Publication:Sea Talk Spring 2003/New housing rates
By Directorate of Housing and Removals Policy
Most members would be aware that contributions for Service Residences (SR), Living In Accommodation (LIA), Rent Allowance (RA) and other housing related allowances and charges are reviewed annually.
The accommodation contributions are adjusted using DHA market rent data, while the other allowances and charges are adjusted on the basis of the consumer price index, which reflects the annual movement in household expenditure.
Implementation date
The revised member contributions and charges come into effect on 11 September 2003. (As accommodation contributions are made fortnightly in arrears, the revised accommodation contributions will not be deducted from members salaries until payday 25 September 2003.)
Members will note that these adjustments will occur shortly after the three percent ADF pay increase that took effect on 3 July 2003.
The annual adjustments are not linked to pay increases and take place annually regardless of whether or not there has been a pay increase.
These adjustments are based on movements in the consumer price index and reflect increases in the cost of living experienced by the general community.
The three percent pay increase has increased annual military salary by about $1,250 for a Seaman and about $2,450 for a Commander, before tax. By comparison, the annual contribution for Service Residences has increased by $265.20 for AB/LS, and by $488.80 for Captain/Commodore.
Using level 3 Living In Accommodation as an example, the annual LIA contribution has increased by $244.40 for AB/LS, and by $332.80 for LCDR and above.
The rate of Service Allowance has also been increased to $8,781 per annum from 3 July 2003. This is an increase of 19.9 percent over the rate of Service Allowance that was in place when the review was heard by the Defence Force Remuneration Tribunal ($7,321).
| RANKS | GROUP | 2BR | 3BR | ||
| CURRENT | NEW | CURRENT | NEW | ||
| CAPT/CDRE | D | $179.50 | $187.90 | $199.40 | $208.80 |
| LCDR/CMDR | C | $146.50 | $153.50 | $162.90 | $170.50 |
| WO – LEUT | B2 | $132.30 | $138.50 | $147.00 | $153.90 |
| PO | B1 | $116.50 | $122.00 | $129.50 | $135.60 |
| SMN - LS | A | $97.30 | $101.90 | $108.10 | $113.20 |
| 1A | $86.90 | $91.00 | $96.60 | $101.10 |
Group Rent Scheme (GRS) review results
Contributions for Service Residences provided under the Group Rent Scheme are reviewed annually. For 2003/04, Group Rent Scheme contributions are to be increased by 4.69 percent. The current and new Group Rent Scheme contribution rates (and Rent Allowance contribution rates) for Members With Dependants (MWD) are as shown in the above table.
The Group Rent Scheme increase of 4.69 percent consists of two elements. The first element is the percentage change to Defence Housing Authority (DHA) market rents (plus 2.69 percent). Generally, Defence pays market rent for DHA houses used as service residences.
These rents are reviewed annually based on independent valuations. The recent DHA revaluation reveals that market rents for DHA houses rose by an average of 2.69 percent during the preceding twelve months. This increase reflects aggregate movements in the housing rental market generally as well as the value of any improvement in the overall quality of DHA houses.
For comparison purposes, the Australian Bureau of Statistics consumer price index for privately rented dwellings in the eight capital cities rose 3.8 percent for the year to March 2003.
The second element is the reduced housing subsidy (plus 2.0 percent). Eligible ADF members receive subsidised housing assistance. Members in a particular Group Rank Entitlement make the same contribution for a similar Service Residence irrespective of its location in Australia.
This policy is aimed at minimising any adverse impact on the income of members posted to areas with high rents. It is Defence policy that the housing subsidy should be shared on a 50:50 basis. This is being achieved through a subsidy reduction program by adding two percent to any market rent increase each year.
Contribution for water
The contribution for water for members in Service Residences (clause 7.1.57) is based on the water consumption by those members over the review period. The contribution has been decreased from $4.90 per week to $3.80 per week ($7.60 per fortnight). This decrease reflects the reduction in water costs incurred by members over the review period.
Accommodation contributions for Members Without Dependants (MWOD)
The accommodation contributions for Members Without Dependants are based on varying percentages of Group Rent Scheme contributions, relevant to the rank of the member, the accommodation occupied and the members sharing arrangements.
In addition, the contributions are being increased by annual increments to take account of the transitional arrangements that were put in place on 3 September 1998 when the former combined rations and quarters charge was split.
Living In Accommodation contributions for Members Without Dependants
The current and revised Living In Accommodation contributions, to take effect from 11 September 2003, are set out in the table below.
Rent Allowance contributions for MWOD
The current and revised rent allowance and partial rent allowance contributions for members without dependants, to take effect from 11 September 2003, are set out in the tables below.
