Defence Determination 2017/16, Post indexes – amendment

Administered by Department of Defence

Legislation au F2017L00582 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Defence Determination 2017/16

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).

The purpose of this Determination is to implement revised post indexes for ADF members at overseas posting locations. A data service provider calculates 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 is the commencement provision for the Determination and includes a table setting out the details of the commencement of sections of the Determination. Column 1 of the table sets out the provisions in numbered items, column 2 sets out the commencement and column 3 sets out date/details. Information in column 3 does not form part of the Act, so information can subsequently be inserted in the column (or edited) in a published version of the Determination.

Item 1 in the table provides that the whole of this Determination commences on 1 June 2017.

Section 3 provides that this instrument has authority under section 58B of the Defence Act 1903.

Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 omits and 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 published post index rates did not decrease for any location.
  • The applied and published post index rates increased for Belgium, Cambodia, China, Ethiopia, France (Paris), France (Other), Germany, Indonesia, Italy (Genoa), Italy (Rome), Italy (Turin), Jordan, Korea, Kuwait, Marshall Islands, Micronesia, Netherlands, Palau, Papua New Guinea, Saudi Arabia, Singapore, Spain (Madrid), Spain (Other), Thailand, Timor-Leste, United Arab Emirates, UK (London), UK (Other), USA (all locations).
  • The published post index rates increased for 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 effect to the benefits paid to members in these locations.
  • No changes are made for the published or applied post indexes in other 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 2017/16, 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 2017/16, enacted under the authority of 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) stationed overseas. This legislative instrument, issued by the Australian Government, aims to ensure that ADF members and their families are not disadvantaged financially due to the high cost of living in certain overseas locations. The post index, calculated by a data service provider from local prices surveyed twice annually, is adjusted in response to significant exchange rate movements. This Determination ensures that ADF members receive just and favourable remuneration, in line with human rights obligations, by reflecting the relative cost of living at overseas posting locations and adjusting associated allowances accordingly. The Defence Determination 2017/16 serves to implement revised post indexes for ADF members at various overseas posting locations, taking into account recent exchange rate fluctuations. This adjustment process is consistent with the Defence Act 1903 and is subject to the provisions of the Acts Interpretation Act 1901, as modified by the Defence Act. The policy objective is to provide ADF members with appropriate financial support to mitigate economic hardship arising from living and working in high-cost overseas locations, thereby upholding their right to just and favourable conditions of work as guaranteed by international human rights instruments.

Scope and Application

The Defence Determination 2017/16 applies to members of the Australian Defence Force (ADF) who are posted to overseas locations. It is made under section 58B of the Defence Act 1903 and amends Defence Determination 2016/19, specifically addressing the conditions of service for ADF members serving overseas. The primary focus of this Determination is to adjust the post indexes for various overseas posting locations, which are used to calculate overseas allowances and ensure that ADF members and their families do not face economic hardship due to the high cost of living in certain areas. This adjustment is prompted by a movement in the national currency exchange rate of 2 per cent or more since the last variation of the post index. The Determination's amendments to the post indexes are based on data from a recognised service provider, who surveys local prices in March and September each year. The adjustments are considered a routine part of maintaining established benefits and do not require further consultation. The Determination's application is limited to the ADF members posted overseas and does not extend to other entities or industries. Its jurisdictional reach is national, as it applies to ADF members in various overseas locations as specified in the amendment. The adjustments made by this Determination do not impact the human rights of ADF members, as it ensures they receive just and favourable remuneration and conditions of work, thereby maintaining their right to the enjoyment of just and favourable conditions of work as guaranteed by international human rights instruments.

Key Provisions

The Defence Determination 2017/16, under section 58B of the Defence Act 1903, primarily revises the post indexes for Australian Defence Force (ADF) members posted overseas. These indexes, calculated from local prices surveyed biannually by a data service provider, reflect the cost of living at various overseas locations relative to Australia. The determination comes into effect on 1 June 2017 and includes amendments to the post indexes for numerous locations due to recent exchange rate movements. These changes are detailed in Schedule 1 of the Determination, which replaces Annex 15.2.A of the Principal Determination. The Determination imposes specific obligations on the ADF and its members. The Defence Force must ensure that the post indexes are regularly updated based on the data provided by the recognised service provider. This includes revising the post indexes in response to significant exchange rate fluctuations, as outlined in the Determination. Members of the ADF posted overseas rely on these indexes to calculate their overseas allowances, which are intended to mitigate the economic hardship that can result from living in high-cost locations. The Determination also requires that Defence members are informed of any significant changes to their post indexes, ensuring transparency and fairness in the application of the allowances. Breaches of the obligations set forth in this Determination may lead to civil or administrative consequences. While the Determination does not specify explicit penalties for non-compliance, failure to adhere to the updated post indexes and allowances could result in disputes or claims by ADF members regarding the accuracy and fairness of their remuneration. The Defence Force is responsible for ensuring compliance with the provisions of this Determination to avoid such issues and to uphold the integrity of the overseas posting allowances system. The Determination ensures compatibility with human rights as it aims to protect the right to just and favourable conditions of work, as recognised in Article 7 of the International Covenant on Economic, Social and Cultural Rights. By adjusting the post indexes, the Determination seeks to prevent economic hardship for ADF members and their families by ensuring that remuneration and allowances are proportionate to the cost of living at overseas posting locations. The legitimate objective of maintaining fair conditions for Defence members overseas aligns with the principles of human rights, and the Determination does not limit any human rights, thereby remaining compatible with the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Legal classification tags

Area of Law
Defence Law
Employment & Labour Law
Instrument
Determination
Concepts
Commencement Provisions
Offence Provisions
Consultation Requirements
Catchwords
Post Index Adjustment

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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.