ADF Family Health
Frequently Asked Questions - Taxation
Page updated
19 November, 2009
- Will I still be required to pay my Medicare Levy?
- Will this healthcare trial be subject to any tax?
- Do I have a choice in whether or not to access this trial?
- If I have registered for the trial and do not access the benefits, do I incur any fringe benefits tax?
1. Will I still be required to pay my Medicare Levy?
Yes. Only basic medical and dental care is provided for under this trial. Medicare Australia will continue to rebate your costs under the existing Medicare Benefits Schedule.
2. Will this healthcare trial be subject to any tax?
The benefits associated with this trial will be considered a fringe benefit under the Fringe Benefits Tax Assessment Act 1986. Consequently, the benefits will be subject to Fringe Benefits Tax (FBT) and the FBT will be paid by Defence. Depending on individual circumstances the "grossed-up" value of the benefits provided during the FBT year may be recorded on a member's annual Payment Summary. We recommend you seek financial advice relevant to your individual circumstances before registering for the trial. See the Fringe Benefits Tax and the ADF Family Healthcare Trial handout for more information, including examples of “grossed up” value.
Participation in the trial is voluntary and you may elect to participate only in the medical or the dental, or both, and you may decide to only register certain members of your family. You may opt out of the trial at any stage, or change your registration as required. For example, a child with a Government issued Health Care Card, may only require the dental component of the trial, with the remaining dependants requiring both medical and dental.
The first reporting period for fringe benefits will be the 2009-10 financial year, with ADF members able to view fringe benefits through PMKeyS in May 2010. If you have any questions or concerns related to benefits that may be received during 2009-10 please contact the Defence Tax Management Office:
Email: taxation.management@defence.gov.au or Phone: 1 800 806 053.
The Defence Taxation Management has prepared an information page related to FBT and the ADF Family Health Trial.
 Fringe Benefits Tax and the ADF Family Health Trial Handout
3. Do I have a choice in deciding whether or not to access this trial?
Yes. In deciding whether or not to access this trial, we recommend you seek advice relevant to your individual financial circumstances.
Participation in the trial is voluntary and you may elect to participate only in the medical or the dental, or both, and you may decide to only register certain members of your family. You may opt out of the trial at any stage, or change your registration as required. For example, a child with a Government issued Health Care Card, may only require the dental component of the trial, with the remaining dependants requiring both medical and dental
4. If I have registered for the trial and do not access the benefits, do I incur any fringe benefits tax?
No. Fringe benefits tax is linked to the medical or dental benefits received. If this has not been accessed, then there is no FBT.
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