EXPLANATORY STATEMENT

Defence Determination 2017/2

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.

This Determination amends the following chapters of the Principal Determination.

• Chapter 4, which sets out provisions dealing with Australian Defence Force (ADF) allowances and reimbursements.
• Chapter 7, which sets out provisions dealing with ADF housing and meals in Australia.
• Chapter 9, which sets out provisions for ADF travel in Australia.
• Chapter 15, which sets out provisions for ADF members living and working on long-term posting overseas.

This Determination has the following purposes.

• It adjusts the rates of accommodation, meal and incidentals allowances for ADF members required to travel on Defence business. The allowance rates are set following advice from a contracted service provider.
• It adjusts the lists of high-cost and medium-cost country centres for the purposes of determining accommodation, meal and incidentals allowances for members required to travel on Defence business.
• It adjusts meal rates for members and their dependants living in temporary accommodation.

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 9 March 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 the table in section 4.5.9 of the Principal Determination, which sets out the rates of meal allowance payable in circumstances where Service-provided meals are unavailable. The rates are increased on average by 2.3%.

Section 6 substitutes the table in subsection 7.5.24.2 of the Principal Determination, which provides meal allowance rates for members, their spouse or partner and dependent children aged 10 years or older. These meal rates apply to members and their dependants when they are staying in temporary accommodation. The rates are aligned with the current travelling allowance meal rates for Colonel or lower and are increased on average by 2.1%.

Section 7 substitutes subsection 7.5.24.3 of the Principal Determination, which provides meal allowance rates for a member's children aged less than 10 years. These rates apply to meals taken when a member and their dependants are in temporary accommodation. The figures are calculated by halving the rates amended by section 6 of this Determination, and rounding up to the nearest five cents.

Section 8 amends subsection 9.5.10.2 of the Principal Determination which provides the rate for part-day travelling allowance. The rate is increased by 1.9%.

Section 9 amends the table in subsection 9.5.20.2 of the Principal Determination. The table sets out the maximum amounts a member may use their Defence Travel Card to pay for accommodation, meals and incidentals when 'living in' away from their normal place of duty. Section 9 increases the weekly incidentals rate for travel periods longer than 21 days by 1.6%. Note, the daily incidentals rate for periods 21 days or less is increased by section 13 of this Determination.

Section 10 amends the table in subsection 9.5.22.2 of the Principal Determination, which sets out the maximum amount of travel costs a member can use a Defence travel card to pay for accommodation, meals and incidentals on a journey longer than 21 days. The incidentals rate is increased by 1.6%.

Section 11 amends the table in subsection 9.5.39.2 of the Principal Determination, which sets out the maximum amount of travelling allowance that may be paid to a member living in at a location that is not their normal place of duty. The incidentals component is increased by 1.6%.

Section 12 amends the table in subclause 9.5.41.2 of the Principal Determination, which provides a maximum amount of travelling allowance that a member is eligible for when living in or out on a journey longer than 21 days. The incidentals rate is increased by 1.6%.

Section 13 substitutes Annex 9.5.A of the Principal Determination. The Annex sets out the maximum daily allowance rates that may be provided to members for accommodation, meals and incidentals when travelling on Defence business. The Annex provides rates for four categories of centres; capital city centres, high-cost country centres, medium-cost country centres and other country centres. Annex 9.5.A is split into four Parts.

Part 1 of Annex 9.5.A sets out maximum travel rates for accommodation, meals and incidentals for a member with the rank of Brigadier or higher. Part 2 of Annex 9.5.A sets out maximum travel rates for accommodation, meals and incidentals for a member with the rank of Colonel or lower. The average rates for both rank categories have changed in the following ways.

• Accommodation rates are increased for Hobart (6.1%).
• Accommodation rates are decreased for Adelaide (-6.4), Brisbane (-7.1%),
  Canberra (-12.5%), Darwin – high season (-9.8%), Darwin – low season (-4.2%), Melbourne (-1.8%), Perth (-7.1%) and Sydney (-1.2%).
• Medium-cost country centre accommodation rates are increased on average by 5.1%.
• Other-country centres accommodation rates are increased on average by 5.8%.
• Meal rates are increased on average by 2.1%.
• Incidentals rates are increased on average by 1.6%.

Part 3 of Annex 9.5.A sets out the maximum amounts that may be paid for accommodation in high cost country centres. There have been eight new locations added to this category and fourteen locations have dropped to a lower category. The amendments to Part 3 vary the accommodation amounts by between +78% (Jabiru) and -24% (Port Hedland), based on changes in local accommodation markets.

Part 4 of Annex 9.5.A lists the locations classified as medium-cost country centres. Ten new locations have been added to this list. Fifteen locations have been removed from this list as they are now categorised as either high-cost country centres or other-cost country centres. Three locations remain unchanged.

Section 14 substitutes the table in Part 2 of Annex 9.5.B to the Principal Determination, which provides the maximum meal rates for a member living out on a journey longer than 21 days. The meal rates are increased by 2.1%.

Section 15 amends the formula in subsection 15.2.37.2 of the Principal Determination. The formula calculates a meal allowance rate for members performing additional duty while on long-term posting overseas. Variables include an Australian dollar figure and local exchange rates. The Australian dollar figure is increased by 2.1%.

Consultation

Consultation is not considered necessary for the annual travelling allowances adjustment. These are routine changes to travelling allowances. The changes are based on movements in the Consumer Price Index and advice from a data 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 2017/2, Travelling allowance – 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.

This Determination has the following purposes.

• It adjusts the rates of accommodation, meal and incidentals allowances for ADF members required to travel on Defence business. The allowance rates are set following advice from a contracted service provider.
• It adjusts the lists of high-cost and medium-cost country centres for the purposes of determining accommodation, meal and incidentals allowances for members required to travel on Defence business.
• It adjusts meal rates for members and their dependants living in temporary accommodation.

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.

Defence has interests across Australia, and travel by members is necessary to achieve Defence goals. Travel allowance benefits ensure that members and their families who travel are accommodated and fed in a way that meets their needs, and assists in meeting the goal of the travel. The underlying principle is that people should be provided assistance with reasonable travel costs on the basis that they should neither gain nor lose financially when required to travel.

Conclusion

This Determination does not limit the right to an adequate standard of living. It provides an allowance to members so they are not financially burdened when they travel for service related reasons.

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