EXPLANATORY STATEMENT

Defence Determination, Conditions of Service Amendment (Location allowances and disturbance allowance) Determination 2018 (No. 34)

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 amends provisions dealing with allowances and reimbursements for members of the Australian Defence Force (ADF).
• Chapter 6 sets out provisions dealing with relocations on postings within Australia for ADF members.

The purpose of this Determination is to make an adjustment to location allowances and disturbance allowance rates.

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

Section 2 provides that this instrument commences on 20 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Section 4 provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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 provisions relating to location allowances for ADF members.

Section 1 omits and substitutes section 4.4.9 of the Principal Determination. The section provides rates of district allowance for a member who 'lives in' at a remote location. The allowance rates are increased in line with the All Groups component of the Consumer Price Index for the 12 month period ending March 2018 (1.9%). The figures are 35% of the 'living out' rates for a member with dependants. The underlying figures are then rounded to the nearest five dollars.

Section 2 omits and substitutes subsection 4.4.10.1 of the Principal Determination. The subsection provides rates of district allowance for a member who 'lives out' at a remote location. The allowance rates are increased in line with the All Groups component of the Consumer Price Index for the 12 month period ending March 2018 (1.9%). The underlying figures are then rounded to the nearest five dollars.

Section 3 omits and substitutes subsection 4.4.19.2 of the Principal Determination. This amendment adjusts the yearly rates of Port Wakefield allowance. The allowance rates are increased in line with the All Groups component of the Consumer Price Index for the 12 month period ending March 2018 (1.9%). The underlying figures are then rounded to the nearest five dollars.

Section 4 amends section 4.4.24 of the Principal Determination. This amendment adjusts the annual rate of Scherger allowance. The allowance is increased in line with movement in the Transport component of the Consumer Price Index for the 12 month period ending March 2018 (2.9%). The underlying figure is then rounded to the nearest five dollars.

Section 5 omits and substitutes the table in section 4.4.31 of the Principal Determination, adjusting the yearly rates of Antarctic allowance. The allowance rates are increased by 1.9%, in line with new rates advised by a contracted service provider.

Schedule 2 amends provisions relating to disturbance allowance for ADF members.

Section 1 omits and substitutes subsection 6.1.6.2 of the Principal Determination. The subsection provides rates for disturbance allowance to compensate members for incidental relocation costs. The rates have been adjusted to reflect a 1.8% movement in the All Groups component of the Consumer Price Index for the period September 2016 to September 2017.

Section 2 amends subsection 6.1.12.1 of the Principal Determination. The subsection provides a payment for a member whose child has to change schools due to an ADF removal. This rate has been increased to reflect a 1.8% movement in the All Groups component of the Consumer Price Index for the period September 2016 to September 2017.

Consultation

Consultation is not considered necessary in the allowance adjustment process as this falls within the bounds of routine, housekeeping of an established benefit. The adjustments are either aligned with the Consumer Price Index or from data from a recognised data provider. They are made according to 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 (Location allowances and disturbance allowance) Determination 2018 (No. 34)

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 make an adjustment to location allowances and disturbance allowance rates.

Human rights implications

This Determination engages the following human rights:

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.

Location allowances

ADF members who are posted to some remote locations may experience adverse living conditions during service. This could cause significant adverse effect on the lifestyle or welfare of members and their dependants, as a result of the living conditions at the remote location. Those hardship conditions can include but are not limited to climate, health care facilities, infrastructure and isolation.

ADF location allowances provide additional benefits, beyond the normal rates of remuneration, to assist the member and their family to not suffer a disadvantage because of the requirement for the member to live and work in a remote location.

Disturbance allowance

Legitimate objective: Some Defence members are regularly posted to perform duty in different locations. This could cause the member and their family economic hardship during the move to the posting location.

Reasonable, necessary and proportionate: This Determination adjusts disturbance allowance to ensure that an affected person continues to receive just and favourable compensation. Further, members and their family should not suffer a disadvantage resulting from the expenses incurred when they are required to live and work in a new posting location.

Conclusion

This Determination is compatible with human rights because it does not limit any human rights.

Fiona Louise McSpeerin, Assistant Secretary People Policy and Employment Conditions