Homeowners left steaming

By Graham Howatt, of the Armed Forces Federation of Australia

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 of 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 Service residence or rental allowance property. 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.

It was a decision that was also welcomed by those who occupy a Service residence or rental allowance 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.

As at March this year, the ADF estimated during the Remote Conditions of Service Review that about 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 and a 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 homeowners being a very contentious issue.

When you look at the overall package of current Remote Conditions entitlements – district allowance, remote locality leave travel, ACA 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.

Exit surveys demonstrate that home ownership and posting stability are significant retention issues. The ADF provides schemes, that cost many thousands of dollars, to assist members to purchase their own homes in location and on relocation.

In return, however, the ADF homeowner/occupier, on average, would be providing accommodation savings to Defence/Government of around $15,000 a year (including fringe benefit tax savings). Based on the data above, the Darwin homeowners alone are saving Defence $1.8 million a year.

Yet the very same members who create the savings and live under the same conditions as their Service residence or rental allowance counterparts continue to be denied equitable compensation.

ACA accounts for less than 8 per cent 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 homeowner.

This is an injustice. The relatively small cost to correct this inequity would far outweigh the cost of members being fed up, voting with their feet, leaving the area and having Defence pay extra relocation expenses.

.