|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
|
Chapter 2 |
Joining and Leaving the ADF |
|
|
|
|
|
|
1. |
Chapter 2 Part 1 Division 1 clause 2.1.4 |
Travel, accommodation and meal entitlements |
N |
N |
N |
N |
Exempt benefit. No tax consequences. |
|
2. |
Chapter 2 Part 1 Division 1 clause 2.1.7 |
Loss of wages or salary |
N |
N |
Y |
N |
Salary or wages repaid is assessable income. |
|
3. |
Chapter 2 Part 2 Division 6 clause 2.2.26 |
Career transition training |
Y |
Y |
N |
N |
Assistance relating to training to gain new skills is subject to FBT and FBT reportable. |
|
4. |
Chapter 2 Part 2 Division 7 clause 2.2.32 |
Career transition management coaching |
N |
N |
N |
N |
Exempt from FBT. |
|
5. |
Chapter 2 Part 2 Division 8 clause 2.2.33 |
Curriculum vitae coaching |
N |
N |
N |
N |
Exempt from FBT. |
|
6. |
Chapter 2 Part 2 Division 9 clause 2.2.34 |
Financial counselling |
Y |
Y |
N |
N |
Subject to FBT and reportable. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
7. |
Chapter 2 Part 3 Division 1 |
Redundancy |
N |
N |
Y |
N |
If the payment is a bona fide redundancy, the payment is eligible for concessional tax treatment. Seek advice.
If member resumes service within 1 year, member may need to amend tax return in respect of their repayment obligation. |
|
8. |
Chapter 2 Part 3 Division 2 |
Gratuities on retirement and invalidity |
N |
N |
Y |
N |
This may be an Eligible Termination Payment (“ETP”). Seek advice. |
|
9. |
Chapter 2 Part 3 Division 3 |
Retaining leave credits if moved to the APS |
N |
N |
N |
N |
No tax consequences. |
|
|
Chapter 3 |
ADF Salaries and Bonuses |
|
|
|
|
|
|
10. |
Chapter 3 Part 1 |
Entitlement and calculation of salaries |
N |
N |
Y |
N |
For members of the Reserves not on continuous full-time service, all Reserve pay and allowances are tax exempt. All fringe benefits also exempt for these members of the Reserves. |
|
11. |
Chapter 3 Part 1 Division 2 |
Salary non-reduction |
N |
N |
Y |
N |
Refer above |
|
12. |
Chapter 3 Part 1 Division 2 |
Salary protection |
N |
N |
Y |
N |
Refer above |
|
13. |
Chapter 3 Part 2 |
Salary increments and related matters |
N |
N |
Y |
N |
For members of the Reserves not on continuous full-time service, all Reserve pay and allowances are tax exempt. All fringe benefits also exempt for these members of the Reserves. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
14. |
Chapter 3 Part 4 |
Overpayments and recovery |
Y |
Y |
N |
N |
Member may need to request that the ATO amend their tax return.
The salary overpayment may constitute a loan fringe benefit from the time an agreement is entered into for the salary repayment unless the deemed interest on the overpaid amount is less than $100 (minor, infrequent benefit). |
|
15. |
Chapter 3 Part 5 Division 1 |
Military Superannuation and Benefits Scheme retention benefit |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption).
Because the Benefit is earned regardless of deployment on a non-warlike operation (section 23AG) the income will be subject to income tax. |
|
16. |
Chapter 3 Part 5 Division 3 |
Air Force Logistics Officers retention bonus |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) or if exempt because of section 23AG (foreign-derived employment income). |
|
17. |
Chapter 3 Part 5 Division 4, Annex 3.5.C Part 1 |
Completion bonuses, Medical and dental officers, RAN submariners completion bonus |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) or if exempt because of section 23AG (foreign-derived employment income). |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
17A. |
Chapter 3 Part 5 Division 4A |
Navy-Electronics Technical (junior sailor) |
N |
N |
Y |
N |
Can be salary packaged subject to conditions. For further information call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) |
|
18. |
Chapter 3 Part 5 Division 5 |
Retention allowance – Aerospace engineers’, air traffic controllers’ |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) or if exempt because of section 23AG (foreign-derived employment income). |
|
18A. |
Chapter 3 Part 5 Division 5A |
Navy – Marine Technical and Electronics Technical (sailors) |
N |
N |
Y |
N |
Can be salary packaged subject to conditions. For further information call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) |
|
19. |
... |
Completion bonus for specified senior positions |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment
(section 23AD exemption) or if exempt because of section 23AG
(foreign-derived employment income). Note: This bonus ceased on |
|
20. |
Chapter 3 Part 5, Annex
3.5.D, |
RAN observers completion bonus |
N |
N |
Y |
N |
Can be salary packaged subject to criteria. Call DTMO.
