Assistance with housing needed

By Graham Howatt, of the Armed Forces Federation

IN A recent edition of Air Force News, the Federation drew attention to what we see as policy shortcomings of members purchasing a “suitable own home” in a posting location. This article provides more food for thought.

The ADF is well recognised as mobile force and most members are provided with accommodation assistance. Members who choose to purchase and occupy their own home are assisted by the Home Purchase Assistance Scheme (HPAS) for initial purchase. Subsequent assistance for the home owner/occupier is available through the Home Purchase Sales and Expense Allowance (HPSEA) for sale and purchase as a consequence of reposting.

Eligible members may also access either the Defence Service Home Loan ($25,000) or the Defence HomeOwner Scheme ($80,000). Conditions apply to each. ArFFA members can also access a discounted $250,000 home loan.

This is all good stuff and should continue. However, apart from HPSA (fully taxed at source) and HPSEA upon reposting (if applicable), there is no fortnightly financial assistance available.

When comparing this to the amount of subsidised rental associated with members occupying a service residence or living-in accommodation and the amounts paid to those in receipt of rental allowance (RA), it raises serious questions in regard to overall remuneration equity in the ADF.

Depending on your point of view, the home owner/occupier, in the longer term, is being short-changed and the Federation suggests ADF management give serious thought to the introduction of fortnightly assistance to these members. Our solution would be to provide an allowance that would equate to what they would have received if in a RA situation.

Such a concept has been debated many times during housing and remuneration reviews in the past without progress. That said, the Federation is not suggesting that existing housing entitlements be “cashed out”.

We are simply suggesting a new category be added to the range of choices currently available to members. The ADF Census 2003 determined 17 per cent of ADF members are home owner/occupiers and there would be a price tag attached if the ADF were to accept our suggestion.

On the up side, such an initiative would greatly assist the ADF with attraction and retention, raise their pro- file as an employer of choice and encourage members to enter the housing market.

Assisting ADF members to be more self-reliant now could potentially stimulate the economy and create huge savings for the Government as members separate from the service. The Federation would welcome comments on our proposal before taking this up with the appropriate authorities.

.