Overview

The Defence Determination 2016/34, enacted in 2016, was introduced to address the need for updated post indexes for Australian Defence Force members stationed overseas. This Determination, made under section 58B of the Defence Act 1903 and in accordance with the Acts Interpretation Act 1901, is subject to disallowance and follows the interpretation principles outlined in the AIA Act. The primary objective of this Determination is to implement revised post indexes for ADF members at overseas posting locations, which are calculated based on local prices surveyed twice a year. The policy objective is to ensure that Defence members receive fair and favourable remuneration and conditions of work, mitigating any economic hardship that may arise from living and working in high-cost overseas locations. This Determination adjusts the post indexes in response to exchange rate movements of 2 per cent or more since the last variation, ensuring that the benefits provided to ADF members remain aligned with the relative cost of living at their posting locations. The changes include decreases in post indexes for numerous locations, such as Belgium, Canada, China, and the UK, and an increase for Tonga. Additionally, Italy (Genoa) has been added as a new posting location. The adjustments are made based on data provided by a recognised data service provider and are considered routine maintenance of an established benefit. The Determination concludes that it is compatible with human rights as it does not limit any human rights and continues to provide just and favourable conditions of work for Defence members.

Scope and Application

Defence Determination 2016/34 applies to members of the Australian Defence Force (ADF) who are posted overseas for duty, as well as Australian Public Service (APS) employees who may also be posted overseas. This Determination, made under section 58B of the Defence Act 1903, modifies the conditions of service for these individuals by implementing revised post indexes for various overseas posting locations. The post indexes are calculated based on local prices surveyed in March and September each year by a data service provider, with adjustments made in response to exchange rate movements of 2 per cent or more. The Determination is in effect across Australia, and its scope is limited to ADF members and APS employees posted overseas. The Determination does not apply to individuals not posted overseas for duty or employment. This instrument is subject to the Legislation Act 2003 and the interpretation principles in the Acts Interpretation Act 1901, as modified by section 58B of the Defence Act. The Determination has been reviewed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, and it has been concluded that it does not limit any human rights. The post indexes and associated overseas allowances aim to ensure that members and their families do not suffer economic disadvantage due to the requirement for the member to live and work overseas, thereby protecting their right to just and favourable conditions of work.

Key Provisions

Defence Determination 2016/34 (Sections 4 and 5) amends Defence Determination 2016/19 by updating post indexes for Australian Defence Force (ADF) members posted overseas. This is done to reflect changes in the cost of living at these locations, as determined by a data service provider based on local price surveys conducted twice a year. The changes in post indexes are a response to exchange rate movements in the national currency of 2 per cent or more since the last adjustment. This amendment affects the allowances paid to ADF members and their families when posted overseas, ensuring they receive compensation that aligns with the cost of living at their posting location. The Act imposes several obligations on the relevant parties. The data service provider must survey local prices in March and September each year to accurately determine the post index. The Australian Defence Force is required to review these indices and, if a significant exchange rate movement has occurred, amend the post indexes accordingly. This process is intended to ensure that ADF members and their families receive appropriate financial support when posted overseas, mitigating the economic hardship that could result from living in a high-cost location. Failure to comply with the provisions of this Determination could lead to financial discrepancies in the allowances paid to ADF members and their families. This could result in legal challenges and financial hardship for the affected members. While the Determination itself does not specify penalties for non-compliance, breaches of the Defence Act or related regulations could lead to civil or criminal penalties. For example, under section 122 of the Defence Act, an ADF member who is found guilty of an offence could be subject to a fine of up to 1,000 penalty units or imprisonment for up to five years, or both. These potential consequences underscore the importance of adhering to the provisions of the Determination and the overarching Defence Act.