WEBVTT

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Defence helps with your housing costs.

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Does that mean the assistance is

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tax-free? Not every housing payment

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works the same way. Help with buying a

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home, rent assistance, and a home loan

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subsidy can have different tax

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treatment. The first step is identifying

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exactly which benefit you receive. Take

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the home purchase assistance scheme or

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HPAS.

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This payment is generally taxable and

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processed through Defence payroll. So,

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when you're budgeting for your home

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purchase, don't assume the advertised

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payment is the amount you'll

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receive after tax. Check your payslip

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and income statement and don't add the

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payment again if it's already included.

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DHOAS,

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the Defence Home Ownership Assistance

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Scheme, is different. It helps with an

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eligible home loan and is generally

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treated as an expense payment fringe

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benefit. Defence handles any employer

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fringe benefits tax. You don't simply

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add the subsidy to your taxable salary,

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but a reportable fringe benefit can

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still affect your finances. A reportable

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amount may be used in calculations for

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HELP repayments, child support, and

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certain government benefits. The figure

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reported can also be higher than the

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subsidy received because it's grossed up

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for reporting purposes. So not taxed as

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salary doesn't necessarily mean no

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effect on your overall position. Rent

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allowance and Defence provided

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accommodation need their own checks.

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Don't assume they follow the same

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reporting rules as DHA.

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Some Defence benefits have specific

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reporting exclusions.

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Use your actual entitlement documents

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and Defence reporting information rather

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than treating everything labelled housing

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as taxable salary. If you later rent out

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a home supported by DHOAS,

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tell your accountant and check the

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requirements with Defence. An

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otherwise deductible declaration may

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change the fringe benefits reporting.

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The rental interest calculation also

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needs checking. Don't assume the

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treatment stays the same after you move

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out. Before lodging, gather your income

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statement, housing assistance letters,

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subsidy statements, and relevant loan

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records. Tell us which property you

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lived in, whether it was rented out, and

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when anything changed, receiving Defence

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housing assistance.

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Make sure the right rules are applied to

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the right payment. Book your

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consultation with DefenceTax today.

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Visit defencetax.com.au