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Division 8: Contributions

7.6.40 Overview

  1. A contribution is the amount a member must pay toward the cost of their Service residence or rent band choice home. It is paid to the Commonwealth through the member's pay account.

  2. The contribution includes these costs as well as the cost of the Service residence.

    1. Sewerage or septic system charges.

    2. Body corporate maintenance charges for units and townhouses.

      Examples: Stairwell cleaning, high-rise window cleaning.

    3. Car parking charges.

    4. Rubbish collection.

7.6.41 Contribution for Service residence or rent band choice home

  1. A member who holds a Service residence or rent band choice home must make a contribution toward the cost of the rent of that accommodation.

    Exception: A member with dependants (unaccompanied) only has to pay a contribution if their dependants live in a Service residence. The member does not have to pay a contribution for a surplus Service residence the member lives in at the gaining location.

  2. The fortnightly rate of the contribution can be worked out using this table.

    Exception: The contribution for a member who chooses to occupy a Service residence or rent band choice home above the classification for their rank group is set out in Part 2 of Annex 7.A.

    See: Annex 7.A, Contributions for Service residence or rent band choice accommodation

    Exception: Subsection 7.6.45.2 sets a special transitional contribution rates for some members with the rank of Lieutenant or Second Lieutenant.

    See: Section 7.6.45, Member allocated a Service residence above their rank group

    Fortnighly contributions
    Item If the member is... and they are... then their contribution is the amount set out in...
    1. a member with dependants living in a 2-bedroom Service residence with an amenity-based classification Annex 7.A, Part 1 Column 5 for their rank group and the amenity group the Service residence is classified in.
    living in a 3 or more bedroom Service residence Annex 7.A, Part 1 Column 4 for their rank group and the amenity group or rent band the Service residence is classified in.
    living in a Service residence or rent band choice home above the rent band for their rank, by choice, not allocation Annex 7.A, Part 2 for their rank group and the rent band of the home.
    2. a member without dependants who is approved to occupy a surplus Service residence living in a 2-bedroom Service residence, but not sharing Annex 7.A, Part 3 Column 3, for the amenity group the Service residence is classified in.
    living in a 3-bedroom Service residence, but not sharing Annex 7.A, Part 3, Column 4 for the amenity group or rent band the Service residence is classified in.
    sharing with one other person Annex 7.A, Part 4 Column 3, for their rank group and living arrangement.
    sharing with two or more people Annex 7.A, Part 4 Column 4, for their rank group and living arrangement.
    3. a member without dependants in an appointment, tied or assigned residence not sharing Annex 7.A Part 3 Column 3 for the amenity group or rent band the Service residence is classified in.
    sharing with one other member Annex 7.A Part 4 Column 3 for their rank group.
    sharing with two or more members Annex 7.A Part 4 Column 4 for their rank group.
    4. living at Woomera in any living arrangement (and not a member with dependants (unaccompanied)) $200 each fortnight.

    See: Annex 7.A, Contributions for Service residence or rent band choice accommodation

  3. The CDF may waive or reduce the member's contribution for a fixed period, if satisfied that both these conditions are met.

    1. There is a significant loss of amenity or function in the Service residence.

    2. The member did not cause the loss of amenity.

    Example: A member's contribution is reduced by CDF by one rank group because the garage of their apartment complex is flooded and cannot be used for two months.

    Non-example: The member's yard floods because they have failed to replace a leaky tap washer. The CDF does not grant a reduction in contribution, as the member's neglect caused the loss.

  4. A member who has a recognised live-in carer only has to pay the member without dependants rent allowance contribution relevant for their rank in Annex 7.D Part 2 Column 2, if they meet all of the following conditions.

    See: Annex 7.D Part 2, Contributions for rent allowance

    1. The member has a live-in carer who has been recognised as a dependant under subsection 1.3.87.3.

    2. The member would be classified as a member without dependants if they did not have a dependant recognised under subsection 1.3.87.3.

