As an ADF member, you may be paid an allowance in recognition of different types of duties and additional expenses incurred in performing your duties.
Allowances will be shown on your PAYG payment summary and as a general rule will be assessable in your tax return. Generally, these payments are made for an “estimated” expense (not a reimbursement). You may receive some allowances that are not taxable. However, please note that where this is the case, they should not appear on your PAYG payment summary.
Allowances appearing on your PAYG payment summary should be reported under the Income sheet in Airtax under the section Allowances & Earnings.
Below is a list of allowances that are delivered on the basis that you have incurred a related expense. As a result, a corresponding deduction may be permitted depending on individual circumstances (for example, the expense has been incurred and paid during the year and relates to the allowance).
You should refer to the Airtax help centre article on Deductions for more detail on what you may claim in relation expenses you have incurred in relation to these allowances.
|Allowance||Possible allowable deductions (see Deductions section)|
|Flying||Self education expenses|
|Language Proficiency||Self education expenses|
|Special Action Forces||Self education expenses/Fitness expenses|
|Uniform Maintenance||Replacement of Uniform/Repair of Uniform/Laundry of Uniform|
|Vehicle Allowance||Transport expenses|
I have received allowances which are not shown on my payment summary, why is this?
There are also some allowances which are exempt and therefore no deductions are available - these allowances will not be shown on your payment summary and will not need to be included in your income tax return - as a result, no deductions will be able to be claimed against these allowances. Examples include:
|Child Education Allowance||Living Out Away From Home Allowance|
|Deployment Allowance||Education Assistance Overseas Allowance|
|Re-engagement Allowance||Disturbance Allowance|
|Scholarship Allowance||Education Allowance|
|Separation Allowance||Living Out Allowance|
|Transfer Allowance||Arduous Conditions Allowance|
|Post Allowance||Clearance Diving Allowance|
|Seagoing Allowance||Common Duties Allowance|
|Service Allowance||District Allowance|
|Special Royal Navy Allowance||Diving Allowance|
|Submarine Escape Training Facility Allowance||Field Allowance|
|Submarine Service Allowance||Flight Duties Allowance|
|Trainee's Dependant Allowance||Hard Lying Allowance|
|Trainee Leaders Allowance||Isolated Establishment Allowance|
|Parachutist Allowance||Unpredictable Explosives Allowance|
Are there specific allowances which are fully assessable and I cannot claim a deduction?
Shown below are a list of allowances which may be paid to you (for carrying out work that may be considered unpleasant, special or dangerous, in recognition of holding special skills, or to compensate for industry peculiarities. These allowances are fully assessable and no deductions are available.