Housing Contributions Increase from March 29

Article from the Defence Service Conditions and Housing Policy Directorate
First published in Service Newspapers on 16 February 2012

Changes made by the Group Rent Scheme (GRS) will see ADF member contributions for housing increase from March 29.

Assistant Director Service Conditions and Housing Policy, Mr Bruce Jackson, said that in the past the level of subsidy provided by Defence had increased due to greater than expected fluctuations in the Australian housing market.

“It’s a long standing policy that Defence subsidise 50 per cent of the overall national cost of housing for ADF members and their families,” Mr Jackson said.

“During the 2010 and 2011 GRS updates contributions for member in Rent Bands 2, 3, 4, and 5 as well as SGT(E) and SSGT(E) in Rent Band 1 were adjusted to achieve the 50% subsidy level.”

“The 2012 update will see the contributions for CPL(E) and below in Rent Band 1 adjusted to meet the Defence policy requirement”.

Mr Jackson said that this year’s update will see the conclusion of the subsidy correction program due to the 50% subsidy being achieved in all Rent Bands.

During the last year there has been varying rates of increase in the national rental market with the greatest increases being 8.40% in Rent Band 4.  The lowest increase was 0.37% in Rent Band 3.

Members in Rent Band 1 at the rank of Corporal (E) and below will see an increase of 10.12% which reduces the Defence subsidy to the required 50% level.

In recognition of the lower standards provided, contributions for members occupying Group 1A and Group A residences will be adjusted by the underlying market rent increase at the Rent Band 1 rate of 2.81%. 

It should be noted that there is only a small number of residences in these groups and that they are being upgraded to meet the improved standards introduced in 2007, or they are being transitioned out of service.  This upgrading or disposal will be completed by no later than end 2017.

The new GRS Table can be accessed on Page 21 of the Army Newspaper here:
http://digital.realviewtechnologies.com/default.aspx?xml=defencenews_arm...

Visit www.defence.gov.au/dpe/pac/ for more information on GRS.