skip to navigation skip to content skip to footer

Division 12: Army – targeted rank and employment category completion bonus

3.5.88 Purpose

The purpose of this Division is to offer bonus payments to members to encourage them to complete three years service in certain Army ranks, corps and employment categories. The bonus is intended to reduce shortfalls in critical employment category structures. Not all members will be invited to join.

3.5.89 Definitions

The following table defines terms that apply in this Division.

Definitions
Term Definition in this Division

Rank

Substantive rank.

Exception: If a temporary or provisional rank is higher than a member's substantive rank, it is taken to be their rank for the purpose of this Division.

Example: A member is a substantive Corporal and has the provisional rank of Sergeant. For the purpose of this Division they are a Sergeant.

Salary

Salary as provided under DFRT Determination No. 2 of 2017, Salaries, as amended from time to time. It does not include Service allowance or other allowances.

See: Part 1, Salaries

Service that counts towards the bonus

See: Section 3.5.95, Service that counts towards the bonus

Workforce structure shortage

A workforce structure shortage exists when the Chief of Army directs that an employment category needs remedial action. The Chief of Army may consider recruiting, retention, training throughput, strength and future health elements of the employment category.

3.5.90 Member this Division applies to

This Division applies to a member who is in a rank and corps combination set out in the following table.

Rank and corps
Item The member's corps is... and their rank is...
1. Royal Australian Corps of Signals Corporal.
2. Royal Australian Electrical and Mechanical Engineers
3. Royal Australian Engineers Sergeant or Warrant Officer Class 2.

3.5.91 Division stops applying to a member on certain events

This Division ceases to apply to a member in any of the following situations.

  1. The member transfers to the Reserves.

  2. Note: In the total workforce model, a member of the Reserves may be described as a member in Service category 2, 3, 4 or 5.

  3. The member transfers to an employment category that does not have a workforce structure shortage.

  4. The member transfers to the Navy or the Air Force.

  5. The member transfers out of the corps for which they were made an offer to join the bonus scheme.

3.5.92 Offer to join the bonus scheme

  1. The Director General Personnel – Army may offer a completion bonus to a member who meets all of the following conditions on a date set out in subsection 2 (the assessment date).

    1. The member is in an employment category with a workforce structure shortage.

    2. The member is not serving under a period of formal warning or censure.

    3. The member is not classified as medically unfit. In this paragraph medically unfit means the member is not fit to perform their full duties for medical reasons, and is unlikely to recover within 12 months.

    4. The member does not have any of the following liabilities.

      1. An initial minimum period of service for the purpose of the Defence (Personnel) Regulations 2002.

      2. A return of service obligation for the purpose of the Defence (Personnel) Regulations 2002.

      3. An undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.

      4. An undertaking for service for the purpose of another bonus payment under this Part.

      5. Eligible service for the purpose of the Army – 1st Recruit Training Battalion recruit instructors scheme.

        See: Division 10, Army – 1st Recruit Training Battalion recruit instructors scheme

    5. The member has not voluntarily been reduced in rank in the year before the assessment date.

      Authority: Regulation 48 of the Defence (Personnel) Regulations 2002

      Example: On 1 May a member is assessed to see if he is eligible for a bonus. On 15 September the year before the member was voluntarily reduced in rank. The member is not eligible for a bonus offer as the reduction happened less than a year ago.

    6. The member has not accepted an offer of a completion bonus under this Division before.

    Note: Chapter 1 Part 2 section 1.2.2, Member Chapters 1 to 17 apply to, applies to this section. It operates to limit offers to members on continuous full-time service.

    Example: A member is a Sergeant in the Royal Australian Engineers. The Army wants to keep the member to help solve a workforce structure shortage. The member is made an offer of a completion bonus.

    Non-example: A member is a Corporal in the Royal Australian Corps of Signals. The member has been told she is being considered for promotion to Sergeant. She asked not to be promoted, as she wanted to be offered the bonus. Director General Personnel - Army chooses not to offer the bonus to the member. He believes the bonus should not be used to prevent normal career progression.

  2. The following table sets out the assessment dates for each corps. To avoid doubt, assessment date for a member may be in any year from 2012 to 2016.

    Assessment dates
    Item A member who is in... must meet subsection 1 conditions on this assessment date... but eligibility assessments are not made after...
    1. the Royal Australian Corps of Signals (Group A members) 1 May 1 May 2016.

