Defence Determination, Conditions of service Amendment (Cyber warfare pay structure) Determination (No. 12) 2025

The amended Determination introduces several interlocking concepts that govern how pay increments are set and move for cyber warfare members. The main concepts are defined in the inserted Division 4C and the transitional Schedule. These are the operative definitions, default rules and decision points that implement the pay structure.

• Cyber warfare member, officer and specialist. The instrument borrows these definitions from Part B Division 3B of DFRT Determination No. 2 of 2017 (s 3.2.47AC). The Division applies specifically to a cyber warfare member (s 3.2.47AE). The instrument therefore operates only within a cohort defined elsewhere.

• Cyber warfare pay structure. This term is the pay structure provided under Part B Division 3B of DFRT Determination No. 2 of 2017 (s 3.2.47AC). The Division does not itself define salary levels. Instead salary rates and increment tables are located in the referenced annexes and schedules of the DFRT Determination No. 2 of 2017 and, for transitional payments, in DFRT Determination 2017/2 Salaries (Schedule 2).

• Increment and pathway. The Division treats increments as discrete steps linked to rank and career pathway. On entry the default is an increment that corresponds with the member’s rank and zero years in rank in their pathway unless special rules of transfer or discretion apply (s 3.2.47AF). Transfers between pathways use the annexe tables for minima and maxima for the gaining pathway to determine whether a member keeps their current increment or is set to the minimum available in that pathway (s 3.2.47AI).

• Anniversary date. The anniversary date is the central timing device for increment advancement. It is defined as the day 12 months after a set of trigger events that determine when a member’s year in rank starts to run, such as the day the member became a cyber warfare member, the day of last promotion for officers, or the day the member was made Private Proficient (s 3.2.47AD(1)). The anniversary date is extended by one day for each day a member is on leave without pay, absent without leave, or not entitled to salary (s 3.2.47AD(2)). There is specific transitional backdating for members who would have entered the pay structure between 3 July 2025 and commencement (s 3.2.47AD(3)).

• Completion of year in rank and increment advancement. For increment advancement, the Division defines a completed year in rank as either 12 months of service for Permanent Forces or 20 or more days of Reserve service in the relevant 12 month period, combined with an assessment by a decision maker that the member has carried out their duties and responsibilities at the expected standard (s 3.2.47AO). The notes emphasise that an increment advances when a year in rank is completed.

• Deferral decisions. If a decision maker assesses a member as not having performed at the expected standard, the increment advancement can be deferred. Deferral decisions must be in writing, specify a period of deferral and be provided to the member (s 3.2.47AP(2)). The decision maker must review deferral decisions within prescribed windows and end the deferral if subsequent review concludes performance meets expectations. A deferred increment does not change the anniversary date (s 3.2.47AP(3) and notes).

• Discretionary placement and advancement. The instrument gives named senior officials authority to set a higher increment on entry, transfer or promotion than the default if satisfied it is reasonable to do so. The decision maker must have regard to listed factors such as experience, qualifications, previous service, changed training requirements and any other relevant matters (see ss 3.2.47AH(1)-(2), 3.2.47AI(3)-(4), and 3.2.47AM(1)-(2)). The term decision maker is defined to include five specific positions across service branches and career management (s 3.2.47AC).

• Special rules for promotion and appointment. Officers promoted (except promotions to Flying Officer or Pilot Officer) take the increment for zero years in rank in their pathway (s 3.2.47AJ). Other rank promotions have formulaic upgrade steps, often two increments for certain step-ups such as Able Seaman or Leading Aircraftman to Leading Seaman or Corporal, and otherwise one increment but subject always to minimum and maximum increments available in the pathway (s 3.2.47AK). A cyber warfare specialist appointed as an officer gets the higher of the minimum increment for the officer rank/pathway or the increment they held as a specialist (s 3.2.47AL).

• Effect of entry placement at a higher increment. If a member is placed at a higher increment on entry from another pay structure, the member’s increment will not advance until the date set by the decision maker taking account of the principles for management of the cyber warfare pay structure (s 3.2.47AN). The decision maker must therefore set a bespoke advancement date in such cases.

• Transitional payments. Schedule 2 creates an entitlement to be paid the difference between salary actually paid under relevant Salary Determination schedules (Schedule B.2, B.9 or B.11 of the Salary Determination) and what a member would have been eligible for under DFRT Determination No. 7 of 2025 for the period between 3 July 2025 and commencement (Schedule 2 clause 2).

