Defence Determination 2016/40, Review of housing contributions and allowances – amendment

Administered by Department of Defence

Legislation au F2016L02010 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Defence Determination 2016/40

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 7 of the Principal Determination sets out provisions dealing with assistance for housing and meals for eligible members of the Australian Defence Force (ADF).

This Determination has the following purposes.

  • To implement an annual review of the Group Rent Scheme (GRS).
  • To implement the annual review of allowances that ADF members may receive for, and the contributions they are required to make towards, the cost of their accommodation, meals and utilities.
  • To amend rent bands. Rent bands are a way of classifying Service residences by their value. This classification is then used to allocate housing to members, and to determine rates of members' contributions.

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 26 January 2017.

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 amends table item 1 in section 7.5.29 of the Principal Determination. This amendment increases the fortnightly contribution for utilities made by a member occupying temporary accommodation from $100.28 to $102.88. The adjustment reflects a 2.6% increase in the utilities sub-component of the Consumer Price Index over the 12 month period September 2015 to September 2016.

Section 6 amends subsection 7.9.15.1 of the Principal Determination. This amendment increases the fortnightly food allowance which a member with dependants (unaccompanied) receives from $195.66 to $198.68. The adjustment reflects a 1.5% increase in the food component of the Consumer Price Index over the 12 month period September 2015 to September 2016.

Section 7 amends paragraph 7.10.4.1.b of the Principal Determination. This amendment increases the fortnightly amount an eligible member may be reimbursed for the cost of utilities from $69.50 to $71.32. The adjustment reflects a 2.6% increase in the utilities sub-component of the Consumer Price Index over the 12 month period September 2015 to September 2016.

Section 8 substitutes subsection 7.10.7.2 of the Principal Determination. This amendment increases the fortnightly contribution a member living in a Service residence makes towards the cost of water from $21.00 to $20.20. This reflects 3.8% decrease in water charges paid by Defence to Defence Housing Australia.


Section 9 amends subsection 7.10.8.2 of the Principal Determination. This adjustment increases the fortnightly contribution a member must make toward energy costs while they are living in a specified tied (tied to an appointment) or Service residence at Royal Military College, Duntroon and Anglesea Barracks, Hobart from $133.40 to $136.86. The adjustment reflects a 2.6% increase in the utilities sub-component of the Consumer Price Index over the 12 month period September 2015 to September 2016.

Section 10 substitutes Annex 7.A of the Principal Determination. It amends the contribution a member must make towards the cost of occupying a Service residence or rent band choice accommodation. The adjustments are made in line with changes in the assessed value of Defence housing properties.

  • Part 1 of Annex 7.A sets out the contribution for members with dependants.
  • Part 2 of Annex 7.A sets out the contribution for members with dependants who choose a property above the standard eligibility provided for members in their rank group.
  • Part 3 of Annex 7.A sets out the contribution for a member without dependants who lives alone.
  • Part 4 of Annex 7.A sets out the contribution for a member without dependants who shares their accommodation.

Section 11 substitutes Annex 7.B of the Principal Determination, which sets out rent bands. Rent bands are a dollar range set for relevant posting locations based on the market rent value at the posting location and the member's rank. They determine the Service residence accommodation a member may be eligible for. Rent bands for 31 locations are changed, following a valuation of local properties. The amount of change varies between locations, based on movements in local rental markets. They have no impact on members during the life of the members' current tenancy agreements.

Section 12 substitutes Annex 7.D of the Principal Determination. It amends the contribution a member must make towards the cost of rent if they receive rent allowance. The adjustments are made in line with changes in the assessed value of Defence housing properties.

  • Part 1 of Annex 7.D sets out the contribution for members with dependants.
  • Part 2 of Annex 7.D sets out the contribution for members without dependants.

Section 13 substitutes Annex 7.E of the Principal Determination. It amends the rent ceilings used to calculate rent allowance entitlements for members of the ADF. The adjustments realign rent ceilings with the market rental paid by Defence for Service residences in various locations.

  • Part 1.1 of the substituted Annex 7.E sets out the rent ceiling rate for a member with dependants who chooses a three or more bedroom rent ceiling for their home.
  • Part 1.2 of the substituted Annex 7.E sets out the rent ceiling rate for a member with dependants who chooses a two bedroom rent ceiling for their home.
  • Part 2 of the substituted Annex 7.E sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who lives alone.
  • Part 3 of the substituted Annex 7.E sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with one other person.
  • Part 4 of the substituted Annex 7.E sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with two other persons.
  • Part 5 of the substituted Annex 7.E sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with three other persons.

Section 14 amends Annex 7.F of the Principal Determination. It sets out a revised costing schedule for the fortnightly rate of contribution a member must make toward their food costs when they are receiving temporary accommodation allowance. The adjustment reflects a 1.5% increase in the food component of the Consumer Price Index over the 12 month period September 2015 to September 2016.

Consultation

Consultation is not considered necessary in the annual housing rates adjustment. This is a routine change to housing contributions and allowances. The change is based on movements to the Consumer Price Index, rental market movement and advice from a housing 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 2016/40, Review of housing contributions and allowances – 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 has the following purposes.

  • To implement an annual review of the Group Rent Scheme (GRS).
  • To implement the annual review of allowances that ADF members may receive for, and the contributions they are required to make towards, the cost of their accommodation, meals and utilities.
  • To amend rent bands. Rent bands are a way of classifying Service residences by their value. This classification is then used to allocate housing to members, and to determine rates of members' contributions.

Human rights implications

This Determination engages the following human right:

The person’s right to an adequate standard of living engages article 11 of the International Covenant on Economic, Social and Cultural Rights. Article 11 ensures the realisation of this right, recognising to this effect the essential importance of an adequate standard of living. This includes housing.

