EXPLANATORY STATEMENT

Defence Determination 2016/35

This Determination amends Defence Determination 2016/19, 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 the following Chapters of the Principal Determination.

• Chapter 8 of the Principal Determination sets out provisions dealing with members of the Australian Defence Force (ADF) and their dependants.
• Chapter 15 of the Principal Determination sets out provisions dealing with living and working on long-term posting overseas for members of the Australian Defence Force (ADF).

This Determination makes routine adjustments to education cost allowances. These are based on changes in the Consumer Price Index or advice from a contracted service provider.

Section 1 of this Determination sets out the manner in which this Determination may be cited.

Section 2 of this Determination provides that the Determination commences on 15 December 2016.

Section 3 provides that the authority for the instrument is section 58B of the Defence Act 1903.

Section 4 specifies that the amendment is made to the Principal Determination, as amended.

Section 5 amends subsection 8.4.10.3 of the Principal Determination. This amendment increases the maximum hourly rate of reimbursement to a member for the cost of face-to-face tutoring for their child. The amendment changes this maximum rate from $91 to $96. This rate has increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figure to the nearest dollar.

Section 6 substitutes the example table in subsection 8.4.11.5 of the Principal Determination which provides an example of how to calculate the reimbursement for web-based tutoring. The rates in this example reflect the rate changes made by sections 5 and 7 of this Determination. Sections 5 and 7 amended the maximum hourly rate of assistance for face-to-face tutoring and the maximum limit of assistance provided for web-based tutoring for a subject (the child has studied before) respectively.

Section 7 substitutes the table in subsection 8.4.11.6 of the Principal Determination which provides the figures used for calculating web-based tutoring payments. The rates have increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figure to the nearest dollar.

Section 8 substitutes the table of subsection 8.4.14.3 of the Principal Determination. The amendments increase the maximum hourly rate of reimbursement for costs incurred by a member when their child with special needs requires additional tuition or therapy to assist in the transition to a new school. The amendment changes this maximum rate from $91 to $96. Section 8 also increases the limit on assistance with the costs of private assessment to develop an educational program for a child with special needs. This amendment changes this benefit from $677 to $714. These changes have increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figures to the nearest dollar.

Section 9 substitutes subsection 8.4.14.5 of the Principal Determination. This amendment increases the maximum reimbursement for the cost of compulsory tuition fees from $25,265 to $26,659 a year, which represents an increase of 5.5 per cent. It also increases the member contribution from $331 to $349 a year which represents an increase of 5.4 per cent. These new rates are based on advice received from a contracted service provider.

Section 10 amends subsection 8.4.15.4 of the Principal Determination, which provides that the Chief of Defence Force may extend education assistance to a member for their child for an additional 14 weeks for each subject, capped at a maximum hourly rate. Section 10 increases the maximum rate from $91 to $96. This change is in line with an increase in the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figure to the nearest dollar.

Section 11 substitutes the table in subsection 8.4.21.1 of the Principal Determination. This amendment increases the maximum rates of reimbursement for compulsory tuition fees, accommodation for children who do not accompany a member to a posting location and a member's annual contribution rate.

The rate changes are as follows.

• Increase in the maximum annual compulsory tuition fee reimbursement from $25,265 to $26,659; this is an increase of 5.5 per cent.

• Increase in the annual member contribution towards the cost of compulsory tuition fees from $331 to $349; this is an increase of 5.4 per cent.

• Increase in the maximum reimbursement of board if accommodated in a boarding school or a commercial establishment from $23,211 to $23,640; this is an increase of 1.8 per cent.

• Decrease in the maximum reimbursement of board if privately accommodated from $15,290 to $14,181; this is a decrease of 7.3 per cent.

• Increase in the annual member contribution towards their child's boarding fees (if not their first year) from $2,938 to $2,988; this is an increase of 1.7 per cent.

