The battle to have same locality removals exempt from FBT reporting requirements goes on.

As it stands the "grossed-up" cost of relocations after 12 months of arrival in a posting locality will be reported on the member's group certificate, regardless of such relocation being generated by Defence and not by the member.

The reported FBT amount has no impact on the member's tax liability, however, it can be treated as income by government agencies and then used in the calculation of entitlements or the determination of child support payments.

We understand that during the 1999/2000 FBT Year (April to March) there were 3000 removals of this type with an average cost of $4,000 (grossed-up) placed on members' group certificates for the same financial year.

The federation is aware that special arrangements are in place with Family and Community Services (FACS) not to consider this initial reporting of local removals and there should be no impact on government entitlements or child support payments for the current financial year. There is no guarantee for this arrangement to apply to future FBT reporting years. This has real potential to place many service families in financial hardship.

The Defence Business Project Office, with the support of the Minister Assisting the Minister for Defence, the Federation and the NCGSF, have now provided a detailed submission to Treasury in order to gain an FBT reporting exemption for Defence directed removals in the same posting locality.

It is a solid submission concentrating on relocations from:

service residence to service residence or subsidised rental,
subsidised private rental to service residence, and
subsidised private rental to subsidised private rental (where the reason for the relocation is beyond the member's control).

The Federation greatly appreciates the efforts of all those who have worked on preparing the submission to Treasury. Hopefully, a positive outcome will be the result.

For any further information contact the Armed Forces Federation on telephone (02) 62605100 or 1800 806861 or e-mail: arffa@dynamite.com.au