Defence Determination, Conditions of Service Amendment (Salary non-reduction) Determination 2018 (No. 42)

There are three main legal and administrative concepts in the instrument: (1) salary non‑reduction protection as an express condition of service, (2) targeted temporal extensions and substitutions of non‑reduction periods for defined employment categories and ranks, and (3) a narrowly drawn transitional salary entitlement for a defined cohort of sergeants covering a specified retrospective period.

Salary non‑reduction protection. The concept of salary non‑reduction is implemented through Annex 3.2.B of the Defence Determination 2016/19, which lists employment categories and ranks together with start and end dates for a period during which salary payable will not be reduced because of structural or classification change (see Schedule 1 heading and the substituted table items). This instrument does not create a general principle of protected pay; it modifies specified entries in that Annex by changing the dates and entries that define who benefits and for what period. The instrument treats the non‑reduction protection as a temporal right tied to an employment category and rank listed in the Annex.

Targeted temporal amendments. Schedule 1 replaces certain table items (for example, table items 6, 10, 14 in Part 1, and item 36 and new subitems 36A-36C in Part 2) and substitutes dates, often changing an expiry year from "2018" to "2020" (Schedule 1, items 4-11). The substituted entries specify precise commencement dates (principally 27 December 2018) and end dates (either 31 December 2020 or 17 November 2020). The effect is to extend the protected pay period for these named roles beyond previously listed expiry dates in the 2016 Determination.

Transitional salary entitlement. Schedule 2 establishes eligibility conditions that depend on the member’s status as at 16 November 2016: rank sergeant; specific employment categories; and pay grade 6 (Schedule 2, par 1). For eligible members it prescribes an entitlement to be paid the salary rate payable to them on 16 November 2016 for the period 17 May 2018 to commencement of the Determination (27 December 2018), with adjustments to reflect increments or DFRT‑determined general salary increases that applied in that period (Schedule 2, pars 2-3). It then lists specific events or changes that terminate the transitional entitlement (Schedule 2, par 4).

Administrative authority. The instrument is made under s 58B of the Defence Act 1903 (s 3) and is signed by the Assistant Secretary, People Policy and Employment Conditions. The instrument therefore exercises the delegated administrative power to determine conditions of service, but does not in itself set out enforcement procedures beyond listing eligibility and cessation triggers. Where salary rates are referenced, the Determination points to external salary schedules (DFRT Determination No. 15 of 2008 Schedule B.12, as amended to 3 April 2017, and DFRT Determination No. 2 of 2017) as the sources for the rate to be used in the transitional payment calculation (Schedule 2, par 2).

Interplay with DFRT processes. The transitional provision explicitly recognises DFRT determinations for general salary increases as part of the calculation mechanism (Schedule 2, par 3.b) and also accepts increment advancements owed under Defence Determination 2016/19 as adjustments to the base rate (Schedule 2, par 3.a). Thus, the Determination treats DFRT determinations and the internal increment framework as binding inputs to the calculation of the transitional payment.

Temporal specificity and cohorts. The instrument’s protections are defined by precise dates and a defined cohort. The dates in Schedule 1 specify when the non‑reduction period begins (commencement of this Determination or 27 December 2018 in the substitute entries) and when it ends (either 31 December 2020 or 17 November 2020). Schedule 2’s qualifying clause is anchored to status on 16 November 2016 and a payment window from 17 May 2018 to commencement (27 December 2018). This results in a high degree of temporal and cohort specificity rather than a general entitlement.

Primary beneficiaries. The primary, narrowly defined beneficiaries are members of the Australian Defence Force who occupy the specific employment categories and ranks listed in Annex 3.2.B as amended by Schedule 1 of this instrument. The substituted table entries and date substitutions in Schedule 1 show that the named employment categories include Manager Surveillance Target Acquisition (including Reserves), Manager Operations Ground Based Air Defence, and Manager Operations Offensive Grade 2, across specified ranks (Warrant Officer Class 1 entries in Part 1 and various Warrant Officer Class 2 or lower entries in Part 2) (Schedule 1, items 1-3, 12). The transitional provision in Schedule 2 identifies a narrower cohort: members who on 16 November 2016 were sergeants in either Manager Operations Ground Based Air Defence or Manager Operations Offensive Grade 2 and who were receiving salary at pay grade 6 (Schedule 2, par 1).