These concepts are operationally linked to external materials. In order to convert an increment step into a dollar figure, agencies must consult the annex tables in DFRT Determination No. 2 of 2017 and the Salary Determination DFRT Determination 2017/2. The Division therefore acts as a ruleset that governs ordinal movement between increments and delegates to other Determinations for monetary amounts.

The Determination affects a narrow, defined population and a small set of decision makers and administrative actors.

• Primary affected group: cyber warfare members. The Division explicitly applies to a cyber warfare member as defined in Part B Division 3B of DFRT Determination No. 2 of 2017 (s 3.2.47AE and s 3.2.47AC). That term includes cyber warfare officers and cyber warfare specialists as referenced at s 3.2.47AC. Only members who fall within that external definition are within the scope of the new Division. Members in other pay structures are unaffected by the Division except when transferring into the cyber warfare pay structure, where entry placement rules apply (s 3.2.47AG).

• Members transferring from other pay structures. Members who transfer into the cyber warfare pay structure are affected by s 3.2.47AG which sets rules for their initial increment placement based on salary equivalence or, failing that, the low increment for their rank/pathway. A further effect is that members placed at a higher increment on entry will have their advancement deferred until a date set by the decision maker (s 3.2.47AN).

• Members transferring between pathways inside the cyber warfare pay structure. Cyber warfare officers who move between pathways inside the cyber warfare pay structure are covered by s 3.2.47AI which determines whether they retain their increment or are set to the minimum for the gaining pathway, subject to decision-maker discretion.

• Members who are promoted or appointed as officers. Promotion has specific increment consequences. Officers promoted to ranks other than Flying Officer or Pilot Officer receive the increment that corresponds with their rank and zero years in rank in their pathway (s 3.2.47AJ). Other ranks promoted have increment increases defined in s 3.2.47AK. An other rank who becomes an officer and who was a cyber warfare specialist immediately before appointment receives the higher of the minimum increment for the officer rank/pathway or the increment they held before appointment (s 3.2.47AL).

• Decision makers. The instrument vests particular authorities in a defined set of senior positions. The term decision maker is defined to include Director General Military Personnel Branch, Director Space and Cyber Career Management, Director General Navy People, Director General Career Management - Army, and Director General Personnel - Air Force (s 3.2.47AC). These positions make discretionary increment placements, set advancement dates for higher entry placements (s 3.2.47AN), assess whether a member has carried out duties to the expected standard for completion of a year in rank (s 3.2.47AP(1)-(2)), and must perform specified reviews of deferrals (s 3.2.47AP(3)).

• Payroll and finance staff. Schedule 2 places a cash outflow obligation on Defence payroll/finance for the retrospective payment of differences for eligible members (Schedule 2 clause 2). Implementation therefore affects payroll calculation, back-pay processing and budget forecasting for the relevant accounting periods.

• Administrative staff responsible for recordkeeping and performance management. Items such as calculating anniversary dates, adjusting dates for periods of leave without pay or absence without leave (s 3.2.47AD(2)), counting Reserve service days (s 3.2.47AO) and preparing written deferral decisions with scheduled reviews (s 3.2.47AP(2)-(3)) will increase administrative responsibilities.

• Potentially affected cohort beyond cyber warfare. The instrument modifies the catch-all text in s 3.2.29 of the principal Determination by inserting Division 4C into the list of Divisions that can apply to certain members (Schedule 1 item 1). That has the effect of making the new rules formally available when the statutory cross-link applies to a member.

Who pays and who decides. The paying party is the Commonwealth via Defence payroll; Schedule 2 expressly obliges Defence to pay differences from prior Salary Determination entitlements and the DFRT Determination No. 7 rates for the relevant retroactive period (Schedule 2 clause 2). The deciding party for discretionary placements, advancement timing and deferral assessments are the defined decision makers at senior levels across services (s 3.2.47AC). Behavioural effect: members will have pay outcomes determined by a mixture of automatic rules tied to rank/pathway and by exercise of discretion by named senior officers; members’ advancement timing can be altered where placed at higher increments on entry, and increment advancement can be deferred for underperformance subject to procedural safeguards.

This Division sets specific duties for decision makers and entitlements for members. The instrument creates operational obligations for assessment, written decision-making and payment, and confers rights (entitlements) such as initial increment placement, advancement on completion of a year in rank, retention of increment on intra-pathway transfer where thresholds are met, and transitional back-pay.

Entitlements and rights for members

• Default increment on entry. A member who becomes a cyber warfare member has the increment corresponding with their rank and zero years in rank in their pathway unless other placement rules apply (s 3.2.47AF). That is a default right to an established increment step.

