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Division 2: Cost of living adjustment – member posted before 1 July 2017

15.2.11 Purpose

Cost of living adjustment is an allowance provided to a member at a posting location where goods and services are more expensive than in Australia. It has both the following purposes.

  1. To help maintain the purchasing power of a member's income.

  2. To provide a member with an equivalent standard of living at the overseas post to that in Australia.

15.2.12 Working out the cost of living adjustment

Work out a member's cost of living adjustment using this formula:

Disposable income x ((Post index - 100) ÷ 100)

See:
Division 1 section 15.2.7, Disposable income for ADF members
Chapter 12 Part 3 section 12.3.14A, Post index

15.2.13 Dual entitlement

  1. Dual entitlement means all the following conditions are met.

    1. A member is eligible for the overseas living allowances under this Part.

    2. The member's spouse or partner is eligible for a payment that meets both the following conditions.

      1. It is comparable to the overseas living allowances.

      2. It is paid under this Part, or associated with other Commonwealth employment.

    3. The member is posted to the same location as their spouse or partner.

      Example: A member is posted to Jakarta. The member's spouse is an APS employee in the Department of Foreign Affairs and Trade, and is on a long-term posting to Jakarta for the same period as the member. The member is eligible for the overseas living allowances. The member's spouse is paid allowances for living overseas by the Department of Foreign Affairs and Trade. The member has a dual entitlement.

  2. In this case, the Commonwealth will not pay both the member and spouse or partner the overseas living allowances.

  3. The Commonwealth will pay one person the overseas living allowances. The other person will only be paid the cost of living adjustment to help maintain the purchasing power of their salary.

  4. The member and spouse or partner have the option of choosing the person who will only be paid the cost of living adjustment. The option is set out in this table.

    Option
    Item If... and... then...
    1. both the member and spouse or partner would be eligible for the overseas living allowances they jointly nominate the person who will only be paid the cost of living adjustment the nominated person is only eligible for cost of living adjustment for the posting period.
  5. If the member and spouse or partner do not choose under subsection 4, this table applies.

    Option not chosen
    Item If... and... then...
    1. both the member and spouse or partner would be eligible for the overseas living allowances and the member has the lower disposable income they do not jointly nominate the person who will only be paid the cost of living adjustment the member is only eligible for cost of living adjustment for the period of the posting.
    2. both the member and spouse or partner would be eligible for the overseas living allowances, and they have the same disposable income they do not jointly nominate the person who will only be paid the cost of living adjustment, and the member has the shorter period of service

15.2.14 Excluding higher duties allowance from disposable income

Higher duties allowance is included in a member's disposable income if it has been approved for three months or more. The three months must have been continuous.

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




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Overseas Administration and Civilian Relocations

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