The Minister Assisting the Minister for Defence Bruce Billson announced today that single ADF members will pay less for Living-in Accommodation (LIA). Mr Billson said Defence had completed work on a new method for calculating the LIA contribution paid by many single ADF members. “I am pleased to announce that the new method will result in members paying less for their LIA this financial year."

"The new contribution rates for LIA took effect from 27 July 2006. Members will see a corresponding increase in their disposable income from 10 August 2006,” Mr Billson said.

This new method is based on the assessed average market rent for LIA using valuations produced by the Australian Valuation Office. “Members will pay a rate for their accommodation that is a proportion of the national average rental cost of similar accommodation in the private sector. Using a national average protects ADF members from regional differences in rental markets as they move on posting,” Mr Billson said.

The new method applies the same principle already used to calculate contributions paid by members with dependants who live in service residences. "A long-standing Defence policy is that members with dependants should pay 50% of the Defence Rent Bill for Service Residences. We are now applying this principle to members without dependants, who will pay 50% of the nationally-assessed average market rent if they occupy Level 3, 4 or 5 accommodation," Mr Billson said.

“Members who occupy Level 1 or 2 LIA will only pay 40% of the assessed averaged market rent. This recognises the age and lower quality of this accommodation, which is usually occupied by the most junior ranks of the Defence Force." The degree of difference between the LIA rates last year and the rates this year is a result of the change to the new method of calculating the rates. Contributions will fall for all members by between $2.80 and $34.15 per week.