Servicing administrators and payroll. Defence People Group and payroll administrators are affected because they must implement the date changes and transitional pay calculations specified in the Schedules and ensure that payroll systems apply the correct rates for the precise periods identified (s 4; Schedule 2, par 2). The instrument amends the Conditions of service Determination that payroll relies on for calculating protected pay, and it references DFRT salary schedules as the basis for determining the actual dollar amount for the transitional entitlement (Schedule 2, par 2).

Budget holders and Treasury. Budget managers for the ADF and Department of Defence are affected because extending non‑reduction periods and creating a retrospective transitional entitlement increases the liability for salary expenditure during the specified periods. The instrument does not set appropriation details, but it obliges Defence to pay the protected rates where the eligibles meet the criteria. The instrument is silent on funding source; however, where the Determination creates an administrative obligation to pay a specified rate to incumbents, budget holders carry the financial consequence.

Members who are not eligible. Members who do not meet the tightly defined criteria are not affected by the protections or the transitional entitlement. For example, if a member was not in the listed employment categories, did not hold the requisite rank on the key date, or was at a different pay grade, the transitional provision does not apply (Schedule 2, par 1). The instrument therefore concentrates benefits on a small, identifiable group rather than providing broad changes to the pay of an entire rank or classification.

Chain of command and decision makers. The instrument is made by the Assistant Secretary, People Policy and Employment Conditions (instrument heading and s 3). While the Determination itself sets entitlements and cessation triggers, the actual application,deciding whether a member meets the eligibility criteria, calculating increments owed, applying DFRT increases, and determining whether a cessation event has occurred,is operationally carried out by Defence personnel and payroll administrators. The instrument therefore allocates practical decision‑making duties to administrative actors inside Defence.

External bodies. The Defence Force Remuneration Tribunal (DFRT) is implicated as a source of general salary increases relevant to calculating the transitional rate (Schedule 2, par 3.b). The instrument therefore interacts with DFRT determinations: where DFRT sets general increases for relevant periods, those increases adjust the amount payable under the transitional provision.

Indirectly affected groups. Reserve members listed in the table items (for example Manager Surveillance Target Acquisition (Reserves)) are explicitly included in several substituted table items (Schedule 1, items 1-3, 12). Where the substitution lists reserve employment categories, reserves will be among those who continue to receive non‑reduction treatment until the substituted expiry date. That said, the instrument only affects pay protection status, and does not expressly alter other employment rights or entitlements beyond salary non‑reduction as stated.

Rights created or extended. The Determination grants or extends the right to salary non‑reduction for the specified roles and periods by amending Annex 3.2.B of Defence Determination 2016/19 (Schedule 1). Those named in the substituted table entries have the right to have their salary not reduced during the stated non‑reduction period (for example, Manager Surveillance Target Acquisition (Reserves) from 27 December 2018 until 31 December 2020 as per several substituted items; Schedule 1, items 1-3 and 12). The transitional provision grants a right to be paid the salary rate that was payable to the member on 16 November 2016 for the period 17 May 2018 to commencement (27 December 2018), subject to the specified adjustments for increments and DFRT general increases (Schedule 2, pars 2-3).

Duty to apply the Determination. Defence and its payroll administrators have a duty to implement the amendments to the 2016 Determination. Section 4 states that each instrument specified in a Schedule is amended or repealed as set out in the Schedule and that any other item in a Schedule has effect according to its terms (s 4). That creates a practical duty on administrators to modify the entries in Annex 3.2.B and to apply Schedule 2’s transitional provisions where applicable.

Calculation duties. The transitional provision imposes a calculation duty: the transitional salary payable for the period 17 May 2018 to commencement must be the salary rate payable to the member on 16 November 2016, adjusted for increments owed under Defence Determination 2016/19 Chapter 3 Part 2 Division 5 and for any DFRT general salary increases that applied during the period (Schedule 2, pars 2-3). Administrators therefore must be able to identify increments owed under the cited chapter and to map DFRT increases across the relevant period to compute the correct payable rate.

