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Fringe Benefits Exemption

RAAF personnel could save nearly $5000


March, 2001

The men and women of the Australian Defence Force who are either in receipt of family allowance benefits or are required to make child support payments are set to benefit from a Federal Government decision to exempt Defence funded removals from the Fringe Benefits Tax reporting requirements the Minister Assisting the Minister for Defence, Bruce Scott, announced recently.

Mr Scott said that each year some 3000 Servicemen and women are required by Defence to move house within the locality of their existing posting.

'The Federal Government's decision to exempt Defence personnel removals carried out at Departmental expense will preclude the reporting of a fringe benefit, worth on average
$4850, to the members group certificate,' he said.

'The reporting of this additional income previously had the potential to financially impact on Servicemen and women through reductions in family allowance benefits and increases to income assessed payments such as child support payments.

'There are many instances where personnel are required to move house within their posting locality for reasons beyond their control, for example building renovations and the availability of service housing.

'This decision demonstrates the Federal Government's commitment to
recognising the unique circumstances of ADF employment,'will Mr Scott said.