Archived Discussion Topic

LAFA Warning       started by moc2034 on 19 May 2010   (22824)
Message InfoMessage
From moc2034

19 May 2010 2:04 PM
(108451)
Please note most recruitment agencies try to rip you off by charging you a '5% management fee' or something similar to process your LAFA. What LAFA actually does is reduce your Gross Income so you will pay less Super (the difference on mine was $50 per month) When your reduced tax is deducted from your reduced Gross Income figure and you are charged the 'management fee' you end up a little better off in your pocket (I benefited by receiving $88 more per week less my Super so effectively less than $38 better off per week) Putting this in context, I paid the agency $176.10 a week 'management fees' but I only effectively received $38 and the government received $224 less tax per week. Bare this in mind when you/if you decide to claim LAFA. Recommend you challenge the 'management fee' and get a weeks wages posted with and without LAFA because it is difficult to calculate the net difference because the agency will use 2 gross figures to manipulate you.