Defence Determination, Conditions of service (Living–in accommodation and review of housing contributions and allowances) Amendment Determination 2021 (No. 25)

EXPLANATORY STATEMENT

Defence Determination, Conditions of service (Living-in accommodation and review of housing contributions and allowances) Determination 2021  (No. 25)

This Determination amends Defence Determination 2016/19, Conditions of service (the Principal Determination), made under section 58B of the Defence Act 1903 and in accordance with subsection 33(3) of the Acts Interpretation Act 1901 (AI Act).

Determinations made under section 58B of the Defence Act are disallowable legislative instruments subject to the Legislation Act 2003 (Legislation Act). These instruments are also subject to the interpretation principles in the AI Act.

This Determination amends Chapter 7 of the Principal Determination which sets out provisions dealing with housing and meals for members of the Australian Defence Force (ADF) and their families as part of the member’s conditions of service. The Principal Determination provides a range of benefits that recognise the unique nature of military service and the obligation and limitations that military service places on members and their families.

Purpose

The purpose of this Determination is to do the following:

• To adjust the rates of contribution that members must make when occupying living-in accommodation.
• To adjust rates as a result of the annual review of the Group Rent Scheme.
• To adjust rates as a result of the annual review of allowances that members may receive for, and the contributions they are required to make towards, the cost of their accommodation, meals and utilities.

This is a routine adjustment to housing contributions and allowances. The adjustments are based on movements to the Consumer Price Index, rental market movements and advice from a recognised housing service provider based on an established methodology that has been approved by the Defence Finance Group.

Each year, Defence Housing Australia conducts a review of the assessed market rents for its owned and leased properties. Changes to property rent prices as a result of the primary rent review are passed onto Defence from 1 January each year, which informs the adjustments made by this Determination.

Given the large increase in housing costs experienced broadly in the community, where necessary routine adjustments have been limited to 5% of extant rate.

Operational Details

Details of the operation of the Determination are provided at annex A.

Human rights compatibility

The statement of compatibility under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 for this Determination is at annex B.

Review options

Decisions that are made under the Principal Determination, as amended by this Determination, may be subject to inquiry under the ADF redress of grievance system provided under Part 7 of the Defence Regulation 2016. Also, a person may make a complaint to the Defence Force Ombudsman.

Consultation

Before this Determination was made, consultation was undertaken with the Secretary and Chief of the Defence Force, Navy, Army, Air Force, Defence Finance Group and Defence Security and Estate Group.

Annex A

Defence Determination, Conditions of service Amendment (Living-in accommodation and review of housing contributions and allowances) Determination 2021 (No. 25)

Operational details

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

Section 2 provides that this instrument commences on 3 February 2022.

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

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—Living-in accommodation amendments

Section 1 amends subsection 7.4.27.2 of the Principal Determination which provides the fortnightly contribution rates for member’s who occupy living-in accommodation and are on leave without pay. The contribution rate that a member is required to pay has been adjusted in line with Defence’s Cost Recovery Policy. Contribution increases have been capped at 5% of the previous year’s rate.

Section 2 omits subsection 7.4.27.4 which provides the contribution rate for housekeeping services for a member occupying living-in accommodation. The section has been omitted as there is no longer a requirement for members to pay the charge.

Section 3 amends subsection 7.4.29.2 of the Principal Determination which provides the contribution a member must make towards single bedroom apartment accommodation in Homebush or North Strathfield. The fortnightly contribution is increased from $265.93 to $266.99, which reflects a 0.4% increase in the rents sub-component of the Consumer Price Index over the 12 month period September 2020 to September 2021.

Section 4 omits and substitutes Annex.7.4.B of the Principal Determination which sets out a schedule of living-in accommodation contribution rates for members. The adjustments reflect a 0.4% increase in the rents sub-component of the Consumer Price Index over the 12 month period September 2020 to September 2021.

