VIDEOS
Here are our most popular financial education videos designed to help ADF members and their families achieve financial security at all stages of their careers.
Get To Know Your Superannuation
This short video explains the super arrangements for ADF members, including your options, how contributions and investments affect your retirement benefits, and why getting to know your super now can help you plan for the future.
Transcript
Superannuation is money for your retirement. The aim is to build up enough superannuation assets throughout your working life to support you after you stop working. And it’s compulsory, so you should get to know it.
The ADF has two active superannuation funds, DFRDB and MSBS, which are closed to new members. There is a new superannuation arrangement for members who joined the ADF on or after 1st of July 2016.
DFRDB, which was closed to new members in 1991, provides an indexed pension to members in retirement.
MSBS, also known as Military Super, which was closed to new members on 30th of June 2016, provides members with a lump sum and an indexed pension in retirement.
You’ll get a lump sum at retirement, based on contributions and investment returns, which you can invest at your discretion and pay yourself a regular income, or you can use some, or all, of the money to buy a pension.
So unlike DFRDB and MSBS, where your pension is calculated by a government guaranteed formula, under the new military super arrangement you can choose how much income you’ll receive but you’ll also be responsible for making your superannuation assets last.
You can choose how your money is invested and you may also elect to make personal contributions to your fund.
If you’d like to know more about the new ADF superannuation arrangement, watch the video on our website.
Decisions such as whether to contribute extra to super and how your super is invested can impact your final benefit. Get to know your super fund now to have the best chance of achieving your retirement goals.
The ADF has two active superannuation funds, DFRDB and MSBS, which are closed to new members. There is a new superannuation arrangement for members who joined the ADF on or after 1st of July 2016.
DFRDB, which was closed to new members in 1991, provides an indexed pension to members in retirement.
MSBS, also known as Military Super, which was closed to new members on 30th of June 2016, provides members with a lump sum and an indexed pension in retirement.
If you’d like to learn more about these defined benefit schemes go to csc.gov.au.
If you joined the ADF on or after 1 July 2016, you’ll be covered by the New Military Superannuation Arrangement. Defence will contribute to a super fund of your choice, an amount equal to 16.4% of your ordinary salary and allowances.You’ll get a lump sum at retirement, based on contributions and investment returns, which you can invest at your discretion and pay yourself a regular income, or you can use some, or all, of the money to buy a pension.
So unlike DFRDB and MSBS, where your pension is calculated by a government guaranteed formula, under the new military super arrangement you can choose how much income you’ll receive but you’ll also be responsible for making your superannuation assets last.
You can choose how your money is invested and you may also elect to make personal contributions to your fund.
If you’d like to know more about the new ADF superannuation arrangement, watch the video on our website.
Decisions such as whether to contribute extra to super and how your super is invested can impact your final benefit. Get to know your super fund now to have the best chance of achieving your retirement goals.
Have A Will
This short video explains the importance of having a valid Will, and what to consider before granting someone a Power of Attorney.
Pay Your Taxes
Do you know what income ADF members must declare, or what expenses are allowed as deductions? This short video tells you what you need to know to get your tax right.
Transcript
The Government collects income tax to pay for things like healthcare, education, roads, railways, and Defence!
In Australia, income tax is levied on a progressive scale, which means the more you earn, the higher your top rate of tax. This is called your marginal tax rate. You can find out more about individual income tax rates on the Australian Tax Office website.
Tax time can seem like a bit of a chore, but it doesn’t have to be if you’re organised.
You can complete your own tax return via the myGov portal. You must lodge your return by October 31 each year. If you are using a registered tax agent or accountant you will have longer to lodge your return.
By August, most of your income details such as salary and wages, interest and investment income, will be pre-filled on your online form, so all you’ll need to do is check that the details are correct, add your deductions and submit the form.
Most income you earn has to be declared. This includes your salary and allowances, interest, rental income, dividends and other investment income, including any capital gains or losses. If you’re not sure what income must be included, visit the ATO website and search for income guides.
You do not have to declare income earned for reserve service except for periods of continuous full-time service. Income from some deployments are also tax-exempt. You’ll learn more about this during your Force Preparation Course.
