Australian Defence Forces to Receive Tax-Exempt Deployment Allowance

Strategic Insights -

Australian defence personnel serving in non-warlike situations will no longer have to pay tax on their daily allowance of $51, following a decision by the Treasurer to reverse an earlier tax ruling. The change was prompted by criticism from defence officials and comes as Australian troops join the United Nations peacekeeping force in Somalia. The tax exemption will ensure that the full value of the allowance is not reduced through tax and family-payment income tests.

Key Takeaways:

  • The deployment allowance for defence personnel serving in non-warlike situations, including Rwanda, will be tax exempt.
  • The tax exemption will ensure that the full value of the allowance is not reduced through tax and family-payment income tests.
  • The daily allowance for defence personnel serving in non-warlike situations is $51.
  • Defence personnel serving in Rwanda are receiving a higher allowance than their colleagues serving in Mozambique and Cambodia but less than those in Somalia.
  • A new tiered payment system has been implemented, with the allowance for Rwanda possibly increasing if conditions deteriorate.
  • The Australian Special Air Service had opened fire on Somali gunmen while escorting a United Nations convoy in the Somali capital, Mogadishu.
  • The rules of engagement state that if a member of the Australian forces is threatened, they are entitled to fire.
  • A 67-member team of Australians is operating in Somalia, including the SAS, which is considered among the best trained members of the defence forces.
  • The UN will investigate the case of the Australian SAS member who shot and killed two Somali men.
  • The deployment allowance was previously taxable, with a tax rebate available.

Statistics:

  • $51: Daily allowance for defence personnel serving in non-warlike situations.
  • 67: Number of Australians operating in Somalia, including the SAS.
  • 2: Number of Somali men killed by the Australian SAS member.
  • 1: Time since American troops last left Vietnam for the SAS to open fire on opponents.
  • Somalia: Country where Australian SAS member shot and killed two Somali men.
  • Rwanda: Country where Australian defence personnel are serving in non-warlike situations.

Sources:

  • The Treasurer, Mr Willis.
  • The Minister for Defence Science and Personnel, Mr Punch.
  • A defence spokesman.