Cessation triggers and related duties. Schedule 2(4) lists seven events that cause the transitional provision to cease to apply to a member: unsatisfactory performance; being subject to disciplinary action; an administrative sanction; choosing to transfer to another employment category; reduction in rank; ceasing to hold a competency required by the specialist career structure for which salary was previously payable; and the DFRT determining a transitional salary structure that includes salary non‑reduction for the member (Schedule 2, par 4). Administrators therefore have a duty to monitor and record these events and to stop the transitional payment when any trigger applies.

Documentation and recordkeeping. Implicit in the Determination is a need for accurate historical records, since eligibility for Schedule 2 depends on the member’s status on 16 November 2016 and pay grade at that time (Schedule 2, par 1). Administrators must therefore verify historical rank, employment category and pay grade to establish whether Schedule 2 applies. Similarly, effective application of Schedule 1’s substituted table entries depends on accurate identification of employment category and rank as listed in Annex 3.2.B.

No punitive enforcement provisions in this Determination. The instrument itself does not specify criminal or civil penalties for non‑compliance; rather, it establishes entitlements and lists administrative cessation events. Enforcement mechanisms, disciplinary measures or dispute resolution processes for erroneous payment are not set out in the text of this Determination. The practical implication is that compliance is enforced through administrative payroll processes and the internal mechanisms of Defence.

Interplay with DFRT and other Determinations. Where the Determination refers to DFRT determinations or earlier Defence Determinations (for example DFRT Determination No. 15 of 2008 Schedule B.12 as amended and DFRT Determination No. 2 of 2017), administrators have a duty to consult and apply those instruments for rate calculations (Schedule 2, par 2). Thus this Determination creates a procedural duty to integrate data from those instruments into payroll calculations.

The Determination does not create express criminal offences, fines, or independent civil penalties within its text. Its effect is administrative: it alters entitlements under the Defence Determination 2016/19 and sets out eligibility and cessation conditions for salary non‑reduction and transitional payments. The only enforcement‑adjacent mechanisms in the text are the administrative cessation triggers in Schedule 2(4) that terminate the transitional entitlement when listed events occur, such as disciplinary action or reduction in rank. There is no provision in the instrument that prescribes sanctions for failure by Defence to pay the prescribed rates, nor a statutory enforcement clause within this Determination specifying remedies for members who claim they were wrongly denied the entitlement.

Administrative enforcement. In practice, enforcement of the Determination will be via internal Defence administrative and payroll processes. Section 4 gives effect to the amendments to the 2016 Determination and requires annexed instruments be amended as specified (s 4). Responsibility for implementing the Determination rests with Defence officials,People Policy and Employment Conditions, payroll managers and relevant commanding officers,who must apply the amended Annex 3.2.B and the transitional rules in Schedule 2. If a member is incorrectly denied the entitlement, their remediation route would be through Defence administration, internal review mechanisms, or any applicable industrial or administrative appeals processes not set out in this Determination.

Role of DFRT determinations as enforcement input. Schedule 2(3)(b) invokes the Defence Force Remuneration Tribunal’s determinations of general salary increases as an input to calculation of the transitional payment. If DFRT determinations required retroactive application, their implementation would affect amounts payable under Schedule 2. This creates a dependency on DFRT instruments for correct calculation but not a penalty regime within this Determination.

Triggers that remove entitlement. The Determination itself provides an internal "self‑help" enforcement mechanism by specifying conditions under which the transitional entitlement ceases (Schedule 2, par 4). Where an eligible member becomes subject to disciplinary action, or chooses a transfer to another employment category, or suffers a reduction in rank, administrators are required to stop paying the transitional rate. That mechanism shifts enforcement to supervisory and HR processes: supervisors and administrative staff must monitor and apply those cessation criteria.

Practical remedies and ambiguity. The Determination does not set out remedial steps or dispute resolution procedures in the event of an administrative error in payment or a contest about eligibility. Consequently, any remedial action or adjudication would have to rely on existing Defence administrative review processes or the relevant statutory dispute or appeals mechanisms that govern conditions of service more generally, none of which are specified in this Determination. The lack of express penalties means enforcement is effectively internal and administrative rather than judicial or statutory within this text.