    2.

    either of the following corps (Group B members)

    1. Royal Australian Electrical and Mechanical Engineers.
    2. Royal Australian Engineers.

    1 August

    1 August 2016.

  3. The offer must be made using the form at Part A to Annex 3.5.I.

    See: Annex 3.5.I, Army – targeted rank and employment category completion bonus

  4. The offer must be for a period of three years' service that counts towards the bonus.

3.5.93 How to accept an offer under this Division

  1. In order to accept an offer of a bonus a member must respond by the date specified in the offer.

    Exception: Director General Personnel – Army may decide that a later date of acceptance is reasonable, having regard to the member's circumstances.

  2. The member may choose to reject an offer made under section 3.5.92.

    See: Section 3.5.92, Offer to join the bonus scheme

  3. A member must take both the following actions to accept an offer.

    1. Accept the offer using the acceptance form at Part B to Annex 3.5.I.

      See: Annex 3.5.I, Army – targeted rank and employment category completion bonus

    2. Elect how the benefit is to be paid, using the form at Annex 3.5.J.

      See: Annex 3.5.J, Bonus payment election

  4. The acceptance must include an undertaking to serve for three years of service that counts towards the bonus.

  5. This subsection applies to a member described in the following table. The member's acceptance is not effective unless the member also fulfils the additional requirement described in the table.

    Applicable member
    Item Member Additional requirement
    1. Member of the Reserves on continuous full-time service

    Note: In the total workforce model, a member of the Reserves on continuous full-time service may be described as a member in Service category 3, 4 or 5 who is also on Service option C.

    That the member is transferred to the Australian Regular Army.
    2. Member who will reach their compulsory retirement age before the date three years from the commencement date specified in the offer. That the member's compulsory retirement age is extended to a day at least three years from the commencement date specified in the offer.

    3.

    Member on fixed period of enlistment that is due to end before the date three years from the commencement date specified in the offer.

    That the member has either of the following outcomes.

    1. Their enlistment is converted to enlistment for an indefinite period.
    2. Their fixed period of enlistment is extended to at least the date three years from the commencement date specified in the offer.

    4.

    Member who has applied to resign in less than three years, and whose application was granted.

    That both of the following events occur.

    1. The member applies to withdraw their application to resign.
    2. The member's withdrawal is accepted.

3.5.94 Period of service

  1. The member's three years of service starts on the commencement day specified in the offer.

    Examples: 1 June, 1 September

  2. The three years of service must be service that counts towards the bonus. This may be broken by service that does not count towards the bonus.

    Example: A member joins the scheme. Two years after joining, the member takes two weeks of leave without pay. Leave without pay does not count towards the bonus. The member takes three years and two weeks to get their completion bonus.

  3. A member who meets all the following conditions after they accept an offer of a bonus remains eligible to provide service that counts towards that bonus.

    1. The member is promoted.

    2. The member is in an employment category with a workforce structure shortage.

    3. The member remains in a corps described in the table in subsection 3.5.90.

      See: Subsection 3.5.90, Member this Division applies to

    Related Information: Section 3.5.91, Member this Division does not apply to

3.5.95 Service that counts towards the bonus

  1. To count towards the bonus, service must meet all the following conditions.

    1. It is continuous full-time service.

    2. Note: In the total workforce model, continuous full-time service may be described as service in Service category 6 or 7. A member who is in Service category 3, 4 or 5 and on Service option C is also on continuous full-time service.

    3. It is paid.

    4. It is in a corps listed in the table in section 3.5.90.

      See: Section 3.5.90, Member this Division applies to

    5. It is not excluded from counting towards the bonus by subsection 2.

  2. The following table lists a range of leave types and activities and sets out how that service counts towards the bonus.

    Eligible service
    Item Activity Effect

    Leave and absence

    Specific period

    Effect

    1.

    Paid leave

    Exceptions: Short absence, medical absence.

    Examples: Recreation leave, paid maternity leave, long service leave at full pay, long service leave at half pay.

    First six weeks of paid leave in a leave year. The leave is cumulative.

    Counts towards the bonus.

    Paid leave after six weeks in a leave year.

    Does not count towards the bonus.

    Example: A member has four weeks of paid leave in March. In May the member has three more weeks of paid leave. The first six weeks of the member's leave counts towards the bonus. The last week does not count towards the bonus.

    2.

    Part-time leave without pay

    Only the paid component counts toward the bonus.

    3.

    Short absence

    Counts towards the bonus.

    Specific period

    Effect

    4.

    Medical absence

    First 28 days of any medical absence.

    Counts towards the bonus.

    Period of absence after 28 days.

    Does not count towards the bonus.

    5.

    Unpaid leave

    Examples: Leave without pay, maternity leave without pay.

    Does not count towards the bonus.

    6.

    Absence without leave

    Other commitments

    7.

    A period when the member is serving an undertaking for service for the purpose of another bonus payment under this Part.

    The period only counts toward the earlier undertaking.

