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Division 1: Purpose, application and key concepts – member posted before 1 July 2017

15.2.3 Purpose

  1. The purpose of the overseas living allowances is as follows.

    1. To help maintain the purchasing power of a member's disposable income, and an equivalent standard of living. It compares the cost of goods and services between Australia and the posting location overseas.

    2. To help the member meet unexpected living costs associated with long-term posting.

    3. To help the member meet some specific additional costs at the overseas posting location.

      Examples: Communications, holidays, vehicle depreciation, winter clothing.

  2. The allowances are not meant to do any of these things.

    1. Increase a member's income.

    2. Make up for loss of income earned by the member's spouse or partner.

    3. Attract members into overseas service.

  3. The allowances are notional. This means that it is based on what members in general would be expected to spend, rather than on their actual individual costs.

15.2.4 Member this Part applies to

This Part applies to a member posted before 1 July 2017.

Note: For definition of Member posted before 1 July 2017, see Chapter 12 Part 3 section 12.3.9A.

15.2.5 Member this Part does not apply to

  1. This Part does not apply to a member who is away from their posting location. Division 6 contains exceptions to this rule.

    See: Division 6
    Section 15.2.30, Recreation leave
    Section 15.2.31, Absence from posting location
    Section 15.2.33, Members leaving posting location before their dependants

    See also: Part 1 section 15.1.3, Member this Chapter does not apply to. Section 15.1.3 outlines some other situations in which members are not eligible for the overseas living allowances or any other long-term posting conditions.

  2. This Part does not apply to a member while they are on a period of long service leave. This is because the overseas living allowances are not relevant allowances for the purpose of Chapter 5 Part 5.

15.2.6 Changes in allowances

  1. Overseas living allowances are subject to constant change. These changes are the result of a number of factors, including the following.

    1. Periodic price reviews.

    2. Measured changes in exchange rates.

    3. Any changes to an individual's salary.

    4. Any changes to an individual's family circumstances.

  2. The changes to the allowances can be large, and can occur with little or no warning. The allowances might go up or down.

    Note: Every effort is made to give members advance notice of these changes.

15.2.7 Disposable income for ADF members

  1. Disposable income for ADF members is worked out as follows.

    Disposable income calculation
    Step Action
    1. Add together the member's annual rates of salary and allowances, as listed in subsection 2.
    Exception: Executive vehicle allowance.
    2. Work out their personal income tax and Medicare levy liability on the total amount of step 1.
    Note: Personal income tax liability is worked out by applying the standard Pay as You Go (PAYG) income tax scales to the total amount of step 1.
    Medicare levy liability is worked out as follows.
    1. For members without dependants and those accompanied by a spouse or partner who is an ADF member – nil.
    2. For all other members – 0.75% of the total amount of step 1.
    3. Subtract the total amount in step 2 from the amount in step 1. The result is the member's disposable income.
  2. These are the member's annual rates for step 1.

    Annual rates
    Item Benefit DFRT Determination Published in PACMAN at:
    1. Clearance diver allowance DFRT No. 11 of 2013 Division B.14 Chapter 4 Part 2 Division B.14
    2. Diving allowance DFRT No. 11 of 2013 Division B.6 Chapter 4 Part 2 Division B.6
    3. Flying disability allowance DFRT No. 11 of 2013 Division B.7 Chapter 4 Part 2 Division B.7
    4. Hardship allowance at the rate payable for the location to which the member is posted on long-term duty.
    Chapter 16 Part 2
    5. Higher duties allowance (but only for a member who is posted to the position for three months or longer)
    Chapter 4 Part 1
    6. Language allowance DFRT No. 14 of 1992 Chapter 4 Part 3 Division 4
    7. Maritime disability allowance DFRT No. 11 of 2013 Division B.9 Chapter 4 Part 2 Division B.9
    8. Maritime sustainability allowance DFRT No. 11 of 2013 Division C.1 Chapter 4 Part 2 Division C.1
    9. Paratrooper allowance DFRT No. 11 of 2013 Division B.16 Chapter 4 Part 2 Division B.16
    10. Salary DFRT No. 2 of 2017 Chapter 3 Part 1
    11. Service allowance DFRT No. 11 of 2013 Division B.2 Chapter 4 Part 2 Division B.2
    12. Special forces disability allowance DFRT No. 11 of 2013 Division B.12 Chapter 4 Part 2 Division B.12
    13. Special forces sustainability allowance DFRT No. 11 of 2013 Division C.2 Chapter 4 Part 2 Division C.2
    14. Submarine escape disability allowance DFRT No. 11 of 2013 Division B.8 Chapter 4 Part 2 Part B Division B.8
    15. Uniform allowance
    Chapter 10 Part 1
    16. Unpredictable explosives allowance DFRT No. 11 of 2013 Division B.15 Chapter 4 Part 2 Division B.15
  3. To work out the cost of living adjustment of the overseas living allowances for ADF members, this definition must be applied to the formula in section 15.2.12.

15.2.7A Disposable income for APS employees

  1. Disposable income for APS employees is worked out as follows.

  2. Disposable income calculation
    Step Action
    1. Add together the employee's annual rates of salary and allowances, as listed in subsection 2.
    2. Work out their personal income tax and Medicare levy liability on the total amount of step 1.
    Note: Personal income tax liability is worked out by applying the standard Pay as You Go (PAYG) income tax scales to the total amount of step 1. Medicare levy liability is worked out as 1.5% of the total amount of step 1.
    3. Subtract the total amount in step 2 from the amount in step 1. The result is the employee's disposable income.
  3. These are the employee's annual rates for step 1.

    1. Salary.

    2. Additional responsibility pay or allowance (but only if approved for a continuous period of at least three months).

    3. First aid certificate allowance.

    4. Hardship allowance at the rate payable for the location to which the employee is posted on long-term duty.

    5. Language proficiency allowance.

    6. Shift penalties.

    7. See: Defence Enterprise Agreement 2017-2020 (DEA)

  4. To work out the cost of living adjustment of overseas living allowance for APS employees, this definition must be applied to the formula in section 15.2.12.

15.2.8 ...

15.2.9 Eligibility for the overseas living allowances

  1. A member on long-term posting is eligible for the overseas living allowances for their posting location.

  2. This table sets out the purpose of the four elements of the allowances.

    Elements of overseas living allowances
    Item Element Purpose
    1. Cost of living adjustment To help maintain the purchasing power of members' disposable income, and an equivalent standard of living.
    See: Division 2
    2. Post adjustment To help members meet extra living costs that are likely to be incurred as a result of living overseas.
    See: Division 3
    3. Child allowance To help with the extra costs of maintaining a dependent child at the posting location.
    See: Division 4
    4. Child reunion allowance To help members with the costs of maintaining communication with children who live elsewhere, and having their children visit them at the posting location.
    See: Division 5

15.2.10 Effect of non-Commonwealth allowances on the overseas living allowances

A member's eligibility for the overseas living allowances for a period must be reduced by any amount of mission subsistence allowance paid to the member by the United nations for that period.

Application to Reservists: Yes, on continuous full-time service.




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