Section 5 omits and substitutes subsection 7.9.5.3 of the Principal Determination which provides the amount a member must contribute towards meals eaten in a mess on a casual basis. The rates remain unchanged for table item 1 where the member is not on leave without pay. The rates for a member on a nonworking period or leave without pay in table item 2 have been reduced in line with Defence’s Cost Recovery Policy. Table items 3 and 4 have been removed to reflect table service no longer being provided in the messes.

Section 6 amends subsection 7.10.9.1 of the Principal Determination which provides the fortnightly contribution a member who occupies living-in accommodation must pay towards the cost of utilities. The fortnightly contribution has decreased from $47.55 to $46.27, which reflects a 2.7% decrease in the utilities sub-component of the Consumer Price Index over the 12 month period September 2020 to September 2021.

Schedule 2—Housing contributions and allowances amendments

Section 1 omits and substitutes section 7.5.29 of the Principal Determination which provides the fortnightly contribution for accommodation, meals and utilities made by a member occupying temporary accommodation. The contribution rate for utilities is decreased from $110.75 to $107.76, which reflects a 2.7% decrease in the utilities sub-component of the Consumer Price Index for the 12 month period September 2020 to September 2021.

Section 2 amends subsection 7.9.10.2 of the Principal Determination which provides the fortnightly rate of food allowance a member with dependants (unaccompanied) receives. The rate is increased from $212.03 to $214.79 which reflects a 1.3% increase in the food and non-alcoholic beverages sub-component of the Consumer Price Index for the 12 month period September 2020 to September 2021.

Section 3 amends subsection 7.9.10.3 of the Principal Determination which provides the daily rate of food allowance a member on a flexible service determination receives. The rate is increased from $21.20 to $21.48, which reflects a 1.3% increase in the food and non-alcoholic beverages sub-component of the Consumer Price Index for the 12 month period September 2020 to September 2021.

Section 4 amends subparagraph 7.10.4.1.b.i of the Principal Determination which provides the fortnightly amount an eligible member may be reimbursed for the cost of utilities. The rate is decreased from $76.78 to $74.71 which reflects a 2.7% decrease in the utilities sub-component of the Consumer Price Index over the 12 month period September 2020 to September 2021.

Section 5 amends subsection 7.10.7.2 of the Principal Determination which provides the fortnightly contribution a member living in a Service residence makes towards the cost of water. The rate is decreased from $23.00 to $18.80, which reflects an 18% decrease in water charges paid by Defence to Defence Housing Australia.

Section 6 amends subsection 7.10.8.2 of the Principal Determination which provides the fortnightly contribution a member must make toward energy costs while they are living in a specified tied (tied to an appointment) or Service residence at Royal Military College, Duntroon and Anglesea Barracks, Hobart. The rate is decreased from $147.33 to $143.35, which reflects a 2.7% decrease in the utilities sub-component of the Consumer Price Index over the 12 month period September 2020 to September 2021.

Section 7 omits and substitutes Annex 7.A of the Principal Determination which provides the contribution a member must make towards the cost of occupying a Service residence or rent band choice accommodation. The contribution rates are adjusted in line with changes in the assessed value of Defence housing properties. Contribution increases have been capped at 5% of the previous year’s rate.

• Part 1 of Annex 7.A sets out the contribution for members with dependants.
• Part 2 of Annex 7.A sets out the contribution for members with dependants who choose a property above the standard eligibility provided for members in their rank group.
• Part 3 of Annex 7.A sets out the contribution for a member without dependants who lives alone.
• Part 4 of Annex 7.A sets out the contribution for a member without dependants who shares their accommodation.

Section 8 omits and substitutes Annex 7.D of the Principal Determination which provides the contribution a member must make towards the cost of rent if they receive rent allowance. The contribution rates are adjusted in line with changes in the assessed value of Defence housing properties. Contribution increases have been capped at 5% of the previous year’s rate.

