Tax ruling a win for Navy

The Tax Office has recently released a Class Ruling (CR 2003/94) which provides members with confirmation of the taxation treatment of their earnings while serving in the Solomon Islands as part of operation ANODE.

The Ruling states that income and allowances received while in the Solomon Islands will be exempt from income tax under section 23AG of the Tax Act, providing the member has been engaged in the Solomon Islands for a period of 91 days or more.

In a significant win for Navy, the Ruling extends the exemption to members who have served on naval vessels within the territorial waters of the Solomon Islands.

Members who meet the criteria for the exemption, and who have not already done so, should complete a declaration of Solomon Islands service and forward it to their relevant pay cell. Copies of this declaration are available from the Annex to DEFGRAM 181/2003.

They may be obtained from the Defence Tax Management Office by sending an email to taxation.management@defence.gov.au or by telephoning 1800 806 053.

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