|
TAX ALERT: PACMATE Annex 3.A, item 18A. |
3.5.44A Purpose
3.5.44B Effective
service
3.5.44C Members
this Division applies to
3.5.44D Members
this Division does not apply to
3.5.44E Bonus
offers
3.5.44F Acceptance
3.5.44G Entitlement
to retention bonus
3.5.44H Advance in
qualification level
3.5.44I End
of entitlement to bonus
3.5.44J Retention
bonus repayment
3.5.44K Member not
required to repay
|
|
This Division provides a retention bonus for sailors in the Navy Marine Technical and Electronics Technical employment categories in the Navy. The payment is designed to encourage members to stay in these categories and to assist them to gain further qualifications. |
|
1. |
For the purpose of this Division, effective service means service that meets all these conditions. |
|
|
|
a. |
It is continuous full time service. |
|
|
b. |
It is paid. Exception: Unpaid leave of less than 21 calendar days. |
|
|
c. |
It is not ineffective service under subclauses 2 or 3. |
|
2. |
Leave or other events may not be effective service. This table shows what events will have an effect. |
|
|
Item |
Activity |
Effect |
|
1. |
Part time leave without pay |
The unpaid component of a part-time leave without pay working pattern does not count as effective service.
|
|
2. |
Leave at full pay Examples: Recreation leave, full pay long service leave |
The whole period counts as effective service.
|
|
3. |
Unpaid leave for less than 21 calendar days Examples: Leave without pay, maternity leave without pay |
|
|
4. |
Unpaid leave for 21 calendar days or more Examples: Leave without pay, maternity leave without pay |
The whole period does not count as effective service.
|
|
5. |
Absence without leave |
|
|
6. |
Imprisonment, detention or suspension from duty without pay |
|
|
7. |
Leave at half pay Example: Long service leave at half pay |
Half the period of the leave counts as effective service.
|
|
8. |
An undertaking for further service, under the Military Superannuation and Benefits Act 1991. |
The whole period does not count as effective service. |
|
9. |
A period when the member was discharging another undertaking for further service. Exception: An undertaking for further service associated with a promotion. |
|
|
10. |
A period when the member was discharging another return of service obligation, and Item 11 of this table does not apply. |
|
|
11. |
A period when the member is discharging a return of service obligation, that is associated with relevant training.
In this table, relevant training means professional or trade training that is directly relevant to the member's occupation.
|
For this member, these periods are effective service. a. The period of the training. b. The period of the return of service obligation. |
|
3. |
Periods that are not effective service do not count towards the period the member has agreed to serve under this Division. Example: A member agrees to serve for one year. The member has an undertaking for further service to repay, which has seven months to run. The member serves the undertaking first, and then begins to serve under the scheme. It takes the member one year and seven months to serve a one year commitment. |
|
4. |
Events in items 8, 9, 10 of the table in subclause 2 must be served before an undertaking to serve under this Division. |
|
|
This Division applies to members who meet all these conditions. |
|
|
|
a. |
They have completed the initial minimum period of service (IMPS). This is defined in Determination 12A, made by the Chief of Navy under sub-regulations 90(6), 90(7), 91(2), 97(3), 97(6) and 98(2) of the Defence (Personnel) Regulations 2002. Related Information: Determination 12A can be found in Defence Instruction (General) 33–5, Arrangements for service in the Australian Defence Force |
|
|
b. |
They hold any of the ranks listed for an employment category in this table. |
|
Item |
Rank |
Category |
|
1. |
Warrant Officer |
Electronics Technical |
|
2. |
Chief Petty Officer |
|
|
3. |
Petty Officer |
|
|
4. |
Warrant Officer |
Marine Technical |
|
5. |
Chief Petty Officer |
|
|
6. |
Petty Officer |
|
|
7. |
Leading Seaman |
|
|
8. |
Able Seaman |
|
|
c. |
They are entitled to salary for a pay category described as Marine Technical or Electronics Technical in Schedule B.11 Part 1 of DFRT Determination No. 15 of 2008, Salaries. See: Schedule 3.B.11 Part 1, Other Rank pay grades |
|
|
This Division does not apply to a member who is in any of these situations. |
|
|
|
a. |
They are serving an initial minimum period of service. |
|
|
b. |
They are commissioned as an officer. |
|
|
c. |
They are receiving a completion bonus under Chapter 3 Part 5 Division 4A. Related Information: Chapter 3 Part 5 Division 4A, Navy—Electronics Technical (junior sailor) |
|
1. |
The CDF may offer a retention bonus to an eligible member. |
