Division 1: General provisions

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This Part provides bonuses to attract and retain members who are capability critical to the ADF.

In this Part the following apply.

Agreed period of service means the number of days of effective service the member agrees to serve in connection with a bonus under this Chapter.

Bonus amount means the amount of money specified in a valid offer.

Bonus condition means one of the following.

1. If the bonus is a category A bonus, a condition specified in section 3.3.14.
2. If the bonus is a category B bonus, a condition specified in section 3.3.18.

Call out order means continuous full-time service under a call out order under Division 3 of Part III of the Act.

Commencement day of an agreed period of service has the meaning given in section 3.3.3.

Effective service has the meaning given in subdivision 2.

Valid acceptance has the meaning given in section 3.3.5.

Valid offer has the meaning given in section 3.3.4.

The commencement day of a member’s agreed period of service is the latter of the following days.

1. The day specified in the offer.
2. If a member is under any of the following service obligations, the day after the service obligation ends.
   
   1. An initial minimum period of service.
   2. A return of service obligation.
   3. An undertaking for further service under another bonus.
      _{Note: This includes an undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.}

A valid offer of a bonus is an offer that meets all of the following.

1. It is made on the approved form.
2. It specifies that the bonus is one of the following.
   
   1. A retention bonus.
   2. A completion bonus.
3. It specified the bonus condition.
   _{Note 1: The bonus condition for a category A bonus is specified in section 3.3.14.
   Note 2: The bonus condition for a category B bonus is specified in section 3.3.18.}
4. It specifies a bonus amount that does not exceed the amount payable that applies to the bonus category.
   _{Note 1: The maximum bonus amount for a category A bonus is specified in section 3.3.12.
   Note 2: The maximum bonus amount for a category B bonus is specified in section 3.3.16.}
5. It specifies an agreed period of service that is within the period that applies to the bonus category.
   _{Note 1: The agreed period of service limits for a category A bonus is specified in section 3.3.13.
   Note 2: The agreed period of service limits for a category B bonus is specified in section 3.3.17.}
6. It specifies an indicative day on which the member will commence serving the agreed period of service.
   _{Note: The commencement date may be altered if the member is completing an undertaking for further service in relation to another benefit, however described.}
7. If it is being made to a member of the Reserves for Reserve service, it specifies the member’s pattern of reserve service.
8. It specifies the date that the offer must be accepted by.

A valid acceptance of an offer means an acceptance that meets all of the following.

1. It is made on the approved form.
2. It is made on or before a day specified in the valid offer.
3. It includes an election on how the bonus is to be paid.

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1. This section applies to a member who meets all of the following.
   
   1. They are on continuous full-time service, other than a member of the reserves performing continuous full-time service solely for the purpose of a call out order.
   2. They are not subject to a flexible service determination.
2. A member provides effective service on all of the following days.
   
   1. A day for which the member is paid salary.
      _{Note: This includes a day of paid leave.}
   2. A day on which the member is on unpaid leave that is before the 22^nd day in a period of unpaid leave.
3. Despite subsection 2, a member does not provide effective service on a day in which any of the following apply.
   
   1. They are in custody.
   2. They are in detention.
   3. They are imprisoned.
4. Effective service is calculated in accordance with the following.
   
   1. A day for which the member receives full pay — 1 day.
   2. A day on which the member receives half pay — half a day.
   3. A day on which the member is on unpaid leave — 1 day.
      _{Note: A member ceases to provide effective service on the 21^st day of unpaid leave.}

1. This section applies to a member who is subject to a flexible service determination.
2. A member provides effetive service on any of the following days.
   
   1. A day in the member’s pattern of service for which the member is paid salary.
      _{Note: This includes a day of paid leave.}
   2. A day on which the member is on unpaid leave that is before the 22^nd day in a period of unpaid leave.
3. Despite subsection 2, a member does not provide effective service on a day in which any of the following apply.
   
   1. They are in custody.
   2. They are in detention.
   3. They are imprisoned.

4. The number of days of effective service a member performs in a fortnight is calculated using the following formula and must not exceed 14 days.

   effective service = A x 1.4

   Where:

   A is the sum of the following.

   1. Each full day of duty in the member’s pattern of service in the fortnight.
   2. Each combination of part days of duty in the member’s pattern of service in the fortnight that add up to eight hours.

1. This section applies to a member of the Reserves not on continuous full-time service, other than under a call out order.
2. A member provides effective service on any of the following days.
   
   1. A day on which the member provides Reserve service.
   2. A day on which the member is on call out order.
3. Despite subsection 2, a member does not provide effective service on a day in which any of the following apply.
   
   1. They are in custody.
   2. They are in detention.
   3. They are imprisoned.
4. A day on which the member provides effective service is 1 day of effective service.
   _{Note: This section applies regardless of the number of hours the member serves on the day.}

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This Part applies to the following members.

1. A member on continuous full-time service.
2. A member of the Reserves on reserve service.

This part does not apply to a member who meets any of the following on the day the offer of a bonus is made to the member.

1. The member has a Military Employment Classification of J5.
2. The member has less than 1 year to serve until the end of the member's fixed period of service.
3. The member has less than 1 year to serve until the later of the following days.
   
   1. The day the member reaches retirement age.
   2. The last day that the member has been given a direction allowing them to serve beyond their retirement age.
      _{Note: A direction allowing a member to serve beyond their retirement age is made under section 23 of the Defence Regulation.}
4. The member has been given a notice for the purpose of involuntary separation under one of the following and a decision on that notice has not been made.
   
   1. Section 101 of the Act.
   2. Section 24 of the Defence Regulation.