Publication:Sea Talk Winter 2007/Individual retention bonuses (IRBs)
By Annie Casey
One of the latest initiatives being rolled out under the Government recruiting and retention reform is the individual retention bonus (IRB) scheme which targets
individuals and positions where the loss of skills, or not filling a high priority position, will have a detrimental impact on capability, training or operations.
The Chief of Navy, VADM Russ Shalders, AO CSC, RAN, has approved a number of high priority work groups for inclusion in this scheme.
And the Director General Navy Personnel and Training, CDRE Nigel Coates, said: “We recognise there may be other work groups also suitable for inclusion in this scheme and these groups will be considered for addition on a regular basis throughout the life of the scheme.”
Personnel in the following groups will be offered a bonus in return for undertaking to serve for an additional two years:
- AB/LS CK SM (in receipt of submarine service allowance);
- LS/PO MT holding either proficiency P000640 (FFH endorsed ERWC) or proficiency P101743 (FFH endorsed MSM); and
- AB/LS MED who hold proficiency P000789 (underwater medicine).
Personnel undertaking the following courses will be offered a bonus to be paid on successful completion of the course in return for agreeing to serve for two years in a position determined by the Directorate of Navy Officers’ Postings (DNOP) after successful completion of the course:
- PWO courses 1/07 and 2/07;
- SMWO courses 2006 and 20; and07
- Long N courses 1/07 and 2/07.
Offers will be made to eligible members by DNOP and the Directorate of Sailors’ Career Management (DSCM). If you believe you are eligible for an IRB and have not been contacted then contact your career manager.
A few features of the IRB are detailed below and there is FAQ information also available at the career information section of the Navy People Central website.
Members of the targeted groups in receipt of an existing critical category retention bonus (specifically the MT critical category retention bonus and the seaman officer completion bonus may be offered an IRB but they will need to choose between a) exiting their existing scheme on a pro-rata basis to begin service under the IRB scheme immediately, or b) continuing to serve out their agreed period of service under their existing scheme and start service under the IRB after that.
If you Transfer Category?
The purpose of the bonus is to retain you in your current critical work group, so if you voluntarily transfer category before the two year period of service is completed you will be required to repay the bonus payment on a pro-rata basis. If the transfer of category is initiated by the Navy, i.e. you are directed to transfer before the two year period is completed, you will be entitled to retain bonus payment so long as you finish your required period of service.
Personnel on deployment?
Every effort is being made to help eligible members to take up the IRB wherever they are serving. If you are deployed you still have 28 days after returning to Australia to respond to the offer. DGNPT also has authority to extend that period taking into account the members individual circumstances. Financial advice
Individuals considering accepting a bonus of any form should seek professional financial advice to determine the individual effect on taxation, family assistance or child support payments.
There is only one situation where the bonus will be tax exempt. Members who accept the offer and are paid the bonus while deployed under warlike conditions (s.23AD of the ITAA 1936) of service will receive the bonus exempt from income tax. In all other situations the bonus will be taxed as normal pay and allowances.
For more information and a comparison of the value of your current salary and conditions of service package can be made using ‘Compare your package’ at http://aurora.cbr.defence.gov.au/cypmain.htm
