Phase 1 of the Remuneration Reform Project (RRP) was to look at the four major allowances:
and to identify a dollar value for all three elements of those allowances:
Using Submarine service allowance as a test case, the ADF presented a submission to the Defence Force Remuneration Tribunal (DFRT). The disability element has a clear dollar value attached and was solely for the disability associated with service. However the Q&S element contained within it an A&R component. The value of the A&R component could not be clearly quantified, as previous allowance cases had not clearly articulated which part(s) of the Q&S element was 'qualification and skill', and which was purely 'attraction and retention'.
The DFRT stated it had difficulty with the arguments presented by the ADF and could find nothing in the 2001 DFRT decision on Submarine service allowance which provided any support for isolating any A&R component.
Therefore, as a result of the DFRT findings, the ADF agreed that the rate of Q&S associated with the four allowances contained an A&R element that could not be separated. On this basis the ADF proceeded with RRP on the understanding that the full Q&S rate for each allowance must be considered for rolling into salary.
Last updated: 22 September 2010