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Features - Personnel

Darwin trial proves to be a welcome comfort
Keeping cool on ACA allowance

By Graham Howatt, of the Armed Forces Federation

The Federation has had quite a lot to say this year about seeking a better deal for the ADF homeowner/occupier and this extends to equitable treatment when it comes to the payment of Air Conditioning Allowance (ACA) in locations that qualify for it.

ACA is provided in prescribed areas during certain months of each year to offset the additional electrical costs of operating air conditioning appliances in a SR or RA property in.

In the Northern Territory the period of payment is September to May. We have seen the recent completion of a trial of ACA in Darwin and welcome it being extended indefinitely in that location.

A wise decision that was also welcomed by those who occupy a Service Residence (SR) or Rental Allowance (RA) property and receive the allowance but not so well received by homeowners in the region who continue to stew under the same oppressive conditions without the entitlement.

A recent letter to the editor in the September 23, 2004 edition of “Army” by WO2 Gould of 1 Armd Regt sums it up nicely. And, there has not been any official response published to allay his concerns.

Perhaps that’s because it is too difficult to answer.

Read on.

As at March this year it was estimated by the ADF during the Remote Conditions of Service Review, that approximately 119 members own and occupy their own homes in Darwin.

Apparently this has grown from around 86 in 1999 due to the nature of back to back postings in the area anda desire for higher quality of living, not because the member and/or family wants to remain in Darwin.

The survey also concluded that ACA is a key retention factor with non-availability to home owners being a very contentious issue.

It is no wonder the home owners are upset because when you look at the overall package of current Remote Conditions entitlements: District Allowance, Remote Locality Leave Travel, Air Conditioning Allowance and Additional Recreation Leave, that are all provided to compensate for the harshness and additional cost of living in Darwin, it is easy to understand their angst.

The ADF provide schemes that cost many thousands of dollars in assisting members to purchase their own homes in location and upon relocation.

In return however, the ADF home owner/occupier, on average, would be providing accommodation savings to Defence/Government of around $15,000 per annum (including FBT savings. Based on the data above, the Darwin home owners alone are saving Defence $1.8M per year.

And, considering the philosophy of the back to back postings this is an outstanding return for the Defence investment.

Yet, the very same members who create the savings and live under the same conditions as their SR and RA counterparts, continue to be denied equitable compensation for the harsh climate of the location they have been placed in.

ACA accounts for less than 8% of the overall expense of the remote conditions package.

It is the least expensive of all entitlements yet it is the only one that is not available to the Darwin home owner.

This is an injustice, is unfair and noting the origins of the allowance stems from the climatic component of District Allowance in the first place, defies all logic.

Little things mean a lot to ADF members. The relatively small cost of correcting this inequity will far outweigh the cost of members being fed up, voting with their feet, leaving the area and having Defence pay for additional relocation expenses.

 

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