Relocation versus work travel
Moving your home for a posting and ordinary travel to your regular base are generally private. Travel between workplaces or away on duty may be different.
Watch — your first Defence posting
Your First Defence Posting? Avoid These 5 Tax Mistakes
A compulsory posting does not make every move, trip or purchase deductible. Separate private relocation costs from genuine work travel and keep evidence as you go.
What this video covers
- Relocation and ordinary home-to-base travel are generally private
- Receiving an allowance does not automatically create a matching deduction
- Employer-supplied or reimbursed items generally cannot be claimed again
- ADF medical entitlement does not automatically produce a full-year exemption
- Simple contemporaneous records make the first return easier to prepare and support
The first three distinctions to get right
The reason for a payment or journey matters more than the fact that it occurred during a posting.
Allowance versus deduction
Check how the allowance is reported, then separately test the expense. Do not copy the allowance amount into deductions without evidence of an eligible cost.
Purchase versus reimbursement
If Defence supplied an item or fully reimbursed you, there is generally no personal cost left to claim.
A first-posting tax checklist
Capture the details while they are still easy to identify.
Travel purpose
Record where each work trip began and ended, why it was required and whether it was normal commuting, relocation or travel in the course of duty.
Allowances and reimbursements
Keep payslips and reimbursement records so the payment and the actual out-of-pocket expense are not confused.
Medical entitlement dates
Check when full Defence medical entitlement began and how your partner or dependant circumstances affect the exemption.
Receipts and work use
Save receipts and note the purpose, work-use percentage and any private use for equipment, phone and other mixed-use costs.
Common first-posting tax questions
Can I claim the cost of moving to my first posting?
Relocation expenses for moving your home to take up duties are generally private and not deductible, even when the posting is compulsory.
Can I claim the same amount as a posting or travel allowance?
Not automatically. The allowance and the deduction are separate. You must incur an eligible expense and apply the relevant substantiation rules.
Does joining the ADF give me a full-year Medicare levy exemption?
Not necessarily. Check the date your entitlement to full Defence medical treatment began and whether your partner or dependant circumstances result in a full or half exemption.
Video transcript
The supplied transcript has been lightly edited for punctuation, clarity, names and Australian spelling.
Your first Defence posting comes with plenty to organise: a new base, somewhere to live and possibly a move away from family. Tax paperwork probably is not at the top of your list, but a few assumptions can lead to incorrect claims or missed entitlements. Here are five tax mistakes to avoid.
Number one: assuming a compulsory posting makes every travel expense deductible. The costs of relocating your home are generally private, even when your employer requires the move. Your normal trips between home and your regular base are also generally private. Travelling between workplaces or away on duty can be different. Keep those trips separate from your relocation and daily commute.
Number two: claiming a deduction just because an allowance appears on your payslip. An allowance and a deduction are separate things. Check how the allowance is treated, then check whether you actually incurred an eligible expense. Do not simply copy the allowance amount into your deductions. Some allowances compensate you for conditions of service rather than something you purchased.
Number three: claiming equipment or expenses that Defence supplied or reimbursed. If Defence provided the item, you have not paid a purchase cost to claim. If you paid first and were fully reimbursed, you generally cannot claim that expense again. For eligible items you bought yourself, claim only the work-related portion. More expensive equipment may need to be deducted over time.
Number four: assuming every ADF member gets a full-year Medicare levy exemption. Your entitlement to full free Defence medical treatment matters, along with your partner and dependent children. If you joined Defence during the year, check when your medical entitlement started, not simply the date you arrived at your first posting. Your circumstances determine the days you can claim and whether the exemption is full or half.
Number five: waiting until tax time to remember what you spent. Save receipts as you go. Note what each item was used for. Keep records of eligible work travel and document work use of your phone or equipment. Keep reimbursement records too, so you can tell what you personally paid. A simple folder on your phone can make your first return much easier.
Before your first tax return, check your travel, allowances, reimbursements, Medicare entitlement and records. At DefenceTax, we help ADF members understand what belongs in their return. Book your appointment with DefenceTax at defencetax.com.au or call 0418 327 096.
General information only. Tax treatment depends on the applicable law, relevant dates, supporting records and your individual circumstances.