Australian Manufacturing Workers' Union




The AMWU and ETU have secured another major win for members employed on the Ichthys Project who are receiving a LAFHA in accordance with the EBA. 

Last year, Kentz, started withholding tax from LAFHA payments for workers after they had reached the 12 month anniversary of receiving the allowance. The Unions took the matter to the Fair Work Commission (“FWC” of “the Commission”) arguing that the Agreement entitlement provided for a LAFHA of $580 per week be paid to employees who meet the criteria set out in the EBA.

After a protracted dispute, the parties have now settled the matter resulting in workers receiving the full weekly payment of $580 LAFHA.

How does this win effect AMWU members?

  • This matter impacts upon members employed at MEC-1.
  • To put it simply, LAFHA payment will no longer be taxed.
  • Those members who have been in receipt of LAFHA for 12 or more months and have had taxation withheld from the allowance, will have their full $580 LAFHA payment will be reinstated, from the first pay cycle in 2007/18 financial year. These members will also receive payment summaries (group certificates) for the 2016/17 financial year with the correct information indicating that the LAFHA payments are no subject to income tax – this will allow members to claim the additional taxation paid through their tax return.
  • Any members who have been receiving LAFHA for less than 12 months will continue to receive the full entitlement of $580 LAFHA per week, and no changes will be made to these payments.
  • Any members who have elected to have their LAFHA subject to income tax will be contacted and a meeting will be arranged to discuss this matter with your employer. Members will have the option of having the AMWU represent them during any discussions in relation to this matter.
  • New declaration forms will be distributed to members receiving LAFHA for the purposes of confirming their entitlement to LAFHA under the EBA.

This information has also been distributed in an enews to members.

If you have any questions about this win for workers, please contact Grant Harradine 0417 752 300.

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