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Fozz10
18-04-2013, 12:08 AM
Hi,

I am after opinion on the following and some advice if at all possible.

I am employed in Australia by an Australian major company (the Company).

In 2011, I was made the offer of employment by the Company. I challenged the Total Final Renumeration (TFR) that they had offered me because I was unsure of affordability. The Company verbally informed me that my TFR had a Living Away From Home Allowance (LAFHA) and this allowance was tax free and that I should allow for the net effects if this when considering the TFR that they had offered. Consequently although the tax free component does not form part of my contract of employment the Compny used this tax free benefit as an enticement in order to make the employment offer more attractive and affordable.

In the knowledge of the tax free allowance I accepted the offer made by the Company and commenced work with them in 2011.

In October 2012 the Federal Government changed the rules on LAFHA and this allowance was made subject to Fringe Benefit Tax (FBT).

The Company notified me of the change and verbally informed me that the LAFHA would be subject to FBT deductions. I verbally reminded the Company that they had used this tax free allowance as an enticement so that I would accept the offer of employment. Later that month I received written confirmation of the Changes to LAFHA and the Company had considered my circumstance and would continue to pay the FBT on my behalf. The continued payment was subject to just two conditions:

1: It would be paid by the company whilst it was my intention to return to my home country. If I applied for PR the Company would terminate the continued payment of the FBT associated with the LAFHA.

2: I could not discuss the Companies offer with any other members of staff (other than certain defined members of staff).

I have continued to satisfy the above conditions.

However. last week the Company issued me a letter to say that they would need to terminate the continued payment associated with FBT being levied against the LAFHA component of my TFR because the parent company has said such payment should not be continued.

The financial effects this has on me and my family mean that I can not afford to stay in the employment of the Company and I may have to leave as a result.

I have written to the Company explaining that I have kept to the terms of the suplementary agreement that they offered me in October 2012 and that I do not accept that the Parent Companies views forms a valid reason for terminating the continued payment of the FBT associated with the LAFHA. I also notified them that I believe this is a grievance and as such have asked for direct resolution in accordance with the company
greviance procedures.

To date I have not received a responce from the Company. However, the deduction will ( as far as I am aware) take place in next months TFR payment.

Any advice on where I stand legally and what you think my next moves should be would be greatly appreciated.

Tanks in advance.

Fozz.