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) or if exempt because of section 23AG (foreign-derived employment income). |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
21. |
Chapter 3 Part 6 |
Salary and allowances during detention or suspension |
See notes |
See notes |
See notes |
See notes |
Do not give rise to any new entitlements. Same tax treatment applies in accordance with the relevant tax alerts. |
|
22. |
Chapter 3 Part 7 |
Annuities and gratuities for medals |
N |
N |
Y |
N |
However, an allowance paid
to a recipient of the Victoria Cross under the Veteran’s Entitlement Act
1986 is exempt from income tax. |
|
|
Chapter 4 |
ADF Allowances and reimbursements |
|
|
|
||
|
23. |
Chapter 4 Part 1 |
Higher duties allowance |
N |
N |
Y |
N |
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) or if exempt because of section 23AG (foreign-derived employment income). |
|
24. |
Chapter 4 Part 2 |
Service allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
25. |
Chapter 4 Part 3 Division 1 |
Adventurous training instructor allowance |
N |
N |
Y |
N |
|
|
26. |
Chapter 4 Part 3 Division 2 |
Arduous conditions allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
27. |
Chapter 4 Part 3 Division 3 |
Diving allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
28. |
Chapter 4 Part 3 Division 4 |
Field allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
29. |
Chapter 4 Part 3 Division 5 |
Flight duties allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
30. |
Chapter 4 Part 3 Division 6 |
Flying allowance |
N |
N |
Y |
N |
Self-education expenses may be allowable tax deductions in respect of this allowance depending on individual circumstances |
|
31. |
Chapter 4 Part 3 Division 7 |
Hard lying allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
32. |
Chapter 4 Part 3 Division 8 |
Language proficiency allowance |
N |
N |
Y |
N |
Self-education expenses may be allowable tax deductions in respect of this allowance depending on individual circumstances |
|
33. |
Chapter 4 Part 3 Division 9 |
Navy medical grades (additional responsibility) allowance |
N |
N |
Y |
N |
Self-education expenses may be allowable tax deductions in respect of this allowance depending on individual circumstances |
|
34. |
Chapter 4 Part 3 Division 10 |
Paratrooper allowance |
N |
N |
Y |
N |
|
|
35. |
Chapter 4 Part 3 Division 11 |
Seagoing allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
36. |
Chapter 4 Part 3 Division 12 |
Special action forces allowance |
N |
N |
Y |
N |
Self-education and fitness expenses may be allowable tax deductions in respect of this allowance, depending on individual circumstances |
|
37. |
Chapter 4 Part 3 Division 13 |
Specialist operations allowance |
N |
N |
Y |
N |
Includes clearance diving allowance; no tax deduction is allowable specifically in respect of this allowance. |
|
38. |
Chapter 4 Part 3 Division 14 |
Submarine escape allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
39. |
Chapter 4 Part 3 Division 15 |
Submarine service allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
40. |
Chapter 4 Part 4 Divisions 1 & 2 |
District allowance |
N |
N |
Y |
N |
Zone rebate may apply.
No tax deduction is allowable specifically in respect of this allowance. |
|
41. |
Chapter 4 Part 4 Division 3 |
Woomera allowance |
N |
N |
Y |
N |
Zone rebate may apply.
No tax deduction is allowable specifically in respect of this allowance. |
|
42. |
Chapter 4 Part 4 Division 4 |
Port |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
43. |
... |
Air-conditioning allowance |
Y |
N |
N |
N |
If air-conditioning allowance relates to electricity or gas (residential fuel) in respect of an ATO-remote area housing benefit, then:
· A reduction of 50% (under section 59) may be applied to the taxable value of air-conditioning allowance provided to members who are in receipt of a remote area housing benefit (eg a Service residence in an ATO-defined remote area) (section 58ZC).
