Further Tax Deductions For Aussie Troops
Minister Announces Further FBT Exemptions for ADF Personnel
A further set of reporting exemptions from Fringe Benefits Tax (FBT) for Australian Defence Force (ADF) personnel was announced today by the Minister Assisting the Minister for Defence, Bruce Scott.
"In recognition of the need for service mobility, and the effect this can have on Defence families, reunion travel for members for dependents, education assistance for school aged children in critical years of schooling, and allowances paid to Defence families with special needs are now all exempt from FBT reporting," Mr Scott said.
"I am also pleased to announce that the element of Overseas Living Allowance that compensates for cost of living differences is also exempt from reporting."
"Funeral costs are not reportable, and the entitlement on marriage breakdown for a spouse to have a removal paid for at Commonwealth expense will be exempt from reporting on the ADF member's group certificate."
"The overall result of the exemptions, when added to the significant number of other allowances that are already exempt or not reportable, is that the FBT reporting legislation will now properly take account of the special status of ADF personnel," Mr Scott said.
Today's announcement follows the Government's decision in August to totally exempt ADF housing assistance from FBT reporting.
Housing assistance is the major component of the amount that would have appeared on individual ADF members' group certificates under the original FBT reporting proposals.
"Following today's announcement, an extensive list of allowances are either not reportable or exempt from FBT," Mr Scott said.
"Those allowances that are reportable are those that are clear personal benefits such as subsidised home loans, private use of official cars and free travel which is not part of reunion travel.
"ADF personnel have the widest and most comprehensive set of exemptions from this FBT reporting legislation in the entire Australian community. This demonstrates the Government's recognition that ADF personnel are required to serve in a demanding and difficult environment."