Group Rent Scheme and Living-in Accommodation 2011 update

Living in Accommodation

Table 1 - GRS fortnightly contributions effective from 12 May 2011

Table 2 - Fortnightly Living-in Accommodation Contributions with Effect 12 May 2011

The Group Rent Scheme (GRS) defines the contributions for housing that ADF members pay towards their housing.  The scheme is reviewed and updated annually to keep peace with the Australian rental market. 

The rents paid to Defence Housing Australia by Defence are calculated on the basis of independently assessed market rents across Australia which are updated annually on 1 January.  It is a long standing policy that Defence should subsidise 50 per cent of the national cost of housing for ADF members and their families. 

In past years the level of subsidy provided by Defence has increased due to greater than expected fluctuations in the Australian housing market.

The CDF and Secretary have decided that this year’s GRS update will correct the imbalance of the housing subsidy Defence provides for members in Rent Bands 2 and 3.  The oversubsidisation for CPL(E) and lower in Rent Band 1 will be corrected over a two year period in the annual adjustments for 2011 and 2012.  In 2010, Rent Bands 4 and 5 (COL(E) and above) were adjusted to achieve 50% subsidy, as were SGT(E), SSGT(E), 2LT(E) and LT(E) in Rent Band 1. 

This year’s contribution increase (see table 1) will take effect on 12 May 2011, with the change reflected in members’ net salary on payday 26 May 2011.

The contribution by members occupying Group 1A and A housing will also be adjusted, but will remain lower than the Rent Band 1 contribution, as this older or lower-amenity housing is being phased out of service.

Living in Accommodation

The 2011 Living-in Accommodation (LIA) adjustment is planned to occur at the same time as the annual GRS adjustment on 12 May 2011, based on a 12 month index from 1 January 2010 to 31 December 2010.  A revaluation of LIA stock is conducted every 3 years by the Australian Valuation Office to ‘re-baseline’ the contribution rates.  Contribution rates are adjusted annually in the intervening years using an index created by the Australian Valuation Office for this purpose.

The index provided by the Australian Valuation Office for the 2011 adjustment is 2.75%, reflecting changes in market rents for this type of accommodation.  This adjustment (see table 2) will be reflected in members’ pay on 26 May 2011.

Table 1 - GRS fortnightly contributions effective from 12 May 2011

Classification of Housing		Rank group	Current 3 b/room rate per fortnight	Current Subsidy Percentage	New 3 b/room rate per fortnight	New Subsidy Percentage	Dollar increase
Rent band	Group
1	B1	Corporal or lower	$370.84	56.79%	$410.42	53.32%	$39.58
1	B1	Lieutenant, Second Lieutenant, Staff Sergeant, Sergeant	$429.85	50.00%	$439.58	50.00%	$9.72
2	B2	Captain, Warrant Officer Class 1, Warrant Officer Class 2	$489.58	52.39%	$517.44	50.00%	$27.86
3	C	Lieutenant Colonel, Major	$546.07	53.31%	$609.62	50.00%	$63.56
4	D	Brigadier, Colonel	$712.74	50.00%	$734.10	50.00%	$21.36
5	E	Major General and above	$1,123.26	50.00%	$1,125.95	50.00%	$2.69

Table 2 - Fortnightly Living-in Accommodation Contributions with Effect 12 May 2011

Rank	$ per fortnight	Level 1	Level 2	Level 3	Level 4	Level 5
Major or higher	Current	102.90	115.54	161.02	177.24	232.18
	New	105.73	118.72	165.45	182.12	238.55
	$ Increase	2.83	3.18	4.43	4.88	6.37
Captain or lower officer rank	Current	102.90	115.54	161.02	177.24	193.48
	New	105.73	118.72	165.45	182.12	198.80
	$ Increase	2.83	3.18	4.43	4.88	5.32
Sergeant or higher non-commissioned rank, Warrant Officer	Current	91.56	103.40	145.60	169.54	193.48
	New	94.08	106.24	149.60	174.20	198.80
	$ Increase	2.52	2.84	4.00	4.66	5.32
Corporal or lower	Current	80.90	86.72	132.02	158.20	184.40
	New	83.13	89.10	135.64	162.55	189.46
	$ Increase	2.23	2.38	3.62	4.35	5.06

Related information

· Defence Determination 2011/16 – Review of housing and accommodation contributions and allowances – amendment

· Defence Determination 2011/17 – Contribution for living-in accommodation – amendment

Note: the above Determinations do not take effect until 12 May 2011.

· Pay and Conditions homepage

Last updated: 31 March 2011