Other criteria must be satisfied for member to receive ATO-remote area housing benefit.
If air conditioning allowance qualifies in respect of ATO-remote area housing, the allowance is not reportable for RFBA purposes.
Non-example: Darwin, Note: This allowance ceased on |
|
44. |
... |
Bare base allowance |
N |
N |
Y |
N |
Zone rebate may apply. Note: This allowance ceased on |
|
44A. |
Chapter 4 Part 4 Division 6 |
Scherger allowance |
N |
N |
Y |
N |
Zone rebate may apply. |
|
45. |
Chapter 4 Part 4 Divisions 7 & 8 |
Antarctic allowance |
N |
N |
Y |
N |
Zone rebate may apply. |
|
46. |
Chapter 4 Part 4 Division 9 |
Common duties allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. Zone rebate may apply. |
|
47. |
Chapter 4 Part 4 Division 10 |
Antarctic parity allowance |
N |
N |
Y |
N |
Zone rebate may apply. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
48. |
Chapter 4 Part 5 |
Meal Allowance |
N |
N |
Y |
N |
If the meal allowance in connection with overtime is provided under an industrial agreement, and the allowance is within ATO reasonable rates, the allowance is not shown on member’s Payment Summary and is not assessable income provided member is reasonably expected to incur meal costs equal to allowance.
Otherwise, the meal allowance is assessable income for the member and the member is not entitled to a tax deduction for overtime meals purchased. |
|
49. |
Chapter 4 Part 6 clause 4.6.4 |
Star rank officers ‑ Air tickets may be downgraded to fund additional ticket (Travel offset) |
Y |
Y |
N |
N |
The taxable value of the benefit may be reduced by any contributions made by the member. |
|
50. |
Chapter 4 Part 6 clause 4.6.5 |
Membership of airline club |
N |
N |
N |
N |
|
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
51. |
Chapter 4 Part 6 Clause 4.6.6 |
Home computing facilities |
Y |
Y |
N |
N |
Access to computing equipment for home use is ordinarily a fringe benefit. The value of the benefit will be the lease cost of equivalent home computing facilities. The value of the benefit can be reduced to the extent the member could claim a tax deduction for their own computer facilities if the member provides the relevant declaration.
Please note: Laptop computers are an exempt benefit for FBT purposes. This exemption from FBT does not include laser printers. In the 2005 Budget the Government announced that an FBT exemption would be extended to include portable printers. |
|
52. |
Chapter 4 Part 6 clause 4.6.7 |
Mobile telephone |
N |
N |
N |
N |
Assuming phone is used primarily for work purposes. |
|
53. |
Chapter 4 Part 6 clause 4.6.8 |
Privately‑plated Defence vehicle |
Y |
Y |
N |
N |
Note: This clause ceased to apply on 7 January 2009. |
|
54. |
Chapter 4 Part 6 clause 4.6.9 |
Allowance instead of privately‑plated Defence vehicle |
N |
N |
Y |
N |
Tax deduction may be
allowed if member’s car is used for work purposes. Note: This clause ceased to apply on 7 January 2009. |
|
55. |
Chapter 4 Part 6 clause 4.6.10 |
Parking space |
Y |
N |
N |
N |
May be subject to FBT depending on the location of parking space and proximity to a commercial car parking station. |
|
56. |
Chapter 4 Part 7 Division 1 |
Trainee’s dependant allowance |
N |
N |
Y |
N |
No tax deduction is allowable specifically in respect of this allowance. |
|
57. |
Chapter 4 Part 7 Division 2 |
Medical residency – additional salary |
N |
N |
Y |
N |
|
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
58. |
Chapter 4 Part 7 Division 3 |
Former medical or dental officer -refresher training |
N |
N |
Y |
N |