Deductions are certain work or investment-related expenses that reduce your taxable income, which in turn reduces the amount of tax you have to pay. To claim a deduction for a work-related expense, it must directly relate to earning your income, you must have spent the money and must not have been reimbursed, and you must be able to prove it.
The ATO’s tax guide for ADF members also explains what you can and can’t claim. Let’s look at a few examples.
ACW Smith spent $546 on compulsory work uniforms, including stockings, which are required by the Air Force Manual of Dress. She can claim these costs as legitimate deductions as well as the costs of cleaning her uniform.
ACW Smith also pays a gym membership so she can keep fit when at home. Even though, as an ADF member, she is expected to maintain a high standard of physical fitness, this expense is considered personal, and is not deductible.
Corporal Cross on the other hand, is a member of the Special Forces. He is required to maintain a level of fitness well above the regular Army standard. Corporal Cross needs the gym to maintain the peak physical condition his job requires, so his gym membership is deductible.
Some ADF members make deduction claims which are excessive or are not able to be proven. Deductions work on an ‘honour system’ but be warned, if you make fraudulent claims, you will be caught. It’s only a matter of time. These members receive fines, are charged interest and are required to pay the amounts back to the ATO.
For help completing your tax return, find a registered tax agent on the Tax Practitioners’ Board website. Registered tax agents will lodge your return for you.
If your situation is more complex or you want specialist tax advice on areas such as investment properties or shares, you might need an accountant, who should also be a registered tax agent.
To find a qualified accountant in your area, we suggest using the search function available on professional association websites, such as CPA Australia or Chartered Accountants Australia New Zealand.
Being organised will save you time and money, but remember, you are responsible for your tax return, so make sure you include all your income, and that your deductions are legitimate before your tax return is lodged.
A final word of warning. Some tax agents and accountants sell investment products, insurance and real estate, often as their main business, from which they earn commissions and other sales incentives. Therefore, they may not act in your best interests. To learn more about this, watch our video, ‘Financial Advisers: The facts and the fiction’.
In Australia, income tax is levied on a progressive scale, which means the more you earn, the higher your top rate of tax. This is called your marginal tax rate. You can find out more about individual income tax rates on the Australian Tax Office website.
Tax time can seem like a bit of a chore, but it doesn’t have to be if you’re organised.
You can complete your own tax return via the myGov portal. You must lodge your return by October 31 each year. If you are using a registered tax agent or accountant you will have longer to lodge your return.
By August, most of your income details such as salary and wages, interest and investment income, will be pre-filled on your online form, so all you’ll need to do is check that the details are correct, add your deductions and submit the form.
Most income you earn has to be declared. This includes your salary and allowances, interest, rental income, dividends and other investment income, including any capital gains or losses. If you’re not sure what income must be included, visit the ATO website and search for income guides.
You do not have to declare income earned for reserve service except for periods of continuous full-time service. Income from some deployments are also tax-exempt. You’ll learn more about this during your Force Preparation Course.
Deductions are certain work or investment-related expenses that reduce your taxable income, which in turn reduces the amount of tax you have to pay. To claim a deduction for a work-related expense, it must directly relate to earning your income, you must have spent the money and must not have been reimbursed, and you must be able to prove it.
The ATO’s tax guide for ADF members also explains what you can and can’t claim. Let’s look at a few examples.
ACW Smith spent $546 on compulsory work uniforms, including stockings, which are required by the Air Force Manual of Dress. She can claim these costs as legitimate deductions as well as the costs of cleaning her uniform.
ACW Smith also pays a gym membership so she can keep fit when at home. Even though, as an ADF member, she is expected to maintain a high standard of physical fitness, this expense is considered personal, and is not deductible.
Corporal Cross on the other hand, is a member of the Special Forces. He is required to maintain a level of fitness well above the regular Army standard. Corporal Cross needs the gym to maintain the peak physical condition his job requires, so his gym membership is deductible.
Some ADF members make deduction claims which are excessive or are not able to be proven. Deductions work on an ‘honour system’ but be warned, if you make fraudulent claims, you will be caught. It’s only a matter of time. These members receive fines, are charged interest and are required to pay the amounts back to the ATO.
