1. Nature of Service Review
EX-SERVICES ORGANISATIONS
25 OCTOBER 2005

2. Presentation Contents
Background
Principles
Conceptual Basis
Definitions
Process
Way ahead

3. Background

4. What is a Nature of Service Declaration?
The Nature of Service Declaration expresses the extent to which ADF personnel deployed on authorised military operations in defence of the nation and its security interests are likely to be exposed to the risk of harm as a consequence of executing their mission and tasks.

5. Why is a Nature of Service Declaration Needed?
The Nature of Service Declaration expresses the level of exposure to the risk of harm to enable those responsible for providing the resultant conditions of service benefits to do so in a fair and consistent manner.

6. How is the Nature of Service Declaration Produced Now?
All operations are classified as either warlike or non- warlike.
If they are neither warlike nor non-warlike they default to a peacetime classification
Generally, no additional benefits are paid for peacetime operations although a Hardship Allowance was paid for Operation SUMATRA ASSIST.
An ADF operation must include a deployment overseas to create an eligibility for additional benefits.

7. Key Elements of Current Definitions
Warlike
The “…application of force is authorised…”
Achieve “...Specific military objectives…”
There is “…an expectation of casualties…”
Examples:
declared war
combat operations against an armed adversary
peace enforcement (armed belligerents engaged in combat activities)

8. Key Elements of Current Definitions
Non-Warlike
“...Application of force limited to self defence…”
“...Risk associated with assigned task(s)…”
“...Casualties could occur but not expected…”
Examples:
Hazardous operations - exposure to physical or environmental risk over & above normal peacetime duties
Peacekeeping - “...help restore & maintain peace in an area of conflict…”

9. Payment of Benefits - Current
Once an operation has been determined to be either warlike or non-warlike, an agreed suite of entitlements is awarded to those involved.
These include DVA entitlements, tax concessions, additional leave, medals and a deployment allowance.

10. Current Deployment Allowance
Based on MTA
Military, Armed or Related Threat
Column 1
Column 2
Column 3
Item
Threat level
Rate of allowance
$ a day 1
Very Low
nil 2
Low
20.50
Ratio 2:1 3
Medium
35.80 4
High
51.00 5
Very High
66.20
Environmental Hazard
Column 1
Column 2
Column 3
Item
Threat level
Rate of allowance
$ a day 1
Very Low
nil 2
Low
10.60
Total
$99.30 3
Medium
18.10 4
High
25.60 5
Very High
33.10
Annex I to Chapter 6 – Overseas Conditions of Service – PACMAN
Rates of Deployment Allowance (as appearing in Schedule 14 to Defence Determination
2000/1)

11. Deployment Allowance Model (From 1993 Cabinet Submission)
(quanta)
Very low
Low
Medium
High
Very high
ENVIRONMENT
HAZARD/STRESS
OVERALL THREAT ASSESSMENT

12. What’s Wrong with the Current System?
Principles are needed
The conceptual basis requires clarification
Process for producing the NOS for operations needs to be streamlined and documented.
Key operational terms need to be defined
The 2 categories (warlike and non-warlike) don’t allow sufficient discrimination.
Exposure to psychological harm needs greater emphasis
Benefits may need to be revised (not part of NOS Review)

13. What are the Key Recommendations of the Nature of Service Review?

14. Principles
Agree a set of principles to be used by those responsible for producing the NOS for ADF operations, and
Agree a set of principles to guide those responsible for setting COS benefits.
Both have been agreed by COSC and are included in our report

15. Conceptual Basis
Exposure to the risk of harm while deployed on military operations in defence of the nation and its security interests is the underlying conceptual basis for the nature of service declaration –
and the consequential provision of a package of special benefits.

16. Conceptual Basis
Exposure to the risk of harm is implied in the current definitions of Warlike and Non-warlike.
Exposure to the risk of harm is the basis of the current MTA.
The MTA is the sole input in determining the quanta of Deployment Allowance.

