| Defence - bonus scheme tax trap |
| Monday, 27 November 2006 | |
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Defence force obligation and completion bonuses may provide significantly less cash in hand than a member is expecting. Defence members who are considering taking up a bonus should seek independent advice about the tax and other implications specific to their own unique circumstances.
Australian Defence Force members who take up the bonus should make an effort to understand the tax implications associated with doing so, as well as seek opportunities to legitimately mimimise their annual taxable income.
With bonuses varying from $10,000 to $40,000 it should be understood by defence force members that they may lose half in tax before they get the bonus in their hand. Additional impact on family tax benefit claims and HECS repayments should also be considered.
Defence Force personnel who would like specific advice regarding the tax and other implications of taking the bonus should book an appointment with a GiffardSim Accountants specialist taxation advisor.
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