Part 7: Aircraft allowance

 

TAX ALERT: PACMATE Annex 3.A, item 180.

9.7.1    Purpose
9.7.2    Member this Part applies to
9.7.3    When this Part does not apply
9.7.4    Definitions
9.7.5    Authorised travel by private aircraft
9.7.6    Entitlement
9.7.7    Amount of allowance
9.7.8    Limit to entitlement
9.7.9    Insurance

9.7.1    Purpose

1.

Aircraft allowance assists a member with reasonable costs when the CDF authorises them to travel by flying a private aircraft in any of these circumstances.

 

a.

On temporary duty.

 

b.

On posting or termination of service.

 

c.

On recreation leave or recall from recreation leave.

2.

The provisions authorising aircraft allowance are based on those in Part 6 of this Chapter authorising vehicle allowance. The criteria in clause 9.6.7 apply.

 

Persons who can make the decision under clause 9.7.1 on behalf of the CDF:

Director/Commanding Officer not below MAJ(E)/APS 6 in the member's direct chain of command or supervision

9.7.2    Member this Part applies to

1.

This Part applies to a member who undertakes authorised travel by flying a private aircraft. This includes a member on Reserve service.

2.

To be eligible for aircraft allowance, a member must meet both of these criteria.

 

a.

They must hold an appropriate pilot’s licence in force under the Air Navigation Act 1920 and the Air Navigation Regulations 1947.

 

b.

They must comply with both of the following.

 

i.

The Air Navigation Regulations 1947.

 

ii.

Any requirements of the Department of Transport and Regional Services and the Civil Aviation Safety Authority.

9.7.3    When this Part does not apply

 

This Part does not apply to either of the following.

 

a.

Travel for which a member is entitled to attendance allowance.

 

b.

The hire by the ADF of a light aircraft without pilot.

9.7.4    Definitions

 

This table defines terms used in this Part.

 

Term

Definition in this Part

Authorised

Authorised for allowance under this Part by the CDF.

Private aircraft

An aircraft that is registered in Australia and that the member is licensed to fly.

9.7.5    Authorised travel by private aircraft

1.

A member’s travel by flying a private aircraft may be authorised in the same way as travel by a private vehicle is authorised under Part 6 of this Chapter. The same circumstances and conditions apply.

2.

For subclause 1 above, both of these conditions must apply.

 

a.

A private aircraft is the same as a private vehicle in relation to 'greater efficiency' under clause 9.6.7 item 4.

 

b.

Aircraft allowance is the same as vehicle allowance in relation to 'a saving to the Commonwealth' under subclause 9.6.7 item 6.

 

Note: Decisions are made in the same way as they are for deciding vehicle allowance. They may rely on the decision-maker being satisfied that the member's personal interests would be harmed if they used the normal means of travel. See clause 9.6.7 item 4c.

See: Part 6 Division 1 clause 9.6.7, Definitions.

9.7.6    Entitlement

1.

This clause applies to a member authorised to travel by flying a private aircraft instead of travelling at Commonwealth expense by the normal means of travel.

2.

Subject to clause 9.7.8, the member has all of these entitlements for the travel.

 

a.

The allowance worked out under clause 9.7.7.

 

b.

Travel costs under Part 5 of this Chapter that they would otherwise be entitled to.

 

c.

Any unavoidable costs or charges they pay for the use of the aircraft. To qualify, they must be entitled to be reimbursed additional costs under Part 6 for use of a private vehicle in the same circumstances.

See: Part 6 Division 1 clause 9.6.7 item 1.

9.7.7    Amount of allowance

 

The amount of allowance is worked out using this formula.

 

distance

x

hourly cost

cruising speed

 

Term

Definition

Distance

The distance must take into account these factors.

a. It must be measured in nautical miles.

b. It must be based on the straight-line ground distance between the airfield where the travel begins and the airfield where the travel ends.

c. It may be adjusted, to take into account necessary fuel stops, and to be consistent with safe air navigation.

Cruising speed

The cruising speed of the aircraft in nautical miles an hour.

Hourly cost

If...

the hourly cost is...

the member owns the aircraft

the hourly cost of operating the aircraft.

 

This is based on budgeting figures for the aircraft, taking all these factors into account.

a. The aircraft type, model and engine capacity.

b. The yearly cost of operating the aircraft.

c. The average yearly flying time of the aircraft.

the member hires the aircraft

the hourly hire charge for the aircraft.

9.7.8    Limit to entitlement

 

The member’s total entitlement for the travel must not be more than the sum of these two amounts.

 

a.

Fares and travel costs under Part 5 of this Chapter, worked out as if they were travelling by the normal means of travel. This includes entitlement for any passenger they are authorised to carry and who would otherwise travel at Commonwealth expense.

 

b.

Any other relevant charge. This includes the cost of transporting any goods owned or hired by the Commonwealth that they are authorised to carry.

9.7.9    Insurance

1.

A member must provide the CDF with written evidence that the aircraft is insured before the CDF can authorise the travel. The aircraft must be covered by both comprehensive and third party insurance.

2.

If a private aircraft is authorised for use on duty, the Commonwealth will not accept responsibility for any financial liability or loss arising from an accident it is involved in.

Note: Some insurance companies may classify the aircraft as a business aircraft and require an additional premium. It is the member’s personal responsibility to find out about their company's practice and arrange appropriate insurance.

3.

If the Commonwealth is found liable for damage from an accident involving the aircraft, it may claim against the member to recover any damages awarded against it.

 

Persons who can make the decision under subclause 9.7.9.1 on behalf of the CDF:

Director/Commanding Officer not below MAJ(E)/APS 6 in the member's direct chain of command or supervision

 

PACMAN                                                              Reprint (August 2008)                                                    Chapter 9 – Part 7 ‑ 1