For help completing your tax return, find a registered tax agent on the Tax Practitioners’ Board website. Registered tax agents will lodge your return for you.
If your situation is more complex or you want specialist tax advice on areas such as investment properties or shares, you might need an accountant, who should also be a registered tax agent.
To find a qualified accountant in your area, we suggest using the search function available on professional association websites, such as CPA Australia or Chartered Accountants Australia New Zealand.
Being organised will save you time and money, but remember, you are responsible for your tax return, so make sure you include all your income, and that your deductions are legitimate before your tax return is lodged.
A final word of warning. Some tax agents and accountants sell investment products, insurance and real estate, often as their main business, from which they earn commissions and other sales incentives. Therefore, they may not act in your best interests. To learn more about this, watch our video, ‘Financial Advisers: The facts and the fiction’.
Dominate Debt
Watch this Dominate Debt video for practical guidance on how to keep your debt under control.
Transcript
Managing debt is a critical part of being financially fit. Too much debt can have a negative impact on your well-being, your relationships and your job. Sadly, in the past, it has led some ADF members to bankruptcy, loss of security clearances, and even termination of ADF service. Let’s look at ways of keeping debt under control.
Sometimes debt is necessary, for example, when you want to buy a home. However, going into debt for things like cars, entertainment and holidays can quickly get you into trouble. Saving up for these things is far more satisfying, and a lot cheaper, because you won’t be increasing your debt or paying interest on your purchases.
Interest-free deals and other buy-now-pay-later schemes are okay if you use them wisely, but don’t be tempted to spend more than you would if you were using cash. Don’t get trapped in a debt cycle, use them for needs, not wants and make sure you repay the debt within the interest-free period.
For example, using an interest-free deal to replace a broken fridge may be a better alternative to high-interest credit if you don’t have emergency funds. But using a buy-now-pay-later scheme for new clothes or a holiday might be a sign you’re living beyond your means. You won’t feel so great about your purchase when the repayments keep coming out of your bank account. Some ADF members have run into trouble with these deals because they have been away, for example on deployment when the payments become due.
Managing debt well and paying your bills on time will have a positive impact on your credit rating. Credit reporting agencies keep records of all your borrowings and whether you pay your bills on time. Lenders use this information to decide whether to lend money to you, and how much interest to charge you.
You’ll find more information on credit reports and credit scores on the MoneySmart website. You’ll also find links to credit reporting agencies to request free copies of your credit report.
Sometimes debt is necessary, for example, when you want to buy a home. However, going into debt for things like cars, entertainment and holidays can quickly get you into trouble. Saving up for these things is far more satisfying, and a lot cheaper, because you won’t be increasing your debt or paying interest on your purchases.
Interest-free deals and other buy-now-pay-later schemes are okay if you use them wisely, but don’t be tempted to spend more than you would if you were using cash. Don’t get trapped in a debt cycle, use them for needs, not wants and make sure you repay the debt within the interest-free period.
For example, using an interest-free deal to replace a broken fridge may be a better alternative to high-interest credit if you don’t have emergency funds. But using a buy-now-pay-later scheme for new clothes or a holiday might be a sign you’re living beyond your means. You won’t feel so great about your purchase when the repayments keep coming out of your bank account. Some ADF members have run into trouble with these deals because they have been away, for example on deployment when the payments become due.
Managing debt well and paying your bills on time will have a positive impact on your credit rating. Credit reporting agencies keep records of all your borrowings and whether you pay your bills on time. Lenders use this information to decide whether to lend money to you, and how much interest to charge you.
You’ll find more information on credit reports and credit scores on the MoneySmart website. You’ll also find links to credit reporting agencies to request free copies of your credit report.
Supercharge Your Savings
If you’re serious about saving, this short video will explain how easy it can be to develop good savings habits.
Transcript
If you’re serious about saving, there are two simple steps you can take to really get things moving; separate them from your everyday expenses and find a savings account paying a good rate of interest.