|
2. |
The offer must be made in the form at Annex 3.5.F, Part A. |
|
3. |
The offer may be for a year, or for a lesser period. |
|
4. |
Offers under subclause 1 may be made more than once. Example: The CDF offers a member a bonus for a retention period to start 1 November 2005. Later the CDF offers the same member another bonus for a second retention period, to start 1 November 2006. |
|
Persons who can make the decision under subclause 3.5.44E.1 on behalf of the CDF: Director Navy People Career Management Agency |
|
1. |
The member may accept an offer by taking both of these actions. |
||
|
|
a. |
Signing the form at Annex 3.5.F, Part B, within one of these periods. |
|
|
|
i. |
Four weeks after receiving the offer. |
|
|
|
ii. |
If the member is deployed, six months after receiving the offer. |
|
|
|
b. |
Providing the signed form to CDF. |
|
|
2. |
If the member accepts, the member is taken to have accepted the offer on the date the offer is made. |
||
|
3. |
In accepting the offer, the member is agreeing to serve as an eligible member under this Division. |
|
Persons who can make the decision under p Director Navy People Career Management Agency |
|
1. |
A member who accepts an offer is entitled to a retention bonus. |
|
|
2. |
The retention bonus has these features. |
|
|
|
a. |
The member is entitled to an amount of bonus when the member accepts the offer. |
|
|
b. |
The amount of the bonus depends on the rank and level of qualification held by the member. |
|
|
c. |
The amount of the bonus depends on whether the offer is for a full year, or for a part year. |
|
3. |
This subclause applies when a member has been offered a full year of bonus. The amounts of retention bonus the member is entitled to are set out in this table. |
|
|
Item |
A member who is... |
and who... |
is entitled to... |
|
1. |
an Able Seaman Marine Technical |
holds either of these qualifications:
1. Marine Systems Controller Certificate (MSC) (reference P100593) 2. Machinery Watchkeeping Certificate (MWC) (reference P001446)
|
$5,000 a year. |
|
2. |
a Leading Seaman Marine Technical |
||
|
3. |
a Petty Officer Marine Technical |
||
|
4. |
a Petty Officer Electronics Technical |
does not hold Electronics Technical Certificate of Competence (reference P001875) |
$7,500 a year. |
|
5. |
an Able Seaman Marine Technical |
holds either of these qualifications:
1. Marine Systems Manager (MSM) Certificate (reference P100594) 2. Engine Room Watchkeeping Certificate Common (ERWC) (reference P001321)
|
|
|
6. |
a Leading Seaman Marine Technical |
||
|
7. |
a Petty Officer Marine Technical |
|
Item |
A member who is... |
and who... |
is entitled to... |
|
8. |
a Petty Officer Marine Technical |
holds Marine Technical Charge Certificate (reference P001877) |
$10,000 a year. |
|
9. |
a Petty Officer Electronics Technical |
meets either of these conditions:
1. the member has seniority of 30 March 2001 or later 2. the member holds Electronics Technical Certificate of Competence (reference P001875)
|
|
|
10. |
a Chief Petty Officer Electronics Technical |
... |
|
|
11. |
a Warrant Officer Electronics Technical |
||
|
12. |
a Chief Petty Officer Marine Technical |
||
|
13. |
a Warrant Officer Marine Technical |
|
4. |
This subclause applies when a member has been offered a bonus for a part year. The member's retention bonus is worked out under this table. |
|
Step |
Action |
|
1. |
Work out the number of calendar days in the offer period. |
|
2. |
Divide the outcome of Step 1 by 365. |
|
3. |
Find the bonus the member would have been paid, had they been offered a bonus for a full year. (See: Subclause 3) |
|
4. |
Multiply the outcomes of Step 2 and Step 3. |
|
5. |
The member may be paid the outcome of Step 4. |
|
|
Example: A Chief Petty Officer Marine Technical is offered a bonus for the period from 13 December 2006 to 31 October 2007. Step 1 = 323 days Step 2 = 323/365 = 0.884931 Step 3 = $10,000 Step 4 = $8,849.31 The member may be paid $8,849.31. |
|
1. |
A member may gain a higher qualification during a year for which they have made an undertaking. |
|
2. |
If that qualification would place the member in a different item under the table in subclause 3.5.44G.3, the member is entitled to an additional amount of bonus for the rest of the year. |
|
3. |
The bonus is worked out under this table. |
|
Step |
Action |
|
1. |
Work out the number of calendar days in this period. a. The period starts on the first day of the period of the member's current offer. b. The period ends on the day before the member gained the qualification.
|
|
2. |
Subtract any periods of ineffective service in that period. See: Clause 3.5.44B, Effective service |
|
3. |
Subtract the outcome of Step 2 from the number of calendar days in the period of the member's current offer.
