3.5.195 Purpose
3.5.196 Member
who is eligible for a retention bonus under this Division
3.5.197 Member
who is not eligible for a bonus under this Division
3.5.198 How
to accept the offer of a retention bonus
3.5.199 Service
that counts towards a member's retention bonus
3.5.200 Payment
of the retention bonus
3.5.201 Reasons
for pro rata payment
3.5.202 Calculating
a pro rata repayment of the retention bonus
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The purpose of this Division is to offer a retention bonus to encourage retention of members and reduce shortfalls in critical trades in the Army |
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A member is eligible for a bonus if they meet all of the following conditions. |
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a. |
The member is in the Australian Regular Army. |
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b. |
The member is offered a retention bonus. |
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c. |
The member agrees to provide two years of effective service using the form at Annex 3.5.U. See: Annex 3.5.U, Army – Critical employment category retention bonus |
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d. |
The member is paid salary for a pay grade or a pay group that is described in the following table, and also listed in a Schedule to DFRT Determination No. 15 of 2008, Salaries. |
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Category |
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Pay grade 2 |
Operator,
Petroleum, Grade 1 |
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Pay grade 3 |
Operator,
Petroleum, Grade 2 |
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Operator,
Plant, Grade 1 |
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Technician
Electrical, Grade 1 |
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Technician
Electronic Systems, Grade 1 |
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Pay grade 4 |
Manager,
Petroleum |
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Operator
Electronic Warfare |
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Operator,
Petroleum, Grade 3 |
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Operator,
Plant, Grade 2 |
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Operator,
Plant, Grade 3 |
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Supervisor,
Petroleum |
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Technician Avionics,
Grade 1 |
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Technician
Electrical, Grade 2 |
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Technician
Electronic Systems, Grade 2 |
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Pay grade 5 |
Assistant
Detachment Commander Electronic Warfare |
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Detachment
Commander Electronic Warfare |
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Linguist
Intelligence Special Duties |
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Petroleum,
Specialist |
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Supervisor,
Civil |
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Technician
Avionics, Grade 2 |
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Technician
Electrical, Grade 4 |
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Technician
Electronic Systems, Grade 4 |
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Pay grade 6 |
Artificer
Avionics |
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Assistant
Supervisor Electronic Warfare |
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Linguist Intelligence
Special Duties |
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Supervisor
Electronic Warfare |
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Technician
Electrical Advanced, Grade 2 |
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Technician
Electrical Supervisor, Grade 2 |
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Technician
Electronic Systems (Specialist) |
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Technician
Electronic Systems, Grade 2 |
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Pay grade 7 |
Assistant
Manager Electronic Warfare |
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Supervisor
Electronic Warfare |
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Pay grade 2
(Officer) |
Manager
Electronic Warfare |
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Petroleum
Specialist |
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A member is not eligible to accept the offer of a bonus under this Division if any of the following circumstances apply to them. |
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a. |
The member is a member of the Reserves. This includes a member of the Reserves serving on continuous full-time service |
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b. |
The member has undertaken to perform a period of service for the purpose of Division 7, Army completion bonus scheme – various pay categories. |
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c. |
The member has undertaken to perform a period of service for the purpose of Division 19, Army – Expansion and rank retention and completion bonus. |
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d. |
The member has undertaken to perform a period of service for the purpose of a trade transfer retention bonus. |
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e. |
The member will reach compulsory retirement age before the end of the period of service they must undertake in return for the bonus payment and the member has not applied to have their service extended to cover the period of service required for the bonus. |
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f. |
The member's fixed period of service will end before the end of the period of service they must undertake in return for the bonus payment and the member has not applied to have their fixed period of service extended to cover the period of service required for the bonus. |
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1. |
An eligible member may accept a bonus under this Division any time after they receive an offer, until the latest of the following dates. |
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a. |
Ninety days after the day the offer is made. |
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b. |
If
the member was deployed when the offer under p |
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c. |
A longer period that either the Chief of Army or the Commanding Officer of the Soldier Career Management Agency decides is reasonable, having regard to the member's circumstances. Example: The Chief of Army decides to extend a member's ability to accept the offer because the member is deployed for six months in an area where there is no ability to send an acceptance form. |
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2. |
An acceptance made under this subclause must be on the application form at Parts A to D of Annex 3.5.U. See: Annex 3.5.U, Army – Critical employment category retention bonus scheme |
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1. |
The two years' service the member undertakes to perform in return for the retention bonus must be served as effective service. Note: It will take the member longer than two years to finish their two years of effective service if they spend any time on ineffective service. |
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2. |
For the purpose of a retention bonus under this Division, effective service means service that meets the following conditions. |
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a. |
It is continuous full-time service in the Australian Regular Army. |
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b. |
It is paid. Exception: Unpaid leave of less than 21 calendar days |
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c. |
If it is described in the table in subclause 3, it is counted as effective service in the table. |
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3. |
The following table lists a range of leave types and activities and sets out how a period of that leave or activity counts towards a member's two-year period of effective service. |
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Item |
Activity |
Effect |
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9. |
A period when the member was discharging an initial minimum period of service, a return of service obligation or another undertaking for further service. Exception: An undertaking for further service associated with a promotion.