Documentation as a compliance control. Because eligibility depends on historical status as of 16 November 2016 and because adjustments require knowledge of increment entitlements and DFRT increases (Schedule 2, pars 1-3), accurate recordkeeping functions as an enforcement control. Failure to maintain or consult documentary evidence could lead to incorrect payments, but again the Determination does not itself prescribe penalties for such failures.

This Determination is expressly made under section 58B of the Defence Act 1903 (s 3) and operates by amending Defence Determination 2016/19, Conditions of service (s 4 and both Schedules). Therefore the instrument functions as a subordinate, administrative instrument that adjusts entries in an existing conditions of service Determination. It must be read alongside the provisions of the Defence Act that confer authority to make such Determinations; the instrument itself does not reproduce s 58B or define the limits of that section.

Reference to DFRT Determinations. Schedule 2(2) and (3) reference DFRT determinations as the source for the salary rate applied for the transitional period. Specifically, Schedule 2(2) directs that for the period 17 May 2018 to commencement, the member is eligible to be paid the rate of salary payable on 16 November 2016, "payable under Schedule B.12 of DFRT Determination No. 15 of 2008, Salaries, as amended to 3 April 2017, and from 4 April 2017 the rate of salary under Schedule B.12 of DFRT Determination No. 2 of 2017, Salaries, as amended to date." Schedule 2(3)(b) then affirms that adjustments must include general salary increases determined by the DFRT that applied to the period described. Thus, correct application of this Determination depends on cross‑referencing and applying the DFRT instruments listed.

Interaction with Defence Determination 2016/19. The Schedules amend Annex 3.2.B within Defence Determination 2016/19. As a result, the rights and obligations created by this Determination only exist as modifications to the 2016 Determination and should be interpreted in the context of that broader instrument. The transitional provision also relies on other parts of Defence Determination 2016/19 for increment advancement rules (Chapter 3 Part 2 Division 5) which may influence the quantum of the payments (Schedule 2, par 3.a). Therefore administrators and advisers must consult Defence Determination 2016/19 in full when implementing the changes rather than relying solely on this amending Determination.

Temporal sequencing and commencement. The instrument’s commencement clause (s 2) fixes 27 December 2018 as the operative date. Schedule 2’s transitional period runs from 17 May 2018 to the commencement of this Determination; therefore the transitional entitlement covers a period that pre‑dates commencement. That creates a retroactive administrative obligation to make up pay entitlements for that earlier period in accordance with the referenced DFRT rates and increment adjustments. This retroactivity interacts with payroll and appropriation processes: payments for the retrospective period must be calculated and processed even though the Determination commences later.

No explicit interaction with criminal or administrative sanction regimes is set out. The Determination lists cessation triggers for the transitional entitlement (Schedule 2, par 4), including disciplinary action and administrative sanction; but it does not specify how disciplinary regimes or administrative sanctions from other Defence instruments are to be applied. Thus, those interactions are left to existing Defence disciplinary and administrative frameworks outside this Determination.

Hierarchy of instruments. This instrument amends a Determination that itself is a condition of service instrument under the Defence Act framework. It also integrates DFRT determinations as part of its mechanics. Therefore in practice the pay outcomes rest upon a hierarchy: the Defence Act grants power to make conditions of service determinations; this Determination amends one such determination; DFRT determinations are used to determine applicable salary rates. Advisers must treat this instrument as part of that layered regulatory architecture when providing legal or payroll advice.

The instrument is a specific amending Determination dated 17 December 2018 and commencing on 27 December 2018 (instrument heading and s 2). It explicitly amends Defence Determination 2016/19, Conditions of service, through two Schedules.

Schedule 1 makes targeted changes to Annex 3.2.B (Salary non‑reduction - members with the rank of Warrant Officer Class 1 or lower). The Schedule is structured as a series of numbered items:

• Items 1-3 in Schedule 1: For Part 1 (Members with the rank of Warrant Officer Class 1), table items 6, 10 and 14 are omitted and substituted. The substitution for each of those three items lists "Manager Surveillance Target Acquisition (Reserves)" with a commencement date of 27 December 2018 and an end date of 31 December 2020 (Schedule 1, items 1-3). The item format indicates the table item number, employment category, commencement date and end date.