Rent Allowance ceilings
Rent allowance ceilings are also being reviewed and the rates to apply from 11 September 2003 will be advised separately.
| LEVEL 1 | LEVEL 2 | LEVEL 3 | LEVEL 4 | LEVEL 5 | |
| LS and below and trainees | |||||
| Current | $37.80 | $37.80 | $51.90 | $56.80 | $61.10 |
| New | $39.60 | $39.60 | $56.60 | $62.80 | $69.10 |
| PO to WO | |||||
| Current | $45.30 | $45.30 | $62.20 | $68.00 | $73.20 |
| New | $47.50 | $47.50 | $67.80 | $75.30 | $82.70 |
| ASLT to LEUT | |||||
| Current | $51.40 | $51.40 | $70.60 | $77.20 | $83.10 |
| New | $53.90 | $53.90 | $77.00 | $85.40 | $93.90 |
| LCDR and above | |||||
| Current | $51.40 | $51.40 | $70.60 | $77.20 | $92.00 |
| New | $53.90 | $53.90 | $77.00 | $85.40 | $104.00 |
| RANK | MEMBER NOT SHARING | MEMBER SHARING WITH ONE OTHER PERSON | MEMBER SHARING WITH TWO OR MORE PERSONS | |||
| CURRENT | NEW | CURRENT | NEW | CURRENT | NEW | |
| CAPT/CDRE | $145.60 | $170.20 | $89.70 | $94.00 | $66.40 | $69.50 |
| LCDR/CMDR | $118.90 | $139.00 | $73.30 | $76.70 | $54.20 | $56.80 |
| CPO - LEUT | $107.30 | $125.40 | $66.10 | $69.30 | $49.00 | $51.20 |
| PO | $94.50 | $110.50 | $58.30 | $61.00 | $43.10 | $45.20 |
| SMN - LS | $78.90 | $92.30 | $48.60 | $50.90 | $36.00 | $37.70 |
| RANK | MEMBER NOT SHARING OR SHARING WITH ONE OTHER PERSON | MEMBER SHARING WITH TWO OR MORE PERSONS | ||
| CURRENT | NEW | CURRENT | NEW | |
| CAPT/CDRE | $89.70 | $94.00 | $66.40 | $69.50 |
| LCDR/CMDR | $73.30 | $76.70 | $54.20 | $56.80 |
| CPO - LEUT | $66.10 | $69.30 | $49.00 | $51.20 |
| PO | $58.30 | $61.00 | $43.10 | $45.20 |
| SMN - LS | $48.60 | $50.90 | $36.00 | $37.70 |
| CLASSIFICATION OF SR | 2BR | 3BR | ||
| CURRENT | NEW | CURRENT | NEW | |
| D | $179.50 | $187.90 | $199.40 | $208.80 |
| C | $146.50 | $153.50 | $162.90 | $170.50 |
| B2 | $132.30 | $138.50 | $147.00 | $153.90 |
| B1 | $116.50 | $122.00 | $129.50 | $135.60 |
| A | $97.30 | $101.90 | $108.10 | $113.20 |
| 1A | $86.90 | $91.00 | $96.60 | $101.10 |
| RANK | MEMBER SHARING WITH ONE OTHER PERSON | MEMBER SHARING WITH TWO OR MORE PERSONS | ||
| CURRENT | NEW | CURRENT | NEW | |
| CAPT and above | $89.70 | $94.00 | $66.40 | $69.50 |
| LCDR / CMDR | $73.30 | $76.70 | $54.20 | $56.80 |
| CPO - LEUT | $66.10 | $69.30 | $49.00 | $51.20 |
| PO | $58.30 | $61.00 | $43.10 | $45.20 |
| SMN - LS | $48.60 | $50.90 | $36.00 | $37.70 |
| RANK | CURRENT | NEW |
| LS or lower, trainee | $52.50 | $54.75 |
| PO - WO | $60.25 | $62.75 |
| Officer (other than trainee) | $67.50 | $70.25 |
| RANK | BREAKFAST | LUNCH | DINNER | |||
| CURRENT | NEW | CURRENT | NEW | CURRENT | NEW | |
| LS or lower, trainee | $2.85 | $3.00 | $3.85 | $4.00 | $3.80 | $3.95 |
| PO - WO | $3.40 | $3.50 | $4.35 | $4.55 | $4.30 | $4.50 |
| Officer (other than trainee) | $3.85 | $4.00 | $4.85 | $5.05 | $4.80 | $5.00 |
Other charges and allowances - annual review
Other charges and allowances have been revised in line with movements in the relevant components of the CPI, as follows:
Food allowance for Members With Dependants (Separated) (clause 7.1.41a) - current amount $67.05 per week - new amount $69.70 per week.
TAA - contribution for utilities (clause 7.1.12(2)(a)(iii)) - Current charge $21.00 - new charge $22.20 per week.
Living In Accommodation - contribution for utilities (clause 7.1.24(1)) - current charge $9.05 per week - new charge $9.55 per week.
Reimbursement of utilities (clause 7.1.58(1)(b)) - current amount $4.60 per week - new amount $15.45 per week.
Further Information
Full details of adjustments to all contributions and allowances have been promulgated through Service-wide signals and are also available on the Defence Personnel Executive DEFWEB home page under 'Hot Issues' and 'Housing'.
Any questions relating to the appropriate contribution that you should be making should be directed either to your local Defence Housing Authority Housing Management Centre, Unit administrative authority, Ship's Office or FIND, as appropriate.
