Continuation bonus

You won't be eligible for the bonus if you:    

• have previously received the continuation bonus  
• were a lateral recruit from another country’s military force.  
• are less than 3 years from your retirement age, or the later date you’ve been allowed to serve until if you’re past retirement age, and therefore you’re unable to serve the 3 years you need to in order to get the bonus
• are less than 3 years from the end of your period of fixed service  
• are not employable on medical grounds (Classification J5)
• had left Defence after completing 90 days of service and are now rejoining.

You’ll stop being eligible if you stop being a member of the Permanent Forces before you accept an offer for the bonus.

You don’t need to apply for the continuation bonus.  

If you’re eligible, an offer will be made to you in a career conversation with your Unit Command/Manager. After you’ve had a career conversation, your Unit Command/Manager will email you a formal offer.  

If you’re approaching 4 years of service and will have completed your service obligation:

• You’ll receive an offer 90 days before your 4-year service anniversary.  
• You’ll need to accept the offer before the date of your 4-year service anniversary.  

If you have a service obligation and 4 years of effective service in the Permanent Forces:  

• You’ll be eligible to receive an offer 90 days before you complete your first service obligation.  
• You’ll need to accept the offer before the date you’ll complete your service obligation.

If you’ve been given an offer and you’re notified of an involuntary separation after being issued with an offer, you won’t be able to accept the offer until the notice has been finalised. 

If you become eligible for the bonus between 1 July 2023 and 29 February 2024, you may not receive your offer 90 days before, due to a short implementation timeframe. You’ll have until 31 March 2024 to accept the bonus offer.

If you accept the pilot continuation bonus, you’ll be required to provide a further 3 years of effective service in the Permanent Forces.  

Your agreed period of service will start from the later of:  

• the day after you accept the bonus  
• the day after you complete 4 years of effective service  
• the first day you are not subject to a service obligation  
• the date on which you are no longer subject to an undertaking for further service, or service milestone relating to another bonus or payment.    

If you become eligible for the bonus between 1 July 2023 and 29 February 2024, your agreed period of service will be reduced by 1 day for each day of service between the date you accept the offer and the start date of an agreed period of service.

The pilot continuation bonus amount is $50,000.  

You can choose to have this paid in 4 ways:  

• A single cash payment to your nominated bank account. It will be paid on the first pay day after your agreed period of service commences.  
• Salary sacrifice contribution of the total bonus amount, to your nominated superannuation fund. It will be paid on the first pay day after your agreed period of service commences.  
• Split between a cash payment and salary sacrifice superannuation contribution. You must provide a nominated dollar amount to be paid as cash and the remaining amount will be salary sacrificed into your nominated super fund. It will be paid on the first pay day after your agreed period of service commences.  
• Split into two equal cash payments, paid over 12 months. The first payment will be paid on the first pay day after your agreed period of service commences, and the second payment will be paid 12 months after the first payment.

The Australian Taxation Office sets limits on how much extra you can contribute to your super each financial year before you have to pay extra tax. You should check with your super fund and a financial advisor before making extra contributions into your fund.

You may need to repay some or all the bonus payments you’ve received if you don’t complete your agreed period of service because you:  

• voluntarily transfer to the Reserves  
• are dismissed for disciplinary reasons  
• apply to leave the Permanent Forces for any other reason.  

If you’re discharged due to redundancy, or because you have been determined medically unfit (J5), you won’t be required to repay the bonus payments you’ve received. 

Ch 3 Pt 3 Bonuses  

Ch 3 Pt 4 Continuation bonus