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TAX ALERT: PACMATE Annex 3.A, item 77. |
5.3.24 Member
this Division applies to
5.3.25 Members
this Division does not apply to
5.3.26 Payment
instead of long service leave
5.3.27 Member
on higher duties, temporary or acting rank
5.3.28 Pro
rata entitlement
5.3.29 Option
not to be paid
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This Division applies to a member who ceases continuous full time service, and who meets one of these conditions. |
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a. |
They are entitled to a long service leave credit. |
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b. |
They qualify under clause 5.3.28. This clause applies to members who have at least one year of effective service and who leave the ADF in a way listed in clause 5.3.28. See: Clause 5.3.28, Pro rata entitlement |
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1. |
If a member leaves the ADF because they die, this Division does not apply. See Chapter 11 Part 3 instead. |
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2. |
This Division does not apply to members who are discharged from one Service in order to start an appointment in another Service without a break. These members are not entitled to payment instead of long service leave. |
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1. |
The member is entitled to a payment instead of their long service leave credit. See: Subclauses 2 and 3 for how to calculate the final credit. Subclause 4 for what salary to use. Subclause 5 for how to calculate the payment. |
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2. |
The member's credit is calculated in accordance with this table. |
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Step |
Action |
See |
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1. |
Work out the member's total period of accrued service, in years and months.
This includes the member's current service, prior full days of Reserve service and other prior service. |
Division 3 clauses 5.3.13 to 5.3.17 |
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2. |
Work out their total long service leave credit for the years of service. The credit should be expressed in months and part months (ie taken from the months column of the table in clause 5.3.8.) |
Division 2 clause 5.3.8 |
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3. |
Work out their total long service leave credit for the remaining months of service. |
Subclause 5.3.26.3 |
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4. |
Add the credits from Steps 2 and 3 together. |
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5. |
Subtract any leave that they have already taken as leave or been paid for instead of leave. |
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Example: A member has 12 years, 3 months total service. Credit for 12 years of service is 3.6 months. Credit for 3 months of service is 0.075 months. Total is 3.675 months. If the member has never taken any long service leave, this is the member's credit to be paid out. |
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3. |
This table shows how to work out the credit for completed months of accrued service. |
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Months of service |
Long service leave as part of a month |
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1 |
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0.025 |
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2 |
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0.050 |
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3 |
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0.075 |
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4 |
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0.100 |
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5 |
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0.125 |
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6 |
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0.150 |
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7 |
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0.175 |
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8 |
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0.200 |
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9 |
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0.225 |
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10 |
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0.250 |
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11 |
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0.275 |
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4. |
Unless clause 5.3.22 applies, salary for a period of long service leave for a member who is to be paid instead of long service leave is the sum of these amounts. |
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a. |
Salary at the applicable rate for their substantive rank and (if applicable) their pay grade. |
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b. |
The amount of any allowance that the member may be paid during long service leave. See: Division 4 clause 5.3.23, Allowances while on long service leave Exceptions: Antarctic allowance, Port Wakefield allowance, ADF district allowance, uniform allowance, hardship allowance, rent allowance and executive vehicle allowance are not payable. |
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Related Information: Division 4 clause 5.3.22, Salary – member on higher duties, temporary or acting rank |
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5. |
This table shows how to calculate the final payment instead of long service leave. |
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Step |
Action |
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1. |
Divide the salary for long service leave by 12, to give the monthly rate. Note: This rule applies no matter how many days there are in the month. |
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2. |
Multiply by the member's credit. This figure is the amount to be paid. See: Subclause 5.3.26.2 |
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1. |
This clause applies to a member who held temporary or acting rank, or was entitled to higher duties allowance, for either of these periods. |
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a. |
The year before the start date. |
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b. |
The start date plus three of the five years immediately before and including the start date. The three years may be in a single period, or broken periods. |
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Example: A member performs higher duties and then holds acting rank. These periods can be added together to confirm whether they have met the time requirements in subclause 1. |
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2. |
If a member only held one rank during the period, the rate of salary is the sum of these amounts. |
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a. |
The rate of salary for the higher duties or temporary or acting rank and (if applicable) their pay grade, held immediately before the start date. |
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b. |
The amount of any
allowance that the member may be paid during long service leave. These are
paid at the same rank as salary under p See: Division 4 clause 5.3.23, Allowances while on long service leave |
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3. |
If a member held more than one level of higher duties or temporary or acting rank during the period, the rate of salary is the sum of these amounts. |
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a. |
The rate of salary for the lowest level of higher duties or temporary or acting rank. Example: For the year before the member's resignation, a Captain had higher duties as a Major for six months, and as a Lieutenant Colonel for six months. Payment instead of long service leave will be at the Major salary rate. |
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b. |
The amount of any allowance
that the member may be paid during long service leave. These are paid at the
same rank as salary under p See: Division 4 clause 5.3.23, Allowances while on long service leave |
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4. |
A member's rate of salary for the higher duties, temporary or acting rank may increase after the start date and before the day before the member ceases continuous full-time service. In this case, their salary is taken to increase by the same amount. |
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1. |
A member who has more than one year but less than 10 years of accrued service may be entitled to a pro rata payment instead of long service leave. Their service must end for one of these reasons. |
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a. |
Redundancy. |
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b. |
Retrenchment. |
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c. |
Illness. |
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d. |
Death. |
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e. |
They have reached their compulsory retirement age. |
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Example: A member starts work as a specialist officer with the ADF at age 49. When they reach age 55 they do not continue working on a fixed tenure appointment. They are entitled to a pro rata long service leave credit for the six years of service. Non-example: A member who is on a fixed tenure appointment that is not renewed has not been made redundant or retrenched, and has not reached their compulsory retirement age. They would not be entitled to a pro rata credit of long service leave. |
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2. |
A member (other than a member mentioned in subclause 1) who has less than 10 years of accrued service and who voluntarily ceases continuous full-time service before reaching compulsory retirement age, is not entitled to a pro rata payment instead of long service leave. |
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3. |
The payment is worked out using the process described in clause 5.3.26. See: Clause 5.3.26, Payment instead of long service leave |
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A member who is entitled to payment instead of long service leave may choose the option not to be paid instead. The choice must be in writing. Example: The member leaves the ADF to become an APS employee in the Department of Defence. As an APS employee, their ADF service will be recognised for APS long service leave purposes. They choose in writing not to receive payment instead of ADF long service leave. Note: If a member wishes to be given a long service leave credit in another employer's scheme when they leave the ADF, they should seek advice from the new employer before making this choice. It is not safe to assume that credits can be transferred. The member's new employer may be willing to give credits for ADF service but may expect that the Commonwealth transfer funds. If the new employer is not a Commonwealth Government agency, this is not possible. Other employers (such as the APS) may be able to credit for ADF service. Break in service conditions will apply. (This note is policy guidance) |