• Transfer from other pay structures. A transferee’s increment is set to the increment in the annex for their pathway that has a rate of salary equal to, or the next higher rate than, the rate they were paid immediately before the transfer (s 3.2.47AG(2)(a)). If that increment is less than the lowest increment for their rank and pathway, subsection B.3B.5.1 of DFRT Determination No. 2 of 2017 prescribes the increment to be set (s 3.2.47AG(2)(b)). This gives transferees a right to salary parity or a pathway minimum safety net.

• Discretionary higher placement. A member may be placed at a higher increment on entry, transfer between pathways, or promotion where the decision maker is satisfied it is reasonable to do so. The higher increment must fall between the minimum and maximum available for the rank/pathway (ss 3.2.47AH(1), 3.2.47AI(3), 3.2.47AM(1)). The right to seek such placement is not statutory; it is an available discretion for decision makers to exercise in a way informed by required considerations.

• Promotion entitlements. Officers (except promotions to Flying Officer or Pilot Officer) are entitled on promotion to the increment that corresponds with their rank and zero years in rank in their pathway (s 3.2.47AJ(2)). Other rank promotions have specified increment movement rules, including two-increment rises for some step-ups and one increment for others, subject to minima and maxima (s 3.2.47AK). An other rank appointed as an officer who was a cyber warfare specialist immediately before appointment receives the higher of the minimum officer increment or their prior increment (s 3.2.47AL).

• Advancement on completion of a year in rank. Members eligible to advance increments must complete a year in rank defined by service time and an assessment that duties and responsibilities have been performed at the expected standard (s 3.2.47AO). For Permanent Forces the service time is 12 months; for Reserves it is 20 or more days in the 12 month period; if both served, 20 days suffices (s 3.2.47AO(a)).

• Transitional payment right. Members who would have been eligible for cyber warfare pay between 3 July 2025 and commencement are entitled to be paid the difference between what was paid under specified Salary Determination schedules and what they would have been eligible for under DFRT Determination No. 7 of 2025 (Schedule 2 clause 2).

Duties and procedural obligations for decision makers and administrators

• Assessment duty. A decision maker must assess whether a member has carried out their duties and responsibilities at the standard expected for the purposes of determining completion of a year in rank (s 3.2.47AP(1)). This is a factual evaluative duty.

• Deferral process obligations. If the decision maker assesses a member as not meeting expected standards, they must make a deferral decision that is in writing, specifies a period of deferral and is provided to the member (s 3.2.47AP(2)). The decision maker must review deferral decisions at set times: within four months if the deferral period is greater than four months, at the end of the deferral period, and at other times the decision maker considers reasonable during the deferral period (s 3.2.47AP(3)). Reviews can end the deferral where performance becomes satisfactory (s 3.2.47AP(4) note).

• Advancement scheduling where higher increment entry occurs. If a member entered at a higher increment under s 3.2.47AG, the member’s increment does not advance until the date the decision maker has set in connection with entry, having regard to principles for management of the cyber warfare pay structure (s 3.2.47AN). The decision maker therefore has an obligation to set and communicate an advancement date.

• Recordkeeping and calculation duties for payroll. Schedule 2 requires that for eligible members the difference between prior salary paid and what would have been payable under DFRT Determination No. 7 be paid. That imposes a duty on payroll to calculate entitlements, verify eligibility, and process back-payments.

Limits and constraints

• Minimum and maximum increments. Discretionary placements must remain between the minimum and maximum increments available for the rank and pathway (s 3.2.47AH(1) note and explicit statements in the discretionary subsections). Also, subsection 3.2.47AK(2) limits increments not to exceed the highest increment available.

• Exclusions. s 3.2.47AJ(1) excludes officers promoted to Flying Officer or Pilot Officer from the general promotion increment rule.

• Conditional commencement. Schedules 1 and 2 only commence if DFRT Determination No. 7 of 2025 commences within 12 months of signature, otherwise they do not commence at all (Commencement table s 2). This creates an implementation condition that affects who can exercise rights or duties under this Division.

The Division therefore sets rights to defined increments and progression subject to performance assessments and exercise of specified discretions by named decision makers, while imposing written process, review and payroll duties for retroactivity and for performance-related deferrals.

The inserted Division 4C and Schedule 2 are primarily regulatory and administrative in scope. The instrument does not create new criminal offences or express statutory penalties in this text. Enforcement is administrative, exercised through decision makers and payroll/finance mechanisms within Defence. The regime uses process-based controls rather than punitive sanctions specified in this Determination.

