2009 Annual review of Living-in Accommodation contributions
The 2009 adjustment of ADF members’ contributions for living-in accommodation (LIA) was announced by all-unit signal on 16 October 2009. The planned adjustment to member contributions for LIA in 2008 was deferred to this year, pending completion of a revaluation of LIA.
Defence is proud of the employment offer package it provides to ADF members and is committed to continually improving and refining that offer. Housing assistance is an important benefit offered to ADF members, with the quality of LIA provided for members who live-in being progressively improved through new construction and refurbishment programs. The 2009 update of LIA contributions forms part of an ADF member’s housing assistance, with the adjustment showing both decreases and increases in the rent valuation.
Basis for adjustment living-in accommodation contributions
In 2006, the Defence People Committee agreed that ADF members will pay a contribution for their LIA based on a proportion of the market rent they would pay for similar accommodation in the private sector. This method was re-confirmed by the Defence People Committee in September 2009.
Members occupying Level 3, 4 or 5 LIA pay 50% of the nationally assessed average market rent. Members in Level 1 or 2 LIA pay 40% of the nationally assessed average market rent, recognising the age and lower quality of this accommodation.
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 2008 revaluation of LIA was completed in 2009. This revaluation has identified both increases and decreases in the rental value of different levels of LIA. As a result, member contribution rates have increased or decreased according to the level of accommodation occupied, in line with the new valuations.
What’s changing now
Contributions for LIA Levels 1 and 2 are subject to minor adjustment, including some reductions, to reflect realignment with rents for comparable accommodation in the private market.
Contributions for LIA Levels 3, 4 and 5 are subject to increases as a result of the significant rental growth for comparable private accommodation, above the level of indexation used to adjust contributions in 2006 and 2007. The value of accommodation provided has also risen as a result of construction and refurbishment on several establishments, delivering higher quality accommodation.
The date of effect for the revised member contributions is 26 November 2009. The new rates will be reflected in members’ pay on 10 December 2009.
The revised rates of contribution with effect 26 November 2009 are shown below.
Future changes
The Defence People Committee has decided that the LIA contribution adjustment cycle will be brought into line with timing of the Group Rent Scheme (GRS) adjustments for Service residences. As a result, the next LIA indexation adjustment will occur in July-August 2010. A further indexation adjustment will occur at the same time as the annual GRS adjustment in March-April 2011.
The next revaluation of LIA will be conducted in late 2011 for adjustment of LIA contribution rates in March-April 2012.
Workplace Remuneration Arrangement 2009-2011
Accommodation contributions are considered separately to the across the board pay increases provided under the Workplace Remuneration Agreement (WRA).
The current WRA expires on 3 November 2009. The proposed WRA is now scheduled to be heard by the Defence Force Remuneration Tribunal on 28 October 2009. If approved, the WRA is planned to commence in November 2009 and will deliver 6.2% over two years via two instalments, the first of 3.5% in November 2009 and the second of 2.7% in November 2010.
|
Item |
If the member's |
and they are sharing with… |
then their contribution to living-in accommodation each week is ($)… |
||||
|
Level 1 |
Level 2 |
Level 3 |
Level 4 |
Level 5 |
|||
|
1. |
Major or higher |
‑ |
47.20 |
53.00 |
73.87 |
81.73 |
106.50 |
|
2. |
Captain or lower officer rank (other than trainee) |
no-one |
47.20 |
53.00 |
73.87 |
81.73 |
88.75 |
|
one other person |
23.60 |
26.50 |
36.93 |
40.86 |
44.38 |
||
|
two other people |
15.73 |
17.67 |
24.62 |
27.24 |
29.58 |
||
|
three other people |
11.80 |
13.25 |
18.47 |
20.43 |
22.19 |
||
|
four or more other people |
nil |
||||||
|
3. |
Sergeant or higher non-commissioned rank, Warrant Officer |
no-one |
42.00 |
47.43 |
66.79 |
77.35 |
88.75 |
|
one other person |
21.00 |
23.71 |
33.39 |
38.68 |
44.38 |
||
|
two other people |
14.00 |
15.81 |
22.26 |
25.78 |
29.58 |
||
|
three other people |
10.50 |
11.86 |
16.70 |
19.34 |
22.19 |
||
|
four or more other people |
nil |
||||||
|
4. |
Corporal or lower |
no-one |
37.11 |
39.78 |
60.56 |
72.57 |
84.59 |
|
one other person |
18.56 |
19.89 |
30.28 |
36.29 |
42.29 |
||
|
two other people |
12.37 |
13.26 |
20.19 |
24.19 |
28.20 |
||
|
three other people |
9.28 |
9.94 |
15.14 |
18.14 |
21.15 |
||
|
four or more other people |
nil |
||||||
|
5. |
Trainee Exception: Normal entry recruit during basic recruit training |
no-one |
37.11 |
||||
|
one other person |
18.56 |
||||||
|
two other people |
12.37 |
||||||
|
three other people |
9.28 |
||||||
|
four or more other people |
nil |
||||||
|
6. |
Normal entry recruit during basic recruit training |
any |
nil |
||||
· ADF & APS Pay and conditions homepage
Last updated: 19 October 2009