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Letters

Medicare surcharge tests patience

I SEEK your assistance to provide advice on the Medicare Levy Surcharge in relation to Defence personnel. While it is clear that permanent service members are exempted persons from the Medicare Levy because they receive medical coverage from the ADF, their incomes that are exempted or half exempted from the Medicare Levy are not exempted when considered for the Medicare Levy Surcharge.

If the combined family income exceeds $100,000, the Defence family has to pay 1 per cent of its total combined income as a Medicare Levy Surcharge if it has no private health insurance cover.

In some cases, if both members are serving members, the private health insurance may only be needed for one child. If the combined family income is less than $100,000, the family is exempted from the surcharge.

Surely, if a Defence member’s income is exempted or half-exempted from the Medicare levy, then this income amount should be deducted from the total family income in relation to the Medicare Levy Surcharge test.

Otherwise, no consideration is given to the fact that the Defence member receives medical and dental cover as a condition of service and does not require private health insurance.

When the Medicare Levy Surcharge was introduced, was Defence consulted or did Defence put up a case for the exempted income amounts of its members in relation to the Medicare Levy Surcharge test?

WGCDR Peter Davis
Director Personnel Reserves
- Air Force

OFFICIAL RESPONSE

THE Government introduced the Medicare Levy Surcharge (MLS) as part of a package of measures designed to encourage people to retain or take up a private health insurance option. Individuals and families on higher incomes, who do not have private patient hospital cover for themselves and all of their dependants (including their spouse or children), may be liable to pay MLS for any period during the income year that they did not have this cover.

By removing the member’s income, as you have suggested, from the family income test would undermine the integrity and equity of the system.

THE Government introduced the Medicare Levy Surcharge (MLS) as part of a package of measures designed to encourage people to retain or take up a private health insurance option.

Individuals and families on higher incomes, who do not have private patient hospital cover for themselves and all of their dependants
(including their spouse or children), may be liable to pay MLS for any period during the income year that they did not have this cover.

By removing the member’s income, as you have suggested, from the family income test would undermine the integrity and equity of the system. Members of the ADF will be exempt from MLS if they were in an exemption category for the full income year and:

Did not have any dependants, or
If they had dependants, the dependants were also in an exemption category for the full year, or all had private patient hospital cover for the whole of the income year.

However, as an ADF member you will be liable for the MLS if:

You have dependants who are not prescribed persons and do not have private patient hospital cover, and
You have a taxable income for Medicare Levy Surcharge purposes above the relevant threshold.

Accordingly, members who earn above the threshold amounts can prevent the application of the surcharge by obtaining private health insurance for any dependants who are not prescribed persons.

Although the Defence Taxation Management Office (DTMO) does not provide personal tax advice, they can assist in helping members locate the correct information on taxation matters.

Contact details for DTMO are:

E-mail: taxation.management@defence.gov.au
Fax: (02) 6265 2648 (+61 for overseas callers)
Phone: 1800 806 053 (in Australia)
Phone: +61 2 6265 7120 (overseas callers) James Hogan Assistant Director DTMO


Opportunity to join ATECH list

BACK in 1994 I put together a list of all SNCOs in the new trade of ATECH. This involved tracking down and documenting, all current sergeants, flight sergeants and warrant officers.

In this list I tried to incorporate as much detail as possible. I perceived the list would be used by ATECHs to track promotions and postings of their mates. Nothing more, nothing less.

Over the years I have had corporals ask to be included in this list. At the moment, there are just over 400 names on the list. As I do the updating during my breaks, I could not manage inputting another couple of hundred names.

As I get most information from telephone calls and Air Force News, the list is bound to be tragically incorrect.

Through your paper, I would like to inform (new) ATECHs of the list. I would appreciate the ATECH trade, especially newly promoted SNCOs, check their details and inform me via email if they are incorrect or lacking information.