Administrative enforcement mechanisms and compliance levers

• Performance-based deferral. The operational enforcement mechanism for non-performance is the ability of a decision maker to assess that a member has not carried out duties at the expected standard and to record a deferral decision that delays increment advancement (s 3.2.47AP(1)-(4)). Deferral is the concrete sanction available under this Division. The deferral must be in writing, specify the deferral period and be provided to the member (s 3.2.47AP(2)). The decision maker must review the deferral within prescribed times (s 3.2.47AP(3)). The Division does not prescribe further disciplinary outcomes for non-performance but deferral effectively denies an increment advancement and therefore a pay step.

• Discretionary decisions. The Division empowers specific individuals to grant higher increments or set advancement dates (s 3.2.47AC). Enforceability therefore rests on the internal powers of those offices and Defence administrative processes. The Determination does not create a right of appeal in these clauses; remedies, review rights or appeal mechanisms are not specified in the inserted text.

• Payroll compliance via transitional payments. Schedule 2 imposes an obligation to correct past underpayment for eligible members by paying the difference between what was paid under particular Salary Determination schedules and what would have been payable under DFRT Determination No. 7 of 2025 (Schedule 2 clause 2). Compliance therefore is enforced by payroll processing and internal Finance controls. The instrument does not state a time limit for payment beyond commencement mechanics; it simply requires the payment of the difference for the specified period.

• Limits on discretion and procedural checks. Although discretionary authority is wide, the Division requires decision makers to consider enumerated matters when making discretionary placements: experience, qualifications, previous service, increments that would apply absent discretion, changed qualification or training requirements, reductions in rank and duration at higher ranks, and any other relevant matters (see for example ss 3.2.47AH(2), 3.2.47AM(2)). These required considerations act as procedural constraints that can be used internally to audit decisions, but the Division does not create a public enforcement mechanism or a prescribed appeal pathway.

Absence of specified penalties

• No statutory fines or criminal penalties. The instrument contains no provisions imposing monetary penalties, fines, or criminal liability for non-compliance by members or administrators. Enforcement is therefore organisational and administrative.

• No external tribunal pathway in the text. The Division does not provide for external appeal, review by an independent tribunal, or access to judicial review in this inserted text. Such remedies, if available, would need to be sought under general administrative law principles or under other statutory schemes not referred to in this Determination.

Operational enforcement depends on the Defence human resources and payroll governance structures. The Division operationalises enforcement primarily by adjusting pay outcomes and requiring written administrative decisions and scheduled reviews. The main costs of enforcement are internal: staff time to assess performance, draft and provide written deferral decisions, review deferrals within prescribed time windows, set advancement dates where higher increments are granted on entry, and calculate and pay retroactive differences for eligible members. Those enforcement mechanisms are embedded in the internal exercise of discretion by the listed decision makers.

This Determination is integrative rather than self-contained. It operates by amending the Defence Determination 2016/19 and by expressly referencing other Defence remuneration instruments. The legal effect and practical application of Division 4C requires reading the referenced Determinations together. Key interactions are with the Defence Act 1903 authority provision, DFRT Determination No. 2 of 2017, DFRT Determination No. 7 of 2025, and the Salary Determination DFRT Determination 2017/2.

Statutory authority: Defence Act 1903

• The instrument is made under section 58B of the Defence Act 1903 (s 3, Authority). Section 58B is the statutory head of power authorising Defence Determinations. The Determination therefore has statutory force as an instrument made under that Act, subject to any limits in s 58B and the Defence Act more generally.

Cross-references to DFRT Determination No. 2 of 2017

• Definitions and pay structure. The new Division repeatedly cross-references the cyber warfare definitions, the annex tables for pathways, and salary rate material in DFRT Determination No. 2 of 2017. For example, s 3.2.47AC states that cyber warfare member, officer and specialist “has the same meaning as provided in Part B Division 3B of DFRT Determination No. 2 of 2017.” Several provisions require consulting the annex table in Part B Division 3B for increments available in each pathway (see notes to ss 3.2.47AG, 3.2.47AH, 3.2.47AI, and 3.2.47AM).

• Salary rates. Where an increment is identified by its label rather than by a dollar amount, the note to s 3.2.47AG(2)(a) directs the reader to Part 3 and 4 of Schedule B.14 of DFRT Determination No. 2 of 2017 for the rate of salary for an increment.

Conditional commencement linked to DFRT Determination No. 7 of 2025

• The substantive Schedules 1 and 2 do not commence until the later of commencement of DFRT Determination No. 7 of 2025 and registration of the instrument, and they lapse if DFRT Determination No. 7 does not commence within 12 months of the instrument being signed (Commencement table in s 2). Thus, the practical effect of the inserted Division is contingent on the separate DFRT Determination No. 7 of 2025 coming into force within a specified time window. The instrument therefore relies on coordination between instruments and creates an interdependency for legal effect.