    3. The member has been allocated a Service residence.

      See: Chapter 1 Part 3 Division 2 section 1.3.87, Dependants recognised by CDF

  5. If a member has a resident child carer the contribution the member pays for the Service residence is not affected.

    See:
    Part 1 Division 3 section 7.1.14, for the definition of resident child carer
    Division 2 section 7.6.8, Resident child carer

  6. A member whose eligibility at a rank group applicable to a previous non-commissioned rank is preserved under subsection 7.6.48.6 must contribute at the level that applies to their preserved rank group eligibility (if applicable).

    See: Section 7.6.48, Member promoted or commissioned

Persons who can make the decision under subsection 7.6.41.3 on behalf of the CDF:
Contract Manager Services Agreement
Assistant Contract Manager Services Agreement
Assistant Director Operations
Director Relocations and Housing

7.6.42 Suspended contributions for a member without dependants

A member without dependants occupying a surplus Service residence is not required to make a contribution to the cost of the home for a period when any of the circumstances in the table apply to the member, from the date described in the table.

Suspended contribution
Item If the member is... the contribution ceases on... and the contribution recommences...
1. living under field conditions the twenty-second day of a continuous period in which the member was living under those conditions.This applies even if the period after that day is broken by either or both of the following events.
  1. The member returns to their accommodation for up to seven days.
  2. The member takes up to seven days of leave.
after the period in which the member was living under those conditions is broken by more than seven days. The member must contribute for those seven days.
2. living on a seagoing ship
3. posted to a seagoing submarine the day the posting period starts the day the posting period ends.
4. on deployment the day they board a ship or aircraft for the journey from Australia to the operational area when they disembark in Australia at the cessation of their deployment.
Note: Contributions do not recommence for a member who returns part-way through their deployment, for example, while on leave. They only recommence at the cessation of their deployment.

See: Division 3 section 7.6.30, Member without dependants eligible for a Service residence

7.6.43 Higher contribution scheme, above rank group

If the member chooses to accept a Service residence or rent band choice home with a rent band higher than the one specified for the member's rank group eligibility under section 7.6.13, the member must pay the contribution listed for their rank and the higher rent band under Part 2 of Annex 7.A for the period that they hold the home.

Note: This is called a 'higher contribution scheme' contribution.

See:
Annex 7.A, Contributions for Service residence or rent band choice accommodation
Division 3 section 7.6.13, Rent band for a member's rank group

7.6.44 Contribution for a home chosen at a lower rank group's rent band or amenity group

  1. This section applies to a member who chooses a Service residence or rent band choice home that meets either of the following descriptions.

    1. A home with a lower rent band than the member is eligible for at their rank group specified in section 7.6.13.

      See: Division 3 section 7.6.13, Rent band for a member's rank group

    2. A home with a lower amenity group than the member is eligible for at their rank group specified in section 7.6.16.

      See: Division 4 section 7.6.16, Amenity-based classification for a member's rank group

  2. The member must only pay the contribution for the lower rank group listed against the rent band or amenity group of the home, under section 7.6.41 and Annex 7.A.

    See: Annex 7.A, Contributions for Service residence or rent band choice accommodation

    Exception: The member chose a Service residence before 1 July 2007 with one or more bedrooms above the number that would be suitable under section 7.6.4. The member must pay the contribution for their rank group.

    See: Division 2 section 7.6.4, Suitable Service residence

7.6.45 Member allocated a Service residence above their rank group

  1. This section applies to a member who is allocated a Service residence in a rent band or amenity group that is higher than the one specified for the member's rank group in whichever is relevant of section 7.6.13.1 or 7.6.16.1.

    See:
    Division 3, Market-rent-based classification of a Service residence
    Division 4, Amenity-based classification of a Service residence

  2. The member must pay the contribution that applies under section 7.6.41 and Annex 7.A.

    Exception: A member with the rank of Lieutenant or Second Lieutenant who accepted the offer of a Service residence classified as amenity group B2 or above before 1 July 2007 must pay the contribution that is listed for a Captain with a home classified as rent band 2 or amenity group B2 for the period they hold the home.

