Review, pay rise coincide

THE annual review of Services Residences, Living In Accommodation, Rent Allowance and other housing-related charges and allowances will this year coincide with a scheduled ADF pay increase.

The annual adjustments for housing and related charges take place each year as part of the adjustment in the general cost of living, regardless of whether there is a scheduled pay rise.

The current ADF Workplace Remuneration Arrangement 2002-2004 provides for across-the-board salary and salary-related adjustments between 2002-2004.

The arrangements provide members with a total 6 per cent pay rise, implemented at two incremental points. The second increment of 3 per cent comes into effect on July 3.

The full year effect of the two 3 per cent pay rises on military salary alone (base salary plus service allowance only) is between around $2500 for an aircraftman/women up to around $4900 for a wing commander before tax.

Housing and related charges are an element of the general cost of living. The annual adjustments for housing-related charges are primarily based on the Consumer Price Index (CPI), which reflects the annual movement in household expenditure.

The itemised adjustments for the food element of the CPI are applied to current member contributions for meals and determine the charges for the following financial year.

Member contributions for housing are adjusted using the annual market rent data. Historically the annual market rent data has been below the national CPI housing increases, providing members with less of an impact in the cost of living than the general population.

It is expected that the annual adjustments will take effect in late August.

The annual housing charges are not finalised yet, however it is expected that the increase will be similar to that of previous years. This means that the effect of the annual adjustment for Service Residence contributions should produce an increase ranging from about $200 annually for those between the rank of aircraftman/woman and corporal and about $375 annually for those between the rank of group captain and air commodore.

The movement in member contributions for Living In Accommodation are based on a percentage of the GRS contributions. The percentages reflect the level of amenity provided by LIA in comparison to a Service Residence.

The percentages are being increased in increments, with mature rates to be reached in July 2004. Using Level 3 LIA as an example, the effect of the annual adjustment for contributions should produce an increase ranging from about $210 annually for those between the rank of aircraftman/woman and corporal to about $290 annually for squadron leaders and above.

Further information on the calculation of housing and related charges and allowances is available on the DPE web site in the Housing section.

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