EXPLANATORY STATEMENT

Defence Determination 2016/44

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.

Post indexes are used to calculate a range of overseas allowances for ADF members. This Determination implements revised post indexes that apply to the overseas locations where ADF members serve, as a result of a price review conducted in September 2016. The review is conducted in accordance with subsection 15.2.8.3 of the Principal Determination. The review is distinct from and additional to the routine monthly adjustment process. The monthly process varies post indexes in posting locations where there has been a 2 percent or more movement in the exchange rate since the post index last varied.

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 12 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 substitutes Annex 15.2.A of the Principal Determination. The new table changes post indexes at a range of posting locations. The following summarises the changes.

• The applied and published post index rates increased for Canada (all locations), Ethiopia, Fiji, Indonesia, Kiribati, Kuwait, Marshall Islands, Palau, Papua New Guinea, Solomon Islands, Thailand, UK (London), UK (Other), USA (Guam) and Vanuatu.
• The applied and published post index rates decreased for Belgium, Cambodia, China, France (Paris), France (Other), Germany, Italy (all locations), Japan, Jordan, Korea, Micronesia, Netherlands, New Zealand (all locations), Saudi Arabia, Singapore, Spain (Madrid), Spain (Other), Timor-Leste, Tonga, Tuvalu, United Arab Emirates and USA (all locations except Guam).
• The published post index rate increased for Brunei, India, Malaysia, Myanmar, Pakistan, Philippines, Sri Lanka, Turkey and Vietnam. 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 2016/44, Post indexes – price review

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