Defence Determination 2005/25

I, SUSAN JANE PARR, Director General Personnel Policy and Employment Conditions, Defence Personnel Executive, make this Determination under section 58B of the Defence Act 1903.
Dated30 June
S J PARR
Director General
Personnel Policy and Employment Conditions
Defence Personnel Executive

1 Citation

This Determination is Defence Determination 2005/25, Excess commuting costs overseas –amendment.

2 Commencement

This Determination commences on 1 July 2005.

3 Amendment

Defence Determination 2005/15, Conditions of Service, as amended,1 is amended as set out in this Determination.

4 Clause 15.3.6 (Purpose), Note

substitute
Note: The member’s home should be located within a reasonable distance of the work location. The member is entitled to be paid only for travel by the most direct practical route.

5 Subclause 15.3.8.2 (Private vehicle)

substitute
2. / The member is entitled to be reimbursed for any extra commuting costs. The amount is worked out on a daily basis. It is based on every kilometre travelled over 30 km. The daily amount for excess commuting costs is worked out in local currency using this formula.
A x B x (C – 30)
A / is the applicable rate of vehicle allowance on 1 March in that year.
See: Chapter 15 Part 3 Division 4, Vehicle allowances
B / is the exchange rate used to pay salary to members at the posting location on the payday immediately before 1 March in that year.
Note: Information on item B is available from the Overseas Administration Centre (see Chapter 12 Part 2 clause 12.2.2).
C / is the daily return distance the member travels by private vehicle, in kilometres.
Example: A member is on posting in Shrivenham, UK. In a 2.0 litre engine vehicle, they make a 70km daily return trip. Vehicle allowance within Australia is AUD 0.63 a km for that vehicle. The exchange rate used is 0.40. This table shows how to work out the excess commuting costs.
Step / Action
1. / Convert the within-Australia rate of vehicle allowance to local currency.
AUD 0.63 x 0.40 = GBP 0.25 per km.
2. / Subtract 30 km from the daily return distance the member travels.
70 – 30 = 40 km.
3. / Multiply the result of step 1 by the result of step 2.
40 km x GBP 0.25 per km = GBP 10 a day.

6 Transitional

1. / If an eligible member’s entitlement to be reimbursed for excess commuting costs under the former provisions is more than their entitlement under the new provisions, then the member remains entitled under the former provisions until the end of their current posting or until they cease to be an eligible member, whichever occurs first.
2. / This table defines terms used in this clause.
Term / Definition in this clause
Eligible member / A member who is entitled to be reimbursed for excess commuting costs for travel by private vehicle.
Former provisions / Chapter 15 Part 3 Division 2 (Excess commuting costs), as in force on 30 June 2005.
New provisions / Chapter 15 Part 3 Division 2 (Excess commuting costs), as in force on and after 1 July 2005.

______

Note
1. / Defence Determination 2005/15, as amended to date. For previous amendments see Defence Determinations 2005/16, 17, 18, 19, 20, 21, 22, 23 and 24. Certain provisions of the Determination have been modified by Determination No. 5 of 2005, made under section 58H of the Defence Act 1903.

EXPLANATORY STATEMENT

Defence Determination 2005/25

This Determination amends Defence Determination 2005/15, Conditions of Service (the Principal Determination), made under section 58B of the Defence Act 1903. Chapter 15 of the Principal Determination sets out provisions dealing with living and working on long-term posting overseas for members of the Australian Defence Force and Australian Public Service employees of the Department of Defence.

The purpose of this Determination is to change the method for calculating a member's entitlement to reimbursement for excess costs incurred while driving a private vehicle to and from a work location during a long-term posting overseas. The former method of calculating excess commuting costs (ECC), when applied in certain overseas locations, led to a significant over-compensation of actual costs. This was because the formula used to calculate the rate was based on the cost of transport in Australia, where travel is more expensive than at some posts.

Consultations with overseas posts and relevant unions has yielded agreement to a revised formula to take effect from 1 July 2005. This new formula removes the post index component, but retains the exchange rate adjustment. The net effect is to reduce reimbursements to a level that is in line with actual expenditure.

Clause 1 of this Determination sets out the manner in which this Determination may be cited.

Clause 2 of this Determination provides that the Determination commences on 1 July 2005.

Clause 3 specifies that the amendment is made to the Principal Determination, as amended.

Clause 4 amends a note to the purpose clause on ECC. It states that any reimbursement of ECC is payable only if the member takes the most practical direct route and that the member should live within a reasonable distance of their posting location.

Clause 5 sets out the revised formula for working out any reimbursement for ECC when a member is driving their personal vehicle between their home and their place of duty. The revised formula omits the post index, which is used in adjusting entitlements for overseas living costs. Including this index distorted the calculation of ECC.

Clause 6 is a transitional provision allowing for those members, who formerly received a larger reimbursement for ECC than under the changed formula, to continue to receive their former entitlement while eligible. This level of entitlement will hold until the end of the member's posting or until the member's circumstances change in a way that terminates their entitlement to this form of ECC.

Authority: Section 58B of the
Defence Act 1903