EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 215
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
NAVAL FINANCIAL REGULATIONS (AMENDMENT),
The Naval Financial Regulations, made under the Naval Defence Act 1910, prescribe certain financial conditions of service for members of the Navy.
Background
Regulations 303 and 304 of the Naval Financial Regulations prohibited the making of deductions from, or the assignment or charging of, Navy members’ remuneration unless authorized by an Act or Regulation. These regulations derived from a provision of 19th century British law which, presumably, was intended to protect the pay of the poorly paid and ill-educated servicemen of that era.
The need for this protection arose from a common law rule which precluded servicemen from suing for money due in respect of service. This latter rule, which was modified by section 12 of the Defence Act 1903 to provide former Defence Force members with a right of action in respect of such money, applied to Defence Force members
until section 117B was inserted into the Defence Act 1903 by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985 (which also, inter alia, repealed section 12 of the Defence Act 1903). Section 117B provides both members and former members of the Defence Force with a right of action for the recovery of money due in respect of service.
Naval Financial Regulations (Amendment)
This Statutory Rule repeals regulations 303 and 304 of the Naval Financial Regulations, which are no longer necessary or appropriate. Members are protected against unreasonable attachment of salary by a new section 120B of the Defence Act 1903, also inserted by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985. This section regulates the payment of judgment debts by deductions from salary, and limits recovery to 20% of a member’s net salary each pay day.
Commencement
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Naval Financial Regulations (Amendment) Statutory Rule 1985 was enacted to modernise the financial conditions of service for Navy members by amending the Naval Financial Regulations made under the Naval Defence Act 1910. This change addresses the outdated provisions in regulations 303 and 304 which prohibited deductions from, or the assignment or charging of, Navy members’ remuneration unless authorised by an Act or Regulation. These provisions stemmed from a 19th-century British law designed to protect the pay of poorly paid and ill-educated servicemen. The need for such protection arose from a common law rule that prevented servicemen from suing for money due in respect of service, a limitation that was eventually modified and ultimately superseded by section 117B of the Defence Act 1903, inserted by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985. This new section 120B provides both current and former Defence Force members with a right to recover money due in respect of service, and regulates the payment of judgment debts by limiting recovery to 20% of a member’s net salary each payday, thus rendering the previous regulations unnecessary.
Scope and Application
The Naval Financial Regulations (Amendment) Statutory Rule 1985 No. 215, issued under the authority of the Minister for Defence, amends the Naval Financial Regulations made under the Naval Defence Act 1910. These regulations primarily concern the financial conditions of service for members of the Navy. The amendment repeals regulations 303 and 304, which previously prohibited deductions from, or the assignment or charging of, Navy members’ remuneration unless authorised by an Act or Regulation. The repeal reflects the changes in circumstances since the original regulations were enacted, notably the introduction of section 120B of the Defence Act 1903, which now protects members against unreasonable attachment of salary by regulating the payment of judgment debts through deductions from salary and limiting recovery to 20% of a member’s net salary each pay day. The amendment is effective from the date of its gazettal, aligning the regulations with contemporary legislative standards and member protections.
Key Provisions
The key operative sections of this legislation are the repeal of regulations 303 and 304 of the Naval Financial Regulations (sections 2 and 3). These regulations, previously prohibiting deductions from, or assignments or charges on, the remuneration of Navy members without specific authorisation, are being repealed as they are considered outdated and unnecessary given the current legal protections available under section 120B of the Defence Act 1903. This new section, introduced by the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985, safeguards members against unreasonable salary deductions by limiting the recovery of judgment debts to 20% of the member’s net salary each payday.
The repeal of regulations 303 and 304 does not leave a vacuum in the protection of Navy members' remuneration. Instead, it relies on the existing framework provided by section 120B of the Defence Act 1903, which ensures that members are not subject to arbitrary or excessive deductions from their pay. This shift indicates a confidence in the adequacy of the current legal protections for service members’ financial interests. The legislation thus imposes a new set of obligations on the parties involved, ensuring that any deductions from a Navy member’s salary are conducted in accordance with the provisions of section 120B, which explicitly limits the recovery of judgment debts.
There are no specific offences, penalties, or civil/criminal consequences outlined in the text for the breach of the provisions in this Statutory Rule. However, the existing framework under section 120B of the Defence Act 1903 would apply in the event of any non-compliance. Under this section, any entity or individual making unauthorised deductions from a Navy member’s salary could potentially face legal action for breach of the salary protection provisions, as the member has a right of action for the recovery of money due in respect of service. The penalties for such actions would be determined by the courts, taking into account the specific circumstances of the breach and the extent of the financial harm caused to the member. The clear statutory protections provided by section 120B ensure that any unauthorised deductions are subject to legal scrutiny and potential redress.