Living-in benefits
Volume 11, No. 49, August 10, 2006

LIVING-IN members will have more disposable income after a reduction in LIA contributions between $2.80 and $34.15 a week.

HDPE Maj-Gen Mark Evans said the new rates were a result of a new method of calculating LIA contributions rather than an adjustment of existing rates.

“This means the results are different between rank groups and LIA levels,” Maj-Gen Evans said.

Minister Assisting the Minister for Defence Bruce Billson announced the new method of working out contributions on August 4.

Maj-Gen Evans said under the new method, contributions were based on the national average market rent for each level of LIA.

“Members paying for Level 3, 4 or 5 LIA will pay half the assessed average market rent. Members paying for Level 1 or 2 LIA will only pay 40 per cent of the market rent, due to its age and lower quality.

The new method uses the national average market rent so LIA contributions will not be affected by differences in rent between regions,” he said.

“For some time Defence policy has been that members with dependants should pay 50 per cent of the Defence Rent Bill for Service residences. This principle has now been applied to LIA contributions, with the result being a saving for members.”

The market rents were assessed by the Australian Valuation Office. The AVO looked at what a member would pay for similar accommodation in the private sector across different locations around Australia.

This exercise would be repeated every three years to keep the contribution rates current, Maj-Gen Evans said. In between valuations, contributions will be adjusted by an index provided by the AVO. This will ensure that movements in LIA rates are linked to market reality.

For more information, visit the Defence pay and conditions web site on the internet at http://www.defence.gov.au/dpe/pac or on the Defweb at http://www.defence.gov.au/pac.

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