Increase
in GRS payment only 6 per cent
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GRS
contributions will increase by 6 per cent and
LIA rates by 4.5 per cent from December 15.
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GRS
contribution increases range from about an extra
$7 per week for a corporal and below up to $21
per week for an air vice-marshal.
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LIA
increases range from an extra $1.85 per week
for corporal and below in Level 1, an extra
$3.15 for a sergeant (E) in Level 3,and an extra
$4.80 per week for a squadron leader in Level
5 (all non-sharing rates).
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Despite
the increases, Defence still pays more than
50 per cent of members’ rental expenses.
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By
Andrew Stackpool
GROUP
Rent Scheme (GRS) contributions will increase by 6 per cent, according
to Head Defence Personnel Executive Major-General Mark Evans.
Living-In-Allowance (LIA) contributions will also increase by
4.5 per cent to help meet the cost of providing and maintaining
LIA.
Both increases, part of the annual contribution review by DPE,
will take effect on December 15, 2005.
The GRS contribution will rise between $7 a week for corporal
(equivalent) and $21 a week for air vice-marshal (equivalent).
An increase in LIA rates will see selected members paying between
$1.85 and $4.80 extra each week.
The rent bill paid by Defence to the Defence Housing Authority
(DHA) is expected to grow by 9 per cent this financial year, excluding
the 2 per cent loading to move towards the goal of achieving a
50 per cent housing subsidy.
Major-General Evans said the impact of this annual review would
have been even more significant but for Defence’s decision
to protect its people from such increases.
Defence has decided to apply a 6 per cent increase. This has two
elements. The first element is the average increase in the Defence
rent bill last year. The second element is a loading to move towards
the 50 per cent subsidy target.
“This
means that for this year we will not pass on the whole increase
in rents. Defence is committed to a 50 per cent subsidy level,
but there will now be a delay in achieving this target,”
he said.
In spite of the latest increases, Major-General Evans said ADF
members still paid less than 50 per cent of their rental expenses.
The 2005–06 rent bill reflected both movements in market
rents in the general community and improvements in Service residences.
Larger and newer houses that cost Defence more to rent were replacing
the older, cheaper homes in DHA’s stock. Defence is working
with DHA to address this issue.
“Members pay the same rate of GRS contribution for their
rank group wherever they are posted within Australia,” he
said. “This protects members and their families from regional
differences in the real cost of housing in Australia.
While a member might not be in the newest house, or local real
estate rents might be low, on the next posting the house may be
better or the local private market rent a lot higher. ”
Increases in LIA rates were no longer linked to increases in GRS
contributions.
He said Defence’s subsidy of housing and LIA had no effect
on Centrelink or Child Support payments, unlike housing subsidies
paid by civilian employers.
There was no Fringe Benefits Tax reporting for housing assistance
on members’ payment summaries either.
For more information, including detailed
tables showing the dollar increases in GRS and LIA rates, visit
the Defence Pay and Conditions website and click on GRS and LIA
annual contribution review:
DEFWEB:
http://intranet.defence.gov.au/pac/
Internet: http://www.defence.gov.au/dpe/pac/
