EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 12
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE SCIENCE AND PERSONNEL
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS (ANNUAL RATES OF PAY) REGULATIONS (AMENDMENT)
Section 3 of the Defence Force Retirement and Death Benefits Act 1973 (“the Act”) 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.
Regulation 4 of the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (“the Regulations”), made under the Act, prescribes annual rates of pay for the purposes of section 3.
Subregulation 4(3) of the Regulations provides for the annual rate of pay to be a member’s salary plus certain specified allowances. However, this provision is subject to subregulation 4(4) which makes special provision for the annual rate of pay of the Chief of the Defence Force and the separate service chiefs of staff. The annual rate of pay for these office holders is ascertained by reference to determinations of the Remuneration Tribunal.
In 1988, the Defence Legislation Amendment Act (No. 2) 1988 amended the Defence Act 1903, by placing the office of the Vice Chief of the Defence Force on a statutory basis, with remuneration determined by the Remuneration Tribunal.
The Statutory Rule makes a consequential amendment to subregulation 4(4) to include a reference to the Vice Chief of the Defence Force. The Statutory Rule also provides that, until the Remuneration Tribunal makes a determination in relation to the Vice Chief of the Defence Force, the annual rate of pay for that office will continue to be ascertained under the currently applicable provision (subregulation 4(3) of the Regulations).
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment) Statutory Rules 1990 No. 12, issued under the authority of the Minister for Defence Science and Personnel, aim to address the legislative gap identified in the Defence Force Retirement and Death Benefits Act 1973. Specifically, this amendment was enacted to include the Vice Chief of the Defence Force within the scope of the Regulations, aligning the remuneration structure for this office with that of the Chief of the Defence Force and the separate service chiefs of staff. Prior to this amendment, the Vice Chief of the Defence Force was not explicitly covered by the Regulations, despite the establishment of this position on a statutory basis in 1988. This amendment ensures that the annual rate of pay for the Vice Chief of the Defence Force is determined in accordance with the same principles as other high-ranking Defence Force officers, pending a specific determination by the Remuneration Tribunal. The policy objective is to provide consistency in the calculation of annual rates of pay for Defence Force personnel at the highest levels of command.
Scope and Application
The Statutory Rules 1990 No. 12, issued under the authority of the Minister for Defence Science and Personnel, pertain to the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment). This legislation is applicable to members of the Australian Defence Force and specifically addresses the annual rates of pay which form the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme as prescribed in the Defence Force Retirement and Death Benefits Act 1973. The amendment targets the annual rates of pay for the Chief of the Defence Force, the separate service chiefs of staff, and now also includes the Vice Chief of the Defence Force, whose remuneration is determined by the Remuneration Tribunal. Until the Tribunal makes a specific determination for the Vice Chief of the Defence Force, the annual rate of pay for this office will continue to be calculated under the existing provision outlined in the Regulations. The amendment ensures that the remuneration of these high-ranking officers is consistently determined according to the statutory framework and is effective from the date of gazettal.
Key Provisions
The Statutory Rules 1990 No. 12, issued by the authority of the Minister for Defence, amend the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations, which were made under the Defence Force Retirement and Death Benefits Act 1973. The primary provision in question is section 3 of the Act, which mandates that an “annual rate of pay” be prescribed to serve as the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme. Regulation 4 of the Regulations provides the detailed annual rates of pay. Notably, subregulation 4(3) specifies that the annual rate of pay is a member’s salary plus certain specified allowances. However, this general rule is subject to the special provision in subregulation 4(4), which applies to the Chief of the Defence Force, the separate service chiefs of staff, and now, the Vice Chief of the Defence Force.
The obligations imposed by these Regulations require that the annual rates of pay be clearly defined and consistently applied to all relevant Defence Force personnel. For the Chief of the Defence Force, the separate service chiefs of staff, and the Vice Chief of the Defence Force, their annual rates of pay are ascertained by reference to determinations made by the Remuneration Tribunal. Until such determinations are made for the Vice Chief of the Defence Force, the annual rate of pay for this office continues to be calculated under the general provision in subregulation 4(3). This ensures that there is a transparent and equitable method for determining the pay rates of these senior officials, aligning with the statutory framework established by the Remuneration Tribunal.
Breach of these Regulations or failure to comply with the prescribed rates of pay could potentially lead to civil or administrative consequences, although specific offences, penalties, or consequences are not detailed in the Statutory Rules. Given the importance of accurate calculations in pension and benefits schemes, non-compliance could result in financial discrepancies or disputes over entitlements. The Statutory Rule comes into effect on the date of gazettal, necessitating immediate adherence to the amended provisions by all relevant parties.