(1) Prior to the commencement of the Australian Defence Force (ADF) Enterprise Bargaining Arrangement 1999-2002, (a) how many Service personnel were in receipt of the Isolated Establishment Allowance, (b) what was the annual cost of the Allowance and (c) which specific Defence bases were designated as isolated establishments for the purposes of the Allowance.

(2) Has the Government decided to abolish the Isolated Establishment Allowance; if so, (a) what is the reason for doing so, (b) is the abolition of the allowance subject to phasing in provisions and (c) what are the details.

(3) Has the Defence Force Remuneration Tribunal expressed concern that the abolition of the Allowance will have a detrimental effect on the serving members concerned and involve a significant adverse impact on take home pay in some areas.

(4) Has the Defence Force Remuneration Tribunal also questioned whether the Enterprise Productivity Arrangement `no disadvantage test' can be said to have been met because of the abolition of the Isolated Establishment Allowance.

(1) (a) The allowance is paid on the occurrence of a member attending duty, so the number of personnel in receipt of the allowance varies from week to week. Personnel are not required to submit claims at regular intervals, so claims can be for varying periods. Therefore, the number of members in receipt of the allowance at any one time is not easily determined. On average 2673 personnel were paid the allowance each fortnight during the period 1 November 1998 to 31 October 1999.

(b) The cost of the allowance for the 12 months 1 November 1998 to 31 October 1999 was $12.2 million.

(c) The following establishments attract payment of the Allowance:

Australian Capital Territory

Beecroft Range - Observation Post

Jervis Bay, HMAS CRESWELL

Majura Field Firing Range

RAAF Fairbairn

New South Wales

Denman, Myambat Barracks

Kapooka Military Area

Nowra, Army Parachute Training School

Nowra, HMAS ALBATROSS

Orchard Hills, Defence Establishment

RAAFTUS Bringelly

RAAFTUS Londonderry

RAAF Williamtown

Singleton Military Area

Tamworth Airport

Albury Airport

Bankstown Airport

Broken Hill Airport

Dubbo Airport

RAAF Richmond

Schofields Airport

Sydney Kingsford Smith Airport

Wagga Airport

RAAF Wagga

Northern Territory

Humpty Doo Tracking Station

Jindalee, 1RSU

Shoal Bay Radio Station

RAAF Tindal

Palmerston, Robertson Barracks

RAAF Darwin

Tennant Creek Airport

Queensland

Cabarlah, 7 Signal Regiment (EW)

Canungra, Land Warfare Centre

Ipswich, HQ Airfield Defence Wing

Macrossan, 2 Field Supply Battalion Detachment

Mount Stuart Range Complex and Ammunition Depot

Oakey, Army Aviation Regiment

Wallangarra, Logistic Company

Archerfield Airport

Brisbane Airport

Bundaberg Airport

Cairns Airport

Coolangatta Airport

Cooktown Airport

Horn Island Airport

Mackay Airport

Maryborough Airport

Mount Isa Airport

Normanton Airport

RAAF Amberley

RAAF Townsville

Rockhampton Airport

South Australia

Murray Bridge Range

Nurrungar - 1 Joint Communications Unit

Port Augusta, El Alamein Range

Port Wakefield Proof and Experimental Establishment

Woodside Military Airport

Adelaide Airport

Kingscote Airport

Parafield Airport

RAAF Edinburgh

Tasmania

South Arm, Fort Direction

Wynyard Airport

Victoria

Avalon Airport, Geelong

Bonegilla Military Area

Flinders, West Head Gunnery Range

Graytown Proof and Experimental Establishment

Mangalore, Ammunition Platoon, Southern Logistic Battalion

Monegeeta, EDE Trials Wing

Newborough Training Depot

Puckapunyal Military Area

RAAF East Sale

RAAF Williams (Point Cook)

Somerton, RAN Armaments Depot

Essendon Airport

RAAF Williams (Laverton)

Moorabin Airport

Bandiana Military Area

Command and Staff College, Queenscliff

HMAS CERBERUS

Western Australia

Exmouth, Harold E. Holt Communications Facility

Garden Island, HMAS STIRLING

Karratha, Pilbara Regiment

Northam Military Area

Port Headland, Pilbara Regiment

RAAF Curtin

RAAF Learmonth

RAAF Pearce

Tom Price, Pilbara Regiment

Albany Airport

Broome Airport

Carnarvon Airport

Halls Creek Airport

Jandakot Airport

Kalgoorlie Airport

Perth Airport

Port Hedland Airport

(2) (a) The ADF Productivity Based Remuneration Arrangement 1997-99 included a commitment for the ADF to undertake a comprehensive review of IEA. The review concluded that the circumstances, which led to the introduction of the allowance many years ago, had changed substantially over time to the extent that the allowance could no longer be justified. Moreover it was replete with anomalies and any attempt to rectify those anomalies only created other new anomalies. The ADF Enterprise Productivity Arrangement 1999-2002 provided for abolition of the allowance with transitional arrangements.

(b) Yes, phasing out over three years commenced on 12 November 1999.

(c) Phasing out over three years saw members who were in receipt of the allowance at 11 November 1999 (the date of the DFRT Hearing of the EPA case), continuing to receive the allowance for a period of twelve months at the rate payable on 11 November 1999. The allowance is not payable for those who are posted to the establishment after that date. The Non-urban rates of the allowance are predicated on distances between the Urban/Non-urban boundary and the establishment in question. These have been based on data that came from the 1986 Census and have not been updated since. These rates continue until 11 November 2000.

On 12 November 2000, the data from the 1996 Census is to be applied to determine which establishments remain in a Non-urban area and the distance between the boundary and the establishment. Based on this information new rates will be struck which will then apply until 11 November 2002. On and from 12 November 2002 the allowance is abolished in its entirety. Personnel who were in receipt of the allowance on 11 November 1999 and who have remained at an establishment which attracted IEA, will continue to receive the allowance while they remain so posted. Anybody who is posted out will cease to be entitled.

(3) Isolated Establishment Allowance is determined and varied under the authority of the Minister for Defence. The Defence Force Remuneration Tribunal is responsible for determining salary and salary-related allowances. The Defence Force Remuneration Tribunal discussed the abolition of Isolated Establishment Allowance in the context of determining the overall pay rise to be awarded in the Australian Defence Force Enterprise Productivity Arrangement on 11 November 1999. During the discussions, changes were made to improve the phase out provisions for Australian Defence Force personnel currently receiving the allowance.

(4) At a hearing on 6 September 1999, the Defence Force Remuneration Tribunal raised the issue of the applicability of the `no disadvantage test' to the Australian Defence Force. The `no disadvantage test' is applied in a global sense in that whilst individual components of a package might have detrimental aspects, the overall package must not result in an overall decrease in conditions. At the subsequent hearing on 11 November 1999, the issue was addressed in the Australian Defence Force submissions on the overall effect of the Enterprise Productivity Arrangement, including the abolition of Isolated Establishment Allowance. The Defence Force Remuneration Tribunal expressed reservations that the `no disadvantage test' could be said to have been met in regard to Isolated Establishment Allowance, but accepted the overall benefit of the package of conditions, including a significant salary and allowance increase.