17. Conceptual Basis
ADFIS Instruction 120C, which is the basis for preparation of MTA, defines ‘threat’ and ‘risk’ in terms of harm.
a threat is a person or thing likely to cause harm
a risk is exposure to the chance of suffering harm

18. Conceptual Basis
Exposure to the risk of harm underpins the meaning of words such as threat, risk, hazard and danger.
Exposure to the risk of harm is implicit in the current definitions.
Exposure to the risk of harm is the most effective and fair means of determining the NOS declaration and the range and quanta of associated benefits.
Market the revised process as
a “threat-based” model?

19. US Army - Danger Pay/Benefits
ACTUAL
COMBAT
Benefits Increase Closer to the Fight CZ
TAX RELIEF (CZTR) BENEFITS
TERRORISM AS
DANGER
INCREASES, PAY INCREASES
SERVING IN COMBAT ZONE (CZ), QUALIFIED HAZARDOUS DUTY AREA (QHDA), or “in Direct Support of Ops in CZ/QHDA”1
($/mo. depends on individual; ranges $35 - $1,100)4
SERVING IN IMMINENT DANGER AREA (IDP)2, or
HOSTILE FIRE PAY
($225/mo.)3
plus
SERVING IN HARDSHIP DUTY LOCATION (HDP-L)
($50, $100, or $150/mo.)1
plus
1 Maximum HDP-L payable in IDP designated areas is $100/mo.
2 Dependent presence not factor in designating an area for danger pay/benefits
3 Additionally, a portion of certain Federal student loans may be forgiven for each 12-month period served in IDP/HFP
4 Enlisted receiving special pays and those who reenlist in zone receive entire special pays/bonuses tax free

20. Categories of Harm Physical Harm - from battle casualties
Physical Harm - from environmental hazards
Psychological Harm
Social Harm
Financial Harm

21. Decision Support Tool
Computer based software application that contains the 3 harm matrices, the definitions of security operations and provides a facility for approvals and an over-ride mechanism – for use by SOD, INT, Health and Psych staff

22. Decision Support Tool
A DST has been developed and demonstrated to COSC members.
The DST embeds the process that has been developed over the past 12 months in cooperation with SOD.
The harm matrices form the core of the DST.

23. Security Operations Definition

24. The Need for a Boundary between Peacetime & Security Operations
Triggers
the need for a NOS declaration.
introduces s.58B (Ministerial) determinations.
DVA benefits.
tax exemptions (Warlike).
Deployment Allowance.
Permits the awarding of non-financial recognition (medals, badges, etc)
A NoS classification will only be produced if it is believed that the operation under consideration is likely to be categorised as an operation in defence of the nation and its security interests.
The dividing line also:
Provides the boundary between s.58H and s.58B determinations.
Triggers the granting of:
DVA benefits
tax exemptions
Deployment allowances
Permits the awarding of medals, badges, etc

25. Security Operations - Definition
Military activity authorised by CDF or his delegate and approved by MINDEF and PM.
Conducted in defence of the nation and its security interests
Deals with a direct or indirect threat from belligerent elements (people) that have been assessed as having the ability and/or preparedness to use force or offer violence to achieve their objectives.
May be conducted anywhere - not only ‘overseas’
It has a clearly expressed mission, tasks and ROE
Requires deployment into or within a Specified area
Occurs within a specified time frame

26. Revised Definition
The NOSR team is proposing that security operations will have to involve a threat or risk from people such as an armed adversary, armed combatants, criminals, terrorists, pirates, people smugglers, illegal immigrants, poachers and so on.
The operation must be conducted in defence of the nation and its security interests.
Operations resulting from environmental threats such as drought relief, tsunami, fire fighting should not be included.

27. Summary Nature of Service defined. Harm as the conceptual basis.
Categories of harm.
Guiding principles.
Security operations defined.
5 operational categories.
Better framework for benefits.

28. Way Ahead Obtain approval from MINDEF for review outcomes
Complete DST trial and report to COSC (Nov 14)
Prepare CABSUB - if MINDEF agrees
Complete cost impact paper
Prepare policy documents to support change to revised system
Continue consultation / working group sessions
Prepare communication strategy to advise changes if approved by MINDEF

29. Questions