Division 3: Loss or damage to possessions overseas

 

TAX ALERT: PACMATE Annex 3.B, item 78.

 

14.6.18   Purpose
14.6.19   Member this Division applies to
14.6.20   Definition – possessions
14.6.21   General conditions
14.6.22   Loss or damage – private vehicles
14.6.23   CDF decision on loss

14.6.18   Purpose

 

The purpose of this Division is to provide an amount for any lost or damaged possessions during an overseas posting. This is only if the loss or damage is directly caused by a specified event.

See:
Clause 14.6.20, Definition – possessions
Subclause 14.6.21.1, Specified events

14.6.19   Member this Division applies to

 

This Division applies to:

 

a.

a member (including a member on Reserve service) on a long-term posting overseas.

 

b.

dependants living with the member overseas.

14.6.20   Definition – possessions

 

For this Division, possessions means these items.

 

a.

Items approved for removal to an overseas posting location at Commonwealth expense.

 

b.

Items approved for removal to another residence at the overseas posting, or back to Australia, at Commonwealth expense.

 

c.

Food, beverages and other household consumable goods.

 

d.

Private vehicles.

 

Note: Loss or damage to a member's clothing or effects used for service is not covered by this Part.

See: Chapter 10 Part 4, Loss or damage to clothing or personal effects

14.6.21   General conditions

1.

Members are eligible for help if their possessions are lost or damaged as a result of one of these specified events.

 

a.

War.

 

b.

Civil disorder.

 

c.

Natural disaster.

 

d.

Another similar event.

2.

These three conditions must be met.

 

a.

Either the member fully insured the possessions, but was unsuccessful claiming from the insurer despite reasonable attempts.

Or the member was unable to obtain appropriate insurance at a reasonable cost to cover the possessions in the circumstances in which they were lost or damaged.

 

b.

The member took reasonable steps to avoid the loss or damage.

 

c.

The member assigns to the Commonwealth the right to recover the loss or damage from an insurer or another person. The member also takes all necessary steps to help the Commonwealth with its claim.

4.

The member is entitled to an amount the CDF considers reasonable in the circumstances. In assessing the amount, the CDF must consider all these criteria.

 

a.

The nature and extent of the possessions lost or damaged.

 

b.

An amount that an insurer would pay to the member for loss or damage.

 

c.

Any professional valuation of the loss or damage.

 

d.

The estimated residual value of the possessions. This must take into account the:

 

i.

initial cost, and

 

ii.

estimated amount of depreciation.

 

e.

Any other factor relevant to the loss or damage.

5.

The payment must be reduced if both these conditions are met.

 

a.

The member has not insured the possessions, or has underinsured them.

 

b.

The CDF considers that it would have been reasonable to fully insure them against the event that caused the loss or damage.

6.

The amount must be reduced by the amount the member could reasonably expect to have been paid by an insurer, if the goods had been adequately covered.

Example 1: The member has underinsured possessions worth AUD 10,000. The possessions are destroyed in an earthquake. The insurer pays AUD 5,000. The member could have fully insured against earthquake damage at reasonable cost. The member gets no payment under this clause.

Example 2: Possessions worth AUD 20,000 are destroyed in a civil war. Insurance cover for acts of war is not available at the posting location. The member gets the full amount under this clause.

 

Persons who can make the decision under subclause 14.6.21.4 and paragraph 14.5.21.5.b on behalf of the Secretary/CDF:

A person not below MAJ(E)/APS 6 who is authorised to manage Defence personnel administration at the overseas post

Senior ADF Representative at the overseas post

A person working in the Personnel Administration Centre in Southern Victoria who is:

-      Overseas Administration Team Leader

-      Personnel Administration Manager Specialist

-      Civilian and Overseas Personnel Administration Centre Manager

-      Director Personnel Administration Centre

 

14.6.22   Loss or damage – private vehicles

1.

This table shows the amount a member may be paid for loss or damage to a private vehicle.

 

Situation

Entitlement

Loss of private vehicle

The estimated residual value of the vehicle immediately before the loss occurred.

Damage to private vehicle

The difference between estimated residual values, both before and after the damage.

 

2.

This is how to work out the estimated residual value of the member’s vehicle.

 

a.

Find out how much the member paid to buy the vehicle.

 

b.

Subtract an amount of depreciation the CDF assesses as reasonable in the circumstances.

3.

When assessing the amount of depreciation, the CDF must consider all these criteria.

 

a.

The criteria set out in subclause 14.6.21.4.

 

b.

The type and cost of the vehicle bought by the member.

 

c.

The age of the vehicle when bought, and the period the member owned the vehicle.

 

d.

The rate of depreciation that would usually occur on a similar vehicle at the member's posting location.

 

e.

The estimated cost of repairing any defects to the vehicle.

 

f.

The insured value of the vehicle.

 

g.

Any other factor relevant to the member's ownership of the vehicle.

 

Example: A member owned a vehicle for two years. The original value was AUD 50,000. After two years, the CDF decided it had depreciated AUD 15,000. Its estimated residual value is therefore AUD 35,000.

 

Persons who can make the decision under paragraph 14.6.22.2.b on behalf of the Secretary/CDF:

A person not below WO2/APS 5 who is authorised to manage Defence personnel administration at the overseas post

Senior ADF Representative at the overseas post

A person working in the Personnel Administration Centre in Southern Victoria who is:

-      Overseas Administration Team Leader

-      Personnel Administration Manager Specialist

-      Civilian and Overseas Personnel Administration Centre Manager

-      Director Personnel Administration Centre

14.6.23   CDF decision on loss

1.

The CDF can direct that a member's possessions are presumed lost on a specific date.

2.

The CDF must consider all these criteria.

 

a.

The circumstances in which the member ended or interrupted a long-term posting and left the posting location.

 

b.

The nature of the possessions abandoned by the member at the location, and their condition and value at that time.

 

c.

The likelihood that the member may be able to recover the possessions in a reasonable condition for use.

 

d.

The likelihood of the member resuming the posting or returning to the location.

 

e.

Any other factor relevant to the member's loss of possessions.

3.

The CDF is not to give the direction in subclause 1 unless the member assigns the possessions to the Commonwealth.

 

Persons who can make the decision under clause 14.6.23 on behalf of the Secretary/CDF:

A person not below MAJ(E)/APS 6 who is authorised to manage Defence personnel administration at the overseas post

Senior ADF Representative at the overseas post

A person working in the Personnel Administration Centre in Southern Victoria who is:

-      Overseas Administration Team Leader

-      Personnel Administration Manager Specialist

-      Civilian and Overseas Personnel Administration Centre Manager

-      Director Personnel Administration Centre

 

 

PACMAN                                                            AL12 (October 2011)                             Chapter 14 – Part 6 Division 3 – 1