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ADF members with dependants (MWD) will welcome the new housing classification
policy that will give them access to a greater range of properties.
The Minister for Defence Brendan Nelson announced details of the new policy
on March 22, which will be in effect from the start of the new financial
year.
The New Housing Classification Policy (NHCP) will change the way off-base
service residences are classified and will be phased in over the next
10 years from July 1, but will not affect members until they move house.
Under NHCP, the minimum standard for service residences will be raised
to mirror current community standards, providing improved housing for
junior ranks in particular.
Defence will continue to subsidise 50 per cent of MWD’s rent.
The subsidy is tax-free in the hands of ADF members and the value of the
fringe benefit is not reportable on members’ income payment summaries.
Member contributions will not change during the current tenancy, except
for the annual adjustment.
The improved minimum standard will result in slightly higher rental contribution
increases for personnel at or below Leading Seaman rank.
The Transitional GRS Contribution will progressively close the dollar
gap between group A and group B1/RB1 contributions.
To reduce the financial impact on members at or below Leading Seaman rank,
introduction of the Transitional GRS Contribution will be deferred for
two years.
Member rental contributions are planned to gradually increase over a ten-year
period, starting from July 1, 2009.
The Transitional GRS Contribution would commence when a member at Leading
Seaman or lower rank occupies a B1/RB1 residence after July 1, 2009.
Off-base service residences will be classified based on a combination
of the new minimum standard and market rent.
The new minimum standard is closely aligned with the current three-bedroom
B1 house and applies to each rent band.
The system will be capable of delivering better than the minimum standard
in most locations.
On-base service residences will continue to be classified based on the
number of amenities.
While the new policy will retain the rank group approach, the number of
rank groups has been reduced from six to five.
Leading Seaman and lower ranks, as well as Sub Lieutenants have been combined
with Petty Officers into Rent Band 1.
Service residences will be allocated on the basis of rent band and bedroom
entitlement.
Arrangements for families with special needs will not change.
The Service residence you are occupying will not have its classification
changed until you move out or the 10-year transition period ends, whichever
occurs first.
You will continue to pay the GRS contributions applicable to your rank
and circumstances.
When you do move after July 1, 2007, you could be offered a home that
has been classified under the new policy, or a residence that is still
classified under the amenity-based system.
| Minimum housing
standard |
At a glance |
Current standard
- 3 bedrooms
- Storage
- Kitchen
- Dining
- Lounge
- Bathroom
- Toilet
- Laundry
- Carport
New standard
- Ensuite
- Lock-up garage
- Security
- Covered out door area
- Minimum size fenced yard.
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- Greater variety of housing types.
- Improved housing for junior ranks.
- A new minimum amenity standard.
- Off-base housing will be classified according to a combination of
the minimum standard and market rent, within four rent bands.
- Houses will be reclassified on change of tenancy, or where this
has not occurred, at the end of the 10-year transition period.
- The Group Rent Scheme for determining contributions according to
rank will be retained.
- The Defence policy on sharing the Members with Dependants rent bill
50/50 will be retained.
- Contributions for ‘A’ entitled members (Corporal equivalent
and below) will gradually increase over ten years, with Transitional
GRS Contributions planned to commence in Financial Year 09/10. |
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