EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 185
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS (ANNUAL RATES OF PAY) REGULATIONS (AMENDMENT)
Section 3 of the Defence Force Retirement and Death Benefits Act 1973 provides for a member’s “annual rate of pay” (the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme) to be prescribed.
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (“the Annual Rates of Pay Regulations”), made under the Act, prescribe the annual rate of pay of a member of the Defence Force, for the purposes of the Act. Sub-regulation 4(3) of the Annual Rates of Pay Regulations provides for the annual rate of pay to be a member’s salary plus certain allowances specified in those Regulations.
In respect of trainees, sub-regulation 4(3) was expressed to be subject to the following provisions:
a. sub-regulation 4(3A), which provided for the inclusion, in determining a trainee’s annual rate of pay, of an allowance known as Married Trainee’s Allowance; and
b. sub-regulation 4(6), which prescribed the annual rates of pay for trainees by reference to their salary rates (in turn prescribed in Schedule 9 to the Defence Force (Salaries) Regulations) but with adjustments so that some first-year trainees paid contributions based on the second-year salary rate and some second-year trainees paid contributions based on the third-year salary rate.
The Statutory Rule amends the Annual Rates of Pay Regulations to prescribe actual salary as the basis for the annual rate of pay applicable to trainees instead of salary as adjusted by sub-regulations 4 (3A) and 4(6).
Paragraph (a) of the Statutory Rule makes a consequential amendment to sub-regulation 4(3) by removing the references to sub-regulations 4(3A) and 4(6) (which are omitted by paragraphs (b) and (c)).
Paragraph (b) of the Statutory Rule omits sub-regulation 4(3A) which provided for a “Married Trainee’s Allowance” to be included in a trainee’s annual rate of pay. This is a consequential amendment as “Married Trainee’s Allowance” has been abolished.
Paragraph (c) of the Statutory Rule omits sub-regulation 4(6) so that the adjustments formerly operating in relation to the salaries of some first-year and second-year trainees no longer apply. The result is to prescribe actual salary as the basic annual rate of pay for trainees. Paragraph (c) also omits sub-regulation 4 (6A), a provision rendered functionless by the repeal of the regulations to which it refers.
Overview
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment) Statutory Rule 1984 was enacted to address inconsistencies and simplify the calculation of annual rates of pay for members of the Australian Defence Force, particularly trainees, under the Defence Force Retirement and Death Benefits Act 1973. This amendment was issued under the authority of the Minister for Defence and aims to streamline the calculation process by removing certain allowances and adjustments previously applied to trainees' salaries. The primary objective of this amendment is to ensure that the annual rate of pay for trainees is based solely on their actual salary, thereby eliminating the complexities introduced by the Married Trainee’s Allowance and the adjustments for first and second-year trainees. These changes aim to bring clarity and fairness to the calculation of annual rates of pay, directly impacting the contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme.
Scope and Application
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations, amended by the Statutory Rules 1984 No. 185, apply to members of the Defence Force and specifically to trainees within this group, prescribing their annual rate of pay as the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme. The Act applies to the Commonwealth of Australia, governing the calculation of pay rates for Defence Force members, including trainees, to ensure accurate and equitable contributions and benefits. The amendment removes specific allowances and adjustments previously applied to trainees’ salaries, establishing actual salary as the sole basis for determining their annual rate of pay. This change reflects the abolition of the "Married Trainee’s Allowance" and the elimination of adjustments for first and second-year trainees, thereby simplifying the calculation process. The application of these regulations is governed by the Defence Force Retirement and Death Benefits Act 1973, and any further specifications or exclusions are detailed within the subordinate regulations.
Key Provisions
The main operative sections of the Statutory Rule, issued under the authority of the Minister for Defence, amend the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations. Section 3 of these Regulations, which was previously used to prescribe the annual rate of pay for members of the Defence Force, is amended to ensure that the annual rate of pay for trainees is based on their actual salary rather than an adjusted salary. This change is significant as it removes the allowances and adjustments previously applied to trainee salaries. Specifically, sub-regulation 4(3) is amended to exclude references to sub-regulations 4(3A) and 4(6), which previously included a Married Trainee’s Allowance and adjustments for first and second-year trainees. The amendments mean that the annual rate of pay for trainees will now be their actual salary, without any additional allowances or adjustments.
The obligations and requirements imposed by these amendments are primarily on the administrators and relevant authorities within the Defence Force who are responsible for calculating and applying the annual rate of pay for trainees. These parties must now use actual salary figures for trainees when determining their contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme. The changes eliminate the need to consider allowances or adjustments that were previously part of the calculation. This simplification streamlines the process and ensures that all trainees are treated equally, based solely on their actual salary rates.
The Statutory Rule does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, the underlying Defence Force Retirement and Death Benefits Act 1973, which these Regulations are made under, does provide a framework for penalties. Breaches of the Act or Regulations could potentially lead to administrative penalties, financial penalties, or even criminal charges, depending on the nature and severity of the breach. While the Statutory Rule itself does not state maximum penalties, under the Act, individuals found to have deliberately misled or manipulated the annual rate of pay calculations could face significant penalties, including fines and potential imprisonment. The precise penalties would be determined by the courts, taking into account the circumstances of the breach.