NEW HOUSING CLASSIFICATION POLICY (NHCP)

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On 22 March 2007, the Minister for Defence announced the release of the New Housing Classification Policy for members with dependants. The media release can be viewed at www.minister.defence.gov.au/minreleases.cfm.

Commencing on 1 July 2007, Defence’s New Housing Classification Policy (NHCP) has changed the way Defence Housing Australia (DHA) classifies off-base Service residences for members with dependants (MWD). The new policy will be phased in over ten years, but members will not be affected until they first move house after 1 July 2007.

The previous amenity-based housing classification system was introduced in the early 1990s. The new policy raises the minimum standard for Service residences so that it more closely reflects current community standards, particularly for junior ranks.

The NHCP allows DHA to deliver a greater variety of housing types within each rank group. This provides greater flexibility in meeting the needs of ADF families.

Defence will continue to subsidise 50 per cent of the MWD rent bill. The subsidy is tax-free in the hands of ADF members and the value of the fringe benefit is not reportable on members’ income payment summaries.

Overview

Under NHCP:

· there is a new, higher minimum amenity standard for Service residences;

· off-base Service residences are classified based on a combination of the minimum standard and market rent, within four rent bands; and

· as a result of the improved housing standard, contributions for members at or below Corporal (equivalent) rank will gradually increase over ten years, with Transitional Group Rent Scheme (GRS) Contributions planned to commence in FY09/10.

Some parts of the previous system remain the same:

· classification of on-base housing according to amenity;

· GRS contributions according to rank; and

· the policy on sharing the MWD rent bill 50/50 with members.

Member contributions will not change during a tenancy that started before 1 July 2007, except for the annual adjustment.

Frequently Asked Questions about NHCP

The NHCP Frequently Asked Questions booklet (revised November 2007) provides detailed information about how and when NHCP will affect members and their families.

Further information

Defence Service Centre on 1800 DEFENCE (1800 333 362).

Information sessions were held in all major Defence installations in May and June 2007.

Defence Housing Australia remains your primary contact for relocations and housing allocation support. More information is available from the DHA website www.dha.gov.au, your local Housing Management Centre or the DHA Customer Service Line – 1800 249 711 (between 8am and 6pm EST Monday to Friday).

Last updated: 9 August 2007