1. The whole of this Instrument.

1 July 2023

1

 At the end of Part 3 to Chapter 3

Add:

The continuation bonus is to provide an incentive to members who have completed the both of the following to commit to providing a further 3 years of service in the Permanent Forces.

a.

At least 4 years of continuous full-time service.

b.

Any service obligation imposed on them on their initial entry into the Permanent Forces.

In this Part, the following apply.

Agreed period of service means one of the following.

a.

1095 days of effective service.

b.

If the member’s commencement day of an agreed period of service falls between 1 July 2023 and 31 December 2023 — 1095 days of effective service less 1 day for each day of effective service between the following.

i.

Commencement day of an agreed period of service.

ii.

The day they made a valid acceptance. 

Note:      This only includes continuous full-time service provided in the Permanent Forces.

Approving authority means a person in the central bonus administration team who holds one of the following.

a.

A minimum rank of Lieutenant Colonel.

b.

A minimum APS classification of EL1.

Commencement day of an agreed period of service has the meaning given in section 3.4.5.

Continuation bonus is $50,000.

Effective service has the meaning given in subdivision 2.

Lateral recruit means a member who entered Australia on one of the following visa subclasses that is sponsored by the Department of Defence for the purpose of becoming a member of the ADF.

a.

Visa subclass 186.

b.

Visa subclass 189.

c.

Visa subclass 482.

Recommending Authority means a member who meets all of the following.

a.

They are the commander, manager or supervisor of the member being made the offer.

b.

They are at least one rank higher than the member being made the offer.

c.

They hold a minimum rank of Major.

Service obligation means any of the following.

a.

An initial minimum period of service.

b.

A return of service obligation.

Valid acceptance has the meaning given in section 3.4.4.

Valid offer has the meaning given in section 3.4.3.

A valid offer for a bonus is an offer that meets all of the following.

a.

It is made on the approved form.

b.

It specifies an indicative day on which the member will commence serving the agreed period of service.

Note:     This is only an indicative day of commencement and may change as a consequence of section 3.4.5.

c

It specifies the date the offer must be accepted by.

Note:     The approving authority may extend the acceptance date outside of the valid offer under subparagraph 3.4.4.c.ii.

d.

The approving authority is satisfied that all of the following apply.

i.

The member is a fit and proper person to perform duties as a member of the ADF.

ii.

The recommending authority has had a conversation with the member about the member’s continued service in the ADF.

A valid acceptance of a valid offer means an acceptance that meets all of the following.

a.

It is made by a member who is eligible to accept a valid offer for a continuation bonus.

b.

It is made on the approved form.

c.

It is made on or before one of the following.

i.

The day specified in the valid offer.

ii.

A later day set by the approving authority that is not greater than 6 months after the date specified in the offer.

d.

It includes an election on how the continuation bonus is to be paid.

1.

The commencement day of a member’s agreed period of service is the later of the following days.

a.

The day after the member has completed 4 consecutive years of effective service.

Note:     This may include a period of continuous full-time service as a member of the Reserves provided there is no break in service.

b.

The first day the member is no longer subject to a service obligation.

c.

The first day the member is no longer subject to an undertaking for further service in connection with a bonus or payment, however described.

d.

The first day the member is no longer subject to a service milestone under the Navy retention incentive payment.

Note:     The Navy retention incentive payment is provided under Division D.2 of DFRT Determination No. 11 of 2013 and only applies to certain members of the Navy.

e.

The day after the member makes a valid acceptance of a valid offer.

2.

Paragraph 1.c does not apply to an undertaking under any of the following.

a.

Officer Aviation Remuneration Structure Allowance.

b.

Submarine Capability Payment.

1.

This section applies to a member who meets all of the following.

a.

They are a member of the Permanent Forces.

b.

They are not subject to a flexible service determination.

2.

A member provides effective service on all of the following days.

a.

One of the following.

i.

For effective service for calculating the agreed period of service — a day for which they are a member of the Permanent Forces and are paid the annual rate of salary.

Note:     This includes a day of paid leave.

ii.

For effective service for any other matter — a day for which they are paid the annual rate of salary.

Note:     This includes a day of paid leave.

b.

A day on which the member is on unpaid leave that is before the 22^nd day of the period of unpaid leave

3.

Despite subsection 2, a member does not provide effective service on a day on which any of the following apply.

a.

They are in custody.

b.

They are in detention.

c.

They are imprisoned.

4.

Effective service is calculated in accordance with the following.

a.

A day for which the member receives full pay — 1 day.

b.

A day on which the member receive half pay — half a day.

c.

A day on which the member is on unpaid leave — 1 day.

Note:     A member ceases to provide effective service on the 22^nd day of unpaid leave.

1.

This section applies to a member who is subject to a flexible service determination.

2.

A member provides effective service on any of the following days.

a.

A day in the member’s pattern of service for which the member is paid salary.

Note:     This includes a day of paid leave.

b.

A day on which the member is on unpaid leave that is before the 22^nd day in a period of unpaid leave.

