Heard about the new retention benefit?

[MilkOnTap]

So every man and his dog knows that it *might* happen - god I hope it does!

Providing the member has completed his/her contract term prior to June 2010, we will be eligible to receive the retention benefit.

Sign on for an extra 18 months - and get $24K!!!

$6K at signing
$6K after 6 months
$12K after next 6 months



NOICE!!!! I hope it happens!!! :yelclap:


If the member happens to be in a tax-free zone (eg Gulf) when they receive the monies - it will be TAX-FREE!! Otherwise it will be taxed like your normal wage, which is what - 49c to the dollar? :rolleyes:

[*Cj*]

Theres a lot of retention benefit's going around right now. Do you have a link for more info on this one?

[MilkOnTap]

Mmm - no I dont. So far as I know its still in discussions - but EVERYONE knows about it and is talking about it (only reason I'm posting about it lol).

I'll keep my eye out for more info and post more when it comes to hand :yes:

[*Cj*]

DH has been away for 3 months, so I know nothing. Apart from what I hear on here lol. DH got one $40000 for signing up for 4 years. Thanks I will keep watching

[samsgirls]

Yes, my husband told me about it, when he got home from sea on Tuesday. We aren't sure at this stage whether he will apply for it, as he plans on staying in anyway providing his catergory transfer is successful. :laughing:

[MilkOnTap]

DH has been away for 3 months, so I know nothing. Apart from what I hear on here lol. DH got one $40000 for signing up for 4 years. Thanks I will keep watching

That would have been a nice one - though its a pain when half of it goes in tax.

:hugs: for him being away - single life sucks.

[*Cj*]

Don't know which tax bracket it will put us in. The big one is CSA. But I have talked to them about that and theres ways around it. Its a lot of paper work but worth it.

we all ready got $10000 of it, thats not going to show as his been O/S. So it will look like a normal years worth of pay.:yelclap:.

The rest we get next tax year. So hoping his back off O/S. Or i'll be doing all the paper work for CSA.

All so not all retention benefit end up being tax free even if there paid when there on tax free $ O/S. Some have fine print which is a pain in Butt. Hope its not like that for the one your talking about.

[ConcernedParent]

Retention benefits are taxed and appear on your payment summaries as part of your partners annual income.
In some cases, depending on the amount, you could lose up to 45% in tax as it is paid in a lump sum.

Tax rates are available on the ATO website here: http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm&mnu=5053&mfp=001
Tax rates 2007-08

Taxable income
Tax on this income
$1 – $6,000
Nil
$6,001 – $30,000
15c for each $1 over $6,000
$30,001 – $75,000
$3,600 plus 30c for each $1 over $30,000
$75,001 – $150,000
$17,100 plus 40c for each $1 over $75,000
$150,001 and over
$47,100 plus 45c for each $1 over $150,000


In order to work out what tax bracket you are in, multiply your partners gross income x 26. Payments of allowances automatically push you into the top bracket, you will get any difference back when you put in a tax return.

These payments impact on Centrelink entitlements, family tax benefits, childcare rebates, childcare tax benefits, HECS, medicare levy, medicare levy surcharge and child support deductions.

I'm not saying you should not go for it but bear this in mind so you don't get bitten on the bum at tax time. If you get a refund, make contact with Centrelink and the Family Assistance Office to make sure you have not acquired a debt. Debts are no longer taken out of refunds... you could get a gift with one hand and a big slap with the other.

Regarding CSA, there is no way around it unless the other party agrees and is not on any kind of government benefit AND Centrelink signs off. All new agreements will have to be approved by Centrelink and I have been advised that you will not be able to agree on a lesser amount anymore. You will only be able to make agreeements to pay extra. Make sure you have a good tax agent to help you minimise your taxable income.

Unless you are overseas, (in an exempt tax Zone) ,which means you will be taxed according to your zone. Lucky ducks you ones who apply and get it when you are away. Also this tax exempt income does not get reported on your payment summary so CSA does not get to consider it either. CSA can only consider taxable income.

OK - I am rambling now. :ecomcity: Everyone take care.

[tootiredtosleep]

They could make it $50k or $100k and I wouldn't care... am counting down the days until DH retires... but for everyone else, I hope it happens soon.
There needs to be more of a reward for staying on.

[lavenderpegasus]

What does CSA mean???

*Cj* is your partner a PWO??

lp in wa

[*Cj*]

Csa = Child Support Agency


Whats a PWO??

[KJEmum]

DH sent off his paperwork on friday. NCA it's called with the Navy .. umm (Navy Capability Allowance). DH has been in 18yrs .. and is looking at doing another 15yrs.

Anyhow .. if you're a submariner .. you get more than double what surface Navy get.

[lavenderpegasus]

PWO - Principle warfare officer (sp) I'm assuming your husband is not


And I was going to say KJEmum that it wasnt fair that subbies got more, but well there is no way in hell i would go under...ehhh they are way too brave


KJEmum where abouts in Rocky are you...pm me


lp in wa;

[*Cj*]

PWO - Principle warfare officer (sp) I'm assuming your husband is not
lp in wa;


Your assuming right. Is this retention benefit only for navy??

[lavenderpegasus]

Um i think so... well this one is...

I guess the other services would have em but not sure

lp in wa

[*Cj*]

Ok cool did it say in the op first post navy, did I miss that :rolleyes:lol?

[KJEmum]

From what i understand, it is a Navy thing and it's if at the trade you are doing and you've done all the courses you can do within that trade or job. I wouldn't call it a retention benefit but more a capability benefit.

That's my interpretation of it as I skimmed over the paperwork briefly prior to it going in an envelope.