Financial assistance and advice

There are a number of Defence-run organisations that may be able to provide you and your family with financial advice and assistance.

Financial information and advice

The ADF Financial Services Consumer Council provides independent, professional financial education (not advice) to ADF members and their families. Visit the the council’s website to find information and videos about managing your finances, planning around deployment and creating budgets. You can also sign up for a monthly newsletter.

The Defence Tax Management Office (website available only on the Defence intranet) is available to provide ADF members with general information on taxation matters, including Fringe Benefits Tax and its impact on family income. You can contact the Defence Tax Management Office on taxation.management@defence.gov.au or 1800 806 053.

These agencies do not give personal taxation advice. We recommend you seek such advice from a personal accountant, tax agent or financial planner.

Financial assistance

In cases of short-term financial difficulties or emergencies, ADF members can access loans, grants or welfare services through their Service’s Relief Trust Fund. These are the:

• Royal Australian Navy Relief Trust Fund
• The Army Relief Trust Fund
• Royal Australian Air Force Welfare Trust Fund

Contact the member’s unit for more information.

The Defence Force Welfare Association also has a trust fund for the welfare of ADF members and families who are experiencing hardship. Visit their website for more information.

Home ownership assistance

The Defence Home Ownership Assistance Scheme helps ADF members to achieve home ownership by offering eligible members subsidy payments toward the interest incurred on a home loan.

For more information, visit the website or call 1300 4 DHOAS (1300 434 627). The website also contains information on other Defence allowances available, such as the Home Purchase Assistance Scheme and Home Purchase and Sale Expense Allowance.

Salary packaging

Salary packaging allows Defence employees to restructure their income, allowing them to buy a range of items or services out of their pre-tax rather than after-tax salary, which can mean saving a good chunk of money.

Items that can be salary packaged include airline lounge membership, motor vehicles for private use by way of a novated lease or associate lease, childcare at Defence and Commonwealth child care facilities, laptop and notebook computers, uniforms and more.

For further information visit the Smartsalary website and use the employer code ADO.

Pay and conditions

Information about pay, entitlements and conditions of service can be found in the ADF Pay and Conditions Manual, or PACMAN.


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Fringe benefits tax

Some of the assistance and services provided by DCO will attract Fringe Benefits Tax, or FBT, for the ADF member. FBT is paid on certain benefits the ADF member receives as an employee of Defence. FBT is separate from income tax and is based on the taxable value of fringe benefits you receive.

You do not pay FBT—Defence pays FBT to the Australian Tax Office. However, if the total cumulative value of all the fringe benefits you receive from Defence exceeds $2000 during the FBT year (1 April to 31 March), it will be reported on the ADF member’s annual payment summary. This amount is the Reportable Fringe Benefits Amount (RFBA).

The RFBA is not used to calculate liability for income tax, but does affect the ADF member’s entitlement or liability for family benefits, Medicare levy surcharge, superannuation contributions, HECS repayments and child support obligations.

If your RFBA is significant, it may mean you receive fewer tax concessions or government benefits (such as the Family Tax Benefit or the Child Care Benefit) or become liable for additional government surcharges.  

We strongly recommend that you seek independent financial advice to see what effect FBT will have on your tax and benefits before undertaking any of our support services that attract FBT.

You can view a video on Understanding Fringe Benefits Tax or find more information on the ADF Financial Services Consumer Council site.