A REVIEW of housing-related charges and allowances will result
in a total increase in contributions for Service Residences of
5.42 per cent.
This adjustment will produce an increase for Service Residence
contributions of between $6.13 (AC/CPL) and $17.60 (AVM) a week,
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 2 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 2.5 per cent. This rate provides for the general increase in
cost to Defence to provide LIA.
The adjustment will produce increases of between $1 (AC Level
1) and $2.60 (SQNLDR Level 5) a week for LIA. This interim method
of adjusting LIA contributions for this financial year does not
disadvantage members compared to the previous methodology. New
RA ceilings will also apply from December 2.
Information on the calculation of housing-related charges is available
on the Defence Personnel Executive web site in the Housing section
at http://intranet.defence.gov.au/pac/
or www.defence.gov.au/dpe/pac/
or by sending an email to dpe.feedback@defence.gov.au.