• Part 1 of Annex 7.D sets out the contribution for members with dependants.
• Part 2 of Annex 7.D sets out the contribution for members without dependants.

Section 9 omits and substitutes Annex 7.E of the Principal Determination which provides rent ceilings used to calculate rent allowance entitlements for members. The rent ceilings are adjusted in line with the market rent paid by Defence for Service residences in various locations. The Annex consists of the following Parts:

• Part 1.1 sets out the rent ceiling rate for a member with dependants who chooses a three or more bedroom rent ceiling for their home.
• Part 1.2 sets out the rent ceiling rate for a member with dependants who chooses a two bedroom rent ceiling for their home.
• Part 2.1 sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who lives alone.
• Part 2.2 sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with one other person.
• Part 2.3 sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with two other people.
• Part 2.4 sets out the rent ceiling rates for a member without dependants, or a member with dependants (unaccompanied) who shares their accommodation with three other people.

The following changes have been made to the tables in Annex 7.E based on the locations where members are expected to serve in 2022 and the ranks of members expected to serve there.

• Rates for Warrant Officers in Armidale and Kununurra have been omitted.
• Bathurst, Cowley Beach, Leopold, Mount Isa, Ocean Grove, Old Bar, Point Lonsdale, Rockhampton, Taree and Wollongbar have been omitted.
• Rates have been inserted for Warrant Officers, Majors and Lieutenant Colonels in Carnarvon.
• Northern New South Wales has been inserted.
• Rates have been inserted for Majors and Lieutenant Colonels in Orange
• Pearce and Perth have been merged into the same table item as they have the same rates and are geographically close.
• Rates for Warrant Officers, Majors and Lieutenant Colonels in Port Augusta, Port Hedland, Port Lincoln, and Port Wakefield have been omitted.
• Rates for Warrant Officers, Majors, Lieutenant Colonels, Colonels and Brigadiers in Queenscliff have been omitted.
• Rates have been inserted for Colonels and Brigadiers in Wollongong and two new locations, Tarrawanna and Woonona, are now listed together with Wollongong.

Section 10 omits and substitutes Annex 7.F of the Principal Determination which provides the fortnightly rate of contribution a member must make toward their food costs when they are receiving temporary accommodation allowance. The rates are adjusted to reflect a 1.3% increase in the food component of the Consumer Price Index over the 12 month period September 2020 to September 2021. 

Annex B

 Defence Determination, Conditions of service Amendment (Living-in accommodation and review of housing contributions and allowances) Determination 2021 (No. 25)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Overview of the Determination

The Purpose of this Determination is to do the following:

• To adjust the rates of contribution that members must make when occupying living-in accommodation.
• To adjust rates as a result of the annual review of the Group Rent Scheme.
• To adjust rates as a result of the annual review of allowances that members may receive for, and the contributions they

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.

Right to an adequate standard of living

The protection of a person's right to an adequate standard of living engages Article 11 of the International Covenant on Economic, Social and Cultural Rights. Article 11 recognises the right of everyone to an adequate standard of living for them and their family, including adequate food, clothing and housing, and to the continuous improvement of living conditions.

Assessment

Service in the ADF requires members to live in barrack style accommodation from time to time or to move homes to when posted to another location. To support members with their accommodation costs, Defence provides member with housing assistance as a part of their conditions of service package. This is provided in the form of subsidised accommodation (Services residences and living-in accommodation) or rent assistance. The level of housing assistance provided is reviewed annually.

This Determination is consistent with human rights in that it makes technical amendments to adjust the rate of housing assistance as a consequence of the increased housing costs experienced nationally. Where necessary, the rate adjustments have been capped at 5% of the extant rates, which is less than the increase of housing costs in most locations. This ensures Defence is able to continue to provide members with affordable housing assistance while also enabling members to maintain an adequate standard of living by subsidising their accommodation costs.

Conclusion

This Determination is consistent with human rights.