    Note: This means they continue paying the contribution for the rank group they held before the 1 July changes.

    See: Section 7.6.47, Allocation above or below rank group eligibility – fast find table

7.6.46 Member allocated a Service residence below their rank group

  1. This section applies to a member who is allocated a Service residence that meets either of the following descriptions.

    1. A home with a lower rent band than the member is eligible for at their rank group specified under the table in section 7.6.13.

      See: Division 3 section 7.6.13, Rent bank for a member's rank group

    2. A home with a lower amenity group than the member is eligible for at their rank group specified under the table in section 7.6.16.

      See: Division 4 section 7.6.16, Amenity-based classification for a member's rank group

  2. The member must only pay the contribution for the lower rank group listed against the rent band or amenity group of the home in Annex 7.A.

    See: Section 7.6.47, Allocation above or below rank group eligibility - fast find table

    Exception: The member was allocated a Service residence before 1 July 2007 with one or more bedrooms above the number that would be suitable under section 7.6.4. The member must pay the contribution for their rank group.

    See: Division 2 section 7.6.4, Suitable Service residence

7.6.47 Allocation above or below rank group eligibility – fast find table

The table below shows how a member's contribution is affected by the rules in sections 7.6.45 and 7.6.46.

Allocation above or below rank group
Item If the member's rank is... and they are allocated a Service residence in amenity group or rent band... because there are no... then they will pay the contribution for...
1. Corporal or lower Group A Group B1 or Rent Band 1 residences available Group A.
Group B2 or Rent Band 2
2. Staff Sergeant, Sergeant Group A Group B1 or Rent Band 1 residences available Group A.
Group B2 or Rent Band 2 Group B1 or Rent Band B1 residences available
  1. Group B1.
  2. Rent Band 1.
3. Lieutenant, Second Lieutenant Group B2 or Rent Band 2 residence Group B1 or Rent Band 1 residences available
  1. Group B1.
  2. Rent Band 1.
4. Captain, Warrant Officer Class 1, Warrant Officer Class 2 Group B1 or Rent Band B1 residence Group B2 or Rent Band 2 residences available
  1. Group B1.
  2. Rent Band 1.
Group C or Rent band 3 residence Group B2 or Rent Band 2 residences available
  1. Group B2.
  2. Rent Band 2.
5. Lieutenant Colonel, Major Group B2 or Rent Band 2 residence Group C or Rent Band 3 residences available
  1. Group B2.
  2. Rent Band 2.
Group D or Rent Band 4 residence Group C or Rent Band 3 residences available
  1. Group C.
  2. Rent Band 3.
6. Brigadier, Colonel Group C or Rent Band 3 residence Group D or Rent Band 4 residences available
  1. Group C.
  2. Rent Band 3.

7.6.48 Member promoted or commissioned

  1. This section applies to a member who meets both of these conditions.

    1. They live in a Service residence that is above their rank group eligibility.

    2. They are promoted to a rank in the next higher rank group.

  2. A member who has been promoted must notify Defence Housing Australia in writing. This allows Defence Housing Australia to assess whether the promotion has any effect on the member's contribution.

  3. On the date of their promotion, the member's contribution for the Service residence is increased to the rate for their new rank group (relevant to the classification of the Service residence).

  4. If a member's new rank group is the one specified for the classification of their Service residence or rent band choice home under subsection 7.6.13.1 or 7.6.16.1, both the following arrangements apply.

    1. Any requirement for the member to pay a higher contribution scheme amount under Part 2 of Annex 7.A ceases.

    2. The member must pay the contribution worked out under Part 1 of Annex 7.A.

    See:
    Division 3 section 7.5.13, Rent band for a member's rank group
    Division 4 section 7.5.16, Amenity-based classification for a member's rank group

  5. A member who is notified of a promotion to a higher rank group is able to be allocated a Service residence at the higher rank group before the posting commences. The member may continue to pay the contribution for their substantive rank group until the date the promotion commences. From the date of promotion the member must pay the contribution for their new rank.