Transitional payments and Salary Determination DFRT Determination 2017/2

• Schedule 2 expressly defines “Salary Determination” as DFRT Determination 2017/2, Salaries, as in force from time to time, and uses that schedule’s tables as a base for computing what was actually paid to the member during the relevant period (Schedule 2 clause 1 definition and clause 2). The entitlement it creates is the difference between amounts paid under B.2, B.9 or B.11 of the Salary Determination and what would have been payable under DFRT Determination No. 7 of 2025 for the relevant period. That requires cross-referencing multiple determinations to complete a payment calculation.

Administrative and possible legal interactions outside Defence Determinations

• Remedies and administrative law. The inserted Division creates procedural obligations (e.g. written deferral decisions and review obligations). It does not provide internal appeal mechanisms or specify external review routes. Members seeking recourse for an allegedly unreasonable exercise of discretion or failure to follow procedural requirements would need to consider ordinary administrative law remedies such as judicial review of administrative action or any internal Defence review processes not identified in this Determination. Those remedies are not described in this text.

• Collective agreements and employment law. The Determination is a statutory instrument governing pay and conditions for Defence members. It does not discuss private industrial instruments or enterprise agreements because Defence members are subject to Defence-specific determinations. Where overlapping industrial or employment laws might apply, the Determination itself is the operative instrument for members’ conditions of service made under the Defence Act 1903.

Cross-document dependencies increase implementation complexity. Payroll and HR must map each member’s status against the external definitions, annex increment tables and salary schedules across multiple instruments to determine dollar entitlements and to apply the procedural rules in Division 4C. The conditional link to DFRT Determination No. 7 of 2025 creates legal uncertainty until that instrument is commenced.

This instrument is styled as an amendment to the Defence Determination 2016/19, Conditions of service, and is itself numbered Amendment (No. 12) 2025 in the title. The text contains internal references that identify the instruments it amends and the materials it depends upon.

• Source and dating. The Determination is dated 23 July 2025 and signed by the Director General, People Policy and Employment Conditions (Brigadier Kirk Lloyd) (opening paragraphs). It is made under s 58B of the Defence Act 1903 (s 3, Authority).

• What is amended. Schedule 1 of the instrument amends Defence Determination 2016/19 by (1) substituting language in section 3.2.29 to ensure Division 4C is included among applicable Divisions for certain members (Schedule 1 item 1), and (2) inserting the new Division 4C after Division 4B of Part 2 Chapter 3 (Schedule 1 item 2, insertion of Division 4C).

• Structure of the insertion. The new Division includes a Purpose clause (3.2.47AB), definitions (3.2.47AC), anniversary date mechanics (3.2.47AD), and a set of subdivisions dealing with entry placement, transfer between pathways, promotion and appointment, increment advancement, and deferral decisions (s 3.2.47AF through s 3.2.47AP). The Division also contains multiple notes pointing readers to annex tables and salary rates found in DFRT Determination No. 2 of 2017.

• Transitional provisions. Schedule 2 is a short transitional schedule with definitions and a single operative clause that creates retrospective payment obligations for members who would have been eligible for cyber warfare pay between 3 July 2025 and the commencement of Schedule 1 (Schedule 2 clause 2). The Schedule defines Salary Determination as DFRT Determination 2017/2, Salaries (Schedule 2 clause 1).

• Commencement sequencing. The instrument’s commencement table in s 2 provides that sections 1 to 4 commence on registration and that Schedules 1 and 2 commence on the later of the commencement of DFRT Determination No. 7 of 2025 and registration of this instrument. The table also includes the provision that Schedules 1 and 2 do not commence at all if DFRT Determination No. 7 of 2025 does not commence within 12 months beginning on the date the instrument was signed (Commencement table s 2).

• Cross-references. The amendment relies on DFRT Determination No. 2 of 2017 for definitions and pay tables, on DFRT Determination No. 7 of 2025 for the substantive cyber warfare pay structure implementation trigger, and on DFRT Determination 2017/2 for Salary Determination rates used in the transitional payment calculation.

The instrument’s title and internal numbering make clear it is Amendment No. 12 for 2025. The text, however, does not include earlier amendment texts or a detailed provenance beyond the insertion and substitution actions specified in Schedule 1. No other prior or subsequent amendment actions are recorded in this text.

The text of the Determination contains no references to litigation, case law, or judicial decisions. It does not name any cases. There is therefore no litigation history recorded in the instrument itself.