    8.

    A period when the member is performing eligible service for the purpose of the Army – 1st Recruit Training Battalion recruit instructors scheme.

    See: Division 10, Army – 1st Recruit Training Battalion recruit instructors scheme

    Does not count towards the bonus.

    9.

    A period when the member is serving a return of service obligation for the purpose of the Defence (Personnel) Regulations 2002.

    Administrative sanctions

    10.

    A period when the member is serving under a formal warning or censure.

    Does not count towards the bonus.

    Not performing employment category duties

    11.

    A period for which the Director General Personnel - Army determines the member is not performing the duties of the employment category for which the bonus was offered.

    Example: A member is given duties at another location for compassionate reasons. These duties do not relate to the member's trade. Director General Personnel – Army determines the member is not performing the duties of the member's employment category.

    Does not count towards the bonus.

    12.

    A period when the member is reduced to a rank lower than that for which the bonus offer was made.

    13.

    Imprisonment, detention or suspension from duty without pay.

3.5.96 Payment of the bonus

  1. The completion bonus is paid at the end of three years of service that counts towards the bonus.

    Note: Paragraph 3.5.92.1.f operates to ensure the bonus may only be paid to a member once.

  2. The amount of the bonus is the greater of the following amounts.

    1. The member's salary for rank, pay grade and increment at the time the offer is made.

    2. The member's salary for rank, pay grade and increment at the end of three years of service that counts towards the bonus.

    Example: A Corporal joins the scheme. Two years later the member is promoted to Sergeant. At the end of three years of service that counts towards the bonus the member is entitled to be paid a bonus equivalent to their current Sergeant salary. That salary reflects their current rank and pay grade.

  3. A member who meets both the following conditions is not entitled to a bonus under this Division.

    1. The member is performing service that counts towards a bonus under this Division.

    2. The member makes an undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991 (as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005).

    Example: A Sergeant joins this bonus scheme. Two years later the member becomes eligible for the MSBS retention benefit. The member makes an undertaking for further service under that scheme. The member has no entitlement to a partial benefit under this bonus scheme, and will not get a full benefit under this scheme for serving for three years.

3.5.97 Partial payment of bonus

A member is to be paid a partial payment if they fail to complete three years of service that counts towards the bonus for any of the following reasons.

  1. The Director General Personnel – Army determines that the member's reason for ceasing to serve is beyond the member's control.

    Non-examples:

    1. A member resigns to take up other employment. The Director General Personnel – Army determines that the resignation is within the member's control. The member is not entitled to a partial payment.

    2. A member is terminated for absence without leave. The Director General Personnel – Army determines that the reason for termination is within the member's control. The member is not entitled to a partial payment.

  2. The member is terminated because they are medically unfit.

    Authority: Paragraph 87(1)(c) of the Defence (Personnel) Regulations 2002.

  3. The member dies.

  4. The member is commissioned as an officer.

  5. The member has not completed three years of service that counts towards the bonus by 31 August 2019.

3.5.98 Calculation of partial bonus payment

The following table shows how to calculate a partial completion bonus that a member is entitled to under section 3.5.97.

See: Section 3.5.97, Partial payment of bonus

Calculation of partial payment
Step Action
1. Count the number of calendar days since the member's undertaking to serve started. This is the day specified in the member's offer.
2. Subtract the number of days of service that do not count towards the bonus from the outcome of Step 1.
3. Divide the outcome of Step 2 by 1095. If the period includes 29 February, divide by 1096.
4. Find the member's salary at the time the offer was made, and the member's salary at the time of becoming eligible for the partial bonus. Do not include allowances.
Determine which rate is higher.
5. Multiply the outcome of Step 3 by the outcome of Step 4.
6. The member may be paid the outcome of Step 5.

Example: A member joins the scheme, and their service period starts on 1 September 2012. The member's last day in the scheme is 12 November 2013. It is determined the reason for leaving is beyond the member's control. The member's salary at the time of leaving the scheme is $65,000 and they had no days that did not count towards the bonus. When they joined the scheme their salary was $63,000. The member's partial bonus payment is calculated as follows.

Calculation example
Step Action
1. There have been 438 days since the member's undertaking to serve started.
2. The member had no days of service that did not count towards the bonus.
438 – 0 = 438 days
3. 438 divided by 1095 = 0.4
4. The member joined the scheme with a salary of $63,000. The salary is $65,000 at the time of becoming eligible for the partial bonus.
The higher of the salaries is $65,000.
5. $65,000 multiplied by 0.4 = $26,000.
6. The member may be paid $26,000.

3.5.99 Ending the bonus scheme

This Division will cease to have effect on 1 September 2019.