Staying
cool
By
Nick Mills
Eligible
ADF members in Darwin will continue to receive air conditioning
allowance following the decision of the Defence People Committee
to extend payment of the allowance beyond the end of the 2003-2004
financial year.
Air conditioning allowance was initially introduced for Darwin
in December 2002 on a trial basis, subject to a review in the
middle of 2004.
The review found that the allowance had been well received by
members who welcomed the financial assistance in maintaining a
level of personal comfort for themselves and their families in
a tropical climate.
Members who live in a Service residence or are in receipt of rent
allowance are able to claim the allowance as a subsidy towards
electricity costs during the “wet” season, from September to May
inclusive.
The subsidy is paid as a percentage of total electricity cost
incurred during this period and varies depending on the number
and type of refrigerative air conditioning units in the home.
More detailed information on the subsidy can be found in the ADF
Pay and Conditions Manual (PACMAN) Chapter 6, Part 4.
Homeowners will remain ineligible to claim the allowance.
The Defence People Committee considered an extension, and decided
that Defence offers considerable financial assistance to homeowners
via other means.
Members who choose to purchase a home are assisted through a grant
under the Home Purchase Assistance Scheme for first home buyers,
and with expenses such as legal fees and stamp duty through the
Home Purchase and Sale Expense Allowance on subsequent homes.
Members also have access to mortgage subsidies through the Defence
Home Owners Scheme. Air conditioning allowance paid to members
in Darwin is subject to fringe benefits reporting.
This is because Darwin is not considered to be a remote locality
for fringe benefit reporting purposes under taxation legislation.
If the grossed-up value of all fringe benefits, including air
conditioning allowance, received by a member during the fringe
benefits tax year (April 1 to March 31) exceeds $1000, it will
be included on the member’s annual Payment Summary.
This may affect eligibility for government income support payments
and liability for child support payments, Medicare levy surcharge,
superannuation surcharge and HECS repayments.
