Fringe Benefits Tax

The benefits claimed for reimbursement from the National ADF Family Health Program are considered a fringe benefit under the Fringe Benefits Tax Assessment Act 1996. There are some important things to remember:

The Fringe Benefit Tax is paid by Defence
If a member receives over $2,000 in reportable Fringe Benefits during the FBT year (01 April to 31 March), Defence is required to report the amount on the ADF members Payment Summary.
The amount reported is “grossed up” multiplied by 1.8692 when it appears on the Payment Summary.
This does not affect the ADF member’s Taxable income.
This may affect your Assessable Income used by Government Departments (e.g. Centrelink) to calculate various income-tested benefits, entitlements and liabilities (such as Child Care Benefit and Family Support payments)
A record of reportable fringe benefits is maintained by the Defence Taxation Management Office.  This information can be viewed through PMKeyS Self Service at the end of the FBT year.

 

Example

If the ADF member accumulates $2,001 worth of benefits, it will be reported as $3,740 on the Fringe Benefit section of his/ her payment summary.

Please note: Other benefits being received as part of the member’s employment may also be considered reportable fringe benefits (such as Remote Locality Leave Travel).

All of these reportable fringe benefits will be added towards the $2,000 threshold, not just the ADF Family Health services. You may also view what FBT reportable ADF Family Health services you have claimed by visiting our website and selection the Online Member Services tab, or by contacting our claims administrators Navy Health Ltd on 1300 561 454. It is recommended that you seek financial advice to ensure that reportable FBT does not adversely impact your financial situation.

For more information, examples go to:

 

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