3.

Despite subsection 2, a member does not provide effective service on a day on which any of the following apply.

a.

They are in custody.

b.

They are in detention.

c.

They are imprisoned.

4.

The number of days of effective service a member performs in a fortnight is calculated using the following formula and must not exceed 14 days.

Where:

A

is the sum of the following.

i.

Each full day of duty in the member’s pattern of service in the fortnight.

ii.

Each combination of part days of duty in the member’s pattern of service in the fortnight that add up to eight hours.

This Part applies to a member in the Permanent Forces.

This Part does not apply to a member who meets any of the following on the day the offer for the continuation bonus is made to the member.

a.

They have a Military Employment Classification of J5.

b.

They have less than 3 years and 6 months to serve until the end of the member's fixed period of service.

c.

They have less than 3 years and 6 months to serve before any of the following days.

i.

The day they reach retirement age.

ii.

The last day that they have been given a direction allowing them to serve beyond their retirement age.

Note:     A direction allowing a member to serve beyond their retirement age is made under section 23 of the Defence Regulation.

d.

They are a lateral recruit.

e.

They have received a bonus under this Part before.

1.

A member is eligible to be offered a continuation bonus from the later of the following days.

a.

The day that is 90 days before they complete 4 years of continuous effective service.

Note:     This may include a period of continuous full-time service as a member of the Reserves provided there is no break in service.

b.

The day that is 90 days before they cease to be subject to a service obligation imposed on initial entry into the Permanent Forces.

2.

The member ceases to be eligible to be offered a continuation bonus on one of the following days.

a.

If paragraph 1.a applies, the day they complete 4 years of continuous effective service.

b.

If paragraph 1.b applies, the day they complete the service obligation imposed on initial entry into the Permanent Forces.

c.

If paragraph a. or b. occur between 1 July 2023 and 31 December 2023, the 31 March 2024.

1.

A member who has received a valid offer is eligible to accept a continuation bonus unless they have been given a notice for the purpose of termination of service under one of the following and a decision on that notice has not been made.

a.

Section 101 of the Act.

b.

Subsection 24 of the Defence Regulation.

2.

A member is not eligible to accept a valid offer after 30 June 2025.

1.

This section applies to a member who has made a valid acceptance on a valid offer for the continuation bonus.

2.

The continuation bonus is payable to a member who has made a valid acceptance of the continuation bonus in accordance with the following.

a.

If the member has chosen to receive the bonus in 1 payment — from the first payday after the commencement day of the agreed period of service specified in the valid offer.

Note:      If the commencement of the agreed period of service is changed as a consequence of subsection 3.4.2.1 payment remains payable on the commencement day specified in the offer.

b.

If the member chooses to receive the bonus in 2 payments, the payments are made at the following times.

i.

The first payment, being 50% of the bonus — from the first payday after the commencement day of the agreed period of service specified in the valid offer.

Note:      If the commencement of the agreed period of service is changed as a consequence of subsection 3.4.2.1 payment remains payable on the commencement day specified in the offer.

ii.

The second payment, being 50% of the bonus — from the first payday a year after the first payment is made.

3.

Despite subsection 1, if the commencement day of the agreed period of service specified in the valid offer is between 1 July 2023 and 31 December 2023, the following apply.

a.

If the member has chosen to receive the bonus amount in 1 payment, the continuation bonus is payable from 1 January 2024.

b.

If the member chooses to receive the bonus amount in 2 payments, the first payment of the continuation bonus is payable from 1 January 2024.

3.

If a member chose to receive the bonus amount in 2 payments and their service is terminated under one of the following, the second payment is payable from the day the member ceases to be a member.

a.

Subsection 24(1)(a) of the Defence Regulation due to medical unfitness.

b.

Subsection 24(1)(b) of the Defence Regulation due to redundancy.

A member who ceases to be a member of the Permanent Forces for a reason other than one of the following ceases to be eligible for the continuation bonus.

a.

Their service is terminated under paragraph 24(1)(a) of the Defence Regulation due to medical unfitness.

b.

Their service is terminated under paragraph 24(1)(b) of the Defence Regulation due to redundancy.

Note:     If a member ceases to be eligible for the continuation bonus, any unpaid amounts of the bonus are not payable to the member.  The member is not required to repay any amount of the bonus received unless section 3.3.14 applies.

1.

This section applies to a member who has received the continuation bonus and does not complete their agreed period of service for any of the following reasons.

a.

They do any of the following.

i.

Voluntarily transfers to the Reserves.

ii.

Applies to change their period of service for the purpose of ending their service in the Permanent Forces before they complete their agreed period of service.

b.

Their service is terminated under any of the following.

i.

Part VIIIA of the Act.

ii.

Section 24 of the Defence Regulation for a reason not in the interest of the Defence Force relating to performance or behaviour.

c.

They are dismissed under the Defence Force Discipline Act 1982.

2.

The member must repay the amount of the continuation bonus paid to them.