Defence Determination 2016/38, Post indexes – amendment

Administered by Department of Defence

Legislation au F2016L01844 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Defence Determination 2016/38

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.

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) and Australian Public Service (APS) employees.

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.

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 this instrument has authority under section 58B of the Defence Act 1903.

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

Section 5 substitutes Annex 15.2.A of the Principal Determination. The new table changes post indexes at a range of posting locations. The changes are due to recent exchange rate movements. The following summarises the changes.

  • The applied and published post index rates increased for Cambodia, Ethiopia, Jordan, Marshall Islands, Micronesia, Palau, Papua New Guinea, Samoa, Saudi Arabia, Timor-Leste, United Arab Emirates, UK (London), UK (Other), USA (all locations) and Vanuatu.
  • The applied and published post index rates decreased for Japan.
  • The published post index rate increased for Indonesia and Myanmar. However, as the indexes were below 100 the last time the index changed and have remained below 100, there is no affect to the benefits paid to members in these locations.
  • The published post index rate decreased for Malaysia and Turkey. However, as the indexes were below 100 the last time the index changed and have remained below 100, there is no affect to the benefits paid to members in these locations.

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

Statement of Compatibility with Human Rights

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

Defence Determination 2016/38, Post indexes – 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

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.

Human rights implications

Right to the enjoyment of just and favourable conditions of work

The protection of a person's right to remuneration engages Article 7 of the International Covenant on Economic, Social and Cultural Rights. Article 7 guarantees just and favourable conditions of work, including remuneration, safe and healthy conditions, equal opportunity and reasonable limitations.

Legitimate objective: Defence members are posted to perform duty in overseas locations. This could cause the member and their family economic hardship if the location has a high cost of living. The purpose of a post index is to show the relative cost of living at a posting location compared with Australia. This is then used to calculate various overseas allowances.

Reasonable, necessary and proportionate: This Determination adjusts the post indexes to ensure that an affected person continues to receive just and favourable remuneration. The post indexes and associated overseas allowances assist the member and their family to not suffer a disadvantage because of the requirement for the member to live and work overseas.

Conclusion

This Determination is compatible with human rights because it does not limit any human rights.

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

 

 

Overview

The Defence Determination 2016/38 was enacted to amend Defence Determination 2016/19, Conditions of service, under section 58B of the Defence Act 1903. This Determination addresses the need to adjust post indexes for Australian Defence Force members posted overseas, ensuring that these indexes reflect the relative cost of living at their posting locations compared to Australia. The determination is made in accordance with subsection 33(3) of the Acts Interpretation Act 1901 and is subject to the Legislation Act 2003. This amendment is a response to exchange rate movements of 2 per cent or more, which prompt an adjustment to the post indexes to maintain just and favourable remuneration for the affected members, thereby protecting their right to the enjoyment of just and favourable conditions of work as guaranteed by Article 7 of the International Covenant on Economic, Social and Cultural Rights. The determination ensures that Defence members and their families do not suffer economic hardship due to the high cost of living at overseas locations.

Scope and Application

Defence Determination 2016/38 amends Defence Determination 2016/19, specifically addressing conditions of service under the Defence Act 1903, and is applicable to members of the Australian Defence Force (ADF) and Australian Public Service (APS) employees posted overseas. This instrument applies to the geographic locations where ADF members are stationed, encompassing a wide range of countries including Cambodia, Ethiopia, Jordan, and various others, to ensure the provision of relevant allowances that account for the cost of living at these locations. The adjustments to post indexes are triggered by significant exchange rate movements of 2 per cent or more since the last variation, and the data for these adjustments are sourced from a recognised data service provider. This Determination does not specify exclusions but is limited to the adjustment of post indexes based on economic conditions at overseas posting locations. The application of the Determination can be extended or further defined through subordinate instruments, aligning with established policy and data-driven adjustments.

Key Provisions

Defence Determination 2016/38 amends Defence Determination 2016/19 to revise the post indexes for Australian Defence Force (ADF) members posted overseas. The amendments, detailed in Section 5 of the Determination, substitute Annex 15.2.A of the Principal Determination. This Annex includes a table that adjusts the post indexes at various overseas locations, reflecting changes in local prices and exchange rates. The post indexes have increased for locations such as Cambodia, Ethiopia, Jordan, and the United States, while they have decreased for Japan. For Indonesia and Myanmar, the indexes have increased but remain below 100, resulting in no change to benefits for members posted there. Similarly, decreases in the indexes for Malaysia and Turkey have no effect as they also remain below 100. This amendment ensures that the post indexes accurately reflect the current economic conditions at each posting location. The obligations imposed by this Determination primarily revolve around the accurate calculation and application of post indexes to overseas postings. The Defence Department is required to use data from a recognised service provider to determine the post indexes based on local prices surveyed twice a year. Additionally, Defence must ensure that ADF members and their families are adequately informed about any significant changes to the post indexes, especially those that could impact their financial circumstances. This includes providing advance notification to the relevant overseas post of any major changes. Breach of the provisions outlined in this Determination may not directly result in criminal or civil penalties, as the Determination primarily serves to adjust and communicate changes in post indexes. However, failure to correctly apply the updated post indexes could lead to financial discrepancies for ADF members and their families, potentially causing economic hardship. The Determination does not explicitly state penalties for non-compliance, but adherence to the post index adjustments is crucial for maintaining the integrity of the financial support system for Defence personnel posted overseas. The primary consequence of non-compliance would be the improper calculation of allowances, leading to financial disadvantages for the affected members and their families.

Legal classification tags

Area of Law
Defence & Military Law
Instrument
Determination
Concepts
Definitions & Interpretation
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.