Because the Determination creates administrative discretions and written decision obligations (for example deferral decisions must be in writing and reviewed), affected parties could, in principle, seek judicial review or other remedies elsewhere if they allege procedural unfairness or unlawful exercise of discretion. However, the Determination does not provide an internal appeals mechanism or specify statutory review pathways in its text. Any litigation arising from the application or interpretation of these provisions would be based on general administrative law principles or other Defence processes, not on mechanisms created by this Determination. The Determination does not anticipate or cite any cases that construe similar provisions.

Practical consequence for counsel and litigators

• No cited authorities in the instrument. As a regulatory instrument without case citations, the Determination’s legal interpretation will rely on statutory construction, the Defence Act 1903, and possibly general principles of administrative law if decisions under the Division are challenged. The instrument does not itself limit or exclude judicial review.

• Areas where disputes might arise. Potential grounds for legal challenge could include whether a discretionary decision maker applied the enumerated considerations in a rational manner, whether deferral decisions met the writing and review requirements in s 3.2.47AP(2)-(3), whether anniversary dates were properly calculated (including extensions for leave without pay, absence without leave and not being entitled to salary under s 3.2.47AD(2)), or whether payroll correctly applied Schedule 2 to calculate transitional payments. The instrument does not prescribe an internal dispute resolution mechanism for such challenges.

Because this text does not record litigation history, practitioners should monitor Defence administrative decisions implementing the Division and be prepared to consider judicial review routes under administrative law where procedural obligations are not observed or discretionary decision-making is exercised unlawfully. This note does not invent or cite any cases and records only that the instrument contains no litigation history.

This Division introduces several technical drafting and implementation features that can create pitfalls for administrators, decision makers and members. Below are specific operational risks and nuanced points drawn directly from the instrument text.

1. Commencement is conditional and potentially abortive. Schedules 1 and 2 only commence on the later of the commencement of DFRT Determination No. 7 of 2025 and registration of this instrument, and they are stated not to commence at all if DFRT Determination No. 7 of 2025 does not commence within 12 months of signature (s 2, Commencement table). This means large parts of the new rules may never take effect if DFRT Determination No. 7 is not enacted in the 12 month window. Administrators must not act as if Division 4C is in force until that trigger is satisfied.

2. Anniversary date calculation is event-driven and can be changed by many events. Anniversary date is defined as 12 months after the latest of a series of events (s 3.2.47AD(1)), including becoming a cyber warfare member, promotion dates, transfer into a different career pathway, or an officer appointment from other rank if certain conditions applied. There is a specific retroactive provision for members who would have entered the pay structure between 3 July 2025 and commencement (s 3.2.47AD(3)). Misidentifying the trigger event could produce the wrong anniversary date and therefore the wrong advancement timing.

3. Anniversary date extension days are granular. The anniversary date is extended by one day for each day the member is on leave without pay, absent without leave, or not entitled to salary (s 3.2.47AD(2)). Payroll and HR must track these specific days and correctly adjust anniversary dates. The note explicitly states the anniversary date is not changed if the member’s year in rank is deferred (s 3.2.47AD(2) note), which can cause confusion if administrators treat deferral as extending the anniversary.

4. Reserve counting threshold is low but specific. For a Reserve member to complete a year in rank, the rule is 20 or more days of Reserve service within the 12 months from the last anniversary date (s 3.2.47AO(a)(ii)). If a member serves both Permanent and Reserve in the 12 month period, 20 days of service suffices (s 3.2.47AO(a)(iii)). Miscounting Reserve days will affect increment advancement.

5. Deferral decisions must be written and reviewed. If a decision maker assesses performance as below expected standard, the deferral decision must be in writing, specify the deferral period and be provided to the member, and reviews must occur within the time windows specified (s 3.2.47AP(2)-(3)). Failure to follow these procedural steps could render the deferral procedurally vulnerable and could expose Defence to administrative review.

6. Special promotion exceptions. s 3.2.47AJ(1) states the section does not apply to an officer promoted to Flying Officer or Pilot Officer. Administrators must not apply the general officer promotion rule to those promotions.

7. Multiple formulae for other rank promotions. s 3.2.47AK contains specific increment rules depending on the particular promotion transition. The practical effect is that certain promotions trigger a two-increment rise whereas others trigger a one-increment rise, but in every case the increment cannot exceed the highest increment for the rank/pathway. Misapplying the wrong paragraph will produce a pay error.

