Ceiling
lifted on housing contributions
A
review of housing related charges and allowances will see a
total increase in contributions for Service Residences of 5.42
per cent.
This adjustment will produce an increase for Service Residence
contributions taking effect on December 2.
This year, changes to these charges and allowance were implemented
in two stages with the first, increasing housing related contributions
and charges except for Service Residences, Living-in Accommodation
(LIA) and Rent Allowance (RA), taking 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 the Defence Housing Authority
(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 two 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, however, 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 two and a half per cent.
This rate provides for the general increase in cost to Defence
to provide LIA.
