Defence Determination, Conditions of Service Amendment (Bonus framework) Determination 2018 (No. 41)

Administered by Department of Defence

Legislation au F2018L01617 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Defence Determination, Conditions of Service Amendment (Bonus Framework) Determination 2018 (No. 41)

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 3 of the Principal Determination sets out provisions dealing with salaries and bonuses for members of the Australian Defence Force (ADF).

The purpose of this Determination is to include the Chief of the Defence Force (CDF) as an approving authority for bonuses under Chapter 3 Part 5 Division 2 of the Principal Determination.  In addition to the Service Chiefs, this will enable the CDF to approve bonuses for members, resulting in greater flexibility.

Section 1 of this Determination sets out the manner in which this Determination may be cited.

Section 2 provides that this instrument commences on 29 November 2018.

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Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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 – Amendment to Defence Determination 2016/19, Conditions of Service

Section 1 amends section 3.5.6 of the Principal Determination which provides the conditions a member must meet to be eligible for a bonus under the section. Reference to the Service Chief has been removed as the authority to make an officer is provided under subsection 3.5.8.2.

Section 2 omits and substitutes section 3.5.8 of the Principal Determination, which provides who can determine the amount of the bonus, as well as the period of service the member must undertake to receive the bonus. The section has been amended to include the CDF as a position which can determine the amount and period of service applicable to a bonus. The Chief of Staff – ADF Headquarters, Director General Navy People, Director General Personnel – Army, and Director General Personnel – Air Force have been included as a positions who can offer of a bonus determined by the CDF to a member.

Section 3 amends section 3.5.9 of the Principal Determination, which provides the factors which must be considered when offering a member a bonus. The section has been amended to include the CDF as a position which must consider the listed factors before making an offer of a bonus.

Section 4 amends subsection 3.5.11.1 of the Principal Determination, which provides how long a member has to accept an offer of a bonus. Paragraph c has been amended to provide that the CDF can determine a period that he or she feels is reasonable for the member to accept the bonus they have been offered.

Section 5 amends subsection 3.5.14.1 of the Principal Determination, which provides the reasons a member is not required to repay a bonus if they have failed to complete their agreed period of service. The provision provides that a member's Service Chief can determine that the member's reason for ceasing to serve was beyond the member's control. The CDF has been added as a position who can determine this.


Consultation

Before the determination was made, consultation was under taken with the Directorate of Senior Officer Management – ADF, Defence People Group. The rule-maker was satisfied that further external consultation was not required.

 

 

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, Conditions of Service Amendment (Bonus Framework) Determination 2018 (No. 41)

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

This Determination makes technical amendments to Defence Determination 2016/19, Conditions of service.

The purpose of this Determination is to include the Chief of the Defence Force (CDF) as an approving authority for bonuses under Chapter 3 Part 5 Division 2 of the Principal Determination.  In addition to the Service Chiefs, this will enable the CDF to approve bonuses for members resulting in greater flexibility.

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.

Providing an additional approving authority for determining and offering retention bonuses to Australian Defence Force members does not limit any of the applicable rights or freedoms.

Conclusion

This Determination is compatible with human rights as it does not raise any human rights issues.

 

Fiona Louise McSpeerin, Assistant Secretary People Policy and Employment Conditions

 

 

 

Overview

The Defence Determination, Conditions of Service Amendment (Bonus Framework) Determination 2018 (No. 41) was enacted to amend Defence Determination 2016/19, Conditions of service, under section 58B of the Defence Act 1903. This amendment was introduced to address the need for greater flexibility in the approval of bonuses for members of the Australian Defence Force (ADF). The determination, made by the Australian government under the authority of section 58B of the Defence Act, allows the Chief of the Defence Force (CDF) to act as an approving authority for bonuses, in addition to the Service Chiefs. This change aims to provide more flexibility in the bonus framework for ADF members. The policy objective of this amendment is to ensure that the ADF can retain and reward its members effectively, thereby maintaining operational effectiveness and morale.

Scope and Application

The Defence Determination, Conditions of Service Amendment (Bonus Framework) Determination 2018 (No. 41) amends the Defence Determination 2016/19, Conditions of Service, made under section 58B of the Defence Act 1903, to introduce the Chief of the Defence Force (CDF) as an approving authority for bonuses within the Australian Defence Force (ADF). This amendment allows the CDF, in addition to the Service Chiefs, to approve bonuses for ADF members, enhancing flexibility in bonus administration. The Determination applies to all members of the ADF and is intended to streamline the bonus approval process. This legislative instrument operates under the Commonwealth jurisdiction and is subject to the interpretation principles in the Acts Interpretation Act 1901, as modified by section 58B of the Defence Act. The Determination does not introduce any exclusions or exemptions but provides a clearer framework for bonus approvals. While the primary Act focuses on bonus frameworks, the application and interpretation of this Determination may be further refined through subordinate instruments.

Key Provisions

The Defence Determination, Conditions of Service Amendment (Bonus Framework) Determination 2018 (No. 41) primarily amends Defence Determination 2016/19, Conditions of service (the Principal Determination), made under section 58B of the Defence Act 1903 (the Defence Act) (section 3). The amendments are detailed in the Schedule to this Determination and include changes to the authority for approving bonuses for members of the Australian Defence Force (ADF). Specifically, section 1 amends section 3.5.6 of the Principal Determination by removing the reference to the Service Chief as the approving authority, and section 2 substitutes section 3.5.8 to include the Chief of the Defence Force (CDF) as an approving authority for determining the amount and period of service for bonuses (section 1 and 2). Section 3 adds the CDF to section 3.5.9, making it a position that must consider factors before offering a bonus (section 3). Section 4 provides the CDF with the authority to determine a reasonable period for a member to accept a bonus offer, and section 5 allows the CDF to determine if a member’s reason for ceasing to serve was beyond their control, thus exempting them from repaying the bonus (section 4 and 5). The obligations and requirements imposed by this Determination include the addition of the CDF as an approving authority for bonuses, which must consider certain factors before offering a bonus and can determine the period within which a member must accept an offer. The CDF is also empowered to determine the reasons a member is not required to repay a bonus if they fail to complete their agreed period of service. These changes are aimed at providing greater flexibility in the approval process for bonuses within the ADF. Breaches of the provisions in this Determination may result in civil or criminal consequences. The Defence Act 1903 outlines various offences and penalties for breaches of Defence determinations. For instance, section 121 of the Defence Act prescribes penalties for breaches of Defence regulations, which may include fines and imprisonment. However, the specific penalties for breaches of this Determination are not detailed in the provided text and would need to be referred to under the Defence Act and any relevant regulations or subsidiary legislation. The maximum penalties for breaches of Defence regulations can include fines up to the maximum prescribed by the relevant legislation, as well as imprisonment terms that vary depending on the severity of the offence.

Legal classification tags

Area of Law
Administrative Law
Instrument
Determination
Concepts
Definitions & Interpretation
Enforcement Powers
Regulatory Standards
Catchwords
Conditions of Service
Bonus Framework

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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.