Division 5: Purchased recreation leave

Subdivision 1: General provisions

Subdivision 2: Application to purchase recreation leave credits

1. A member is eligible to purchase recreation leave credits in one of the following ways if the CDF is satisfied that subsection 3 is met. 
   1. The pay-as-you-go method.
   2. The credit in advance method.
2. To apply to purchase recreation leave credits, the member must do the following.
   1. Use the approved form.

   2. Specify the number of pay periods over which they will pay for the recreation leave credits, subject to the following.

      1. The pay-as-you-go method — up to 26 pay periods.
      2. The credit in advance method — up to 13 pay periods.

      ^{Note:   The calculation for the amount to be paid is provided under section 5.4.26C.}

3. For subsection 1, service requirements are unlikely to prevent the member using the purchased recreation leave credits.

1. A member is not eligible to purchase recreation leave credits under this Division if they are performing any of the following kinds of service.
   1. Warlike service.
   2. Non-warlike service.

   3. Foreign service, as defined by subsection 23AG(7) of the Income Tax Assessment Act 1936, which could reasonably be expected to be exempt from tax under section 23AG of that Act.

^{Note:   To qualify for the tax exemption, a member must be engaged in foreign service for a continuous period of not less than 91 days.}

2. A member is not eligible to purchase recreation leave credits if the member’s recreation leave credits balance will exceed 50 days after the purchase.
3. The member is not eligible to purchase recreation leave credits under the credit in advance method unless the member has 10 days or less of recreation leave credits at the time of application.
4. A member is not eligible to purchase recreation leave credits if any of the following apply at the time of application.
   1. They are already purchasing credits under a pay-as-you-go arrangement.
   2. They are already paying for recreation leave credits under the credit in advance method.

1. The maximum amount of recreation leave credits the member can purchase in an application is one of the following.
   1. If the member is using the pay-as-you-go method — up to 20 days.

   2. If the member is using the credit in advance method — up to 10 days.

      ^{Note:   The maximum amount is not reduced for a member on a flexible service determination.}

2. A member cannot purchase more than 20 days’ recreation leave credits in a financial year.

3. Recreation leave credits must be purchased in whole days. 

^{Note:   Eight hours is the equivalent of one day of leave.}

Subdivision 3: Pay-as-you-go method

If recreation leave credits have been purchased under the pay-as-you-go method, the member’s recreation leave credit balance is increased by the amount calculated using the following formula on the day the payment for the leave is deducted from the member's fortnightly salary.

hours of leave credited = (A × 8)  ÷ B

Where:

A is the total recreation leave credits in days that were approved to be purchased.

B is the number of pay periods the member elected to pay for the purchased recreation leave credits over.

^{Note:   The calculation for the amount of each payment is provided in Subdivision 5.}

1. An arrangement to purchase recreation leave credits by the pay-as-you-go method is cancelled if any of the following apply.
   1. The member has requested to cancel the arrangement.
   2. The member is on warlike service.
   3. The member is on non-warlike service.
   4. The member is on foreign service, as defined by subsection 23AG(7) of the Income Tax Assessment Act 1936, which could reasonably be expected to be exempt from tax under section 23AG of that Act.
   5. The member is not entitled to salary under section A.1.4 of DFRT Determination No. 2 of 2017, Salaries.
2. If an arrangement to purchase recreation leave credits under the pay-as-you-go method is cancelled, all of the following apply.
   1. The member ceases to accrue purchased recreation leave credits.
   2. The member ceases to pay the payment under Subdivision 5.

Subdivision 4: Credit in advance method

If recreation leave credits have been purchased under the credit in advance method, the member’s recreation leave credit balance is increased by the number of days the member purchased on the day the first payment is deducted from the member’s fortnightly salary.

^{Note:   The calculation for the amount of each payment is provided in Subdivision 5.}

If the member is no longer receiving salary, the unpaid payment balance will be recovered as a debt.

^{Note:   If a debt needs to be recovered under this section, section 1.5.4A will apply.}

Subdivision 5: Payment for purchased recreation leave credits

The member’s fortnightly salary is reduced by the amount calculated using the following formula for the payment of purchased recreation leave credits.

fortnightly payment = ((A ÷ 365) × B) ÷ C

Where:

A is the member’s annual rate of salary.

B is the number of days of leave the member is purchasing.

C is the number of pay periods over which the member has elected to make the payments.

^{Note:     Payments are not affected by the following.}

            ^{a. A flexible service determination.}

            ^{b. For the credit in advance method, the member being posted on warlike, non-warlike or foreign service.}