|
|
4. |
Divide the outcome of Step 3 by the number of calendar days of the period of the member's current offer.
|
|
5. |
Work out the difference between these amounts. 1. The retention bonus amount the member was last paid. 2. The amount of the retention bonus that would apply for the member's new qualification. This amount can be found in the table in subclause 3.5.44G.3. Exception: If the member is serving a part year of service, and was paid a part bonus, the amount for the member's new qualification should be adjusted using the method in subclause 3.5.44G.4. |
|
6. |
Multiply the outcomes of Step 4 and Step 5. |
|
7. |
The member may be paid the outcome of Step 6. |
|
|
Example: A member joins the scheme with a Marine Systems Controller Certificate on 1 November 2005. The member is paid a $5,000 bonus. The member joins the scheme for a full year. On 1 June 2006 the member qualifies as Marine Systems Manager. The member had no days that were not effective service between 1 November 2005 and 1 June 2006. The member's bonus is worked out as follows. |
|
Step |
Action |
|
1. |
There are 212 days between 1 November 2005 and 31 May 2006.
|
|
2. |
The member had no ineffective service between 1 November 2005 and 31 May 2006 . |
|
3. |
There are 365 days in the member's current period of offer. 365 – 212 = 153
|
|
4. |
153/365 = 0.41918
|
|
5. |
As a member with a Marine Systems Controller Certificate, the member was paid a $5,000 bonus. A Marine Systems Manager earns a $7,500 bonus. The difference between them is $2,500. |
|
6. |
0.41918 x $2,500 = $1,229.50
|
|
7. |
The member may be paid $1,229.50. |
|
4. |
The member may use the form at Part D of Annex 3.5.F to seek an adjustment under this clause. |
|
|
The member's entitlement to a bonus under this Division ends when they meet any of these conditions. |
|
|
|
a. |
They stop serving in a pay category described as Marine Technical or Electronics Technical (sailors) in Part 1 of Schedule B.11 of DFRT Determination No. 15 of 2008, Salaries. |
|
|
b. |
They are commissioned as an officer. |
|
|
See: Schedule B.11, Other Rank pay grades |
|
|
1. |
This clause applies to a member who takes one of these actions. |
|
|
|
a. |
The member stops serving in a pay category described as Marine Technical or Electronics Technical in Part 1 of Schedule B.11 of DFRT Determination No. 15 of 2008, Salaries. |
|
|
b. |
The member leaves the ADF. |
|
|
Exceptions: See Clause 3.5.44K, Member not required to repay See: Part 1 Schedule B.11, Other Rank pay grades |
|
|
2. |
The member must repay a part payment of their retention bonus. This table shows how it is worked out. |
|
|
Step |
Action |
|
1. |
Work out the number of calendar days in this period. a. The period starts on the first day of the period of the member's current offer. b. The period ends on the day before the member gained left the ADF or left the Marine Technical or Electronics Technical pay categories. |
|
2. |
Subtract any periods of ineffective service in that period. See: Clause 3.5.44B, Effective service |
|
3. |
Subtract the outcome of Step 2 from the number of calendar days of the period of the member's current offer. |
|
4. |
Divide the outcome of Step 3 by the number of calendar days of the period of the member's current offer. |
|
5. |
Multiply the outcome of Step 4 by the amount of retention bonus the member was paid when the member accepted the most recent offer under the scheme. Exception: If the member has since been paid a bonus amount under clause 3.5.44H, Advance in qualification level, multiply the outcome of Step 4 by another amount. This amount is the bonus amount for the member's most recent qualification (see subclause 3.5.44G.3), adjusted using the method in 3.5.44G.4. |
|
6. |
The member must repay the outcome of Step 5. |
|
|
Example: A Warrant Officer Electronics Technical joined the scheme on 1 November 2005, for a full year. On 1 March they leave the ADF. The member had no ineffective service.
Step 1 – 1 November to 28 February = 120 days Step 2 – No ineffective service Step 3 – 365 – 120 = 245 days Step 4 – 245/365 = 0.671233 Step 5 – 0.671233 x $10,000 = $6712.33 Step 5 – The member must repay $6712.33. Note: This is a gross amount. |
|
|
A member will not be required to repay an amount if they cannot complete their undertaking for any of these reasons. |
|
|
|
a. |
They die. Note: This means that where a member dies, the member's legal personal representative will not be required to repay the bonus. |
|
|
b. |
They become permanently medically unfit for duty as a member of the Marine Technical or Electronics Technical pay category. This must be for reasons outside the member's control. |
|
|
c. |
They are transferred out of the Marine Technical or Electronics Technical pay category for Service reasons. |
|
|
d. |
They are made redundant or retrenched. |