REPLACEMENT EXPLANATORY STATEMENT
Defence Determination 2016/12
THIS STATEMENT REPLACES THE EXPLANATORY STATEMENT PRESENTED TO THE HOUSE OF REPRESENTATIVES, THE SENATE AND THE SENATE STANDING COMMITTEE OF REGULATIONS AND ORDINANCES ON 19 APRIL 2016
This Determination amends Defence Determination 2005/15, Conditions of service (the Principal Determination), made under section 58B of the Defence Act 1903 (the Defence Act) and in accordance with subsection 33(3) of the Acts Interpretation Act 1901 (AIA Act). Determinations made under section 58B of the Defence Act are disallowable legislative instruments subject to the Legislation Act 2003. These instruments are also subject to the interpretation principles in the AIA Act, as modified by section 58B of the Defence Act.
This Determination amends Chapter 15 of the Principal Determination, which sets out provisions dealing with living and working on long-term posting overseas for members of the Australian Defence Force (ADF).
The purpose of this Determination is to implement revised post indexes for ADF members at overseas posting locations. A data service provider works out the post index from local prices surveyed in March and September each year. An exchange rate movement in the national currency of 2 per cent or more since the post index was last varied then prompts an amending Determination to vary the post index.
Clause 1 of this Determination sets out the manner in which this Determination may be cited.
Clause 2 of this Determination provides that the Determination commences on 7 April 2016 to allow time for the administration of the associated benefits.
Clause 3 specifies that the amendment is made to the Principal Determination, as amended.
Clause 4 substitutes Annex 15.2.A of the Principal Determination. The new Annex changes post indexes at a range of posting locations. The changes are due to recent exchange rate movements.
The applied post index rate decreased for Belgium, Cambodia, China, Ethiopia, Fiji, all locations in France, Germany, Japan, Jordan, Korea, Kuwait, Marshall Islands, Micronesia, Netherlands, all locations in New Zealand, Palau, Papua New Guinea, Samoa, Singapore, Solomon Islands, all locations in Spain, Thailand, Timor-Leste, Tonga, Turkey, United Arab Emirates, all locations in the UK and all locations in the USA.
The published post index rate decreased for Brunei, India, Malaysia, Myanmar, Pakistan, Philippines, Saudi Arabia, Sri Lanka and Vietnam but because the index is less than 100 it does not affect the applied index rate. This change does not affect the benefits paid to members in these locations.
No changes are made for the applied post indexes in other locations.
Criteria are provided for the exercise of discretions under the Principal Determination, as amended by this Determination. Adverse decisions may be subject to inquiry under the ADF redress of grievance system. A person may make a complaint to the Defence Force Ombudsman.
Consultation
Consultation is not considered necessary in the monthly Post Index adjustment process as this falls within the bounds of routine, house keeping of an established benefit. The data is provided to Defence from a recognised data provider and the adjustments are made according to established policy. Where an adjustment results in a major change to any particular country/location, the overseas post is provided with advance notification of the pending change.
Authority: Section 58B of the
Defence Act 1903
Overview
Defence Determination 2016/12, enacted under section 58B of the Defence Act 1903, aims to adjust the post indexes for members of the Australian Defence Force (ADF) stationed overseas in response to recent exchange rate movements. This Determination, which amends Defence Determination 2005/15, was introduced to ensure that living and working conditions for ADF personnel are adequately reflected in their benefits. The policy objective is to maintain fair and consistent application of these benefits in light of economic changes in various countries. The Defence Force Ombudsman is available to handle any complaints that may arise from decisions made under this Determination.
The Determination was issued by the Australian government, specifically the Department of Defence, and it came into effect on 7 April 2016. The adjustments made to the post indexes affect numerous locations, resulting in decreased rates for many countries due to exchange rate fluctuations. This Determination ensures that the benefits provided to ADF members are regularly updated to reflect current economic conditions, thereby maintaining the integrity and fairness of the compensation system.
Scope and Application
The Defence Determination 2016/12, made under section 58B of the Defence Act 1903, modifies the conditions of service for members of the Australian Defence Force (ADF) who are on long-term overseas postings. This Determination specifically updates the post indexes for various overseas locations where ADF members are stationed, addressing changes in local prices and exchange rates to ensure that allowances and benefits remain reflective of the current cost of living. The adjustments made are based on data collected from a recognised service provider and are intended to maintain the integrity of the benefits system. The changes apply to ADF members stationed in the specified countries and are effective from 7 April 2016. Notably, this Determination does not necessitate consultation as the adjustments are routine and follow established policy, with overseas posts being notified in advance of any significant changes. The amendments are subject to the oversight of the ADF's redress of grievance system and the Defence Force Ombudsman, ensuring that any adverse decisions can be reviewed and complaints can be addressed appropriately.
Key Provisions
The Defence Determination 2016/12 (sections 1 to 4) amends Defence Determination 2005/15, specifically updating the conditions of service for members of the Australian Defence Force (ADF) who are posted overseas. This Determination modifies the post indexes for various overseas locations, reflecting changes in local prices and currency exchange rates since the previous adjustment in 2005. These changes are detailed in Annex 15.2.A, which replaces the corresponding section in the Principal Determination.
The obligations imposed by this Determination primarily revolve around the application of the revised post indexes for ADF members stationed in specific overseas locations. The determination ensures that the post indexes reflect local economic conditions and currency fluctuations. It mandates that the data used for calculating these indexes must be obtained from a recognised data service provider and that adjustments be made according to established policy. Defence is also obligated to notify overseas posts of any significant changes in the post indexes.
In terms of legal consequences, breaches of the conditions outlined in this Determination may be subject to inquiry under the ADF's redress of grievance system. While the Determination does not specify criminal or civil penalties, adverse decisions regarding the application of the post indexes can be appealed. Additionally, individuals can lodge a complaint with the Defence Force Ombudsman if they believe their rights have been infringed upon by the application of this Determination.
The legislative framework under which this Determination operates subjects it to the provisions of the Legislation Act 2003, making it a disallowable legislative instrument. The interpretation of the Determination is governed by the principles set out in the Acts Interpretation Act 1901, as modified by section 58B of the Defence Act 1903. These provisions ensure that the Determination is interpreted and applied in a manner consistent with established legislative practices and objectives.