The benefits associated with The National ADF Family Health Program (the Program) are considered fringe benefits under the Fringe Benefits Tax Assessment Act 1986. The benefits will be subject to Fringe Benefits Tax (FBT) and payment summary reporting as part of a members Reportable Fringe Benefits Amount (RFBA). There are some important facts to remember;
Please refer to the ADFFH FBT Fact Sheet (PDF) for more information.
If a member receives over $2,000 in reportable Fringe Benefits per FBT year (between 1 April to 31 March) from Defence, Defence is required to report the grossed-up Fringe Benefits amount on your annual payment summary. The amount on your payment summary is called a Reportable Fringe Benefits Amount (RFBA).
Example: if a member receives $2,001 worth of Reportable Fringe Benefits, Defence will pay $1,739 FBT to the Australian Tax Office and will report $3,740 on the ADF members' payment summary.
The $3,740 is calculated by multiplying $2,001 by a gross-up rate of 1.8692. The $3,740 is the RFBA that will be reported on the members payment summary.
As mentioned above, an RFBA on a member's payment summary may impact the member's entitlement to various income-tested Government benefits and liability for obligations such as:
As per existing reportable Fringe Benefits requirements, a record of visits will be maintained by ADF Family Health. This record will indicate that a reportable Fringe Benefit was received, the value of the benefit, the dependant that utilised the benefit and the date of the benefit. This information will be available through PMKeyS Self Service at the end of the FBT year.
Dependants registered for the Program, but not utilising the benefits associated with the Program, will not incur any Fringe Benefit.
More detail on Fringe Benefits Tax in Defence can be
found in the ADF Pay and Conditions Manual
Dependants may only be registered by one ADF member, any fringe benefits may be recorded against that members annual Payment Summary. Information to be recorded on each members annual Payment Summary may be viewed through the ADF members PMKeyS Self Service.
If you have any questions related to Fringe Benefits, please contact the Defence Tax Management Office email@example.com or Phone: 1800 806 053.
Examples of how fringe benefits tax may affect you can be found below:
Example 1: An ADF family with a member and a spouse and two children.
If the member does not receive any other Defence provided reportable Fringe Benefits during the year, this ADF Family Health benefit will not be reported on the member's payment summary as the total taxable value is below the payment summary reporting threshold of $2,000.
Example 2: An ADF family with a member and a spouse and 5 children.
The taxable value of the ADF Family Health services
will be reported on the member's payment summary as the
total taxable value is greater than the payment summary
reporting threshold of $2,000. Tax law requires this to
be 'grossed-up' by 1.8692 resulting in $5,944 to be
included in the RFBA on the member's payment
Note: ADF Family Health benefit amounts are added to other Reportable Fringe Benefit amounts to determine if the reportable threshold ($2,000) is exceeded.
Seeking Financial Advice
As each financial situation is different, we recommend that you seek financial advice related to your specific circumstances before registering for the Program.
To find out more about FBT, the following resources are available:
Only those claims that are submitted for reimbursement will be subject to Fringe Benefit Tax. Participation in the Program is voluntary and you may elect to cancel participation at anytime.