  6. If a member is appointed as a commissioned officer, and this results in a reduction in the member's rank group under the table in section 7.6.13.1 or 7.6.16.1, the member is taken to continue to be eligible in the rank group they held as a non-commissioned officer, until they reach a higher rank.

    Example: A Flight Sergeant commissions as a Flying Officer and their rank group eligibility would normally change from rent band 2 (or B2) to rent band 1 (or B1). Instead, the member keeps their eligibility for a rent band 2 Service residence and stays in their home, making the same contribution.

7.6.49 Member reduced in rank

  1. This section applies to a member who meets all these conditions.

    1. They live in a Service residence that is at or above their rank group eligibility.

    2. They are reduced to a rank in a lower rank group.

  2. On the date their rank is reduced, the member's contribution for an allocated Service residence is reduced to the rate for their new rank group (relevant to the classification of the Service residence).

  3. If the member paid a contribution for their home under section 7.6.43 (the higher contribution scheme) immediately before they were reduced in rank, they must continue to pay the contribution that applies for their home and previous rank under Part 2 of Annex 7.A.

  4. A member who has been reduced in rank must notify Defence Housing Australia in writing. This allows Defence Housing Australia to assess whether the reduction in rank has any effect on the member's contribution.

  5. On reduction of rank, a member who is paying a contribution under the higher contribution scheme may elect to move out of the home. The removal does not attract any assistance and is at the member's own expense.

7.6.50 Member on leave without pay

  1. A member is not eligible to live in a Service residence while they are on leave without pay under Chapter 5 Part 10, Leave without pay.

    See: Chapter 5 Part 10, Leave without pay

  2. This section does not apply to a member on one of these kinds of leave.

    1. Part-time leave without pay.

    2. Maternity leave.

    3. Parental leave.

    4. Leave without pay (flexible service determination).

  3. The CDF may decide that the member was granted the leave without pay for exceptional reasons. In this case, they may be eligible for a Service residence in the normal way. They pay their usual contribution.

  4. A member who is not eligible for a Service residence under this section may apply to live in a Service residence under Division 7 section 7.6.37. They must pay the Defence Housing Australia rent under section 7.6.37.

    See: Division 7, When a member is eligible to live in a service residence

Persons who can make the decision under subsection 7.6.50.3 on behalf of the CDF:
Director General Navy People
Director Navy Personnel Policy
Director Navy Employment Conditions
Director General Personnel – Army
Director Personnel Policy – Army
Staff Officer Grade 1 – Personnel Policy – Army
Director General Personnel – Air Force
Director Personnel Policy – Air Force
Deputy Director Personnel Policy – Air Force
Deputy Director Service Conditions – Air Force

7.6.51 Member on part-time leave without pay

  1. This section applies to a member who meets both these conditions.

    1. They are on part-time leave without pay.

    2. They are eligible to live in a Service residence.

    1A.  For the avoidance of doubt, this section also applies to a member in rent band choice accommodation.

  2. This table sets out the rates of contribution that the member must pay toward the cost of the Service residence during their part-time leave without pay.

    Rates of contribution
    Item If the member's part-time leave without pay each fortnight is... they must pay...
    1. more than nine days 150% of the rate set for their rank and circumstances in Annex 7.A.
    2. nine days or less the rate set for their rank and circumstances in Annex 7.A.

    Note: Leave for a fortnightly pay period includes the four weekend days in the pay period. This makes a total of nine days of leave and five days on duty for the fortnight.

  3. The CDF may decide that the member was granted the part-time leave without pay for exceptional reasons. In this case, they may be eligible for a Service residence at their usual contribution rate for the residence.

