as you. Got wife and kid in nz. But i am thinking about take them over with me to Aus and rent out the house in NZ.

Its a big move, alot of complicated issues to think about. (its driving me nuts this week) I've asked two different accountant, and they tell me completely different things !

ysun062

I wish I could find similar contract in nz, but there is almost nothing avaliable in nz for the past year.

beck@

upupupupupupupupup

好事之徒

I am in similar situation as you. Got wife and kid in nz. But i am thinking about take them over with me to Aus and rent out the house in NZ.

Its a big move, alot of complicated issues to think ...
ysun062 发表于 2011-4-5 14:38

这样举家搬迁挺不容易的 还不如你自己先去安顿了 ...

ysun062

这样举家搬迁挺不容易的 还不如你自己先去安顿了 ...
好事之徒 发表于 2011-4-5 15:06

Yea,, i think i'll be going there first,, settle down, and see what the work is like, I've never gone contracting b4, so will have to get a feel at it, see if its comfortable and good, then i'll move the whole family going.

The contract is not bad,, one year contract with possible extension. So it's looking good at this stage.

好事之徒

Yea,, i think i'll be going there first,, settle down, and see what the work is like, I've never gone contracting b4, so will have to get a feel at it, see if its comfortable and good, then i'll m ...
ysun062 发表于 2011-4-5 15:10

您做哪方面的？这个contract 在哪个城市？

ysun062

In Melbourne, I am a product (used in insurance industry) configuration/integration consultant. its very specific market, only two clients in NZ uses this product, and 4 or 5 in Aus, but its picking up presence in AUS/NZ.

好事之徒

保险 金融 等行业都是金矿 您就慢慢挖吧 :)

ilovesoymilk

up ~~~~~~~~~~~~~~~~~~~~~~

ysun062

保险 金融 等行业都是金矿 您就慢慢挖吧 :)
好事之徒 发表于 2011-4-5 15:24

well,, insurance companies usually are rich, but with the earthquake, they are signs that major IT spending is put on hold. must take 2 or 3 years to recover.

You are doing oracle fusion and Biztalk right ? those are "golden" skills to have. Can find good contracts in both nz and Australia.

Talking about Oracle fusion 11g, i think only few clients in nz using it, telecom, University of Auckland, kiwiRail, NZ post ?

好事之徒

well,, insurance companies usually are rich, but with the earthquake, they are signs that major IT spending is put on hold. must take 2 or 3 years to recover.

You are doing oracle fusion and Bi ...
ysun062 发表于 2011-4-5 15:33

NZ POST 还是以biztalk 为主
oracle 11g 的确实不多 （毕竟还算比较新）包括10g的有upgrade潜力的不止那么几个site :) 但也不能跟澳洲比

myself2662

you have to be very careful about using company to structure your tax matters. Recently Penny and Hooper's case has already set precedent for professions using company structure to avoid income tax...... that's why you got totally two different advice from different accountants.