Mr SNOWDON (5:52 PM) —While the Minister for Veterans' Affairs is here, I want to raise with him a couple of issues in relation to defence personnel which I have attempted to raise publicly but to which I have had no response from the minister or his office. Could the minister respond this evening to the question of remote locality leave travel entitlements for people in the ADF. I raised this matter with General Willis at a parliamentary committee hearing, so your office should be apprised of the issue. It relates to the fact that, in determining the economic efficiencies, the department has done a deal with Qantas so that they now get air fares at 68 per cent of the normal economy fare. This means that the RLLT is now worth only 68 per cent of its former value. That means that personnel in Darwin and, indeed, in Townsville—and anywhere in Northern Australia—who choose to cash out this entitlement by, say, taking a drive holiday or, indeed, flying to Bali or Singapore, get only 68 per cent of the former value of the full economy air fare. Their civilian counterparts in Defence are not handicapped by this. They get the full economy fare equivalent.

The minister should be aware that this is a cause of major concern to defence personnel across all services in Northern Australia. It relates to people in Townsville, Darwin and Tindal: so much so that because of the deal done with Qantas, in the case of personnel at Tindal Air Force Base, because Qantas does not fly to Katherine—which is actually at the Tindal base in any event—air travel between Katherine and Darwin is by the Ansett affiliated company. However, the leave entitlement is cut by the 32 per cent regardless of who the carrier is. On top of that, GST is payable, but it is payable by the person purchasing the ticket, not by the entitlement. And, of course, the department has an Australian Business Number and because it has an ABN it can claim this as a rebate. But it is not the department's rebate—it belongs to the Defence Force personnel. This is an issue which, as I said, I have raised previously and I have had no response from the department. I know that Defence Force personnel in Northern Australia are extremely worried and very angry about it and I would like a response from the minister.

The other issue which I would like to raise tonight is the issue of FBT. The minister would be aware that we raised this issue last year. What he should know is the effect of FBT on defence personnel entitlements such as relocation costs. Relocation is FBT exempt in the first 12 months of a new posting. After the 12 months, relocation, for whatever reason, becomes taxed. An example which has come to my attention has been the planned move of a leading aircraftman who has been identified as a defence family with special needs, which is an entitlement providing appropriate housing or services. In this case, the LAC's spouse is confined to a wheelchair, and the present accommodation is unsuitable. They have determined that this person should be moved to alternative accommodation, but because it is beyond the 12-month period of their posting they will be subject to the FBT reporting requirements and they therefore face an increase in their taxable income in terms of the spouse's disability pension. This is a direct question relating to FBT.

The question also relates to people who are being relocated in housing because special housing is being made available for them—that is, officer accommodation. What is happening is they are being posted, in this case, to Tindal; they are being put in accommodation which is unsuitable for their rank; beyond the 12-month period, it is being proposed they shift to other accommodation; and, because of the FBT reporting requirements, that shift is subject to FBT. That is not only unfair but unreasonable. I ask the minister if he could respond this evening and tell us how he is going to fix the question of the remote locality leave travel and how he is going to fix the question of FBT for Defence Force personnel in Northern Australia.