MILITARY INSTRUCTOR (MI) SCHEME OR 1 RTB RECRUIT INSTRUCTOR (RI) SCHEME
Q1(a). Will an officer who is instructing at 1 RTB be entitled to join the Military Instructor Scheme?
A. Yes.
Q1(b). Will an officer who was instructing at 1 RTB in 2006 be entitled to join the Military Instructor Scheme?
A. Yes. For those members who have been instructing prior to 01 Jul 06 to 30 Jun 07. On 01 Jul 07 you will become eligible for the $5k. Your anniversary date is 01 Jul each subsequent year that your primary duties are that of an instructor.
No. For those members who were posted out in Dec 06.
Q2. I am an Instructor at a Tri-Service Training Establishment, am I entitled to join the Military Instructor Scheme.
A. Yes
Q3. I am an Instructor overseas, am I entitled to join the Military Instructor Scheme?
A. No. You are well compensated by your overseas allowance. The Military Instructor Scheme is designed to allow Army to attract members to the various Training Establishments in Australia.
Q4. Why have these Bonuses been introduced?
A. Army wants to encourage people to volunteer for instructor positions within Training Command and ADF Training Establishments. These bonuses are intended to recognise those whose primary duty is the instruction of students because of their influential role on the future Army workforce.
Q5. How much is the Bonus?
A. For each qualifying period of twelve months, the Military Instructor Bonus is $5k.
Q6. Can I qualify for both the Military Instructor Scheme and Recruit Instructor Scheme?
A. No, only one bonus is payable for any one period.
Q7. When does the scheme start?
A. Permanent Army members (and reservists on CFTS) who complete a minimum of twelve months continuous service as an instructor on or after 1 July 2007 are eligible for the bonuses. Members who have been posted into instructor positions at the commencement of 2007, you will be entitled to the bonus on the anniversary of your eligibility.
Q8. How do I know whether I am eligible for one of the Bonuses in my present position?
A. Eligible members will be notified by their respective CO/OC. Positions will be confirmed by TC-A. A data base is to be maintained by TCEs.
Q9. I spend most of my time at work instructing, but my position is not listed in the database. What can I do?
A. Contact your CO through your Chain of Command, and, if they advise TC-A that your position has the primary duty of Instructor or Recruit Instructor, the database will be updated.
Q10. If I am MEC 3, and undergoing a period of Rehabilitation that may or may not result in my continued service, am I eligible to receive the bonus now or do I need to wait until my circumstances change (either way)?
A. Yes, you are eligible to receive the bonus providing you meet all other eligibility criteria, and if you are then asked to discharge you will not be required to pay back any of it. We are trying to keep members in the service. Members undergoing rehabilitation will not be restricted from receiving the bonus as they are still serving and could continue to serve.
Q11. In my first 12 months I am on PTLWOP working at 7/14 am I entitled to the allowance?
A. No, the Bonuses are payable to instructors who complete the first twelve months on continuous full time service, however in this case a member on 50% PTLWOP will take 2 years to complete the initial qualifying period. You will receive the $5k bonus at that time. Pro rata will commence post the initial 12 months.
Q12. When should I receive an offer if I am eligible?
A. Unit CO's will start contacting eligible members regarding the offers shortly. These offers will contain specific information for each person and will detail the process and timelines for acceptance. If you believe you are eligible for a Bonus and have not been contacted by the end of August you should contact your CO.
Q13. How and when will I get my Bonus paid?
A. The bonus will be paid as a lump sum once your application to join the scheme has been accepted. Members will be paid as soon as practicable after the date your signed acceptance form is received by the CO and will be influenced by the number of applications being processed by the various TCE CO's and DEFPAC.
Q14. Will I be able to place my bonus into my superannuation fund or a superannuation fund of my choice?
A. Yes, eligible members will be entitled to elect how they wish to be paid:
- into a Super account of your choice (this is a lump sum taxed at 15%),
- into your normal pay account (taxed at your marginal tax rate), or
- a mix of both.
(DRFDB contributors cannot salary sacrifice into the DFRDB Scheme however current DFRDB contributors may salary sacrifice into the MSBS Fund.)
