Defence Retirement Act 1922

Legislation au C1922A00009 Not in force Act

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DEFENCE RETIREMENT.

 

No. 9 of 1922.

An Act relating to the retirement or discharge of certain persons from the Permanent Services of the Defence Department, and for other purposes.

[Assented to 13th September, 1922.]

BE it enacted by the Kings Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Defence Retirement Act 1922.

Commencement.

2. This Act shall be deemed to have commenced on the tenth day of June, One thousand nine hundred and twenty-two.

Definitions.

3.—(1.) In this Act, unless the contrary intention appears—

Classified office in the Defence Department means an office of a permanent nature in the Administrative, Professional, Clerical or General Division within the meaning of any regulations made in pursuance of section sixty-three of the Defence Act 1903-1918 or section forty-one of the Naval Defence Act. 1910-1918, or the Defence (Civil Employment) Act 1918, or a civilian office of a permanent nature on the Instructional Staff of the Royal Military College;

Pay includes in the case of each class of member or employee such allowances as are prescribed either generally or in the case of that class;

Pay for the unexpired period of the service of the member or employee means the total of the pay which, in the opinion of the Naval Board of Administration, the Military Board of Administration, the Air Board or the Secretary to the Department of Defence, as the case may be, the member or employee would probably have received had he continued, until the age prescribed by law for retirement or discharge therefrom, to occupy the office or hold the rank occupied or held by him at the time of his retirement or discharge under this Act;

Service means continuous service under the provisions of the Defence Act 1903-1918, the Naval Defence Act 1910-1918, the Commonwealth Public Service Act 1902-1918, or the Defence (Civil Employment) Act 1918, and includes continuous service under a State or under the Agreement contained in the Naval Agreement Act 1903 in any case in which such service is continuous with service under the Commonwealth.


(2.) For the purposes of this Act, one months pay of a member or employee means one-twelfth of the amount of pay earned by the member or employee in twelve months at the rate of pay earned by him immediately prior to the date of his retirement or discharge.

Power to retire members of Defence Force.

4.—(1.) Any member of the Permanent Naval, Military or Air Forces, and any employee holding, on or before the thirtieth day of June, One thousand nine hundred and twenty-two, a classified office in the Defence Department, may be retired or discharged on or before the thirtieth day of June, One thousand nine hundred and twenty-three, by the Governor-General, or (in the case of a person holding any rank or office the appointment to which is made by an authority other than the Governor-General) by the Minister.

(2.) Any such retirement or discharge may be effected notwithstanding that the member or employee has not attained the age for retirement prescribed by law for holders of that rank or office, or that the term for which he was appointed or enlisted has not expired.

(3.) For the purposes of this Act a member of the Permanent Military Forces whose term of engagement expired on or after the first day of January, One thousand nine hundred and twenty-two, and on or before the thirtieth day of June, One thousand nine hundred and twenty-two, and who, under instructions issued by Army Head-quarters, was not permitted to re-engage, shall be deemed to have been discharged in pursuance of this section.

Compensation payable.

5. Upon the retirement or discharge, in pursuance of the last preceding section, of any member of the Permanent Naval, Military or Air Forces, or of any employee holding on or before the thirtieth day of June, One thousand nine hundred and twenty-two, a classified office in the Defence Department, who has not attained the age of sixty-five years, there shall be payable to him compensation in the proportion of one months pay for each year of service:

Provided that the amount payable to any member or employee under this section shall be not less than the equivalent of six months pay, and shall not exceed the equivalent of twelve months pay plus pay for the unexpired period of the service of the member or employee.

Compensation to be in addition to pay in lieu of furlough.

6. Compensation payable in pursuance of this Act shall be in addition to any pay in lieu of furlough to which the member or employee is entitled under the provisions of any regulations made in pursuance of the Defence Act 1903-1918, the Naval Defence Act 1910-1918, or the Defence (Civil Employment) Act 1918.

Compensation where person, entitled to pension, &c.

7.—(1.) If it appears that any member or employee who is retired or discharged in pursuance of this Act is entitled upon retirement or discharge to any pension, retiring allowance, gratuity, or compensation under any other law, compensation under this Act shall only be allowed upon the member or employee undertaking not to claim pension, retiring allowance, gratuity, or compensation under that other law.


(2.) There shall be deducted from the compensation payable to any member or employee under this Act the amount of any compensation or special grant already paid to him in respect of any portion of the service in respect of which compensation is payable under this Act.

Compensation not liable to Income tax.

8. Compensation paid under this Act shall not be liable to income tax under any law of the Commonwealth or a State.

Provision in case of re-appointment of retired or discharged persons.

9. A person to whom compensation has been paid in pursuance of this Act shall not be appointed to any position under the Commonwealth until he has, if so required by the authority making the appointment, paid into the Treasury an amount equal to the compensation so paid to him, or such proportionate amount as that authority determines.

Voluntary retirements.

10.—(1.) Any member of the Permanent Naval, Military, or Air Forces, and any employee holding on or before the thirtieth day of June, One thousand nine hundred and twenty-two, a classified office n the Defence Department may make application to the Minister for permission to retire from office, with compensation in accordance with this Act on or before the thirtieth day of June, One thousand nine hundred and twenty-three.

