Remunerating our People
Defence remuneration is underpinned by a legal framework which provides separate mechanisms for setting pay and conditions for the ADF and Defence civilian employees. The three main Acts relevant to remuneration in Defence are the Defence Act 1903, the Workplace Relations Act 1996 and the Public Service Act 1999.
Basic pay for ADF permanent and reserve members is set in accordance with two documents, the ADF Workplace Remuneration Arrangement and the ADF Star Ranks Arrangement. ADF pay is determined independently by the Defence Force Remuneration Tribunal, which also decides pay-related allowances and work value pay cases for individual categories within the ADF. Other remunerative conditions of service that reflect the special characteristics of military service such as leave, bonuses, locality allowances, housing assistance and deployment allowance, are determined by the delegate of the Minister for Defence under section 58B of the Defence Act 1903. Additional benefits, such as tax exemptions and Veteran's benefits, are established administratively by means of Ministerial declarations for individual warlike and non-warlike operations.
Senior officers who hold statutory offices are paid under Remuneration Tribunal Determinations.
Defence civilian employees are covered by either a collective agreement or individual Australian Workplace Agreements. These are comprehensive agreements which cover the full range of conditions of service and pay for public servants.
Executive Remuneration
Defence Senior Executive remuneration is set out in Note 16 of the Financial Statements.
Main Features of Defence Workplace Arrangements and Agreements
The following tables provide aggregated information on salary, performance pay and non-salary benefits to which Defence people were entitled under workplace remuneration arrangements, Australian Workplace Agreements and certified agreements of the Department of Defence.
Notes:
- SES Bands and Non-SES AWAs salary ranges exclude the DMO.
- Certified Agreement salary ranges include the DMO.
- Includes rates for Science and Academic specialist structures.
- Includes rates for Public Affairs and Legal specialist structures.
- Includes rates for Registered Nurse specialist structures.
- Includes rates for Registered Nurse and Occupational Health Nurse specialist structures.
- Includes rates for Enrolled Nurse specialist structures.
Notes:
- GEN (E) and LTGEN (E) rates are set by the Remuneration Tribunal.
- Includes rates for Medical Officers on specialist structure.
- Includes rates for Chaplains on specialist structure.
- Includes rates for Dental Officers on specialist structure.
- Includes rates for SGT (E) and above previously enlisted.
- Includes rates for Service WO.
Notes:
- Excludes the Secretary who is appointed by the Prime Minister.
- Excludes DMO APS civilian employees.
- Includes ADF members billeted to the DMO.
- Includes ADF Permanent Force and Reservists up to the rank of COL (E).
- Includes ADF Permanent Force and Reservists at the ranks of MAJGEN (E) and LTGEN (E).
- Determined, or a daily rate established, through the Defence Force Remuneration Tribunal.
- Comprises: Chief of the Defence Force, Vice Chief of the Defence Force, Chief of Navy, Chief of Army, Chief of Air Force, Inspector-General ADF and Judge Advocate General whose remuneration is determined through the Remuneration Tribunal (Federal Government).
- Excludes the Registrar of Military Justice and the Director of Military Prosecutions. Occupants of these positions were formally appointed after the reporting period.
Notes:
- Subject to performance, employees may be entitled to a higher pay point within the salary band for their classification. This salary advancement is not considered performance pay. Employees at the top of their classification's salary band may, subject to performance, receive a lump-sum payment of the greater of $500 or one per cent of the employee's rate of pay (adjusted for part-time hours, if applicable). As this lump-sum payment does not affect the employee's nominal salary, it is considered performance pay.
- The data in this table represents employees who were paid performance pay at any point during 2005–06. The DMO's APS Performance Pay is reported separately in Volume Two—the Defence Materiel Organisation.
- As at 30 June 2006 no performance bonuses had been paid to Defence Senior Executive Service staff in 2005–06 (excluding the DMO).
- The relatively low number of EL1 staff who received 'performance pay' is due to the increase of the EL1 pay range. The majority of eligible EL1 employees who were on the top of the EL1 pay band on 3 November 2005 received an increase to their substantive rate of pay in the form of performance progression (ie not performance pay) with effect from 3 November 2005.
- Includes three employees on Australian Workplace Agreements who received a performance bonus.
Notes:
- Non-salary benefits are dependent upon eligibility criterion and may not be available to all employees.
- Excludes Senior Executive Service and non-Senior Executive Service employees on Australian Workplace Agreements in the DMO.
