On this page:
- TRADE TRANSFER BONUS
- I have transferred from ARes to a technical trade within RAEME. On completion of my training will I be entitled to the trade transfer bonus?
- How do I apply for the Trade Transfer Bonus and when can I expect to be paid my Trade Transfer Bonus?
- I am a SNCO who has elected to take up the MSBS UFFS and am now wishing to trade transfer. What is the financial ramification if I transfer and as a result, I am reduced in rank to CPL or below?
TRADE TRANSFER BONUS
If you have a question on TTB you would like answered, please use your Chain of Command.
If the Chain of Command cannot answer your questions, address them via email to army.tradetransferteam@defence.gov.au
(insert 'TRADE TFR BONUS QUERY - and member's particulars' on subject line)
Most responses will be available for viewing on this page of the Stay Army website.
Q1. I am currently undertaking a technical trade course. I have transferred from ARes to a technical trade within RAEME.
On completion of my training will I be entitled to the trade transfer bonus?
A. NO. A member must have been in the ARA at the time of applying for a Trade transfer.
Q2. How do I apply for the Trade Transfer Bonus and when can I expect to be paid my Trade Transfer Bonus?
A. A member of the ARA who completes a Trade Transfer is entitled to apply for the bonus on arrival at their trade school.
Once the CO has signed off on the member's eligibility, the application is to be sent through their orderly room to DEFPAC.
Once the application has arrived at DEFPAC you can expect to wait for up to two pay periods before payment is made.
It is recommended that once an application has been sent to DEFPAC, members should monitor their Pay Slips within PMKeyS Self Service.
Q3. I am a SNCO who has elected to take up the MSBS UFFS and am now wishing to trade transfer.
What is the financial ramification if I transfer and as a result, I am reduced in rank to CPL or below?
If a member at the rank of SGT accepts the MSBS retention benefit and subsequently applies for a trade transfer (
which involved a reduction in rank to CPL) during his UFFS period, he would be required to repay the outstanding amount of the MSBS benefit.
This is because Section 40(1) of the MSBS Act states:
If, before the end of the period of prospective service of a member to whom retention benefit has been paid:
- the member cease to be an eligible member while continuing to render continuous full time service in the Defence Force ; or
- the member:
- being officer, resigns from officer; or
- being a sailor, soldier or airman, is discharged on request; or
- the service of the member is terminated for a prescribed reason;
the member is liable to pay the Commonwealth an amount worked out using the formula
Section 30 (1) defines an Eligible Member
"Eligible member" means a member who is a member of the Permanent Forces and is:
- an officer holding a rank not lower than:
- if the officer is in the Navy - Lieutenant Commander;
- if the officer is in the Army - Major; or
- if the officer is in the Air Force - Squadron Leader; or
- an officer (other than an officer referred to in paragraph (a) who, immediately before becoming an officer, was a sailor, soldier or airman (as the case may be); or
- a chaplain who is entitled to be paid salary at a rate that is not less than the minimum rate at which salary is payable to an officer in the Army holding the rank of Major; or
- a sailor holding a rank not lower than Petty Officer; or
- a soldier or an airman holding a rank not lower than Sergeant; or
- a person declared in writing, by the Minister to be an eligible member.
The effect of Section 40(1) and the definition of eligible member in Section 30 (1) is that a member who is reduced in rank from SGT to CPL ceases to be an eligible member and is therefore required to repay a pro-rata portion of the Retention Benefit.
The reasoning behind this clause was to protect the scheme from situations where members were reduced in rank or terminated for disciplinary reasons and it did not necessarily consider the effect of reduction in rank for other reasons.
