Senator Chris Evans asked the Minister for Defence, upon notice, on 29 November 2002:

(1) Are retention bonuses currently payable to serving members of the Navy, Army and Air Force.

(2) In respect of each bonus: (a) what are the eligibility criteria; (b) what duration of additional service is required for payment; (c) what is the amount of the bonus; (d) what penalties apply if the additional service is not performed; (e) how many personnel received the bonus in the last year for which data is available; and (f) what is the estimated cost of providing the bonuses in the 2002-03 financial year.

(3) Since November 2000, has the Government withdrawn any existing retention bonus; if so, what was the reason for withdrawal and the date that it took effect.

(4) Since November 2000, has the Government created any additional bonuses; if so, what was the reason for doing so and the date that they took effect.

(5) Has the department conducted an evaluation of the effectiveness of retention bonuses; if so, (a) when was the evaluation completed; and (b) what were the conclusions and recommendations; if not, why not.

Senator Hill (Minister for Defence) —The answer to the honourable senator's question is as follows:

(1) Yes.

(2) The information relevant to bonus schemes in operation in the Australian Defence Force is as follows:

Note:

· A completion bonus is paid on completion of the required service.

· A retention bonus is paid up front with the member providing an undertaking to complete a number of years effective service.

ADF Medical Officers (completion bonus), entry into this scheme is suspended (see part 5 below):

(a) must be a medical or dental officer;

(b) required to provide a period of three years effective service for offers made in the 1999 calendar year;

(c) $90,000;

(d) no bonus is paid;

(e) three personnel are expected to receive payments under this scheme in the 2002-03 financial year;

(f) $270,000.

Air Force Flight Engineers (completion bonus), entry into this scheme is closed:

(a) must hold or have held a category A or B status, have a continuing liability for flying duties in the Air Force and must acknowledge the offer by 30 June 1999;

(b) required to provide a period of effective service for three, four or five years;

(c) 3 years - $45,000

4 Years - $70,000

5 Years - $105,000;

(d) no bonus is paid;

(e) one person is expected to receive a payment under this scheme in the 2002-03 financial year;

(f) $45,000.

Navy Submariners (completion bonus), entry into this scheme is closed:

(a) must be a member in the Submarine Arm of the Navy and have a continuing liability for service in the Submarine Arm of the Navy;

(b) required to serve a period of two years effective service;

(c) $23,000;

(d) no bonus is paid;

(e) 16 personnel are expected to receive payments under this scheme in the 2002-03 financial year;

(f) $368,000.

Navy Observers (completion bonus), entry into this scheme is closed:

(a) must be an Observer in the Navy holding the substantive rank of Lieutenant or Lieutenant Commander, hold a qualification as an Embarked Mission Commander and is otherwise suitable for continued service because of the members efficiency and competence;

(b) required to provide a period of effective service for three, four or five years;

(c) 3 years - $40,000

4 Years - $65,000

5 Years - $100,000;

(d) no bonus is paid;

(e) 17 personnel are expected to receive payments under this scheme in the 2002-03 financial year;

(f) $1,700,000.

Air Force Engineers (completion bonus), entry into this scheme is closed:

(a) must be a qualified engineering officer of the armament, aeronautical or electronics specialisations, hold the substantive rank of Flight Lieutenant, Squadron Leader or Wing Commander and have a continuing liability for engineering duties in the Air Force;

(b) re required to serve a period of two years effective service;

(c) $30,000;

(d) no bonus is paid;

(e) six personnel are expected to receive payments under this scheme in the 2002-03 financial year;

(f) $74,506.85. This figure represents some pro-rata payments in accordance with the provisions of the bonus.

Air Force Logistics Officers (retention bonus) from 1 January 2003, entry into the scheme closes on 31 December 2005:

(a) must be a member of the permanent Air Force and either a Flight Lieutenant of 2 years or more seniority, a Squadron Leader or a Wing Commander;

(b) required to undertake to serve a period of three years effective service from the date of eligibility;

(c) $45,000;

(d) required to repay the full amount of the bonus if they do not complete three years effective service;

(e) 165 personnel are expected to receive the bonus in the 2002-03 financial year

(f) $7,425,000.

(3) No.

(4) Yes. The Air Force Logistics Officer Retention Bonus. This scheme was established to assist in the retention of qualified and experienced Logistics Officers in the Permanent Air Force. This commences on 1 January 2003.

(5) The department has conducted a review into the Medical and Dental Officers Bonus. This bonus was considered a long-term bonus replacing the Medical and Dental Officers Gratuity. The bonus scheme was not considered effective and a rate was not deemed past the 1999 calendar year. This bonus can be reactivated at short notice if required. The remaining bonus schemes have been for short-term specific periods to alleviate operational needs. The continued viability of these schemes past the completion dates was not warranted.