8. Discretionary placements are bounded but not formulaic. Decision makers can place members at higher increments within the pathway’s minimum and maximum, and they must consider specific factors (experience, qualifications, previous service, training changes and similar matters) (see s 3.2.47AH(2), 3.2.47AI(4), 3.2.47AM(2)). The Determination does not require reasons to be recorded for discretionary placements, only for deferral decisions (s 3.2.47AP(2)). That creates an administrative recordkeeping gap where discretionary placements may be harder to audit.

9. Advancement timing where entry at a higher increment occurs is at the decision maker’s setting. If a member is placed at a higher increment on entry from another pay structure, their increment does not advance until the date set by the decision maker, who must have regard to the principles for management of the cyber warfare pay structure (s 3.2.47AN). The “principles for the management” are not included in this instrument, so administrators will need to identify and apply those principles elsewhere.

10. Transitional payments require cross-determination calculations. Schedule 2 clause 2 requires paying the difference between what was paid under Schedule B.2, B.9 or B.11 of the Salary Determination and what would have been payable under DFRT Determination No. 7 of 2025. Payroll must therefore have access to and correctly use multiple instruments to compute entitlements. The Determination does not include a timetable for making these payments post-commencement.

11. Who is the decision maker. The definition of decision maker lists five offices across the services and career management (s 3.2.47AC). It is important to use the correct office title when recording who exercised discretion or made a deferral decision for compliance and audit trails.

12. No explicit appeal or review pathway included. The instrument does not specify appeals, internal review mechanisms or rights to review decisions made under the inserted Division. Parties seeking challenge may need to rely on general administrative law remedies.

Administrators should therefore treat these provisions as precise in their triggers and procedural steps, ensure cross-referencing to DFRT Determination No. 2 of 2017 and DFRT Determination No. 7 of 2025 for rates and principles, and set internal processes to capture written decisions, reviews and payroll calculations.

For Defence administrators, decision makers and payroll staff tasked with implementing Division 4C and Schedule 2, compliance requires a sequence of checks, records, assessments and payments. The following step-by-step checklist maps the statutory requirements to practical tasks.

Pre-commencement checks

1. Confirm whether Schedules 1 and 2 are in force. Check whether DFRT Determination No. 7 of 2025 has commenced and whether this instrument is registered. Schedule 1 and Schedule 2 only commence on the later of the commencement of DFRT Determination No. 7 and the registration date. If DFRT Determination No. 7 does not commence within 12 months of the instrument being signed, Schedules 1 and 2 do not commence at all (s 2, Commencement table). Do not apply the Division until commencement conditions are met.

Mapping affected cohort

2. Identify cyber warfare members. Use the definitions in Part B Division 3B of DFRT Determination No. 2 of 2017 to determine which employees are cyber warfare members, officers or specialists since the Division applies only to those so defined (s 3.2.47AC and s 3.2.47AE).

3. Identify members who transferred into the cyber warfare pay structure between 3 July 2025 and commencement for transitional payments. Schedule 2 clause 1 describes the eligible cohort for retroactive payments.

Entry placement and transfer calculations

4. For each member becoming a cyber warfare member, determine the default increment: rank and zero years in rank in their pathway unless s 3.2.47AG or s 3.2.47AH applies (s 3.2.47AF).

5. If the member transferred from another pay structure, determine the increment that has a salary rate equal to, or the next higher rate than, the rate the member was paid before transfer using the pathway annex tables in Part B Division 3B and salary rates in Part 3 and 4 of Schedule B.14 of DFRT Determination No. 2 of 2017 (s 3.2.47AG(2)(a) and associated note). If that increment is less than the lowest increment for the member’s rank/pathway, set the increment as directed by subsection B.3B.5.1 of DFRT Determination No. 2 of 2017 (s 3.2.47AG(2)(b)).

6. For transfers between pathways within the cyber warfare pay structure, compare the member’s pre-transfer increment with the minimum increment for the gaining pathway. If the member’s increment is equal to or above the gaining pathway minimum, retain the increment. If it is below, apply the minimum increment for the new pathway (s 3.2.47AI(2)). If a discretionary higher placement is contemplated, ensure the decision maker follows the listed considerations (s 3.2.47AI(3)-(4)).

Discretionary placements and promotions

7. When granting a discretionary higher increment on entry, transfer or promotion, the decision maker must be satisfied it is reasonable and set an increment between the minimum and maximum available. The decision maker must consider the enumerated factors such as experience, qualifications, previous service, training changes, reasons for prior reductions in rank and any other relevant matters (see ss 3.2.47AH(1)-(2), 3.2.47AI(3)-(4), 3.2.47AM(1)-(2)). Although the text does not mandate written reasons for discretionary placements, maintain contemporaneous records to support the exercise of discretion.