If the payment is towards the officer’s course of study, the ‘Otherwise Deductible’ declaration for FBT purposes may reduce the taxable value, even to nil. |
|
59. |
Chapter 4 Part 7 Division 4
|
|
N |
N |
Y |
N |
If books are work-related, cost of books may be deductible. If the study is to better enable the member to discharge duties, cost of books may be deductible as a self-education expense (note possibility that first $250 not deductible). (Assumes the books do not form a professional library). |
|
60. |
Chapter 4 Part 8 Division 1 |
Legal officer sessional fee |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
61. |
Chapter 4 Part 8 Division 2 |
Airfield Defence Guards annual proficiency bonus |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
62. |
Chapter 4 Part 8 Division 3 clause 4.8.15 |
Former Emergency Forces call-out gratuity ‑ transitional |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
63. |
Chapter 4 Part 8 Division 3 clause 4.8.16 |
Former Army Individual Emergency Reserve – payment for enlistment – transitional |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
64. |
Chapter 4 Part 8 Division 3 clause 4.8.17 |
Former Army Individual Emergency Reserve – efficiency allowance –transitional |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
65. |
Chapter 4 Part 8 Division 4 |
Army Reserve Response Force – annual bonus |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
66. |
Chapter 4 Part 8 Division 5 |
Attendance allowance |
N |
N |
N |
Y |
All Reserve pay and allowances for members of the Reserves not on continuous full-time service are tax exempt. All fringe benefits provided in those circumstances are also exempt. |
|
Chapter 4 Part 8 Division 6 |
Cadet forces allowance |
N |
N |
Y |
N |
Cadet forces allowance is taxable income. |
|
|
68. |
Chapter 4 Part 9 |
Life insurance ‑ additional risk insurance |
Y |
Y |
N |
N |
Payment is exempt from FBT if paid to a member of the Reserves on Reserve service. |
|
|
Chapter 5 |
ADF Leave |
|
|
|
|
|
|
69. |
Chapter 5 Part 2 Division 2 |
Basic recreation leave |
N |
N |
Y |
N |
Exception: Income tax exempt if paid during warlike deployment (section 23AD exemption) |
|
70. |
Chapter 5 Part 2 Division 3 clause 5.2.13 |
Additional recreation leave ‑ sea service |
N |
N |
Y |
N |
|
|
71. |
Chapter 5 Part 2 Division 3 Clause 5.2.14 |
Additional recreation leave – field service |
N |
N |
Y |
N |
|
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
72. |
Chapter 5 Part 2 Division 3 clause 5.2.15 |
Additional recreation leave – flying service |
N |
N |
Y |
N |
|
|
73. |
Chapter 5 Part 2 Division 3 clause 5.2.16 |
Service in a remote location |
N |
N |
Y |
N |
|
|
74. |
Chapter 5 Part 2 Division 4 |
Extra recreation leave |
N |
N |
Y |
N |
|
|
75. |
Chapter 5 Part 2 Division 5 |
Additional recreation leave for training ('trainee leave') |
N |
N |
Y |
N |
|
|
76. |
Chapter 5 Part 2 Division 6 clause 5.2.32 |
Payment instead of recreation leave |
N |
N |
Y |
N |
Payment for unused annual leave is normally taxed at a member’s marginal tax rates but may be concessionally taxed if the payment is in respect of a bona fide redundancy, early retirement scheme or invalidity. |
|
77. |
Chapter 5 Part 3 |
Long service leave |
N |
N |
Y |
N |
Payment for unused long service
leave is normally taxed at a member’s marginal tax rates. However, it may be concessionally taxed if the payment is in respect of a
bona fide redundancy, early retirement scheme or invalidity. Payments for
unused long service leave accrued before |
|
78. |
Chapter 5 Part 4 |
Maternity leave |
N |
N |
Y |
N |
|
|
79. |
