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Division 5: Purchased recreation leave

5.4.21 Purpose

Purchased recreation leave allows a member to increase the amount of recreation leave credit available to them. The member must pay the cost of the purchased recreation leave.

5.4.22 Application to purchase recreation leave

  1. A member may apply to purchase recreation leave credits.

    Exception: A member cannot apply to purchase leave credits in a period when they are on any of the following kinds of service.

    1. Warlike service.

    2. Non-warlike service.

    3. Foreign service, as defined by section 23AG (7) of the Income Tax Assessment Act 1936, which could reasonably be expected be exempt from tax under sub-section 23AG of the Income Tax Assessment Act 1936.

    4. Note: To qualify for the tax exemption, a member must be engaged in foreign service for a continuous period of not less than 91 days.

  2. Recreation leave credits are purchased in hourly increments. Eight hours of purchased recreation leave credits is the equivalent of one full day of leave.

  3. See: Subsection 5.4.24.3, Payment, for how the payment of purchased recreation leave is calculated.

  4. A member must apply to purchase recreation leave credits using form AE428, ADF – Request to Purchase Recreation Leave.

  5. The maximum amount of recreation leave credits a member may purchase in a financial year is 20 days.

    Note: The maximum amount is not reduced for a member on part-time leave without pay or on leave without pay (flexible service determination).

  6. At the time of purchase, the amount of recreation leave credits that can be purchased by the member is reduced by each day the sum of the following exceeds 40 days.

    1. The member's basic recreation leave credit.

    2. The member's additional recreation leave credit.

    3. The member's extra recreation leave credit.

    Note: At the time of purchase a member must have regard to the maximum permitted number of days set out in subsection 4 above.

    Examples:

    1. A member's total recreation leave credit balance is 48 days. The 20 days of purchased recreation leave the member may purchase in a financial year is reduced by 8 days (the amount over 40). The maximum amount the member may purchase is 12 days (20 8).
    2. A member has purchased 20 days in the current financial year and wants to purchase more. The member has to wait until the next financial year.

5.4.23 Approval to purchase recreation leave

  1. In this section a supervisor means a person in the member’s chain of command, at the following rank or APS classification, or higher.

    1. Major.

    2. APS 6.

  2. A member and their supervisor must discuss a member's application for purchased recreation leave before it is approved. The supervisor must ensure the member understands they will be using their salary and Service allowance to pay for the purchased recreation leave credit.

  3. 2A. The discussion may include workforce planning issues. The member and supervisor might plan when the leave is to be taken so as to meet the member's needs without damaging capability. The member may consider whether they will use the leave before it expires.

  4. The supervisor must consider whether operational requirements are likely to prevent the member to be granted the full amount of purchased recreation leave.

5.4.24 Payment

  1. A member who has been approved to purchase recreation leave credits must pay the cost of those leave credits.

  2. The member's fortnightly payment is calculated using the table in subsection 3.

    Note: The payment reduces the member's gross income.

  3. The following table shows how to calculate a member's fortnightly payment.

  4. Calculation of fortnightly payment
    Step Action
    1. Add the member's annual salary and Service allowance.
    Notes:
    1. Other allowances such as higher duties allowance, are not included.
    2. The amount in this step may change in the event of promotion, demotion or increases to salary or Service allowance.
    2. Convert the outcome of Step 1 to a daily pay rate by dividing it by 365.
    3. Convert the outcome of Step 2 to an hourly rate by dividing by 8.
    Note: The rate is based on one full day of leave being equivalent to 8 hours.
    4. Multiply the outcome of Step 3 by the number of hours of leave that the member has been approved to purchase.
    5. Divide the outcome of Step 4 by the number of pay periods over which the member elected to make payments.
    6. The outcome of Step 5 is the amount of the member's payment for each of the pay periods in their application.
  5. The amount of the payment is not reduced if the member is on part-time leave without pay or leave without pay (flexible service determination).

5.4.25 Credit of purchased recreation leave

  1. This section applies to a member whose application is approved under this Division.

  2. Purchased recreation leave credits are credited to the member on the same payday the payment for the leave is deducted from the member's pay.

  3. The amount the member is credited each fortnight is calculated in accordance with the following table.

    Calculation of fortnightly credit
    Step Action
    1. Find the total number of hours of recreation leave credits that was approved to be purchased.
    2. Divide the outcome of Step 1 by the number of pay periods over which the member elected to pay for those hours.
    3. The outcome of Step 2 is the amount of leave credits (in hours) the member is credited each pay period.
  4. A member is able to apply to use recreation leave credits as soon as it has been credited.

  5. Example: A member chooses to purchase 96 hours of recreation leave, over 12 pays. The member is credited 8 hours of purchased recreation leave, at the same time the payment for those 8 hours is deducted from their pay, on each of the 12 paydays. The member is able to apply to use the leave as soon as it is credited.

5.4.26 Cancellation to the amount of purchased recreation leave

  1. A purchased recreation leave arrangement will be cancelled from the time a member is on any of the following kinds of service.

    1. Warlike service.

    2. Non-warlike service.

    3. Foreign service, as defined by section 23AG (7) of the Income Tax Assessment Act 1936, which could reasonably be expected be exempt from tax under sub-section 23AG of the Income Tax Assessment Act 1936.

  2. A member may make a fresh application to purchase recreation leave when they are no longer on a type of service under subsection 1.

  3. The member may cancel their purchased recreation leave arrangement made under section 5.4.24 if the arrangement was approved by their supervisor on or after 10 August 2017.

  4. Note: A purchased recreation leave arrangement cancelled under this section does not affect recreation leave already purchased.

5.4.26A Administration of purchased recreation leave

  1. A purchased recreation leave credit is treated in accordance with Division 7.

  2. See: Division 7, Administration and payment for recreation leave

  3. Purchased recreation leave credits cannot be sold back to the Commonwealth. This may also be known as cashing out.

  4. Note: Unused purchased recreation leave credits may form part of a member's payment instead of recreation leave, on ceasing continuous full-time service.

    See: Division 8 section 5.4.43, Payment or transfer of leave credit

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



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