Defence Determination 2016/44, Post indexes – price review

Administered by Department of Defence

Legislation au F2016L02039 Not in force Legislative Instrument

Legislation content

 

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

 

 

 

Overview

The Defence Determination 2016/44, enacted under section 58B of the Defence Act 1903, addresses the need to revise post indexes for Australian Defence Force (ADF) members posted overseas. These post indexes are integral in determining various overseas allowances, which help mitigate the economic hardships that may arise from living in high-cost areas. The determination implements adjustments following a price review conducted in September 2016, distinct from the routine monthly adjustments triggered by significant exchange rate movements. The Defence Determination 2016/44 is consistent with human rights as it ensures ADF members receive just and favourable remuneration, aligning with Article 7 of the International Covenant on Economic, Social and Cultural Rights. The adjustments are reasonable and proportionate, aimed at maintaining the welfare of ADF members and their families while they are stationed abroad.

Scope and Application

The Defence Determination 2016/44 applies to members of the Australian Defence Force (ADF) who are posted overseas on long-term service. It amends Defence Determination 2016/19, which sets out the conditions of service for ADF members, including allowances and benefits related to living and working overseas. The Determination is made under section 58B of the Defence Act 1903, and is subject to disallowance as a legislative instrument. It is applicable nationally, as it concerns ADF members serving in various overseas locations, and its amendments reflect changes in the cost of living based on a price review conducted in September 2016. The Determination adjusts post indexes used to calculate overseas allowances, affecting both the rates that increase and those that decrease based on the reviewed data. This ensures that ADF members and their families receive appropriate remuneration that reflects the relative cost of living at their posting locations. Exemptions and exclusions are not specified in this Determination, which focuses specifically on the adjustment of post indexes as a response to the reviewed data.

Key Provisions

Defence Determination 2016/44 introduces changes to the conditions of service for members of the Australian Defence Force (ADF) and Australian Public Service (APS) employees on long-term overseas postings. Section 5 of this Determination amends Annex 15.2.A of Defence Determination 2016/19 by adjusting post indexes for various overseas locations, which are used to calculate a range of overseas allowances for ADF members. These post indexes are determined based on a price review conducted in September 2016, which led to increases for certain locations such as Canada, Ethiopia, Fiji, Indonesia, and others, while decreases were noted for locations like Belgium, Cambodia, China, and more. The adjustments are designed to reflect the relative cost of living at these overseas locations compared to Australia and to ensure ADF members receive fair and favourable remuneration that accounts for the economic conditions of their posting locations. The obligations imposed by this Determination primarily revolve around the accurate calculation and application of the revised post indexes. Defence members and APS employees on long-term overseas postings will have their overseas allowances recalculated based on the updated post indexes. This ensures that their financial compensation reflects the cost of living at their specific posting locations, providing a buffer against economic hardship that might arise from living and working in areas with varying costs. The Defence must ensure that these adjustments are communicated effectively and implemented promptly, maintaining transparency and fairness in the application of allowances. Breach of the obligations set out in this Determination could result in members not receiving the appropriate allowances, leading to financial disadvantages. While the Determination itself does not explicitly outline penalties for non-compliance, the Defence Act 1903 provides a framework under which breaches of Defence Determinations can be addressed. Failure to correctly apply the updated post indexes might lead to administrative scrutiny and potential corrective measures to rectify any financial discrepancies. Additionally, under the Legislation Act 2003, disallowance of the Determination could occur if it is found to be inconsistent with the enabling Act, leading to legal and administrative repercussions for the Defence. Overall, Defence Determination 2016/44 aims to maintain equitable conditions for ADF members and APS employees serving overseas by adjusting allowances to reflect the cost of living at their posting locations. The Determination is designed to uphold human rights by ensuring fair remuneration and favourable working conditions, thereby supporting the well-being of Defence personnel and their families.

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Defence Law
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Determination
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Commencement Provisions
Regulatory Standards
Human Rights Compatibility

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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.