$2.1 bILLION BOOST TO RECRUITMENT AND RETENTION

 

The Coalition Government is strongly committed to the Navy, Army and Air Force personnel who protect and secure our people, interests and values. 

The Australian Defence Force (ADF) needs to grow to about 57,000 personnel over the coming decade.   This is a challenging target, particularly given the current strength of the Australian economy.

Therefore $2.1 billion has been allocated over ten years for Phase Two – comprising a further eight complementary recruitment and retention initiatives.  This is in addition to the $1 billion in Phase One of the new recruitment and retention initiatives announced by the Prime Minister on               15 December 2006. 

These integrated measures will increase recruiting intakes and reduce separation rates and are designed to ensure the ADF grows to its authorised targets in coming years.

The additional $2.1 billion will fund:

·               a new home loans assistance package with higher subsidies and greater choice to encourage home ownership and provide for higher benefits as members serve on for longer periods ($864 million);

·               a modern and more flexible pay structure for other ranks ($585 million);

·               marketing and branding the Navy, Army and Air Force as employers of choice ($228 million);

·               creating a transition and career advice function within Defence Force Recruiting to assist those who might be considering alternative careers ($125 million);

·               an expansion and enhancement of the Defence Force Cadet scheme – giving our young people the life and employability skills they need ($100 million);

·               a boost to the Royal Australian Navy’s Sea Change programme ($87 million);

·               the introduction of a new Defence Apprenticeship scheme to assist 16-17 year olds commence an apprenticeship and then join the ADF ($71 million); and

·               investment in the professional development of Defence medical officers ($12 million).

 

 

The Coalition Government is investing a total of $3.1 billion over ten years to reward our ADF men and women – and their families – who continue to protect and serve the nation in a dedicated, brave and professional manner.

SUPPORTING INFORMATION

Australian Government Changes to ADF Recruitment and Retention

·        Recruitment and retention shortages in the ADF are complex issues, with multiple causes. They require comprehensive and innovative solutions that address demographic changes, workforce availability and community expectations.

·        Recruitment and retention of Australian Defence Force (ADF) personnel is a high priority for the Australian Government.

·        The ADF needs to grow to a full time strength of 57,000 by 2016, up from around 51,000 in 2006.

·        To achieve this, enlistment needs to increase from around 4,670 personnel per year annum to 6,500 and the ADF will need to retain more people by reducing its separation rate from over 11 to below 10 per cent per year.

·        Including the measures announced in December 2006 ($1 billion) and the new measures contained in the 2007-08 Budget ($2.1 billion), the Government is investing an additional $3.1 billion over ten years to enhance the conditions of service of our Defence Force members and their families, who continue to serve the nation in a dedicated and professional manner. 

·        The additional $3.1 billion is on top of the 2000 Defence White Paper funding commitment of $500 million over five financial years and the $194 million included in the 2006-07 Budget.

·        All up, the Government has committed $3.8 billion on recruitment and retention initiatives since 2001.

Measures Contained in the 2001 White Paper ($500 million):

As part of its White Paper funding commitment in 2001, the Australian Government committed $500 million for personnel initiatives ($100 million per year for five years).  The $500 million funded:

·        the introduction of a new rental assistance scheme and improvements to living-in accommodation;

·        enhancements to the Reserves and the cadet scheme;

·        childcare facilities and other measures to support ADF families including spouse support programmes;

·        the introduction of e-learning and school transition aides; and

·        other measures including alcohol management, drug rehabilitation and mental health programmes.

Measures Contained in the 2006-07 Budget ($194 million):

The 2006-07 Budget provided a further $194 million to address shortages in the critical trades across the ADF and to provide temporary relief through backfilling of vacant military positions, as follows:

·        $25 million for recruiting;

·        $62 million for bonuses for specific Royal Australian Navy critical trades and categories;

·        $34 million to address shortages in other critical areas;

·        $17 million for the ADF rehabilitation programme; and

·        $56 million to provide Defence civilian and contractors to temporarily fill vacant military positions in the Defence non-Service Groups.

