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Compliance obligations


Example: The ATO audits a member and does not agree that an individual was living away from their usual place of residence. In that case, the member's living away from home allowance is included in the member's assessable income and will be subject to income tax.


How to get information about tax effects


Example: Chapter 9 Part 3 Division 4 Reunion travel for service in Australia Tax Alerts 129, 130. Refer to items 129 and 130 at Annex A, Tax alerts for ADF pay and conditions within Australia.
FBT applies. Not FBT reportable. Note that reverse reunion travel attracts FBT and is FBT reportable.

Defence Tax Management Office

Tax effect – overpayment and recovery


Example: A member is advised that she was overpaid $2,000 in the previous financial year, including an amount of PAYG Withholding of $600. The member must forego gross salary of $2,000 in the current financial year.

If a member repays their overpaid salary amount by instalments, a loan fringe benefit may arise, depending on the circumstances.


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