Publication:Sea Talk Autumn 2005/Is it Attendance or Travelling Allowance

Is it Attendance or Travelling Allowance that I am entitled to?

From the office of the Chief Staff Officer (Reserves), NPT

Attendance Allowance

Naval Reserve (NR) entitlements to Attendance Allowance (AA) or Travelling Allowance (TA) can be confusing, especially when exposure to Defence administration is on a part-time NR service basis. To provide some clarity to Reservists, a Minute has been released by the Chief Staff Officer (Reserves) Navy Personnel and Training, CAPT Mike Burton; a precis of which is provided in this article.

AA is a cash inducement for Reserves to attend their 'normal place of duty' and was created to provide recompense for the inconvenience of travelling to and from a normal place of duty. AA is not calculated to fully cover the cost of such travel, it is calculated at 75% of a notional car fuel cost, which is why AA is not proportional to a vehicle's engine size. AA is payable regardless of the method of transportation (car, bus, taxi, walk, cycle) that the Reservist uses to attend their 'normal place of duty'.

The four tiers of AA cover travel for distances of 25km or less, 26-60km, 61-120km and more than 120km. AA is calculated in a straight line between the Reservists 'normal place of residence' and their 'normal place of duty', not as is commonly believed by the road distance of the most direct route. AA may only be claimed for the first attendance of each day and is payable for the distance of a single journey only, not the total distance of a return trip. AA is structured this way to keep it simple and easy to administer, consistent with its purpose as an incentive to attend for work.

Legal officers entitled to payment of a 'sessional fee' are not entitled to claim AA.

Travelling Allowance

TA is in no way connected to AA however, where TA is paid AA cannot be claimed. TA is intended to be available only for:

• travel between places of duty (eg. from the Reservist's normal place of duty to a temporary duty location), or
• travel from the Reservist's normal place of residence to a place of temporary duty (eg. the member is posted to HMAS Kuttabul and, as part of that duty is travelling to NHQ South Queensland).

Full TA is designed to cover all business travel elements and caters for fares, meals, accommodation and unspecified incidentals. TA, in tax terms, is a business expense and is therefore not liable to tax; with the exception of part-day TA which is taxed as income. Full TA is payable for the entire journey periods and for the period that the Reservist is in the temporary duty locality. A Reservist's entitlement to TA varies where live-in accommodation and meals are provided at Commonwealth expense or by another entity.

Travelling Allowance in lieu of Attendance Allowance

A Commanding Officer (or authorised delegate) may decide that it is appropriate for a Reservist to be paid TA instead of AA, where the distance travelled from the Reservist's 'normal place of residence' to their 'normal place of duty' is greater than 120 km. If this decision is made, the Reservist is entitled to TA for the journey period between home and normal place of duty only and vice-versa. TA in this circumstance is limited to the actual travel time only and is funded by the approving Command or organisation.

Navy has elected to automatically approve the payment of TA where a Reservist is required to travel greater than 150 km from his/her normal place of residence to their normal place of duty. Notwithstanding the 150km cap, a CO (or authorised delegate) may approve the payment of TA for a journey of greater than 120 km as described above (eg. incidental allowance is not payable for the time spent at the normal place of duty').

Where a Reservist is required to travel to other than his/her normal place of duty, full TA would be payable for the entire time between leaving home and returning.

Amplification

In the normal course of attending a posting the majority of NR personnel are entitled to claim AA for the first attendance of each day. The tier of AA to which each Reservist is entitled is recorded on the CENRESPAY II system on submission of form AD292 through your Reserve Regional Pool office. AA is an untaxed allowance.

TA is a business related expense covered by an employer and, as such, is not subject to taxation (except part day TA, which is taxed as income. This is a fixed sum allowance paid for journeys of more than 10 hrs, but not overnight). TA is payable when a Reservist travels between their normal place of duty and place of temporary duty or their normal place of residence and temporary place of duty.

The full Minute from CSO(R) is posted on the www.navy.gov.au/reserves website in the member's area under the Navy Personnel and Training banner. To fully understand your entitlement to AA or TA it is strongly recommended that you read the Minute in conjunction with the ADF Pay and Conditions Manual.