Measures Contained in the 2006-07 Additional Estimates ($1 billion):

The 2006-07 Additional Estimates provided $1 billion in new funding over the next decade towards stabilising, growing and maintaining our Defence Force.  This was the first phase of a major overhaul of ADF recruitment and retention strategies, with further phases to be developed in 2007. The additional $1 billion will fund:

·        $226 million for six new retention bonuses and allowances targeted at selected personnel in critical roles and with critical skills;

·        $113 million for retention bonuses for specific Royal Australian Navy personnel;

·        $371 million for reforms to Defence Force recruiting functions over the next ten years; and

·        $306 million for the new Military Gap Year enlistment programme for Year 12 (or equivalent) completers.

Measures Contained in the 2007- 08 Budget ($2.1 billion):

The 2007-08 Budget provides an additional $2.1 billion over ten years for a further eight recruitment and retention initiatives.  The additional $2.1 billion will fund:

·        a modern and more flexible pay structure for other ranks ($585 million);

·        enhanced assistance through a new Defence Home Ownership Assistance Scheme which will encourage home ownership and provide for higher benefits as members serve on for longer periods ($864 million);

·        further reforms to the Defence Force recruiting function ($125 million);

·        marketing and branding the Navy, Army and Air Force as employers of choice ($228 million);

·        the introduction of a new Defence Apprenticeship scheme ($71 million);

·        an expansion and enhancement of the Defence Force Cadet scheme ($100 million);

·        further investment in the Royal Australian Navy’s Sea Change programme ($87 million); and

·        investment in the professional development of Defence medical officers ($12 million).

