Financial win for Reserves
Volume 11, No. 52, September 21, 2006
By Graham Howatt,
Armed Forces Federation

RESERVISTS have finally gained greater recognition regarding the attainment of competencies required for them to be effectively employed within the ADF.

Their pay will now be more closely aligned with members of the permanent force.

The disabilities associated with employment as a reservist have also been recognised and will now be financially compensated by way of a daily allowance, similar to Service Allowance, at a discounted daily rate of $10 a day for Maj(E) and below. All that remains is for reservists to have the Government agree to the payment of superannuation, but two out of three ain’t bad.

At the end of a two-day Defence Force Remuneration Tribunal (DRRT) hearing on August 31, the DFRT endorsed the ADF proposal, which took effect on September 1.

This outcome, abolishes the discount factor applied to calculate daily rates of pay for reservists compared to those of the permanent force, where full competencies are held for work performed.

This in effect provides a 17 per cent pay increase for all Navy and Air Force reservists (excluding trainees), and for specified Army reservists such as ex-permanent members, members and former members of the High Readiness Reserves and those members designated to be fully trained and deployable.

The Federation advises Army members to verify their status.

The provision of a rate of service allowance for reservists is also long overdue and welcomed by the Federation.

However, while it is accepted that reservists do not endure the turbulence of postings, the daily rate of $26.55 a day currently paid to members of the permanent force vastly overshadows the modest $10 a day for Reserves.

That said, the Federation submitted at the DFRT hearing (among other things) that the introduction of this allowance needs to be considered as an interim amount and validated by the ADF at the annual review of allowances hearing in mid-2007.

The Government decision remains that all pay and allowances for reservists be tax-free.