Legitimate objective: Defence members are required to live in various posting locations throughout Australia. This could cause a member and their family financial hardship or low housing standards if they are required to live in a high cost rental location.

Reasonable, necessary and proportionate: The purpose of the Group Rent Scheme is to provide assistance with the cost of accommodation for a member and their family. Members are eligible to receive allowances which assist with the cost of accommodation at their posting location. The members are required to make contributions towards their subsidised accommodation, meals and utilities. The subsidy the Commonwealth provides is approximately 50% of the cost of these items. The rates in this Determination have been adjusted in-line with the Consumer Price Index and with the local rental markets to ensure that the member's contribution and allowances are reasonable and proportionate in relation to their posting location and yearly salary. This also helps maintain the value of the Commonwealth subsidy as a proportion of the costs. The changes in this Determination assist members in maintaining their right to an adequate standard of living by providing members with financial assistance towards the cost of accommodation, and maintaining the value of the subsidy for food and utilities.

Conclusion

This Determination is compatible with human rights because to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate.

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

 

 

Overview

The Defence Determination 2016/40, enacted in 2016, is an amendment to the Defence Determination 2016/19, which was made under section 58B of the Defence Act 1903. The purpose of this determination is to address the need for an annual review of the Group Rent Scheme (GRS) and the allowances for housing, meals, and utilities for members of the Australian Defence Force (ADF). This determination was enacted by the Australian Parliament to ensure that ADF members receive appropriate financial assistance and that their contributions remain proportionate to their salary and living costs. It aims to maintain an adequate standard of living for ADF members and their families by adjusting the rates in line with the Consumer Price Index and local rental markets. The policy objective of the Defence Determination 2016/40 is to provide a fair and reasonable subsidy for ADF members in terms of their housing, meals, and utility costs, thereby supporting their right to an adequate standard of living as recognised under international human rights instruments. The adjustments made in this determination help ensure that the Commonwealth's subsidy remains a significant proportion of the total costs, which assists ADF members in managing their living expenses while serving in various locations across Australia. The changes are deemed reasonable, necessary, and proportionate to achieve the legitimate objective of supporting ADF members and their families.

Scope and Application

Defence Determination 2016/40 applies to members of the Australian Defence Force (ADF) and regulates the conditions of their service, particularly with respect to housing and meal allowances, and utility contributions. This Determination modifies the Principal Determination, which was made under section 58B of the Defence Act 1903, and is applicable across Australia, as it affects ADF members wherever they are posted. The adjustments made in this Determination include changes to the fortnightly contributions for utilities, food allowances, and rent contributions, reflecting changes in the Consumer Price Index and local rental market movements. It also involves amendments to rent bands and rent ceilings, which are used to classify Service residences and determine members' eligibility and rates of contributions. This Determination ensures that ADF members receive fair and proportionate support in maintaining an adequate standard of living in accordance with their posting locations and salary levels. There are no exclusions or exemptions specified in the Determination, and it is subject to review annually. The Determination does not extend or restrict its application through subordinate instruments but rather modifies the Principal Determination directly.

Key Provisions

Defence Determination 2016/40 amends Defence Determination 2016/19 to update conditions of service for Australian Defence Force (ADF) members regarding their housing and meal allowances, as well as their contributions towards these costs. Specifically, section 5 amends the fortnightly contribution for utilities for members in temporary accommodation (section 7.5.29), increasing it from $100.28 to $102.88, reflecting a 2.6% rise in utilities costs (section 5). The fortnightly food allowance for members with dependents is also increased from $195.66 to $198.68, reflecting a 1.5% rise in the food component of the Consumer Price Index (section 6). Additionally, section 7 adjusts the fortnightly utility reimbursement for eligible members from $69.50 to $71.32 (section 7). Similarly, section 8 reduces the fortnightly water contribution for members in Service residences from $21.00 to $20.20 (section 8). Section 9 increases the fortnightly energy contribution for members at specific locations from $133.40 to $136.86 (section 9). The adjustments in Annex 7.A reflect changes in the assessed value of Defence housing properties, affecting members with and without dependents (section 10). Annex 7.B updates rent bands for 31 locations based on local rental market valuations (section 11). Annex 7.D adjusts the contribution members must make towards the cost of rent if they receive rent allowance, aligning with changes in the assessed value of Defence housing properties (section 12). Annex 7.E adjusts rent ceilings used to calculate rent allowance entitlements, realigning them with market rental rates (section 13). Finally, Annex 7.F updates the costing schedule for the fortnightly rate of contribution towards food costs for members receiving temporary accommodation allowance (section 14). The Act imposes obligations on ADF members to make specified contributions towards their housing, meals, and utilities based on the new rates set out in the Determination. These contributions are calculated according to the member's rank, the location of their posting, and whether they have dependents. Members are also required to comply with the updated rent bands and rent ceilings when selecting their accommodation. The adjustments are designed to ensure that members' contributions and allowances remain proportionate to their salaries and living costs, thereby supporting their right to an adequate standard of living. There are no specific offences or penalties outlined in this Determination for non-compliance with the updated rates and conditions. However, non-compliance could potentially impact the financial assistance provided to members, which might affect their ability to meet living expenses. It is important for members to adhere to the new rates to maintain the integrity of the housing and meal allowance system, ensuring that the Commonwealth subsidy remains a fair proportion of the actual costs. The Determination does not specify any civil or criminal consequences for breach, but adherence to the outlined provisions is crucial for the effective functioning of the ADF's housing support scheme.

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