Tax
exemptions
I
wish to draw attention to a financial issue that impacts on a
large number of ADF personnel. Substantial tax exemptions may
soon be applied to personnel who have served, or are serving,
in the following regions:
Afghanistan, Albania, Bougainville, Bosnia-Herzegovina, Cambodia,
Cook Islands, Ethiopia, Federal Republic of Yugoslavia, Former
Yugoslav Republic of Macedonia, Marshall Islands, Micronesia,
Mozambique, Palau, Solomon Islands, Tonga and Tuvalu.
The Defence Tax Management Office (DTMO) released a DEFGRAM 98/2003
dated Feb 27, 2003 which stated that publication of Tax Supplements
was imminent. The supplements are to be based on advice from the
Australian Tax Office (ATO) and the Defence Personnel Executive
(DPE), and were to be progressively released from March 2003.
Since then, I have been in frequent contact with DTMO seeking
release dates for the supplements. To their credit DTMO personnel
have been polite and timely in their responses. They have not
yet been able to specify when supplements will finally be published.
I appreciate the complexity of the issue and the need for liasion
between Defence and the ATO. I am concerned that DTMO promulgation
of information on the supplement has not been sufficiently extensive.
DEFGRAMs do not necessarily reach the wider Defence community
and further promulgation via Defence media seems appropriate.
Direct contact with ex-serving members would also seem fair.
For many personnel this issue involves a significant amount of
money. It has been at least ten years since some of the listed
deployments occurred. The financial implications for some sailors
might be very significant and effect important life decisions.
The service is always quick to recover overpayments, it would
be nice to have that brisk approach applied to payments to sailors
that are long overdue.
Finally, I request that DTMO reply to this letter and advise a
release date, detail how they are going to keep all members (including
ex-serving members) advised and undertake to announce in Defence
newspapers when supplements are available. Many thanks.
MAJ John Roberts
john.roberts1@defence.gov.au
The
following reply was received from DTMO:
As you referred to in your letter, the Defence Tax Management
Office (DTMO) is faced with the often difficult task of compiling
a user-friendly and sound document that explains the application
of tax exemptions for various ADF personnel on specific operations.
The task is further complicated by the fact that extensive consultations
must occur between DTMO, the ATO and other stakeholders.
The intention of DEFGRAM 98/2003 was predicated on target dates
that were set between the DTMO and the ATO. Unfortunately, due
to unexpected liaison difficulties with the ATO, DTMO has not
been able to publish the tax supplements.
The DTMO has now forged stronger ties with the new ATO officers.
Our revised work plan foresees release of the DEFGRAM-stipulated
tax supplements in the next three months, subject to ATO workloads
and resource constraints, over which we have no control. Although
Defence provides such additional services to members, it should
be noted that individual taxpayers are responsible for their own
tax affairs. If ADF members are concerned, and not able to wait
for the supplements, they may wish to write to the ATO directly.
With respect to your concerns about dissemination of tax supplement
information, DTMO has ensured that all tax-related information
reaches all members of the ADO, the Armed Forces Federation of
Australia (ArFFA), RSL, Defence Families Australia and other stakeholders.
Communication methods used to disseminate tax information include
e-mail, the Defence Internet, the DEFWEB, DEFGRAMS, SIGNALS, Service
Newspapers, ADF discharge line areas, road-shows, special request
presentations etc. DTMO has demonstrated the effectiveness of
its strategy with respect to:
-
ADF Income Tax Guides;
-
East Timor, Bougainville and Solomon Islands tax supplements;
-
the Defence/ATO Late Lodgment initiative; and
-
the change in conditions of service for Operation Citadel.
DTMO
will continue to provide the ADO with up-to-date and high quality
tax information, consistent with available resources.
Diva Divakaran
Director Tax Management
DTMO
