Defence Determination 2015/18, Overseas Transport Costs Amendment

Defence Determination 2015/18, Overseas transport costs – amendment

I, INGRID CECILIE SINGH, Acting Director General People Policy and Employment Conditions, make this Determination under section 58B of the Defence Act 1903.
Dated 21April 2015
I C SINGH
Acting Director General
People Policy and Employment Conditions
Defence People Group

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Citation

1. / This Determination is Defence Determination 2015/18, Overseas transport costs – amendment.
2. / This Determination may also be cited as Defence Determination 2015/18.

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Commencement

This Determination commences upon the date of signature.

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Amendment

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

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Subclause 15.3.7.2 (Public transport)

substitute
the subclause as set out in the Schedule A.

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Subclause 15.6.12.2 (School transport costs)

before subclause 15.6.12.2, insert
1. / The following table defines terms used in this clause.
Item / Term / Definition
1. / Administrative year / The period starting 1 March and ending on the following 28 February, or 29 February in a leap year.
2. / Member contribution amount / The amount a member is required to contribute towards their public transport costs over an administrative year.

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Subclause 15.6.12.4 (School transport costs)

substitute
the subclause as set out in the Schedule B.

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Transitional overseas public transport costs

1. / This clause applies to a member claiming under clause 15.3.7 for public transport costs incurred between 1 March 2015 and the commencement of this Determination.
2. / Public transport reimbursement for this period is calculated using the member contribution amount and exchange rate that were applicable to the member's reimbursement in the administrative year 1 March 2014 to 28 February 2015.

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Transitional overseas school transport costs

1. / This clause applies to a member claiming under clause 15.6.12.4 for school transport costs incurred between 1 March 2015 and the commencement of this Determination.
2. / School transport reimbursement for this period is calculated using the member contribution amount and exchange rate that were applicable to the member's reimbursement in the administrative year 1 March 2014 to 28 February 2015.
NOTE
1. / Defence Determination 2005/15, as amended to date. For previous amendments see Note
to Defence Determination 2015/1 and amendments made by Defence Determinations
2015/1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16and 17.

SCHEDULE A

Subclause 15.3.7.2

2. / The following table outlines definitions used in this clause.
Item / Term / Definition
1. / Administrative year / The period starting 1 March and ending on the following 28 February, or 29 February in a leap year.
2. / Member contribution amount / The amount a member is required to contribute towards their public transport costs over an administrative year.
2A. / The member is required to make a contribution towards their public transport costs if they claim under this Part. The following table outlines the member contribution for the specified administrative years.
Item / Administrative year / Member contribution amount
1. / 1 March 2013 – 28 February 2014 / AUD 1139.50
2. / 1 March 2014 – 28 February 2015 / AUD 1232.60
3. / 1 March 2015 – 29 February 2016 / AUD 1268.70
2B. / The amount a member may be reimbursed is calculated in the following table.
Step / Action
1. / Count the number of days the member worked in the overseas location during the administrative year.Do not count more than 215.
2. / Divide the outcome of Step 1 by 215.
Note: The maximum number of days in a year a member must contribute towards the cost of public transport is capped at 215 days. This represents the maximum number of days in a year for which a person must pay for public transport in Canberra.
3. / Calculate the member contribution amount by multiplying the outcome of Step 2 by the relevant administrative year contribution amount in the table of subclause 2A.
Note: The member contribution amount is based on the cost of a yearly adult bus fare in Canberra.
4. / Calculate the member's public transport costs at the location, in AUD, minus the member contribution. The member contribution is the outcome of Step 3.
5. / The member may be paid the outcome of Step 4 if it is more than zero.
Example: The member's yearly public transport cost is AUD1450.00. The member's payment is calculated as AUD1450.00 minus a AUD1268.76 contribution. The member may be reimbursed AUD181.24.
Note: The exchange rate used to calculate member's contribution amount is taken from the payday immediately before 1 March in that administrative year

