GRS changes

Housing Assistance

Defence is proud of the employment package it offers ADF members and is committed to continually improving and refining that offer to be even better. Recent reforms to Defence's employment offer place housing assistance as one of its most attractive parts. Most recently, the Group Rent Scheme (GRS) has been updated to keep pace with the Australian rental market.

If Defence is to continually improve its employment offer for ADF members, then the right balance must be found for all parts of the offer. This ranges from health benefits and skilling opportunities, through to offering competitive housing options. The GRS changes and associated rent contribution increases are an important element in finding that balance.

Key Points

° The 2009 rent contribution increase will take effect from 23 July and will be reflected in members’ Salary Variation Authority on payday 6 August.

° The 2010 increase will occur during the March-April timeframe.

° Adjustments for future years will also occur during March-April.

Why the change?

It is a long standing policy for Defence to subsidise 50% of the national cost of members’ rent. Defence is currently subsidising more than the intended 50%, and the aim of the GRS changes is to assist Defence in achieving the 50% target.

In January each year Defence Housing Australia adjusts the rents charged to Defence in line with the rental market in each posting location. In the past, the resulting adjustment in the GRS was not passed on to members by Defence until October or November each year, with this lag contributing to the increase in the Defence subsidy.

What's changing now?

The 2009 GRS contribution increase will take effect from 23 July instead of November. The member contributions increase is equal to half of the average increase in market rent for residences in each rent band, with Defence paying the other half of the rent increase.

As part of the 2009 GRS changes, the higher Choice Contribution Scheme (CCS) will also increase.

Reminder – the CCS, introduced in 2007, determined that ADF members are responsible for the additional costs of choosing a residence above their rent band entitlement. The CCS does not apply to members who are allocated a residence in a higher rent band because no housing is available at their entitlement.

What's changing later?

From 2010, adjustments to GRS contributions will occur during the March-April timeframe. This minimises the time between the changes to the rents paid by Defence and the consequential adjustment of ADF members’ contribution towards their rental costs.

Additionally, from next year Defence will start actively working towards achieving its 50% rent contribution target.

Contact Us

Policy related queries can be sent to Defence at GRS.Policyinquiry@defence.gov.au.

Related information

· See: PACMAN Chapter 7 - Contents for rates, expect HPAS – Chapter 6 Part 2 Division 1

· Pay and Conditions homepage

Last updated: 7 June 2009