Your money will be easier to track and manage if you split it up between different bank accounts. For example, you could open two transaction accounts; one for bills and living expenses and one for spending money, and two high-interest saving accounts; one for emergency funds and one for savings towards your goals.
Independent comparison websites will give you an idea of what interest rates are on offer. Check more than one as most websites don’t cover the whole market. Ask lots of questions about the account to make sure it fits with your saving plans. For example, a bonus rate of interest might only be paid if you deposit a minimum amount each month.
You can automate a split between accounts directly from your pay.
Everyone is different, but saving 10% of your take home pay as a bare minimum is a good start if you are working on developing a savings habit. If you’re single and living on base, why not challenge yourself to save 50% and hit some goals early? Better still; challenge your mates to see who has the better savings willpower.
Establishing a saving habit isn’t hard, you just need to make a start.
Your money will be easier to track and manage if you split it up between different bank accounts. For example, you could open two transaction accounts; one for bills and living expenses and one for spending money, and two high-interest saving accounts; one for emergency funds and one for savings towards your goals.
Independent comparison websites will give you an idea of what interest rates are on offer. Check more than one as most websites don’t cover the whole market. Ask lots of questions about the account to make sure it fits with your saving plans. For example, a bonus rate of interest might only be paid if you deposit a minimum amount each month.
You can automate a split between accounts directly from your pay.
Everyone is different, but saving 10% of your take home pay as a bare minimum is a good start if you are working on developing a savings habit. If you’re single and living on base, why not challenge yourself to save 50% and hit some goals early? Better still; challenge your mates to see who has the better savings willpower.
Establishing a saving habit isn’t hard, you just need to make a start.
Be Financially Fit
Being financially fit will help you focus on your job and perform at your best. This short video will give you tips on how to set yourself up for financial success.
Transcript
Being financially fit means having a budget, a plan, and spending less than you earn.
It also means having an emergency fund and insuring yourself against life’s financial challenges.
These simple steps will build your financial confidence, reduce stress and give you a better sense of well-being.
As an ADF member, being financially fit will help you focus on your role and perform at your best, and will ensure that your security clearance is not put at risk.
If you manage your money well throughout your ADF career, you’ll be more likely to achieve the financial independence in retirement that an ADF career offers.
If you manage other people, it’s especially important to set a good example as they will look to you for guidance and support.
It also means having an emergency fund and insuring yourself against life’s financial challenges.
These simple steps will build your financial confidence, reduce stress and give you a better sense of well-being.
As an ADF member, being financially fit will help you focus on your role and perform at your best, and will ensure that your security clearance is not put at risk.
If you manage your money well throughout your ADF career, you’ll be more likely to achieve the financial independence in retirement that an ADF career offers.
If you manage other people, it’s especially important to set a good example as they will look to you for guidance and support.
Deployment
If you’re about to be deployed, or just returned from a deployment, here’s a short video with tips on looking after your finances while you are away, and how to make the most of your deployment income.
Transition
Thinking about transitioning from the ADF? Here’s a short video to explain some of the financial aspects to consider to make your transition as smooth as possible.
Set Your Course With Goals And A Budget
For a simple overview to budgeting and goal setting, watch our latest video from our Principles of Financial Success series. Offering simple tips and tricks, learn how budgeting can help you achieve your financial goals.
Transcript
You wouldn’t get into your car with no destination in mind and no idea how to get there, so why would you do that with your money?
What do you want to achieve in life that requires money? Think of your financial goals as your destination and your budget as your roadmap for achieving them.
It’s good to have at least one short, one medium and one long-term goal to work towards. Once you have a goal in mind, cost it out and work out how much you’ll need to save to reach it. MoneySmart’s savings goal calculator can help you do this.
Goals need to be realistic and achievable. An example of a short-term goal is an emergency savings fund to act as a safety net for when life doesn’t go according to plan.
A budget will tell you what you currently spend your money on and how much you have left over to save towards your goals. It will also allow you to make better decisions about how you spend your money.
Budgeting tools can make doing a budget easier. There are plenty of online tools ad apps to choose from, you might even prefer to use pen and paper. Don’t forget to include expenses you pay less frequently like car rego, insurance and utility bills.