  4. Persons who can make the decision under subsection 7.6.51.3 on behalf of the CDF:
    Director General Navy People
    Director Navy Personnel Policy
    Director Navy Employment Conditions
    Director General Personnel – Army
    Director Personnel Policy – Army
    Staff Officer Grade 1 – Personnel Policy – Army
    Director General Personnel – Air Force
    Director Personnel Policy – Air Force
    Deputy Director Personnel Policy – Air Force
    Deputy Director Service Conditions – Air Force

7.6.52 Member undergoing training

A member with dependants' contribution for their Service residence is not reduced for any period that the member is a member undergoing training.

7.6.53 Service residence reclassified

A change in the rent band or amenity group of a Service residence under Division 3, 4 or 5 does not apply until the end of any current occupancy agreement.

Note: This means that a change will not affect a member during the life of their tenancy.

Related information: Subsection 7.6.41.3 allows CDF to reduce a contribution in some circumstances, without changing the classification of a Service residence.

7.6.54 Contribution for member dependants

  1. This table sets out who pays the contribution, if a member's adult dependant is also a member and both occupy a Service residence.

    Contribution
    Item If the members have... the contribution is payable only by the member with the...
    1. different rank group eligibility higher rank group eligibility.
    2. the same rank group eligibility higher rank, increment or pay grade.
  2. Only one contribution is payable by a member and their adult dependant jointly under subsection 1, if they meet all these conditions.

    1. They are both members.

    2. One of them is a member with dependants (unaccompanied) under subsection 8.3.6.4.

      See: Chapter 8 Part 3 Division 1 section 8.3.6, Member who may be classified as a member with dependants (unaccompanied)

    3. The other is a member with dependants.

  3. However, no contribution is payable by either member under subsection 2, if one of the members occupies a suitable own home.

  4. If the senior member is on leave without pay, the member's contribution is taken to remain at the same rate as before period of the leave began.

    See: Chapter 5 Part 10, Leave without pay

7.6.55 Contribution for member formerly in an amenity-based or on-base residence

  1. This section applies to a member who meets all the following conditions.

    1. The member's residence was formerly in either of the following categories.

      1. An amenity-based classification under Division 4.

        See: Division 4, Amenity-based classification of a Service residence

      2. An on-base classification under the former Principal Determination 2005/15, Conditions of Service, Division 5, as at 28 September 2011.

    2. The member's Service residence is classified as market-based after 29 September 2011.

    3. The member's contribution for the Service residence under the amenity or on-base system was lower than the member's contribution assessed under the market-based system.

  2. The member's contribution for that Service residence is in accordance with the following table.

  3. Contribution
    Item If, before 29 September 2011, the Service residence was... the member's contribution...
    1. classified as amenity-based continues to be sourced from the amenity- based system.
    2. classified as on-base is based on the rent band determined for the residence under section 7.6.19 as at 28 September 2011.
  4. The following statements are provided for the avoidance of doubt.

    1. The contribution arrangements in subsection 2 are provided for the length of the member's current tenancy.

    2. The member's contribution is adjusted if the contribution rates in Annex 7.A vary as a result of the annual rent review.

      See: Annex 7.A, Contributions for Service residence or rent band choice accommodation

    3. The member's contribution does not change if the member's accommodation is placed into a different rent band as a result of a regional housing stock review.

    See: Division 3 subsection 7.6.13.4, Rent band for a member's rank group. This subsection provides the authority for a member to continue to stay in the Service residence that was allocated under the amenity-based system.

7.6.55A Contribution for member on a flexible service determination

  1. This section applies to a member who meets both the following conditions.

    1. The member is on a flexible service determination (weeks per month pattern of service).

    2. The member is required to make a contribution for a Service residence or a rent band choice accommodation under this Division.

  2. The member's rate of contribution is set out in the following table.

    Item If the member's pattern of service over each four week period is… the member's contribution is...
    1. one week working, three weeks not working, 150% of the rate that applies to them under Annex 7.A.
    2. two weeks working, two weeks not working, 100% of the rate that applies to them under Annex 7.A.
    3. three weeks working, one week not working,

    See: Annex 7.A, Contributions for Service residence or rent band choice accommodation

    Note: Each working day in the week is based on a normal full-time work day.

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



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