SCHEDULE B

Subclause 15.6.12.4

4. / The member is required to make a contribution towards their dependant's school transport costs claimed under this part. The following table outlines the member contribution for each administrative year.
Item / Administrative year / Member contribution amount
1. / 1 March 2013 – 28 February 2014 / AUD 233.00
2. / 1 March 2014 – 28 February 2015 / AUD 316.00
3. / 1 March 2015 – 29 February 2016 / AUD 343.20
4A. / The amount a member may be reimbursed is calculated in the following table.
Step / Action
1. / Count the number of school days for the child at the location in the administrative year.Do not count more than 158.
2. / Divide the outcome of Step 1 by 158.
Note: The maximum number of days in a year a member must contribute towards their dependant's school transport costs is capped at 158 days. This represents the maximum number of days in a year for which a student must pay for public transport to school in Canberra.
3. / Calculate the member contribution amount by multiplying the outcome of Step 2 by the relevant administrative year contribution amount in the table of subclause 4A.
Note: The member contribution amount is based on the cost of a yearly school bus fare in Canberra. Please refer to paragraph 15.6.12.3 which sets the relevant limit of a member's entitlement.
4. / Subtract a member contribution from the outcome of Step 4. The member contribution is the outcome of Step 3.
5. / The member may be paid the outcome of Step 5 if it is more than zero.
Example: A dependant's local school year bus ticket costs AUD400.00. The member is entitled to the difference between that and AUD343.20. The amount reimbursed is AUD56.80.
Note:The exchange rate used to calculate member's contribution amount is taken from the payday immediately before 1 March in that administrative year.

EXPLANATORY STATEMENT

Defence Determination 2015/18

This Determination amends Defence Determination 2005/15, Conditions of service (the Principal Determination), made under section 58B of the Defence Act 1903 (the Defence Act) and in accordance with subsection 33(3) of the Acts Interpretation Act 1901 (AIA Act). Determinations made under section 58B of the Defence Act are disallowable non-legislative instruments and are subject to the interpretation principles in the AIA Act, as modified by section 58B of the Defence Act.

This Determination amends Chapter 15 of the Principal Determination which sets out provisions dealing with living and working on long-term posting overseas for members of the Australian Defence Force (ADF).

This Determination has the following two purposes.

• To make an adjustment to the amount a member must contribute towards overseas public transport costs.
• To make an adjustment to the amount a member must contribute towards their child's school transport costs.

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 upon the date of signature.

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

Clause4 substitutes subclause 15.3.7.2 of the Principal Determination. The changes aim to clarify the policy by including definitions and by simplifying the calculation table. This clause also adjusts the current contribution amount and includes historic member contribution amounts for context and ease of administration.

Clause 5 inserts subclause 15.6.12.1 into the Principal Determination, which provides definitions for terms used in the clause.

Clause 6 substitutes subclause 15.6.12.4 of the Principal Determination. The changes aim to clarify the policy by including definitions and by simplifying the calculation table. This clause also adjusts the current contribution amount and includes historic member contribution amounts for context and ease of administration.

Clauses 7 and 8are transitional provisions which provide that the rates used to calculate overseas public transport and school transport costs between 1 March 2015 and commencement of this Determination are those used in the previous administrative year. This is to ensure that members are not disadvantaged if claiming during this period.

Criteria are provided for the exercise of discretions under the Principal Determination, as amended by this Determination. Adverse decisions are subject to merits review under the ADF redress of grievance system, including an appeal to the Defence Force Ombudsman.

Authority: Section 58B of the
Defence Act 1903

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Defence Determination 2015/18, Overseas transport costs – amendment

This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

This Determination has the following two purposes.

• To make an adjustment to the amount a member must contribute towards overseas public transport costs.
• To make an adjustment to the amount a member must contribute towards their child's school transport costs.

Human rights implications

The protection of a person's right to remuneration engages Article 7 of the International Covenant on Economic, Social and Cultural Rights. Article 7 guarantees just and favourable conditions of work, including remuneration, safe and healthy conditions, equal opportunity and reasonable limitations.

Legitimate objective: This Determination adjusts member contribution rates towards public transport costs and school transport costs, for members posted overseas.

Reasonable, necessary and proportionate: A philosophy underpinning many aspects of ADF member overseas conditions is that the Commonwealth will provide a subsidy, so that members who are posted to locations that are more expensive to live in than Australia are not disadvantaged by those expensive local conditions. Transport cost benefits are examples of this philosophy.

Members in Australia are not ordinarily reimbursed their costs of getting to work, nor the costs of their children getting to school. It is a long-standing industrial principle that these are private expenses. The public transport and school transport benefits do pay for these expenses, but the member is required to make a contribution. In the case of the public transport costs,the contribution is based on the Australian public transport cost (with Canberra's costs chosen as a benchmark, as there is some fluctuation between States). In the case of the school transport costs, a move to a contribution based on the cost of Canberra student public transport is being phased in.

The requirements on members to contribute towards these benefits ensure that they do not receive a 'windfall gain' by being posted to an expensive overseas location, but have approximate parity with their working conditions in Australia.

This Determination is compatible with human rights because it advances the protection of human rights.

Ingrid Cecilie Singh,Acting Director General People Policy and Employment Conditions