EXPLANATORY STATEMENT

Defence Determination, Conditions of Service Amendment (Education assistance) Determination 2018 (No. 35)

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 8 sets out provisions dealing with members of the Australian Defence Force (ADF) and their dependants.
• Chapter 15 sets out provisions dealing with living and working on long-term posting overseas for members of the ADF.

This Determination makes routine adjustments to education cost allowances. These are based on changes in the Consumer Price Index or advice from a contracted service provider.

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

Section 2 provides that this instrument commences on 6 September 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Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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 amends Defence Determination 2016/19, Conditions of service

Section 1 amends subsection 8.4.10.3 of the Principal Determination. This amendment increases the maximum hourly rate of reimbursement to a member for the cost of face-to-face tutoring for their child. The amendment changes this maximum rate from $100 to $103. This rate has increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

Section 2 omits the example and example table in subsection 8.4.11.5 of the Principal Determination, which demonstrated how to calculate the reimbursement for web-based tutoring. The example and table are omitted because they have no legal effect.

Section 3 substitutes the table in subsection 8.4.11.6 of the Principal Determination, which provides the figures used for calculating web-based tutoring payments. The rates have increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

Section 4 substitutes the table of subsection 8.4.14.3 of the Principal Determination. The amendments increase the maximum hourly rate of reimbursement for costs incurred by a member when their child with special needs requires additional tuition or therapy to assist in the transition to a new school. The amendment changes this maximum rate from $100 to $103. Section 4 also increases the limit on assistance with the costs of private assessment to develop an educational program for a child with special needs. This amendment changes this benefit from $737 to $761. These changes have increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figures to the nearest dollar.

Section 5 substitutes subsection 8.4.14.5 of the Principal Determination. This amendment increases the maximum reimbursement for the cost of compulsory tuition fees from $27,542 to $28,563 a year. The member contribution rate is unchanged. The new rate is based on advice received from a contracted service provider.

Section 6 amends subsection 8.4.15.4 of the Principal Determination, which provides that the Chief of Defence Force may extend education assistance to a member for their child for an additional 14 weeks for each subject, capped at a maximum hourly rate. Section 6 increases the maximum rate from $100 to $103. This change is in line with an increase in the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

Section 7 substitutes the table in subsection 8.4.21.1 of the Principal Determination. This amendment increases the maximum rates of reimbursement for compulsory tuition fees, accommodation for children who do not accompany a member to a posting location and a member's annual contribution rate.

The rate changes are as follows.

• Increase in the maximum annual compulsory tuition fee reimbursement from $27,542 to $28,563.

• Increase in the maximum reimbursement of board if accommodated in a boarding school or a commercial establishment from $24,865 to $25,669.

• Increase in the maximum reimbursement of board if privately accommodated from $15,766 to $18,431.

• Increase in the annual member contribution towards their child's boarding fees (if not their first year) from $3,033 to $3,036.

• Increase in the annual member contribution towards their child's boarding fees (if it is their first year) from $2,616 to $2,633.

These new rates are based on advice received from a contracted service provider.

Section 8 substitutes the table in subsection 15.6.10A of the Principal Determination, which lists the annual contribution that a member must pay towards compulsory tuition fees when their child attends school in their overseas posting location. The contribution rates are based on the typical cost of attending government schools in Australia. The rates are increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

Section 9 amends section 15.6.22A.5 of the Principal Determination, which lists the amount a member is required to pay an annual contribution to the cost of the child’s education. The contribution rates are increased from AUD 382 to AUD 395. The rates are increased in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

Section 10 amends the table in subsection 15.6.25.1 of the Principal Determination, which provides a member's benefit when their child attends an Australian school while the member is on an overseas posting. The section updates tuition fees, accommodation contribution rates and the accommodation reimbursement rates.

The following two rate changes made by section 10 are in line with the Education component of the Consumer Price Index for the 12 month period ending December 2017 (3.2 per cent), rounding the underlying figure to the nearest dollar.

• Member contribution towards compulsory tuition fees for a primary student has increased from AUD 164 to AUD 169.
• Member contribution towards compulsory tuition fees for a secondary student has increased from AUD 382 to AUD 395.

The following six rate changes made by section 10 have been made as a result of advice received from a contracted service provider.

• For a member whose child lives at a boarding school, the member's accommodation contribution is increased from AUD 3,033 to AUD 3,036.
• For a member whose child lives at a boarding school for the first time, the member's accommodation contribution is increased from AUD 2,616 to AUD 2,633.
• For a member whose child lives in private accommodation, the member's accommodation contribution is increases from AUD 3,033 to AUD 3,036.
• The maximum reimbursement for compulsory tuition fees is increases from AUD 27,542 to AUD 28,563 a year.
• The maximum reimbursement for accommodation where a child boards at boarding school or a commercial boarding establishment has increased from AUD 24,865 to AUD 25,669 a year.
• The maximum reimbursement for accommodation where a child lives in private board and lodging has increased from AUD 15,766 to AUD 18,431 a year.

Consultation

Consultation is not considered necessary in the annual Education Assistance adjustments. This is a routine change to education cost allowances. These are based on changes in the Consumer Price Index or advice from a contracted service provider and 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, Conditions of Service Amendment (Education assistance) Determination 2018 (No. 35)

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 routine adjustments to education cost allowances. These are based on changes in the Consumer Price Index or advice from a contracted service provider.

Human rights implications

The protection of a person's right to care for and provide education to dependants engages Articles 10 and 13 of the International Covenant on Economic, Social and Cultural Rights. Article 10 guarantees the widest possible protection and assistance to families, including their responsibility for the education and care of dependent children. Article 13 recognises the right of everyone to education.

Defence often requires its members to relocate to postings within Australia and overseas. These include remote areas without nearby educational facilities and locations where education costs far exceed what members might otherwise pay for their children. Defence recognises that relocation can cause financial hardship to the member and disruptions to their child dependant's education.

Defence assists members and their families by providing education assistance in order to minimise disruption to their children's education, so that children are not disadvantaged by member relocations. This assistance is provided in the form of private and web-based tuition and where relevant boarding school costs.

Conclusion

This Determination is compatible with human rights because it advances the protection of human rights.

Jay Andrew Clarke, Acting Assistant Secretary People Policy and Employment Conditions