• Increase in the annual member contribution towards their child's boarding fees (if it is their first year) from $2,516 to $2,570; this is an increase of 2.1 per cent.

These new rates are based on advice received from a contracted service provider.

Section 12 substitutes the amount set out in subsection 8.4.25.1 of the Principal Determination. This amendment increases the rate of reimbursement to members for accommodation costs for tertiary students not at the member's location of residence. The rate has increased from $354 a fortnight to $360 a fortnight, an increase of 1.7 per cent. The rate is based on 83 per cent of the Youth Allowance payable under the Social Security Act 1991, to an independent full-time student living away from home, rounded to the nearest dollar amount.

Section 13 substitutes the table in subsection 15.6.10.3 of the Principal Determination which lists the annual contribution that a member must pay towards compulsory tuition fees when their child attends school in their overseas posting location. The contribution rates are based on the typical cost of attending government schools in Australia. The rates are increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figure to the nearest dollar.

Section 14 amends the table in subsection 15.6.25.1 of the Principal Determination, which provides a member's benefit when their child attends an Australian school while the member is on an overseas posting. The section updates tuition fees, accommodation contribution rates and the accommodation reimbursement rates.

The following two rate changes made by section 14 are in line with the Education component of the Consumer Price Index for the 12 month period ending December 2015 (5.5 per cent), rounding the underlying figure to the nearest dollar.

• Member contribution towards compulsory tuition fees for a primary student has increased from AUD 150 to AUD 159.
• Member contribution towards compulsory tuition fees for a secondary student has increased from AUD 351 to AUD 370.

The following six rate changes made by section 14 have been advised by a contracted service provider.

• For a member whose child lives at a boarding school, the member's accommodation contribution is increased from AUD 2,938 to AUD 2,988, an increase of 1.7 per cent.
• For a member whose child lives at a boarding school for the first time, the member's accommodation contribution is increased from AUD 2,516 to AUD 2,570, an increase of 2.1 per cent.
• For a member whose child lives in private accommodation, the member's accommodation contribution is increases from AUD 2,938 to AUD 2,988, an increase of 1.7 per cent.
• The maximum reimbursement for compulsory tuition fees is increases from AUD 25,265 to AUD 26,659 a year, an increase of 5.5 per cent.
• The maximum reimbursement for accommodation where a child boards at boarding school or a commercial boarding establishment has increased from AUD 23,211 to AUD 23,640 a year, an increase of 1.8 per cent.
• The maximum reimbursement for accommodation where a child lives in private board and lodging has decreased from AUD 15,290 to AUD 14,181 a year, a decrease of 7.3 per cent.

Consultation

Consultation is not considered necessary in the annual Education Assistance adjustment. This is a routine change to education cost allowances. The change is based on movements to the Consumer Price Index and advice from a data service provider. These adjustments are made according to an established policy.

Authority:  Section 58B of the
Defence Act 1903

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Defence Determination 2016/35, Education assistance – amendment

This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

This Determination makes routine adjustments to education cost allowances. These are based on changes in the Consumer Price Index or advice from a contracted service provider.

Human rights implications

The protection of a person's right to care for and provide education to dependants engages Articles 10 and 13 of the International Covenant on Economic, Social and Cultural Rights. Article 10 guarantees the widest possible protection and assistance to families, including their responsibility for the education and care of dependent children. Article 13 recognises the right of everyone to education.

Defence often requires its members to relocate to postings within Australia and overseas. These include remote areas without nearby educational facilities and locations where education costs far exceed what members might otherwise pay for their children. Defence recognises that relocation can cause financial hardship to the member and disruptions to their child dependant's education.

Defence assists members and their families by providing education assistance in order to minimise disruption to their children's education, so that children are not disadvantaged by member relocations. This assistance is provided in the form of private and web-based tuition and where relevant boarding school costs.

Conclusion

This Determination is compatible with human rights because it advances the protection of human rights.

Lisa Annette Arnold, Acting Assistant Secretary People Policy and Employment Conditions