Defence Force (Reserves) (Financial) Regulations (Amendment)

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Statutory Rules

1980 No. 218

REGULATION UNDER THE DEFENCE ACT 1903, THE NAVAL DEFENCE ACT 1910 AND THE AIR FORCE ACT 19231

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Defence Act 1903, the Naval Defence Act 1910 and the Air Force Act 1923.

Dated this twenty-ninth day of July 1980.

ZELMAN COWEN

Governor-General

By His Excellencys Command,

J. E. MCLEAY

Minister of State for Administrative Services for and

on behalf of the Minister of State for Defence

 

AMENDMENT OF THE DEFENCE FORCE (RESERVES) (FINANCIAL) REGULATIONS2

  After regulation 16 of the Defence Force (Reserves) (Financial) Regulations the following regulation is inserted:

Compensation for loss of, or damage to, clothing or personal effects

 16A. (1) Subject to sub-regulation (2), where 

 (a) a member sustains loss of, or damage to, clothing or personal effects; and

 (b) the loss or damage is attributable to the service of the member,

the member shall be paid in respect of the loss or damage an amount equal to the amount required to compensate the member fully for the loss or damage sustained by him.

 (2) The amount that would, but for this sub-regulation, be payable to a member in respect of the loss of, or damage to, his clothing or personal effects shall be reduced by the sum of 

 (a) any amount paid or payable to the member otherwise than in accordance with this regulation by way of damages or compensation for that loss or damage or under a contract of insurance in respect of that loss or damage; and

 (b) any amount by which it is reasonable to reduce that first-mentioned amount because the member contributed to the loss or damage by his failure to take the precautions that he might reasonably have been expected to have taken to avoid the loss or damage.

 (3) Where the loss of, or damage to, the clothing or personal effects of a member 

 (a) occurs while he is protecting or endeavouring to protect the property of the Commonwealth from loss or damage;

 (b) is caused by a fault or a defect in goods or other property belonging to the Commonwealth; or

 (c) results from an act of, or omission by, another member or any other person employed by the Commonwealth,

that loss of or damage shall be deemed not to be attributable to the service of the member if the clothing is, or is to be, or the personal effects are, or are to be, replaced or repaired at the expense of the Commonwealth.

 (4) Where the loss of, or damage to, the clothing or personal effects of a member is sustained by the member in circumstances other than those set out in paragraph (3) (a), (b) or (c), that loss or damage shall be deemed not to be attributable to the service of the member where 

 (a) the loss or damage would not have occurred if he had taken the precautions that he might reasonably have been expected to have taken to avoid the loss or damage;

 (b) he could reasonably have been expected to have insured himself against loss or damage occurring in the circumstances in which the loss or damage occurred;

 (c) he could reasonably be expected to take proceedings for the recovery of an amount equal to the amount of the loss or damage sustained by him from a person who may be liable to the member for the loss or damage;

 (d) he has received, or is entitled to receive, from a person liable to the member for the loss or damage an amount equal to the amount of the loss or damage;

 (e) proceedings have been instituted by the member against a person who may be liable to the member for the loss or damage sustained by him and those proceedings have not been finally disposed of; or

 (f) the clothing or personal effects are to be, or have been, replaced or repaired at the expense of the Commonwealth.

 (5) Nothing in this regulation affects any right a member may have to recover damages from the Commonwealth or from any other person in respect of the loss or damage, but if, after an amount has been paid to a member under this regulation, the member recovers damages in respect of the loss or damage, an amount equal to the amount paid under this regulation, or, if that amount is greater than the amount recovered as damages, an amount equal to the amount recovered as damages, is recoverable from the member as a debt due to the Commonwealth.

 (6) In this regulation, Commonwealth includes a body corporate (not being an incorporated company, society or association) incorporated for a public purpose by or under a law of the Commonwealth or of a Territory..

NOTES

1. Notified in the Commonwealth of Australia Gazette on 5 August 1980.

2. Statutory Rules 1976 No. 16 as amended to date. For previous amendments see Note 2 to Statutory Rules 1980 No. 10 and see also Statutory Rules 1980 Nos. 10, 24, 44, 83, 94, 154 and 165.

Overview

The Statutory Rules 1980 No. 218, made under the Defence Act 1903, the Naval Defence Act 1910 and the Air Force Act 1923, was enacted to address the need for compensation for reservists of the Australian Defence Force who suffer loss or damage to their clothing or personal effects due to their service. This regulation, made by the Governor-General with the advice of the Federal Executive Council, provides a framework for the payment of compensation to reservists under certain conditions, ensuring they are fully compensated for losses incurred during their service while also accounting for other potential sources of compensation or recovery. The policy objective is to provide fair compensation to reservists for service-related losses while preventing double compensation.

Scope and Application

This legislative instrument, enacted by the Governor-General under the Defence Act 1903, the Naval Defence Act 1910, and the Air Force Act 1923, amends the Defence Force (Reserves) (Financial) Regulations to introduce compensation provisions for members of the Australian Defence Force who sustain loss or damage to their clothing or personal effects attributable to their service. The amendment applies to members of the Defence Force reserves, who are entitled to compensation when their clothing or personal effects are lost or damaged in the course of their service, with certain exceptions and deductions. The compensation payable is calculated to fully compensate the member for the loss or damage, subject to reductions if the member receives any damages or compensation from other sources or if they contributed to the loss or damage by failing to take reasonable precautions. The regulation also provides for scenarios where the loss or damage is not attributable to the member's service, such as when the Commonwealth replaces or repairs the lost or damaged items. This regulation extends across the Commonwealth and its territories, applying uniformly to all Defence Force reserve members.

Key Provisions

The primary operative sections of this legislation, specifically regulation 16A, establish the compensation entitlements for members of the Defence Force Reserves who incur loss or damage to their clothing or personal effects due to their service. Regulation 16A(1) stipulates that compensation will be paid in full for the loss or damage if it is attributable to the service of the member. Regulation 16A(2) further refines the compensation amount by deducting any damages or compensation already received by the member through other means, such as insurance or contractual agreements. Additionally, if the member contributed to the loss or damage by failing to take reasonable precautions, the compensation amount may be reduced accordingly. Regulation 16A(3) and (4) delineate specific circumstances under which the loss or damage is not attributable to the member’s service, such as when the Commonwealth replaces or repairs the items or when the member could have reasonably taken precautions, insured against the loss, or pursued legal action against a third party. Regulation 16A(5) addresses the situation where a member recovers damages from another source, ensuring that the amount paid by the Commonwealth is recoverable as a debt. The obligations imposed by this regulation are primarily on the Defence Force Reserves members and the Commonwealth. Members are expected to adhere to the conditions set out in the regulation to qualify for compensation, including ensuring that the loss or damage is attributable to their service. The Commonwealth, on the other hand, is obligated to pay compensation in accordance with the terms of the regulation and to recover any overpayments if a member subsequently recovers damages from another source. The regulation also sets out the conditions under which compensation is not payable, providing a clear framework for both parties. In terms of penalties and consequences, the regulation does not explicitly outline criminal or civil penalties for breach. However, it does state that if a member recovers damages from another source, the amount paid by the Commonwealth is recoverable as a debt. This means that if a member receives compensation under this regulation and subsequently recovers a greater amount from another party, they must repay the excess amount to the Commonwealth. This financial recovery mechanism serves as a form of enforcement to ensure that the compensation provided is not duplicated.

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Area of Law
Defence Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Compensation Obligations
Attribution of Loss or Damage

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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.