If you follow these steps and are disciplined with your spending, you can make achieving your goals a reality.
What do you want to achieve in life that requires money? Think of your financial goals as your destination and your budget as your roadmap for achieving them.
It’s good to have at least one short, one medium and one long-term goal to work towards. Once you have a goal in mind, cost it out and work out how much you’ll need to save to reach it. MoneySmart’s savings goal calculator can help you do this.
Goals need to be realistic and achievable. An example of a short-term goal is an emergency savings fund to act as a safety net for when life doesn’t go according to plan.
A budget will tell you what you currently spend your money on and how much you have left over to save towards your goals. It will also allow you to make better decisions about how you spend your money.
Budgeting tools can make doing a budget easier. There are plenty of online tools ad apps to choose from, you might even prefer to use pen and paper. Don’t forget to include expenses you pay less frequently like car rego, insurance and utility bills.
If you follow these steps and are disciplined with your spending, you can make achieving your goals a reality.
Invest For Your Future
Thinking about transitioning from the ADF? Here’s a short video to explain some of the financial aspects to consider to make your transition as smooth as possible.
Transcript
Savings accounts are great for emergency funds and short-term goals, but other investments could help you reach longer-term goals faster. Let’s look at a couple of ways to really get your savings moving.
Shares and property, known as growth assets, have the potential to increase in value over time. They are better suited to longer-term goals because their value can fluctuate over the short term. If your investment falls in value, you’ll want to have time for the value to rise again before you sell it.
There are alternatives to traditional direct share and property investments that require less knowledge and skill on your part, less money up front and are often lower cost. Funds operated by professional investment managers, such as Australian Real Estate Investment Trusts, Exchange Traded Funds, and managed funds, allow you to invest in growth assets, without having to choose individual shares or properties yourself.
You should never invest in something you don’t understand, or if you don’t understand the risks. If you want to know more about these types of investments, read the “Your Money Guide on Investing” on our website and check out the free online education courses by the Australian Securities Exchange.
Last but not least, consider getting good financial advice before choosing an investment option. The ADF Financial Advice Referral Program on our website may help you find a suitable adviser.
Before choosing an adviser, watch our video ‘Financial Advisers – The Facts and The Fiction’.
Shares and property, known as growth assets, have the potential to increase in value over time. They are better suited to longer-term goals because their value can fluctuate over the short term. If your investment falls in value, you’ll want to have time for the value to rise again before you sell it.
There are alternatives to traditional direct share and property investments that require less knowledge and skill on your part, less money up front and are often lower cost. Funds operated by professional investment managers, such as Australian Real Estate Investment Trusts, Exchange Traded Funds, and managed funds, allow you to invest in growth assets, without having to choose individual shares or properties yourself.
You should never invest in something you don’t understand, or if you don’t understand the risks. If you want to know more about these types of investments, read the “Your Money Guide on Investing” on our website and check out the free online education courses by the Australian Securities Exchange.
Last but not least, consider getting good financial advice before choosing an investment option. The ADF Financial Advice Referral Program on our website may help you find a suitable adviser.
Before choosing an adviser, watch our video ‘Financial Advisers – The Facts and The Fiction’.
How To Lodge A Tax Return
If you’re a permanent ADF member here’s a short video to explain what you need to know about lodging your tax return, including where to go for help and tips on getting it right.
Your Money and You | Transition Seminar Presentation.
ADF Members and their families transitioning from full-time service. Missed the finance presentation or wish to recap the key points?
ADF Initial Training Financial Education
Get your finances off to a strong start by laying the foundations for good money management. This video will help you develop the good financial habits you need to be successful with your money.
Financial Advisers: The Facts and the Fiction
This film is presented at ADF Transition Seminars (and elsewhere as needed) to assist members in understanding whether financial advice is right for them, how to find the right adviser and how to avoid common pitfalls.
Starting, Operating and Selling a Business - The SOS Principles
This film is presented at ADF Transition Seminars (and elsewhere as needed) to assist transitioning members in understanding the different ways of getting into business, whether through buying a business, starting...