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See: Clause 3.5.202, Calculating a pro rata repayment of the retention bonus |
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1. |
A retention bonus of $25,000 is payable to an eligible member on receipt of the member's completed acceptance form. |
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2. |
A member who joins the scheme must serve in the Army until they complete two years of effective service under this Division. |
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3. |
The member's two years of effective service commences from whichever of the following dates is relevant. |
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a. |
If the member is offered a bonus for a period of service commencing on a day – that day. |
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b. |
The day that any requirement in the following list ceases to apply to the member, if the requirement applied to the member when they accepted a bonus under this Division. |
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i. |
An undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991 (as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005). |
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ii. |
A return of service obligation. |
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iii. |
An initial minimum period of service. |
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4. |
If the member fails to complete the two years of effective service for a reason not listed in subclause 3.5.201.1, then they must repay a part of the bonus, representing the portion of the two years' effective service that has not been performed, to the Commonwealth. Example: The member leaves the Army to work in the private sector after doing only 12 months' service in return for the retention bonus. They have not done the last 12 months of service and so must repay a portion of the bonus. The member must repay $12,500 of the $25,000 originally paid. |
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1. |
If a member fails to complete their required period of service under a bonus in this Division for any of the following reasons, they will not be required to repay the bonus on a pro rata basis. |
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a. |
The member ceases to serve in Army for a reason that is beyond the member's control. Example: The member reaches compulsory retirement age, the end of a fixed period of service, or is terminated because of medical unfitness. |
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b. |
The member transfers from the Australian Regular Army to the Reserves at Army's initiative.
Authority: Chapter 8 Part 2 Division 2 or 3 of the Defence (Personnel) Regulations 2002. Example: A member reaches compulsory retirement age and leaves the Australian Regular Army after their application to extend service is refused. The member is transferred to the Reserves. The member is eligible for a pro rata bonus. |
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c. |
The member transfers to another trade as a result of a restructure. |
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d. |
The member must leave the employment category, trade or pay grade because they are promoted to a higher rank. |
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2. |
A member will be required to repay the bonus on a pro rata basis if they fail to complete their required period of service for reasons including, but not limited to, any of the following. |
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a. |
The member resigns from the Permanent Force. |
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b. |
The member's service is terminated for disciplinary reasons. |
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c. |
The member voluntarily changes trade. |
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The following table shows how to calculate a pro rata amount of retention bonus repayable to the Commonwealth under subclause 3.5.200.4. |
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Step |
Action |
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1. |
Work out the number of calendar days in the following period. a. The period starts on the day the member is taken to start their undertaking to serve under this Division. (See: Subclause 3.5.200.3) b. The period ends on the day the member ceases to
serve under this Division, for a reason not listed in subclause 3.5.201.1. |
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2. |
Work out the number of days of ineffective service
the member did in the period in Step 1. |
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3. |
Subtract the outcome of Step 2 from the outcome of Step 1. The outcome shows the number of days of effective
service the member did for in return for the retention bonus. |
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4. |
Subtract the outcome of Step 3 from 730. (The number 730 represents the number of days in two calendar years). If February 29 occurs during the period in Step 1, then subtract the outcome of Step 2 from 731. The outcome shows the part of the service period that
the member has not performed in return for the retention bonus. |
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5. |
Divide the outcome of Step 3 by 730. The outcome of this Step shows the size of the part of the bonus that the member mu |