RECRUITMENT AND RETENTION PROPOSALS FUNDED BY GOVERNMENT

Recruitment and Retention Measures	01-02 ($m)	02-03 ($m)	03-04 ($m)	04-05 ($m)	05-06 ($m)	06-07 ($m)	07-08 ($m)	08-09 ($m)	09-10 ($m)	10-11 ($m)	11-12 ($m)	12-13 ($m)	13-14 ($m)	14-15 ($m)	15-16 ($m)	16-17 ($m)	TOTAL ($m)
2001 Defence White Paper Commitments	100.0	100.0	100.0	100.0	100.0	-	-	-	-	-	-	-	-	-	-	-	500.0
1. Sub-Total Defence White Paper Commitments	100.0	100.0	100.0	100.0	100.0	-	-	-	-	-	-	-	-	-	-	-	500.0
Recruiting Initiatives -	-	-	-	-	25.0	-	-	-	-	-	-		-	-	-	-	25.0
Marine Engineer and Weapons Electrical Engineer Retention Bonus -	-	-	-	-	3.1	-	-	-	-	-	-		-	-	-	-	3.1
Marine Technical and Electronics Technical Sailor Retention Bonus -	-	-	-	-	8.0	8.0	8.0	-	-	-	-		-	-	-	-	24.0
Marine Technical and Electronics Technical Sailor Completion Bonus -	-	-	-	-	3.2	3.2	-	-	-	-	-		-	-	-	-	6.3
Combat Systems Operator Bonus -	-	-	-	-	-	-	-	6.0	-	-	-		-	-	-	-	6.0
Communication Information Systems Sailors Bonus -	-	-	-	-	2.0	-	3.0	-	-	-	-		-	-	-	-	5.0
Seaman Officer Completion Bonus -	-	-	-	-	4.0	4.0	4.0	-	-	-	-		-	-	-	-	12.0
Operator Command Support Systems, Technician Telecommunication System and Supervisor Engineering Services Completion Bonus -	-	-	-	-	-	-	-	6.0	-	-	-		-	-	-	-	6.0
Initiatives designed to address shortages in other critical trades -	-	-	-	-	17.0	17.0	-	-	-	-	-		-	-	-	-	34.0
ADF Rehabilitation Program -	-	-	-	-	8.8	7.9	-	-	-	-	-		-	-	-	-	16.7
Temporary backfilling of military positions in the non-Service Groups -	-	-	-	-	23.0	19.0	9.0	5.0	-	-	-		-	-	-	-	56.0
2. Sub-Total Approved by Government in the 2006-07 Budget -	-	-	-	-	94.0	59.1	24.0	17.0	-	-	-		-	-	-	-	194.1
Retention Bonuses and Allowances	-	-	-	-	-	49.6	38.3	31.6	19.3	65.0	22.5	-	-	-	-	-	226.4
Navy Sea Change	-	-	-	-	-	-	17.3	23.3	23.5	24.0	24.5	-	-	-	-	-	112.5
Reform of Defence Force Recruiting	-	-	-	-	-	-	26.5	35.6	36.0	36.7	37.5	38.2	39.0	39.7	40.5	41.4	371.1
Military Gap Year Scheme	-	-	-	-	-	-	-	8.2	18.2	19.7	40.9	41.8	42.8	43.8	44.9	46.0	306.3
3. Sub-Total Approved by Government in the 2006-07 Additional Estimates	-	-	-	-	-	49.6	82.1	98.8	97.1	145.4	125.3	80.0	81.8	83.5	85.5	87.3	1,016.3
Remuneration Structure Reform	-	-	-	-	-	-	-	59.7	60.6	61.9	63.3	64.7	66.3	67.8	69.4	71.7	585.4
Defence Home Ownership Assistance Scheme	-	-	-	-	-	-	-	40.9	52.9	64.7	77.5	97.2	134.8	140.2	130.4	125.2	863.8
Reform of Defence Force Recruiting	-	-	-	-	-	-	4.4	12.2	12.5	12.7	13.0	13.3	13.6	14.0	14.2	14.6	124.5
Marketing and Service Branding	-	-	-	-	-	-	24.6	26.6	26.8	27.5	19.3	19.7	20.2	20.6	21.0	21.6	227.8
Defence Apprenticeships	-	-	-	-	-	-	5.0	6.7	6.8	7.0	7.1	7.4	7.5	7.6	7.8	8.1	71.0
Expanding Cadets	-	-	-	-	-	-	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	10.0	100.0
Royal Australian Navy Sea Change	-	-	-	-	-	-	1.9	8.6	8.7	8.9	9.2	9.4	9.6	9.8	10.1	10.3	86.5
Medical Officer Professional Development	-	-	-	-	-	-	0.6	0.9	1.0	1.1	1.3	1.3	1.4	1.4	1.4	1.4	12.1
4. Sub-Total Approved by Government in the 2007-08 Budget	-	-	-	-	-	-	46.5	165.6	179.3	193.9	200.7	223.0	263.4	271.4	264.4	262.9	2,071.1
5. Total Funding to Recruitment and Retention Measures (1+2+3+4)	100.0	100.0	100.0	100.0	100.0	143.6	187.7	288.3	293.3	339.3	326.0	303.1	345.2	354.9	349.9	350.2	3,781.5

Remuneration Structure Reform ($585 million):

 

Why is this important?

·        This is an essential structural reform that introduces a much simpler, balanced and flexible pay framework.

·        This will enable the ADF to appropriately recognise its members’ skills through the pay system.

 

What will this proposal do?

·        simplify pay structures from 1 July 2008;

·        incorporate qualification and skill elements of certain allowances into salary.

·        increase recognition for significant changes in work value between pay groups;

·        provide a consistent structure from Other Ranks through to Officers;

 

Stage 1 ($261 million - funded from within existing Defence budget)

·        Restructuring from seven to 16 pay grades will enable the qualification and skill elements of certain allowances to be rolled into salary; and 

·        Create a $2000 differential between pay grades.

 

Stage Two ($585 million)

·        further simplify the structure from 16 pay grades down to eight and increase recognition for significant changes in work value between the pay grades; and

·        creates a $4000 differential between pay grades providing a real incentive for ADF members to increase their skill levels

 

Who will benefit?

·        Other ranks - from Privates to Warrant Officer Grade 2.

·        Almost 18,000 personnel will receive up to $5000 per annum under stage one

·        Stage two will create additional pay differentials creating further opportunity for pay increases. For example, a Warrant Officer Grade 2 (E) currently gets an additional $934 for promotion to WO Grade 1 (E) - the pinnacle rank within the other ranks structure.  The proposed reforms will increase this reward to $3,158.