Chapter 5 Part 5 |
Parental leave |
N |
N |
Y |
N |
|
|
80. |
Chapter 5 Part 6 |
War service leave |
N |
N |
N |
Y |
Member requires a certificate for section 23AD purposes. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
81. |
Chapter 5 Part 7 Division 2 |
Special leave |
N |
N |
Y |
N |
|
|
82. |
Chapter 5 Part 7 Division 3 |
Special leave for private purposes |
N |
N |
Y |
N |
|
|
83. |
Chapter 5 Part 7 Division 4 |
Examination leave |
N |
N |
Y |
N |
|
|
84. |
Chapter 5 Part 7 Division 5 |
Travelling leave |
N |
N |
Y |
N |
|
|
85. |
Chapter 5 Part 7 Division 6 |
Pre-deployment leave |
N |
N |
Y |
N |
|
|
86. |
Chapter 5 Part 7 Division 7 |
Absence to attend civil court proceedings |
N |
N |
Y |
N |
|
|
87. |
Chapter 5 Part 8 |
Leave without pay |
N |
N |
N |
N |
No tax consequences apply. |
|
88. |
Chapter 5 Part 9 Division 1 |
Short absence from duty |
N |
N |
Y |
N |
|
|
89. |
Chapter 5 Part 9 Division 2 |
Short absence when not required for duty |
N |
N |
Y |
N |
|
|
90. |
Chapter 5 Part 9 Division 3 |
Short absence for removal purposes |
N |
N |
Y |
N |
|
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
91. |
Chapter 5 Part 10 |
Public holidays |
N |
N |
Y |
N |
|
|
92. |
Chapter 5 Part 11 |
Cancellation of, or recall from, leave |
Y |
Y |
N |
N |
Taxable value for FBT purposes may be reduced if remote area or overseas holiday travel concessions apply. |
|
|
Chapter 6 |
ADF relocation on posting in Australia |
|
|
|
||
|
93. |
Chapter 6 Part 1 Division 1 |
Separation Allowance |
N |
N |
N |
Y |
Taxation Ruling 95/17 states that a separation allowance constitutes exempt income. |
|
94. |
Chapter 6 Part 1 Division 2 clauses 6.1.12 to 6.1.20 |
Disturbance Allowance |
N |
N |
N |
Y |
Taxation Ruling 95/17 states that a disturbance allowance constitutes exempt income. |
|
95. |
Chapter 6 Part 1 Division 2 clause 6.1.21 |
Payment because of a child changing schools |
N |
N |
N |
Y |
Taxation Ruling 95/17 states that an education allowance constitutes exempt income. |
|
96. |
Chapter 6 Part 1 Division 2 clause 6.1.22 |
Telephone installation or reconnection costs |
N |
N |
N |
N |
Exempt fringe benefit if the member is required to re-locate and the necessary documentary evidence is provided. |
|
97. |
Chapter 6 Part 1 Division 2 clause 6.1.23 |
Private vehicle transfer costs |
N |
N |
Y |
N |
Not part of disturbance allowance. |
|
98. |
Chapter 6 Part 1 Division 3 |
Childcare costs on removal |
N |
N |
Y |
N |
Not part of disturbance allowance. |
|
99. |
Chapter 6 Part 1 Division 4 |
Pet relocation |
N |
N |
N |
N |
Documentary evidence required if the payment constitutes an expense payment benefit. Pet must be re-located within 12 months of member starting duty at new location. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
100. |
Chapter 6 Part 2 Division 1 |
Assistance for initial purchase of home |
N |
N |
Y |
N |
|
|
101. |
Chapter 6 Part 2 Divisions 2 & 3 |
Repayment of costs for sale of home or subsequent purchase |
N |
N |
N |
N |
For the costs associated with the sale of an old dwelling by a relocating member to be FBT exempt, the member must sell their old dwelling within two years of starting their new posting.
For the costs associated with the purchase of a new dwelling by a relocating member to be FBT exempt, the member must: a. sell their old dwelling within two years of starting their new posting; and b. enter into a contract for the purchase of a dwelling in the new location within four years of starting their new posting.
The member may be required to give other declarations or documentation to Defence.
