Really love this forum, been a great help to us over the last few weeks.
This morning I received a job offer from a company in Adelaide! ;)
The earnings part is broken down and is confusing me somewhat. I won't go into details of my potential salary but is there anyone on here that could tell me how LAFHA really works???
As I understand it, I have been made an offer totalling $xxx,xxx dollars. The offer goes on to say that I'll be entitled to a LAFHA accommodation allowance of $16,900 and a food allowance of $14,924 which my salary is reduced by, now coming in at $xx,xxx.
Am I right in thinking that I pay tax on the lower amount, and the rest is made up of LAFHA allowance which is NOT taxed? So I am getting $31,824 of my salary tax free?
Once LAFHA is deducted, my taxable income puts me in the $4650 + 30c/$ bracket, so I'll be "better off" by 30% of $31,824, right? So 'cash in hand' LAFHA is worth $9,547 per annum to me.
Anyone been through all this that can broadly let me know if broadly this is how is broadly works?
Me and the family are incredibly excited about all this - as you can understand.
Once I get to the bones of what the offer actually means, you'll be hearing a lot more from me! oh yes :D