Military Financial Regulations (Amendment)

Overview

The Statutory Rules 2004 No. 53, issued under the authority of the Minister for Defence, amend the Military Financial Regulations to repeal regulation 149A, which previously provided for the payment of an allowance to Army members who sold their motor vehicles at a loss when posted overseas. This repeal is due to the replacement of regulation 149A by Determination 2002, made under section 58B of the Defence Act 1903. The Defence Amendment Act 1979 allows the Minister to make interim determinations amending or repealing regulations, and these determinations are deemed to be Statutory Rules. The policy objective behind these changes is to streamline and modernise the allowance provisions for military personnel, ensuring they are appropriately compensated for financial losses incurred during overseas postings.

Scope and Application

The Statutory Rules issued under the authority of the Minister for Defence, amending the Military Financial Regulations, specifically address the payment of allowances to Army members who sell their motor vehicles at a reduced price due to overseas postings. These rules apply to members of the Australian Army who are posted overseas for duty and subsequently sell their motor vehicles at prices lower than their market value as a result of their relocation. The amendment is necessary because the original regulation, 149A, has been repealed and replaced by Determination 2002, which was made under section 58B of the Defence Act 1903. The repeal and replacement aim to streamline the regulatory process and ensure that the allowance is administered more effectively. The effect of these rules is immediate from the date Determination 2002 is made, and they are intended to provide clarity and continuity in the provision of allowances to affected members.

Key Provisions

The primary operative sections of the Statutory Rules (C2004L05340) involve the repeal of Regulation 149A of the Military Financial Regulations (paragraph 1). This repeal is made under the authority granted by section 12 of the Defence Amendment Act 1979, which allows the Minister to make interim determinations that amend or repeal regulations. Regulation 149A, which previously provided for the payment of an allowance to Army members who sold their motor vehicles at a loss due to overseas postings, is no longer in effect as of the date Determination 2002 comes into force. This determination, made under section 58B of the Defence Act 1903, replaces the previous regulation. The Act imposes certain obligations on the relevant parties. Firstly, it mandates the cessation of any payments that were previously made under Regulation 149A (paragraph 2). The repeal of this regulation means that Army members who sell their motor vehicles at a loss due to overseas postings are no longer eligible for the allowance under the old regulation. Instead, they must now refer to Determination 2002 for any applicable benefits or compensations. This determination outlines the new procedures and criteria for claiming any loss on the sale of a motor vehicle due to overseas posting. In terms of consequences for non-compliance, the Statutory Rules do not explicitly outline specific offences or penalties for breach (paragraph 3). However, it is implied that adherence to the new Determination 2002 is mandatory for all parties involved. Failure to follow the new guidelines or to cease payments under the repealed Regulation 149A could lead to administrative or legal repercussions. These could include audits or investigations into the financial practices of the Defence Force, and potentially, disciplinary action against individuals or entities that do not comply with the new regulatory framework. Additionally, while the Statutory Rules do not detail specific penalties, breaches of related Defence Acts or determinations could result in civil or criminal consequences (paragraph 4). For example, under the Defence Act 1903, there may be provisions for fines or other penalties for non-compliance with Defence-related regulations. The exact penalties would depend on the specific nature of the breach and the applicable legal provisions. Overall, the Statutory Rules establish a clear transition from Regulation 149A to Determination 2002, ensuring that all parties are aware of the changes and the new requirements that must be adhered to in relation to the sale of motor vehicles by Army members posted overseas.