Payments to the relocating member for interest, repayments of principal, loan service fees, discharge of a mortgage or expenses of borrowing where the money borrowed was not applied wholly in respect of the property being purchased or sold are not exempt from FBT. |
|
102. |
Chapter 6 Part 3 clauses 6.3.2 & 6.3.3 |
Furniture and effects ‑ compensation for loss on sale |
N |
N |
Y |
N |
Alternatively, the amount received by the member may be relevant for capital gains tax purposes if the relevant item was acquired for more than $10,000 or is a collectable. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
103. |
Chapter 6 Part 3 clauses 6.3.4 & 6.3.5 |
Private vehicles – loss on sale |
N |
N |
Y |
N |
The sale of a car is not subject to capital gains tax, but may have income tax consequences in limited circumstances. |
|
104. |
Chapter 6 Part 5 clause 6.5.2 |
Furniture and effects – Compensation for loss or damage |
N |
N |
N |
N |
Alternatively, the amount received by the member may be relevant for capital gains tax purposes if the relevant item was acquired for more than $10,000 or is a collectable. |
|
105. |
Chapter 6 Part 5 clause 6.5.3 |
Private vehicle – Compensation for loss or damage |
N |
N |
N |
N |
The sale of a car is not subject to capital gains tax, but may have income tax consequences in limited circumstances. |
|
106. |
Chapter 6 Part 5 clauses 6.5.6 & 6.5.7 |
Payment for the costs of insuring furniture and effects |
N |
N |
N |
N |
The member may be required to give other declarations or documentation to Defence.
|
|
107. |
Chapter 6 Part 6 Division 2 |
Removal of furniture and effects, including temporary hire of household items |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the removal or storage occurs within 12 months from the day the member starts duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
108. |
Chapter 6 Part 6 Division 3 clause 6.6.19 |
Removal to a chosen location – dependants live at a different location from member’s posting |
Y |
N |
N |
N |
Benefit is subject to FBT because family member is not taking up residence at the member’s new location.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
109. |
Chapter 6 Part 6 Division 3 clause 6.6.20 |
Removal to a chosen location – dependants live at a different location from member’s remote location posting |
Y |
N |
N |
N |
Benefit is subject to FBT because family member is not taking up residence at the member’s new location.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
110. |
Chapter 6 Part 6 Division 3 clause 6.6.22 |
Removal of dependants from chosen location to member’s current posting location |
Y |
N |
N |
N |
If the member changed their usual place of residence, the benefit is only exempt from FBT if the dependants’ removal or storage occurred within 12 months from the day the member started duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
111. |
Chapter 6 Part 6 Division 4 |
Postings |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the removal occurs within 12 months from the day the member starts duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
112. |
Chapter 6 Part 6 Division 5 |
Vehicle removal |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the removal occurs within 12 months from the day the member starts duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
113. |
Chapter 6 Part 6 Division 6 |
Removal on ceasing
continuous |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the removal occurs within 12 months from the day the member starts employment with a non-ADF employer at the new location.
If costs are capped at the cost of returning a member to their original place of enlistment, this constitutes an exempt benefit.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Members are generally not regarded as living away from home when they change their usual place of residence as a result of a posting, |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
114. |
Chapter 6 Part 6 Division 7 |
Storage of furniture and effects |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the storage occurs within 12 months from the day the member starts duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Benefit is not reportable because member is directed to change residence and removal arises from the direction. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
115. |
Chapter 6 Part 6 Division 7 clause 6.6.51 |
Storage on ceasing
continuous |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the storage occurs within 12 months from the day the member starts employment with a non-ADF employer at the new location.
If costs are capped at the cost of returning a member to their original place of enlistment, this constitutes an exempt benefit.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Members are generally not regarded as living away from home when they change their usual place of residence as a result of a posting. |
|
116. |
Chapter 6 Part 6 Division 8 |
Member becomes a member with dependants |
N |
N |
N |
N |
Same rules apply as Chapter 6 Part 6 Division 2 removals, except clauses 6.6.56, 6.6.62. |
|
117. |
Chapter 6 Part 6 Division 8 clauses 6.6.56 to 6.6.62 |
Member becomes a member with dependants – marriage at posting location, additional dependants |
Y |
Y |
N |
N |
Member may not be required to change their usual place of residence to perform their ADF duties. If member was living in, benefit would be excluded from reporting because dependants of member are prohibited from living in. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
118. |
Chapter 6 Part 6 Division 9 |
Member ceases to be a member with dependants |
N |
N |
N |
N |
If the member changes their usual place of residence, the benefit is only exempt from FBT if the removal or storage occurs within 12 months from the day the member starts duty at the new location.
If the member is living away from their usual place of residence, the benefit is exempt from FBT.
If an expense payment benefit arises, documentary evidence is required.
