Part 3: Loss on sale of furniture, effects and private vehicles

6.3.1    Purpose
6.3.2    Furniture and effects – loss on sale
6.3.3    Furniture and effects – amount of reimbursement
6.3.4    Private vehicles – loss on sale
6.3.5    Private vehicles – amount of reimbursement
6.3.6    ...

6.3.1    Purpose

 

A member may be compensated if they make a financial loss on the sale of furniture, other effects or private vehicles when they are relocated. This Part describes who is entitled and how much they are entitled to.

Note: Furniture and effects means all portable household items ordinarily used for domestic purposes and convenience.

 

Exception: If a member sells an item that was obtained through a grant the member is not entitled to a reimbursement under this Part.

6.3.2    Furniture and effects – loss on sale

 

TAX ALERT: PACMATE Annex 3.A, item 102.

 

A member may choose to sell furniture and effects instead of having them removed to another location in Australia at Commonwealth expense. They are entitled to reimbursement if they make a loss on the sale. A dependant of a deceased member is also entitled.

 

Note: Clause 1.6.1 deals with situations where a member's adult dependant is also a member, and they would both be entitled reimbursement if they make a loss on the sale of furniture and effects. Only one of the members is entitled.

See: Chapter 1 Part 6 clause 1.6.1, Dual entitlement – member's adult dependant is also a member

6.3.3    Furniture and effects – amount of reimbursement

 

TAX ALERT: PACMATE Annex 3.A, item 102.

1.

Subject to this clause, the amount of reimbursement is the difference between what the member gets for the sale and the sum of these two amounts.

 

a.

The current market value of the furniture and effects.

 

b.

The incidental costs of selling the furniture and effects.

Note: Incidental costs are the standard charges of auctioneers and valuers, and reasonable advertising costs.

2.

The amount of reimbursement must not be more than what the Commonwealth would pay to remove the furniture and effects.

3.

If the member stores furniture and effects at Commonwealth expense and then sells them, the amount of reimbursement is reduced by the cost of the storage. If the cost of storage is greater than the loss, the member does not have to pay the Commonwealth the difference.

Example 1: A member's stored goods are valued at $200. They sell them for $140, a loss of $60. Storage has cost the Commonwealth $100 at the time the member sells the goods. The member is not entitled to reimbursement. They do not have to pay the $40 gap.

Example 2: A member's stored goods are valued at $200. They sell them for $60, a loss of $140. Storage has cost the Commonwealth $100 at the time the member sells the goods. The member is entitled to a $40 reimbursement.

4.

The amount is not to be reduced under subclause 3 in these circumstances.

 

a.

It would cost the Commonwealth more than the value of the reimbursement to continue to store the furniture and effects if they were not sold.

 

b.

By reason only of postings that do not attract a removal, the member would not use the furniture and effects within 12 months of becoming entitled to the reimbursement.

6.3.4    Private vehicles – loss on sale

 

TAX ALERT: PACMATE Annex 3.A, item 103.

1.

This clause applies in relation to any of the following vehicles.

 

a.

A private vehicle that a member is (or would have been) entitled to have removed to another location in Australia at Commonwealth expense.

 

b.

One private vehicle owned by a member who meets all the following conditions.

 

i.

They are a member without dependants or a member with dependants (unaccompanied).

 

ii.

They are deployed for six months or longer.

 

iii.

They have made a choice to vacate their accommodation under subclauses 7.3.15A.2, 7.5.36A.2, 7.5A.11A or 7.6.28A.2, or the CDF has decided that the member must leave the living-in accommodation under subclause 7.3.15A.5.

 

See: Chapter 7

Part 3 Division 1 clause 7.3.15A, Living-in accommodation on deployment

Part 5 Division 7 subclause 7.5.36A.2, Service residence on deployment

Part 5A Division 1 clause 7.5A.11A, Choice Accommodation on deployment

Part 6 Division 5 subclause 7.6.28A.2, Rent allowance on deployment

 

c.

One towable item owned by a member who meets all the conditions in paragraph b.

 

Exception: This clause does not apply to a member who meets the conditions in paragraphs b or c, and who has chosen to put a vehicle or towable item in storage. This includes storage on a Defence base or in non-commercial storage.

2.

A person may choose to sell the vehicle instead of having it removed. They are entitled to reimbursement if they make a financial loss on the sale. In this subclause vehicle means a private vehicle or a registered item that can be towed.

3.

The entitlement is available to any of these persons.

 

a.

A member on continuous full-time service.

 

b.

A former member who was on continuous full-time service and is entitled to remove a vehicle when they complete their service.

 

c.

A person legally entitled to own the vehicle of a deceased member who was on continuous full-time service.

 

Note 1: The person would be responsible for making the administrative arrangements for a sale.

 

Note 2: Clause 1.6.1 deals with situations where a member's adult dependant is also a member, and they would both be entitled to reimbursement if they make a loss on the sale of a private vehicle. Only one of the members is entitled.

See: Chapter 1 Part 6 clause 1.6.1, Dual entitlement – member's adult dependant is also a member

6.3.5    Private vehicles – amount of reimbursement

 

TAX ALERT: PACMATE Annex 3.A, item 103.

1.

The amount of reimbursement for a vehicle described in paragraph 6.3.4.1.a is the lesser of the following two amounts.

 

a.

What the Commonwealth would have paid if it had the vehicle removed.

 

b.

The difference between the valuation and the amount of the sale price after reasonable incidental costs have been deducted from it.

Example: Incidental costs might include advertising.

1a.

The amount of reimbursement for a vehicle or towable item described in paragraph 6.3.4.1.b or 6.3.4.1.c is the lesser of the following two amounts.

 

a.

What the Commonwealth would have paid to store the vehicle in a commercial storage facility for the period of the member's deployment.

 

b.

The difference between the valuation and the amount of the sale price after reasonable incidental costs have been deducted from it.

Example: Incidental costs might include advertising.

1b.

In subclauses 1 and 1a, valuation means a commercial valuation by a member of a recognised motor trades organisation.

2.

The CDF must be satisfied that the person made reasonable efforts to sell the vehicle without making a loss. The CDF must consider these factors.

 

a.

When and how widely the person advertised the vehicle for sale.

 

b.

How the person tried to sell the vehicle.

 

c.

The nature and extent of offers made for the vehicle.

 

d.

The particulars of the sale.

 

e.

Any other relevant aspect of the sale.

3.

In the case of a deceased member (see paragraph 6.3.4.3.c), the amount depends on where the vehicle is to go. Payment is for the cost of transporting the vehicle to the relevant place listed below.

 

a.

Within the location where the vehicle is already.

 

b.

The location of the last permanent residence of the member and their dependants when they enlisted or were appointed.

 

c.

A specific place if the member was enlisted or appointed from outside Australia.

 

See: Option 1 in the table in Part 6 Division 11 of this Chapter for more information on these places.

 


 

Persons who can make the decision under subclause 6.3.5.2 on behalf of the CDF:

A person not below WO2(E)/APS 4 who is:

-      Housing Management Centre (HMC) Manager

-      Relocations Manager of the Housing Management Centre

-      Removals Team Leader in the Housing Management Centre

-      National Relocations Manager

-      National Operations – Removals Manager

Staff Officer – Housing and Accommodation

Staff Officer – Dependants Entitlements

Executive Officer – Relocations, Dependants and Housing

Assistant Director Entitlements

Director Entitlements

6.3.6    ...
 

PACMAN                                                          AL12 (October 2009)                                                  Chapter 6 – Part 3 – 1