Overview

The Defence Determination 2016/6, enacted under section 58B of the Defence Act 1903, was introduced to address the need for updating the post indexes for members of the Australian Defence Force (ADF) posted overseas. This Determination was made by the Australian Government and aims to ensure that ADF members receive fair remuneration reflective of the cost of living at their overseas posting locations. This was achieved by amending the existing Conditions of Service (Defence Determination 2005/15) to adjust the post indexes based on recent exchange rate movements and local prices surveyed. The policy objective is to protect ADF members and their families from economic hardship due to the high cost of living in certain overseas locations, thereby providing just and favourable conditions of work as recognised under international human rights instruments. The Determination is compatible with human rights, ensuring that ADF members' rights to just and favourable conditions of work, as protected by Article 7 of the International Covenant on Economic, Social and Cultural Rights, are upheld. By adjusting the post indexes, the Determination ensures that members receive appropriate allowances, mitigating any economic disadvantage they might face due to their overseas postings. This approach is deemed reasonable, necessary, and proportionate, as it aligns with the legitimate objective of supporting ADF members in maintaining their standard of living while serving abroad.

Scope and Application

Defence Determination 2016/6, made under section 58B of the Defence Act 1903, amends the Conditions of Service for Australian Defence Force (ADF) members posted overseas. This Determination specifically revises post indexes for ADF members stationed at various overseas locations, reflecting changes in local prices and currency exchange rates. It is applicable to ADF members posted at the affected locations, aiming to adjust their post indexes to ensure they continue to receive just and favourable remuneration, thus mitigating economic hardship due to the higher cost of living in certain overseas locations. The amendments are triggered by a 2 per cent or more movement in the national currency exchange rate since the last post index variation, with the adjustments calculated by a data service provider based on local prices surveyed in March and September each year. The changes to the post indexes affect several locations, including decreases in Cambodia, Ethiopia, Jordan, and others, with an increase in Singapore. This Determination commenced on 10 March 2016 and applies nationally, encompassing all relevant ADF members posted overseas. It does not include changes for locations not specified, and adverse decisions made under this Determination can be subject to inquiry within the ADF's redress of grievance system. Complaints can also be lodged with the Defence Force Ombudsman.

Key Provisions

The Defence Determination 2016/6, as referenced in Clause 4, amends Chapter 15 of the Principal Determination, focusing on the living and working conditions of Australian Defence Force (ADF) members stationed overseas. This amendment specifically revises the post indexes for various overseas posting locations, which are determined by a data service provider based on local prices surveyed in March and September each year. This revision ensures that the allowances provided to ADF members are reflective of the current cost of living at their posting locations, which can fluctuate due to exchange rate movements. For instance, the applied post index rate has decreased for numerous locations such as Cambodia, Ethiopia, and the United Kingdom, while it has increased for Singapore. These changes are necessary to maintain the fairness and effectiveness of the allowances provided to ADF members. The obligations imposed by the Defence Determination 2016/6 require the data service provider to regularly survey local prices and compute the post indexes for each posting location. The Defence Force must then implement these revised indexes to adjust the overseas allowances provided to ADF members accordingly. This ensures that ADF members and their families are not financially disadvantaged due to the high cost of living in certain overseas locations. Additionally, the Defence Force must ensure that these changes are communicated effectively to all affected parties and that the benefits are administered correctly. In terms of compliance and enforcement, breaches of the provisions outlined in the Defence Determination 2016/6 may lead to civil or administrative consequences. While specific penalties are not detailed in the explanatory statement, it is implied that adherence to the updated post indexes is mandatory. Failure to comply could potentially result in ADF members not receiving the appropriate allowances, which could be considered an administrative oversight or breach of their service conditions. Furthermore, adverse decisions regarding allowances may be subject to inquiry under the ADF redress of grievance system, and individuals can lodge complaints with the Defence Force Ombudsman if they feel their rights have been infringed upon. The Defence Determination 2016/6 also ensures compatibility with human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011. The determination aims to protect the right to just and favourable conditions of work for ADF members posted overseas. By adjusting post indexes to reflect the true cost of living, the Defence Force ensures that ADF members receive fair remuneration, thereby avoiding economic hardship for them and their families. This aligns with Article 7 of the International Covenant on Economic, Social and Cultural Rights, which guarantees just and favourable conditions of work. The adjustments made in this determination are considered reasonable, necessary, and proportionate to achieving this objective.