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The
proposed tiered approach to SA is based on the premise that there
is a cumulative effect of the liability and that there is a corresponding
discount applying to those personnel with minimum length of service.
As
was indicated in the last edition of Army, the ADF is reviewing
two options for service allowance (SA):
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Introducing a tiered rate that is linked to years of service;
and
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Maintaining the current flat rate.
SA
has existed in some form since 1950 when ADF members were awarded
an undefined loading payment introduced to make service life more
attractive.
The
allowance has been reviewed regularly and considers:
-
The requirement to be on call and the liability to work long and
irregular hours including weekends and public holidays and shifts.
-
The turbulence in postings caused by the liability to be moved
frequently and often at short notice, to meet the needs of the
service and the effects of this on the member and the member’s
family;
-
The requirement to submit to discipline and control in personal
and employment matters in which a civilian generally has some
freedom of choice; and
-
The requirement at times to live and work in uncomfortable conditions.
It
should be noted the Defence Force Remuneration Tribunal (DFRT) stated
in the last review (1994) that there was a “… tendency
for the impact of factors to average out over service careers,”
and a “… general acceptance of the allowance as representing
an averaging of the disabilities across the differing circumstances,
postings and commitments of ADF members”.
The
proposed tiered approach to SA is based on the premise that there
is a cumulative effect of the liability and that there is a corresponding
discount applying to those personnel with minimum length of service.
It
has been proposed that the tiering should target significant separation
points, however these points vary according to service and employment
group.
The
flat rate option continues the historical basis of SA. It is a simple
approach that rewards on the all of one company principle, recognising
that the liability is shared by all personnel and that there are
different impacts across their career.
Considering
that the tiered option is a significant departure from the extant
rationale, a detailed review is required.
The
DFRT has set April 22-23 next year for the SA review.
Army
staff view is that the review should be conducted using the existing
criteria to ensure that a robust case is developed and adequate
compensation is provided for the changes that have occurred in SA
since it was last reviewed in 1994.
At
this stage, the Chiefs of Services Committee will consider the issue
of service allowance in this month.
The
AHQ point of contact is the SO2 Remuneration, Maj Bruce Jennings,
(02) 6265 5296 e-mail bruce.jennings@defence.gov.au
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