Q15. Is the Bonus tax exempt?
A. There is ONLY one situation where the bonus will be tax exempt. Members whose applications have been accepted and the bonus paid whilst deployed under war like conditions (s.23AD of the ITAA 1936) of service will receive the bonus exempt from income tax. In all other situations the bonus will be taxed as normal pay and allowances.
Q16. What caps apply to contributions into superannuation from 1 July 2007?
A. From 1 July 2007 there is a $50k per year cap for pre tax contributions and a $150k cap for post tax contributions into superannuation. Other transitional arrangements apply. Advice from a licensed financial advisor should be obtained before making any financial decision.
Q17. Does Smart Salary have any involvement with the salary sacrificing of retention bonus funds?
A. No, the option provided by DEFPAC is to pay your before tax bonus amount straight into super, not salary packaging on a fortnightly basis. A 15% tax applies to all superannuation payments.
Q18. How can I decide which payment option to take?
A. No one in the ADF is qualified to answer that question. Army strongly recommends that you seek professional financial advice from a licensed financial advisor to determine any effect on taxation, family assistance or child support payments.
Q19. If I am posted from one eligible position to another eligible position, do I have to reapply for the bonus?
A. No, because you remain in the same scheme, 'the clock keeps ticking'.
Q20. If I am posted from a position eligible for the Military Instructor Scheme to one eligible for the 1 RTB Recruit Instructor Scheme, do I have to re-apply?
A. Yes, you are moving from a scheme under one Determination to a scheme under another Determination, the amounts payable are different and the eligibility criteria change. Depending on the date of effect, you will probably be entitled to a pro rata payment from the position you are leaving and the clock starts again in the Recruit Instructor scheme, so you should receive a new offer, from COMDT ARTC or CO 1 RTB in this case.
Q21. Can I get an instructor bonus if I am receiving a retention bonus?
A. Yes. The only exclusion is that only one of the Instructor bonuses may be received for the same period of service.
Q22. When do the schemes finish?
A. The schemes are funded to 30 Jun 12. Unless the schemes are extended, anyone who posts into an eligible position after 01 July 11 will not be eligible for either bonus. Applications must be received and processed by 30 Jun 12.
Q23. Can you clarify the statement 'Military instructors must complete 12 months as a military instructor prior to being eligible to apply for the bonus - this can be on or after 01 Jul 07'.
Does this have to be 12 months in a current posting to TC-A or can it be accumulative of previous postings as an instructor to TC-A?
eg, A member has been posted to LWC (VIC) in Jan 07. This is only 6 months and does not meet the eligibility. However the member has completed previous postings to TC-A as an instructor which total more that 12 months.
A. A member must complete 12 months as an instructor. This can occur in the following ways:
- 12 months within the one unit; and
- a period of 12 months as an instructor within TC-A units.
A member will not be eligible for the MI Bonus if, during their 12 months they have a break in service for any reason other than what is outlined at 3.5.243 of the determination.
Q24. When members are entitled the MI Bonus, however are deployed for 3 months of the 12 months - do they get the pro rata amount or the full amount?
A. Yes, Pro Rata payments under Clause 3.5.243, para 1, A member is to be paid a bonus payment on a pro rata basis if they fail to complete their first 12 months as an MI for any of the following reasons. sub para e. The member is transferred or posted out of the MI position for an operational deployment.
Q25. I am a LCOMD soldier posted to ARTC/CATC for a period of Temporary Duty. Am I entitled to receive the Military Instructor Bonus? If so can I have it paid fortnightly or is it paid at the completion of my TDY?
A. Members undertaking periods of TDY from LCOMD to ARTC/CATC will be entitled to a pro rata amount of the MI Allowance ($13.70 per day), providing the period of TDY is in support of HNA/ELF. Det has been signed and is in PACMAN....still waiting for confirmation of periods of TDY, one TC-A email states one month; however, PACMAN does not support this.
The payment is made once the period of TDY has been completed.
LCOMD members on TDY from 01 Jul 07 will be entitled to the allowance. Unfortunately if you have undertaken a period of TDY prior to that date, you will not be entitled to the allowance.