8. Apply promotion rules exactly. For officer promotions other than to Flying Officer or Pilot Officer, set the increment corresponding with their rank and zero years in rank in the pathway (s 3.2.47AJ). For other rank promotions, implement the increment increase rules in s 3.2.47AK, ensuring increments do not exceed the highest increment for the rank/pathway (s 3.2.47AK(2)). For other ranks appointed as officers who were cyber warfare specialists immediately before appointment, set the higher of the minimum officer increment or the member’s previous increment (s 3.2.47AL).

Anniversary dates and increment advancement

9. Calculate anniversary dates using the rule in s 3.2.47AD(1). Account for extension by one day per day on leave without pay, absence without leave or not entitled to salary per s 3.2.47AD(2). Note that anniversary dates are not changed by deferral (s 3.2.47AD(2) note).

10. To determine completion of a year in rank for increment advancement, apply s 3.2.47AO. For Permanent Forces confirm 12 months of service in the 12 months from anniversary date; for Reserves confirm 20 or more days of Reserve service; where both types of service occurred in the 12 month period confirm 20 days of service suffices. Also ensure a decision maker has assessed duties and responsibilities at the expected standard (s 3.2.47AO(a) and (b)).

Deferrals and reviews

11. If a decision maker assesses performance as below the standard expected, issue a deferral decision in writing that specifies the period of deferral and provide it to the member per s 3.2.47AP(2). Schedule reviews as required: within four months if the deferral period exceeds four months, at the end of the deferral period, and at any other reasonable time within the deferral period (s 3.2.47AP(3)). If on review performance is satisfactory, end the deferral and advance the increment from the day the deferral period ends (s 3.2.47AP(4) note).

12. Keep records of deferral decisions, review outcomes and the factual basis for performance assessments. These are procedural requirements in the instrument and will support any internal audit or external judicial review.

Higher entry placement and advancement timing

13. If a member entered the cyber warfare pay structure at a higher increment under s 3.2.47AG, the member’s increment does not advance until a date the decision maker sets in connection with the member’s entry and having regard to the management principles for the cyber warfare pay structure (s 3.2.47AN). Identify and document the applicable management principles and record the date set by the decision maker.

Payroll and transitional payments

14. For transitional payments under Schedule 2 clause 2, identify members who would have been eligible for pay under the cyber warfare pay structure between 3 July 2025 and commencement. Compute for each member the difference between (a) salary actually paid under Schedule B.2, B.9 or B.11 of DFRT Determination 2017/2 and (b) what the member would have been eligible for under DFRT Determination No. 7 of 2025, had it been in force at the time (Schedule 2 clause 2). Prepare supporting calculations referencing the relevant schedule entries and dates.

15. Pay, account and report. Process back-payments through payroll in accordance with Defence financial controls. Maintain documentation that links each calculation to the relevant schedule entries. The Determination does not specify timing or instalments for payments; exercise financial governance to budget and disburse payments.

Operational governance and audit

16. Assign responsibility for oversight. Designate which of the defined decision makers will exercise the discretionary authorities and ensure delegation instruments are in place where necessary. The instrument lists specific offices but practical exercise may require delegations; maintain delegation records.

17. Training and guidance. Prepare internal guidance for HR and payroll staff that cross-references DFRT Determination No. 2 of 2017 and DFRT Determination 2017/2 for definitions, annex tables and salary rates. Ensure staff know how to calculate Reserve days and apply anniversary date extensions.

18. Documentation standards. Keep written records of discretionary placements, the considerations applied, deferral decisions and reviews, advancement dates set under s 3.2.47AN, and all payroll computations under Schedule 2. The Division imposes written deferral decision requirements and enumerated considerations for discretionary actions; good practice is to document discretionary reasoning even where not mandated.

19. Monitor DFRT Determination No. 7 of 2025. Because the substantive provisions hinge on the commencement of DFRT Determination No. 7, maintain visibility of that instrument’s status and any related principles for managing the cyber warfare pay structure referenced in s 3.2.47AN.

Compliance summary

• Do not apply Division 4C until the commencement condition is satisfied.
• Use the DFRT Determination No. 2 of 2017 annex and Schedule B.14 for increment labels and salary rates.
• Follow explicit written and review obligations for deferrals and maintain robust records.
• Ensure payroll computes and disburses transition differences under Schedule 2 after commencement.
• Document discretionary placements and the considerations used, and record dates set for advancement where applicable.

Following these steps will align administrative action with the text of the Determination and reduce operational risk from misapplication of increments, miscalculation of payroll entitlements, and procedural lapses in deferral decision-making.