Cost of living-in just got cheaper
Volume 48, No. 14, August 10, 2006
LIVING-IN members saw more money in their hands today, after Living-In Allowance (LIA) contributions were reduced.
This is due to a new method of working out contributions that was announced on August 4 by the Minister Assisting the Minister for Defence, Mr Bruce Billson.
Head Personnel Executive, MAJGEN Mark Evans, said the new rates are a result of a new method of calculating LIA contributions, rather than an adjustment of the existing rates.
This means the results are different between rank groups and LIA levels. The reductions vary from $2.80 per week up to $34.15 per week (see table page 12).
“Under the new method, contributions are based on the national average market rent for each level of LIA,” MAJGEN Evan said.
Members paying for Level 3, 4 or 5 LIA will pay half the assessed average market rent. Members paying for Level 1 or 2 LIA will only pay 40% of the market rent, due to its age and lower quality.
“The new method uses the national average market rent so LIA contributions will not be affected by differences in rent between regions.
“For some time Defence policy has been that members with dependants pay 50 per cent of the Defence Rent Bill for Service residences.
“This principle has been applied to LIA contributions, with the result being a saving for members.”.
The rents were assessed by the Australian Valuation Office. The AVO looked at what a member would pay for similar accommodation in the private sector across a number of locations around Australia.
This exercise will be repeated every three years to keep the contribution rates current. In between valuations, contributions will be adjusted by an index provided by the AVO. This will ensure movements in LIA rates are linked to market reality.
CAF, AIRMSHL Geoff Shepherd, expressed his support for the news: “I am delighted to support the announcement concerning reduced LIA costs for members living-in. Put simply, Air Force members will pay lower LIA contributions across the board with immediate effect.”
For contribution rates see table page 12 of this edition.
For more visit the Defence pay and conditions website at: http://www.defence.gov.au/dpe/pac DEFWEB: http://intranet.defence.gov.au/pac