 

Defence Home Ownership Assistance Scheme ($864 million):

Why is this important?

·        This provides ADF members with assistance to achieve home ownership recognising the difficulty members may have in purchasing a home due to the nature of their career.

·        This will have a significant retention benefit to the ADF – it is a targeted measure involving progressively higher loan subsidies for those who serve beyond critical separation points.

What will this proposal do?

·        Replace the old home loans assistance scheme;

·        Provide contemporary and relevant home loan assistance pitched at a level that reflects current prices; 

·        Provide increasing entitlements as members serve beyond key exit points based on a  37.5 per cent interest subsidy of a three tiered loan subsidy limit:

o       four years - $160,000 ($241 per month);

o       eight years - $234,000 ($353 per month); and

o       12 years - $312,000 ($470 per month);

·        Be responsive to changes in the housing market;

·        Provide flexibility and choice – giving the member choice of mortgage providers – instead of the single provider under the old scheme; and

·        Involves a reduced entitlement on discharge equivalent to the four year entitlement ($241 per month), unless the member has served 20 years or more before discharge.

Who will benefit?

·        All ADF members – including Reservists – and their families.

 

Permanent Members		Permanent Members on Discharge		Reserve Members
	In Service Interest Subsidy	Max Accrued	Max Accrued subsidy Value	Max Accrued	Max Accrued subsidy Value
		Subsidy Period		Subsidy Period
<4	Nil	Nil	Nil	Nil	Nil
4 < 8 yrs of service	$160,000	4 yrs of service	48 months @ $241	Nil	Nil
	$241 per month		Max $11,568
8 < 12 yrs of service	$234,000	8 yrs of service	Up to 96 months @ $241	4 yrs of service	48 months @ $241
	$353 per month		Max $23,136		Max $11,568
> 12 yrs of service	$312,000   $470 per month	20 yrs of service	Up to 240 months @ $470	8 yrs of service	Up to 96 months @ $225
			Max $112,800		Max $23,136

 

 

Marketing and Service Branding ($228 million):

 

Why is this important?

·        The Army, Navy and Air Force need to compete for the attention of young people who have a vast array of opportunities available to them in a period of record low unemployment.

·        Better and more relevant marketing is needed to reach young people and their influencers

·        The three Services are distinct, values-based employers of choice – the men and women of the Services protect and secure Australia’s interests, people and values.

 

What will this proposal do?

·        Grow ADF recruitment enquiry numbers by 30,000 from 95,000 to 125,000 (full time and part time)

·        The proposal will:

o       Create better reach into traditional markets such as the key demographic of 16 – 25 year olds to increase the percentage of those considering employment in the ADF (currently 36 per cent);

o       Better focus on emerging target audiences such as females and multicultural markets; and

o       target groups for technical and ‘critical’ trade employment categories and key new initiatives.

o       challenge existing impressions of the ADF;

o       deliver contemporary messages

 

 

Who will benefit?

·        All Australians

 

Transition Service - Recruiting Reform ($125 million):

 

Why is this important?

·        One of the top three reasons for leaving the ADF is the need to make a career change whilst young.

·        This initiative will case manage those considering re-enlistment, lateral recruitment and leaving – make them fully aware of all the benefits of Service life and provide assistance and advice in terms of employment, medical, and housing issues.

·        This promotes flexibility in an ADF career – encourage future return to the ADF or options in other Services.

 

What will this proposal do?

·        This proposal aims to encourage retention and re-enlistment through access to independent remuneration and career advice about realistic opportunities for employment in the ADF and expectations for transitioning to the civilian world.

·        It will also encourage ADF members to seek independent financial advice when receiving bonus payments or large allowances.

 

Who will benefit?

·        ADF members who are uncertain about their future and need independent career and financial advice on planning for their future.

Enhancing Cadets ($100 million):

 

Why is this important?

