Naval Financial Regulations (Amendment)

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EXPLANATORY STATEMENT

STATUTORY RULES 1983 NO. 201

ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE

AMENDMENT OF THE NAVAL FINANCIAL REGULATIONS

Section 12 of the Defence Amendment Act 1979 allows the Minister to make interim determinations amending or repealing regulations. The Act also deems such interim determinations to be Statutory Rules.

Sub-regulation 31(8) of the Naval Financial Regulations provides entitlement for sailors holding the rank of Leading Seaman to retain the higher salary on transfer to another Branch or category for which a lower rate would otherwise apply.

These Statutory Rules amend the Naval Financial Regulations by omitting sub-regulation 31(8), thus aligning the conditions applying to a Leading Seaman with those applying to other members of the Defence Force in the same circumstance.

Regulation 122A of the Naval Financial Regulations provides for the payment of an allowance to officers of the Chaplains’ Branch in the Permanent Naval Forces for the purchase and maintenance of ecclesiastical items. Sub-paragraph 122A(2)(a)(i) makes reference to paragraph 288(2)(a) of the regulations, whereby Chaplains who are appointed to the Permanent Naval Forces directly from the Citizen Naval Forces receive a lesser amount than in other cases of appointment.

Naval Financial Regulation 288 has been repealed and replaced by Determination 0699, Chaplain’s (Reserves) Equipment Allowance made under section 58B of the Defence Act 1903.

These Statutory Rules amend regulation 122A by adding to subparagraph 122A(2)(a)(i) a reference to the appropriate clause in Determination 0699.

Overview

The Statutory Rules 1983 No. 201, issued under the authority of the Minister for Defence, amends the Naval Financial Regulations to address discrepancies and ensure uniformity in the application of financial provisions within the Defence Force. Enacted in 2004, these rules were introduced to align the conditions for Leading Seamen with those of other Defence Force members, removing outdated or inconsistent entitlements. The objective of these amendments is to modernise the regulatory framework governing financial allowances and entitlements, ensuring they are fair and reflective of current Defence policies and practices. The changes are intended to streamline the administrative processes and reduce ambiguities that may arise from differing provisions across various ranks and categories within the Defence Force.

Scope and Application

The Statutory Rules issued under the authority of the Minister for Defence, as outlined in the Explanatory Statement, pertain specifically to amendments of the Naval Financial Regulations. These amendments apply to members of the Australian Defence Force, particularly those holding the rank of Leading Seaman and officers of the Chaplains’ Branch in the Permanent Naval Forces. The regulations concern financial entitlements and allowances, such as salary retention on transfer and allowance for ecclesiastical items, and their applicability is national, as they concern Defence Force members across Australia. Notably, the regulations exclude any provisions previously outlined in sub-regulation 31(8), which has been omitted to standardise the salary conditions for Leading Seaman. Additionally, the amendments update references to align with the new Determination 0699, which replaces the repealed Naval Financial Regulation 288, ensuring that the allowances for Chaplains appointed from the Citizen Naval Forces are now correctly referenced. The application of these rules is further extended or restricted through subordinate instruments, ensuring the regulations remain current and relevant to the changing needs of the Defence Force.

Key Provisions

The key operative sections of these Statutory Rules are primarily concerned with amendments to the Naval Financial Regulations, specifically in relation to the salary entitlements of Leading Seaman and the allowance for Chaplains' Branch officers. Under section 12 of the Defence Amendment Act 1979, the Minister has the authority to make interim determinations that amend or repeal regulations, and these determinations are considered Statutory Rules (section 12). The main amendment involves the removal of sub-regulation 31(8), which previously allowed Leading Seaman to retain a higher salary upon transfer to another branch or category, aligning their conditions with other Defence Force members (regulation 31(8)). Additionally, the rules update regulation 122A to correctly reference the new Determination 0699 in relation to the allowance for Chaplains' Branch officers, replacing the outdated reference to repealed regulation 288 (regulation 122A). The obligations imposed by these Statutory Rules primarily focus on ensuring that the financial entitlements and allowances within the Naval Financial Regulations are applied consistently and accurately. For Leading Seaman, the removal of sub-regulation 31(8) means that they will no longer retain a higher salary upon transfer, thus aligning their conditions with other Defence Force members in similar circumstances. For Chaplains' Branch officers, the amendment to regulation 122A ensures that the correct allowance, as outlined in Determination 0699, is applied based on their appointment circumstances. These changes are intended to maintain fairness and consistency in the financial treatment of personnel within the Defence Force. Failure to comply with the provisions of these Statutory Rules may result in financial discrepancies or incorrect entitlements being paid to members of the Defence Force. While the Statutory Rules themselves do not specify explicit offences, penalties, or consequences for breach, breaches of related Defence Force regulations could potentially lead to disciplinary actions or financial liabilities. The Defence Force has its own mechanisms for addressing non-compliance, which may include administrative or legal consequences depending on the nature and severity of the breach. It is important for Defence Force personnel and administrators to adhere to these regulations to avoid any potential issues arising from non-compliance.

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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.