(2.) If the application is granted the member or employee shall upon such retirement be entitled to receive the compensation which would be payable if he were retired or discharged in pursuance of section four of this Act, and the provisions of this Act shall apply in relation to him as if he were so retired or discharged.

Non-application of Act to certain persons.

11. This Act shall not apply to—

(a) any member or employee whose retirement or discharge has been in the nature of a penalty, or on account of unsatisfactory service or inefficiency or medical unfitness;

(b) any person whose first appointment to or in connexion with the Defence Department has not been confirmed;

(c) any person who was discharged as having reached the age for retirement; or

(d) any person discharged at his own request, not being a person to whom the provisions of sub-section (2.) of section ten of this Act apply.

Compensation not payable as a right.

12. Compensation payable under this Act shall not be claimable or recoverable by any person as a matter of right, but shall be deemed to be a free gift by the Commonwealth.

Provision for payment where member or employee dies before payment.

13. Where any person entitled to payment of compensation under this Act dies before payment is made, the amount of the compensation so payable shall not form part of the estate of the deceased, and shall not be claimable by the executor or administrator of the estate, but may be paid to the dependants of the deceased in such proportions and under such conditions as the Minister approves.


Appropriation.

14. There shall be payable from the Consolidated Revenue Fund, which to the necessary extent is hereby appropriated accordingly, the following payments:—

(a) compensation payable under this Act;

(b) pay in lieu of furlough payable to any member or employee who is retired or discharged in pursuance of this Act;

(c) the cost of removal, where authorized by law, of personnel, families, and furniture of members or employees retired or discharged in pursuance of this Act; and

(d) the pay of excess personnel of the Defence Force pending absorption, transfer, retirement, or discharge.

Regulations.

15. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters, which are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act.

 

Overview

The Defence Retirement Act 1922 was enacted to address the need for a structured approach to the retirement or discharge of certain individuals from the Permanent Services of the Defence Department. This legislation was introduced to provide a clear framework for the retirement of members of the Permanent Naval, Military, or Air Forces and employees holding classified offices within the Defence Department as of 30 June 1922. Enacted by the Parliament of the Commonwealth of Australia, the Act aims to ensure fair and orderly retirement processes, including the provision of compensation for those affected. It specifies the conditions under which compensation is payable, ensuring that it is proportionate to the individual's years of service, while also addressing the financial implications of such retirements by appropriating necessary funds from the Consolidated Revenue.

Scope and Application

The Defence Retirement Act 1922 applies to members of the Permanent Naval, Military, or Air Forces, as well as employees holding a classified office in the Defence Department on or before 30 June 1922. This legislation pertains specifically to the retirement or discharge of these individuals, and it applies across the Commonwealth of Australia, establishing the parameters for the retirement process, compensation entitlements, and other related matters. Notably, the Act excludes certain individuals from its application, such as those whose retirement or discharge is due to a penalty, unsatisfactory service, inefficiency, medical unfitness, or those who have not had their first appointment confirmed, among others. Additionally, compensation is not payable as a right but is considered a free gift by the Commonwealth. The Act also allows for the creation of regulations by the Governor-General to implement and facilitate its provisions.

Key Provisions

The Defence Retirement Act 1922 (sections 4-10) primarily governs the retirement or discharge of members of the Permanent Naval, Military, or Air Forces, and employees holding classified offices in the Defence Department. Under section 4, these individuals may be retired or discharged by the Governor-General or the Minister, irrespective of their age or the term of their appointment. Section 5 outlines that compensation is payable to those who are not yet sixty-five years old, at a rate of one month’s pay for each year of service, with a minimum of six months’ pay and a maximum of twelve months’ pay plus the pay for the unexpired period of service. Section 6 ensures that this compensation is in addition to any pay in lieu of furlough. Section 10 allows for voluntary retirements under certain conditions, granting the same compensation and rights as if the retirement were compulsory. The Act imposes several obligations on the parties involved. For instance, section 5 specifies the calculation and limits of the compensation payable to eligible individuals. Section 7 mandates that compensation under the Act is contingent upon the retiree or discharged individual not claiming additional benefits under other laws. Moreover, section 9 stipulates that any person who has received compensation under this Act must repay a proportionate amount if they are re-appointed to a Commonwealth position. Additionally, section 13 provides that if a member or employee dies before receiving their compensation, it will not form part of their estate but can be paid to their dependants under conditions approved by the Minister. The Act also delineates consequences for non-compliance. Section 11 specifies that the Act does not apply to certain individuals, such as those whose retirement or discharge was due to penalties, unsatisfactory service, inefficiency, or medical unfitness. Section 12 clarifies that compensation is not a right but a free gift by the Commonwealth, thereby limiting its claimability. Furthermore, section 14 appropriates funds from the Consolidated Revenue Fund to cover the compensation, pay in lieu of furlough, removal costs, and pay of excess personnel pending their retirement or discharge. Any failure to adhere to these provisions could result in legal consequences as outlined by the Act.

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Area of Law
Defence Law
Instrument
Act
Concepts
Definitions & Interpretation
Compensation
Commencement Provisions

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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.