Common questions from ADF members about Defence tax returns, military deductions, Medicare Levy exemptions, investment property claims, and how our service works.
Got Questions About Your Defence Tax Return?
Frequently Asked Questions
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A refund shouldn’t be an expectation – it simply means you paid more tax during the year than you actually owed the ATO.
Our job is to make sure you legally pay the least amount of tax possible by identifying every Defence-specific deduction and entitlement you're eligible for.
The cost of your tax return is also fully tax-deductible, and we guide you step by step so nothing is missed. If your result is a refund, that’s always a nice bonus – and if it’s a debt, we’ll explain exactly why it happened and what can be done to prevent or reduce it next year. -
We break everything down into baby steps. You’ll get simple, clear instructions tailored to your Corps (Army) or your Service (RAAF/Navy), so you always know exactly what to give us.
You just follow the prompts – we handle the rest and make sure every dollar you're entitled to is claimed, including the things you didn’t even know existed. -
You’re not the first, and it’s definitely not too late – we handle overdue returns all the time.
We already know that the task can feel very overwhelming for most soldiers, which is why we break it down into simple baby-step instructions that make the task manageable for you. You just follow the steps – we take care of the rest. -
DHOAS: Not taxable as income, but is reported as a fringe benefit if it is your main residence. This can affect things like income tests, family-related thresholds, and certain government calculations. We will ensure everything is placed in the right areas on the tax return.
HPSEA: Not taxable. Not declared
HPAS: Taxable lump sum, and is included in your tax return.
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There are several different Medicare Levy exemption categories for Defence members, and which one applies to you depends on things like your service status, medical entitlements, dependants, and whether you had a spouse or ex-spouse at any point.
Our job is to correctly apply the right exemption for your situation and make sure you’re not paying a dollar more than you should. -
Yes. Duty First Tax was founded by an ADF member who understands the system. We already know your pay, allowances, jargon, and lifestyle. Our entire service is exclusive for ADF and Ex-Serving. No explaining, no translating, no repeating yourself. Just a tax agent who gets it.
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You shouldn’t have to waste time searching for a new accountant each time you post. Duty First Tax already understands this – no matter your posting cycle.
Because we are 100% online and over-the-phone, it doesn’t matter if you’re interstate, between postings, or overseas. You get the right tax agent every time, without starting over.
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Your tax situation changes the moment you leave the ADF.
You lose Defence-specific exemptions, your Medicare Levy position can shift, and your income is treated differently once you move into civilian work. If you discharged partway through the year, we apply the correct rules for both your ADF period and your civilian period, so you're not overpaying.
We also explain any debts or unexpected outcomes and show you what to adjust going forward so your first full civilian year runs smoothly. -
You are paying for Defence-specific expertise, tailored to your specific situation, and never for a generic tax return.
We use a clear Tiered structure, so you're placed in the right Tier based on your circumstances and the value we can deliver. We walk you through this on a quick call – no obligation, no commitment – so you can decide if the service matches the standard you expect. -
The process is broken into simple baby-step prompts with instructions tailored to your Corps (Army) or Service (RAAF/Navy), so you’re never guessing or digging for info.
ETA for returns completed is 2 weeks, or up to 3 weeks in peak periods (upon all info submitted to the tax agent).
You won’t be left guessing or confused at any point. We handle the heavy lifting. -
For most members, no, not for general ADF fitness. The ATO treats these as personal expenses.
There are, however, specialised roles within the ADF that will qualify for these deductions, most members don’t fall into this category. -
Once you leave Defence, your tax world changes - especially if you’re now receiving a CSC Pension, DVA payments, or both.
Your CSC pension is taxable - how much depends on your age, your scheme (DFRDB, MSBS, ADF Super), and the taxable/tax-free split inside your pension.
Your DVA payments aren't all treated the same. Some are tax exempt, like the Permanent Impairment (PI), whilst others are taxable, like the Veteran Payment.
If you receive both CSC & DVA payments, they’re taxed under two different systems. We break down exactly what's taxable, what's exempt, and how it all fits together.
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Yes. This is extremely common after discharge - transition can be messy, and tax is the first thing to slip.
We handle overdue returns all the time, whether it's one year or ten. No judgment, no lectures, just a clean plan to get you back up to date and make sure your CSC pension, DVA payments, and any civilian income are all reported correctly.