Increase in housing charge
Contributions for service residences up by 5.42 per cent

A new LIA contribution scheme is also being developed that will de-link it from contributions for service residences. Photo by Cpl Cameron Jamieson, Army newspaper

A review of housing-related charges and allowances has brought about an increase in contributions for service residences of 5.42 per cent.

The adjustment, which took effect on December 2, has produced an increase for service residence contributions of between $6.13 (Pte/Cpl) and $17.60 (Maj-Gen) per fortnight.

Changes to these charges and allowances were implemented in two stages this year, the first of which increased housing-related contributions and charges (except for service residences, Living-in Accommodation [LIA] and Rent Allowance [RA]), took effect on September 9.

As accommodation contributions are made fortnightly in arrears, these revised accommodation contributions will not be deducted from members’ salaries until payday December 16.

Members’ contributions for service residences and RA are adjusted annually using data provided by DHA on costs for Defence housing.

The increase in Defence housing contributions is, however, higher than the figure provided by DHA.

This is because it is Defence’s policy that Defence and members will share some of the costs of housing assistance equally. This 50 per cent subsidy is being progressively achieved by adding 2 per cent to the DHA increase each financial year.

The Defence People Committee has directed that a new LIA contribution scheme be developed that de-links it from contributions for service residences and better reflects actual accommodation costs.

It is expected that the new scheme will be introduced in July next year. For this financial year, but the previous methodology linking LIA contribution rates to rates for service residences has been set aside and an interim method is being used.

LIA contribution charges will increase by a flat percentage rate of 2.5 per cent. This rate provides for the general increase in cost to Defence to provide LIA. The adjustment will produce increases of between $1.00 (Pte Level 1) and $2.60 (Maj Level 5) per week for LIA. This interim method of adjusting LIA contributions for this financial year does not disadvantage members compared to the previous methodology. New RA ceilings were also applied from December 2.

Further information on the calculation of housing related charges is available in the Housing Section of the DPE Internet site www.defence.gov.au/dpe/pac or Defweb site http://intranet.defence.gov.au/pac or by sending an e-mail to dpe.feedback@defence.gov.au