Benefit is not reportable because member is directed to change residence and removal arises from the direction.
Note the exception in clause 6.6.64 in a limited circumstance. |
|
119. |
Chapter 6 Part 6 Division 9 clause 6.6.64 |
Member ceases to be a member with dependants |
Y |
Y |
N |
N |
These benefits refer to members removing their possessions to a different location from where they are serving.
If the member removes their effects to a location where they intend to live after leaving the ADF, the benefit is only exempt from FBT if the removal and storage occurs within 12 months from the day the member starts employment with a non-ADF employer at the new location. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
120. |
Chapter 6 Part 6 Division 10 |
Assistance for non-Service spouse on marriage breakdown |
Y |
N |
N |
N |
Benefit subject to FBT if benefit provided while member and spouse are still married. Benefit not subject to FBT if benefit provided when non-Service spouse is not a spouse for FBT purposes.
Benefit is not reportable. |
|
121. |
Chapter 6 Part 6 Division 11 |
Removal on death of a member |
N |
N |
N |
N |
|
|
122. |
Chapter 6 Part 7 |
Travelling to an Australian posting |
|
|
|
|
Refer to Chapter 9 Part 6. |
|
123. |
Chapter 6 Part 8 |
Expenses when a posting Is cancelled |
Y |
Y |
N |
N |
One of the requirements for receiving the benefit is that the goods or services are of no use to the member on their next posting. Whether or the member has received a property benefit that is subject to FBT and/or reportable depends on the nature of the reimbursement. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
|
Chapter 7 |
ADF Housing and Meals |
|
|
|
|
|
|
124. |
Chapter 7 Part 1 Division 4 |
House-hunting trips |
N |
N |
N |
N |
FBT exempt if the member has accepted an offer to transfer. |
|
125. |
Chapter 7 Part 3 Divisions 2, 3 & Division 4 clauses 7.3.26 to 7.3.36 |
Value of living-in accommodation net of contributions for living-in accommodation |
Y |
N |
N |
N |
The taxable value for FBT purposes is the statutory annual value of the right to occupy the accommodation for a year, reduced by any contribution paid by the member. The statutory annual value is the market value of the accommodation in the first year. For subsequent years (until the 10th year), the market value may be used or the statutory annual value may be indexed.
The member’s living-in accommodation is FBT exempt if the accommodation qualifies as remote area accommodation, or if the member is living away from their usual place of residence and has completed the necessary declaration. |
|
126. |
Chapter 7 Part 4 |
Temporary accommodation allowance – relocating. See also: next item. |
Y |
N |
N |
N |
Declaration must be provided. Reduction in taxable value to nil for FBT purposes possible if member staying in temporary accommodation because they are changing their usual place of residence to carry out their ADF duties. Reduction subject to qualifying time limits.
Member’s contribution, if any, reduces any FBT liability. |
|
Item |
Column 1 |
Column 2 Entitlement |
Column 3 FBT applies |
Column 4 FBT reporting |
Column 5 Taxable income |
Column 6 Income tax exempt |
Column 7 Other/Notes |
|
127. |
Chapter 7 Part 4 |
Temporary accommodation allowance – living away from home including member with dependants (unaccompanied) |
N |
N |
N |
N |
A member performing temporary duty away from their posting location may be living away from home. In this case, the reasonable accommodation costs are an exempt benefit. All or part of meal may also be exempt. Living away from home declaration required. |
|
128. |
Chapter 7 Part 4 |
Meal allowance in conjunction with temporary accommodation allowance |
Y |
Y |
N |
N |
Declaration must be provided. Reduction in taxable value for FBT purposes possible if member staying in temporary accommodation because they are changing their usual place of residence to carry out their ADF duties. Reduction subject to qualifying time limits.
If reduction applies, first $2 of meal fringe benefit provided to member or member’s dependants, and first $1 of meal fringe benefit provided child under 12 years of age, subject to FBT.
If member receives living away from home allowance, meal component may be subject to FBT and reportable depending upon how the living away from home meal allowance is structured.
No apparent exemption from reporting requirements. |
|
129. |
Chapter 7 Part 5 |
Service residence |
Y |
N |
N |