If information is to be updated/changed on a name, could they supply their service number, just in case there are more than one person with the same surname.

Originally the list was paperbased. Since then, I have gained permission to have it put on to the DRN. The list can be accessed by going to
Public folders/All public folders/DRN Global/Personnel/ATECH.

Marty O’Callaghan
RAAF School of Technical Training

 

Expedition planned for 7 years

SQUADRON Leader Leonard’s letter on the “Importance of management” (Air Force News, October 23) cites, without proper context, a few findings of the Board of Inquiry into an avalanche on the Annapurna Sanctuary trek.

In the main, the observations he mentioned arose from the hindsight analysis of policy and were generally unassociated with the planning and management of the Everest 2001 expedition itself.

They had no bearing on the successful completion of the expedition, which placed Air Force Sergeant Brian Laursen on the summit of Mount Everest on May 25, 2001.

They had no connection with the causes of the tragic avalanche accident, which the Board recognised was a “one in 50-year” event that could not have been predicted. SQNLDR Leonard suggested that climbing Everest demands “... meticulous planning to include finance, training, equipping and supporting the members of the team, etc, in other words, many of the traditional ‘management’ activities”.

The Everest 2001 team, who spent more than seven years planning the expedition, would strongly agree. The Army Alpine Association (AAA), a voluntary after-hours association, has launched more than 42 expeditions in the past 27 years.

They have been ultimately successful due to extensive planning and management. It is inevitable that flaws in bureaucratic processes will be discovered under the microscope of a Board of Inquiry.

So the AAA also utilises another important element of management technique, colloquially called “continuous improvement”. SQNLDR Leonard is invited to participate in one of the AAA’s activities, speak with the Everest 2001 team or read the AAA’s extensive post activity reports to discover how management actually plays a vital part in our successes.

More information about the AAA can be found at http://intranet.defence.gov.au/armyweb/
Sites/AAA/

BRIG Peter Lambert
President AAA

Chopper pilot not the first

I NOTE with interest the “Chopper command a dream come true” article (Air Force News, October 23) that cites Flying Officer Simon Press as the first Air Force pilot since the disbandment of No. 9 Squadron to command a Black Hawk helicopter.

As 5 Aviation Regiment’s first Adjutant (1988-1989), may I be permitted to correct this journalistic error.

Following formal handover of the Black Hawks to Army in February 1989, there were many Air Force helicopter pilots who continued to serve
(with distinction) as pilots in command of 5AVNREGT choppers.

The most notable would be the current CAF, the then Wing Commander Angus Houston (OC A Squadron) who continued flying (and commanding) Black Hawks until December 1989.

In addition, there were many other Air Force pilots who commanded Black Hawks at 5AVNREGT well into the 1990s; some of whom are still serving as senior staff officers in Canberra.

I would not wish to detract from FLGOFF Press’ achievements, and would hope that many Air Force officers be given the opportunity to follow him in what is doubtless an enjoyable and challenging posting (despite the “embedding process”).

But it would be remiss not to recognise that many have gone before him. Might I also be permitted to suggest that, in all likelihood, the springboard for Air Marshal Houston’s eventual rise to CAF was his performance during the period of Black Hawk transition to Army, his time as CO 9SQN, and as OC A SQN 5AVNREGT.

WGCDR Trevor Owens
AFHQ

HAVE YOUR SAY

The letters page is an ideal forum for readers to express their views on issues relating to the Air Force or to provide feedback on items that have appeared in the pages of Air Force News.

  • Keep letters to 250 words.
  • Include your name, unit (where applicable), location and contact details.
  • Send letters to: The Editor, Air Force News, R8-LG-043, Russell Offices, ACT 2600; or raafnews@defencenews.gov.au (this is not part of the DRN, so include “Sec: Unclassified” in the subject field).
  • Letters will be edited for spelling and grammar.
  • Where appropriate, responses will be sought through official channels to enable queries to be answered.

 

 

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