·        This initiative will deliver an increase in the number of cadets and an improvement in the governance arrangements

·        Cadets are a significant recruitment pool for future ADF enlistments

·        The Cadet organisation provides broader benefits to the Australian community through enhanced employability, life and social skills for our young people.

·        Cadets represent only one per cent of their age cohort, yet average 11 per cent of ADF Enlistments. 

·        Studies have also shown that cadets are disproportional represented in Australian Defence Force Academy student numbers, with as many as 35 to 40 per cent of student in recent years being ex-cadets.

 

What will this proposal do?

Provide a 26 per cent increase to the current budget to provide the following:

·        upgrade the cadet and staff training programmes;

·        introduce improved governance structures and training;

·        develop and communicate a comprehensive tri Service policy framework; and

·        develop a recruitment and retention strategy for cadet staff.

·        employ extra staff to improve the management and delivery of the programme;

·        re-develop cadet and staff training within a shorter time frame and develop modernised delivery media;

·        provide an increase in access to military and adventure activities;

·        provide an equipment replacement programme; and

·        allow for expansion up to an additional 1,000 cadets

 

 

Who will benefit?

·        Cadets and young people

Royal Australian Navy Sea Change ($87 million):

 

Why is this important?

·               For a powerful Navy that is capable of forwarding our interests at sea, protecting our borders and transporting our equipment and supplies, Australia needs to recruit and retain dedicated and skilled people.

 

·           This builds on the success of existing Navy Sea Change initiatives

 

What will this proposal do?

·        Enhanced Fleet Support – this initiative is designed to target the most significant underlying cause cited by Navy personnel for leaving the service – the effect on family brought about by excessive demands on Navy personnel of workforce shortfalls.   Contractors will be engaged to relieve Navy personnel of tasks such as force protection and harbour watch keeping, and maintenance and repair when ships are in port, and an

·        Enhanced Deployment Allowance – involves the extension of deployment allowance to submariners.

 

Who will benefit?

·        Navy personnel, including submariners

 

 

Defence Apprenticeships ($71 million):

 

Why is this important?

·        The Australian Government is strongly committed to supporting apprenticeships and trade training

·        Technical trades are of key importance to the Army, Navy and the Air Force

 

What will this proposal do?

The introduction of a Candidate Referral Programme to identify high school students (17 yrs +) for direct entry into ADF trade training; and

A Defence Apprenticeship Sponsorship Programme to provide opportunities for school leavers under the age of 17 years old (who are not otherwise eligible to join the ADF) to undertake trade training:

·        recruits will  be selected, employed and trained by a private sector training organisation on behalf of Defence for a period of up to two years, prior to being offered the opportunity to enlist when they complete their prescribed training;

·        when enlisted they would undertake ADF trade training under the respective Service;

·        the private sector training organisation would be responsible for paying the salary of the apprentice, placing them in Industry and any ongoing training costs;

·        ongoing contact would be maintained through an ADF mentor and opportunities to undertake ADF familiarisation; and

·        Defence is working with DEST and DEWR on this scheme.

 

Who will benefit?

·        Young people looking to combine technical training with a role in the Army, Navy or Air Force

·        Private sector training organisations

 

 

Medical Officer Professional Development ($12 million):

 

Why is this important?

·        Medical Officers are a critical category in all three Services, and existing shortfalls are severely limiting operational capability. 

 

What will this proposal do?

·        The ADF Medical Officer Specialist salary structure links salary progression to the acquisition of agreed competency based training:

o       inclusive of defined military skill sets and selected postgraduate health qualification; and

o       at a minimum, they are required to obtain a Fellowship of the Royal Australasian College of General Practitioners (FRACGP).

·        Full time medical officers can currently access professional development funding up to $2,000 per annum to meet administrative costs associated with responsibilities of being a medical officer.  

·        This initiative will provide an additional $8,000 per annum for eligible uniformed medical officers to assist in developing and maintaining their ongoing liability for professional development through:

o       attendance at workshops, conferences, seminars, short courses; and

o       completion of Higher education qualifications – Diplomas, Graduate Diploma and Masters.

 

Who will benefit?

·        Approximately 149 ADF medical officers will be eligible.