• Items 4-11: In Part 2 (Members with the rank of Warrant Officer Class 2 or lower), a series of table items (items 10, 17, 18, 19, 24, 25, 31, 32) have column 3 values changed by omitting the year "2018" and substituting "2020". The effect is to extend the expiry year of the listed non‑reduction protections from 2018 to 2020 for those entries (Schedule 1, items 4-11).

• Item 12 (Schedule 1): Item 36 in Part 2 is omitted and substituted with four entries: 36, 36A, 36B, 36C. These show:

  • 36. Manager Operations Ground Based Air Defence on 16 November 2016 at the rank of Sergeant, 27 December 2018 to 17 November 2020;
  • 36A. Manager Operations Offensive Grade 2 on 16 November 2016 at the rank of Sergeant, 27 December 2018 to 17 November 2020;
  • 36B. Manager Surveillance Target Acquisition on 16 November 2016 at the rank of Sergeant (Permanent Forces), 27 December 2018 to 17 November 2020;
  • 36C. Manager Surveillance Target Acquisition (Reserves), 27 December 2018 to 31 December 2020. These substitutions both add specificity (explicit dates and employment category and rank combinations) and extend protection periods in some cases (Schedule 1, item 12).

Schedule 2 adds a new transitional provision to Defence Determination 2016/19. It is itself numbered and contains four subparagraphs:

• Schedule 2(1) defines the qualifying cohort by reference to status on 16 November 2016: rank of sergeant; employment category being Manager Operations Ground Based Air Defence or Manager Operations Offensive Grade 2; and pay grade 6.

• Schedule 2(2) establishes that for the period 17 May 2018 to the commencement of this Determination (27 December 2018), the member is eligible to be paid the salary rate payable on 16 November 2016, but payable under the referenced DFRT schedules (DFRT Determination No. 15 of 2008 Schedule B.12 as amended to 3 April 2017; and from 4 April 2017, DFRT Determination No. 2 of 2017 Schedule B.12 as amended).

• Schedule 2(3) clarifies that the rate in Schedule 2(2) may be adjusted by increments owed under Defence Determination 2016/19 Chapter 3 Part 2 Division 5 and by any general salary increase determined by the DFRT that applied to the period.

• Schedule 2(4) lists the events that cause the transitional entitlement to cease, including unsatisfactory performance, disciplinary action, administrative sanction, voluntary transfer to another employment category, reduction in rank, cessation of required competency, or the DFRT determining a transitional salary structure for the member.

The instrument’s s 4 confirms that each instrument specified in a Schedule is amended or repealed as set out and that any other item in a Schedule has effect according to its terms (s 4). There are no earlier amendments recorded within the text of this instrument aside from its own changes to the earlier Determination. The amending technique used is direct substitution and year replacement in the tabular Annex, and the insertion of a standalone transitional clause.

This Determination itself does not record prior litigation or subsequent amendments; it is a discrete amending instrument that took effect on 27 December 2018 (s 2). Any later changes to Defence Determination 2016/19 or to DFRT determinations referenced would be separate instruments not reflected in this text.

The text of this Determination does not record any litigation history, court proceedings, or decisions that interpret or test the instrument. It contains no citations to cases, and does not reference judicial or arbitral determinations. The instrument is an administrative amending Determination and, within its four corners, it makes no mention of disputes or litigation arising from the prior 2016 Determination or from the changes effected here.

Because the Determination amends conditions of service and creates entitlement and cessation rules, disputes could in practice arise about eligibility, the calculation of the transitional payment, or the application of cessation triggers, but those potential disputes are not described in this instrument and no litigation or adjudicative pathways are provided in the text. Any litigation relating to the operation of these amendments would necessarily be recorded elsewhere (in court records or subsequent instruments), which are not included in the source provided. The instrument itself remains silent on judicial review, appeals, or other adjudicative recourse.

For practitioners preparing to advise or litigate in this space, the absence of litigation references in the instrument means that any legal arguments will need to be grounded in the Determination and related Defence and DFRT instruments rather than relying on precedent cited within this Determination.

Several operational and interpretative traps are embedded in the instrument because of its narrow definitions, temporal sequencing and reliance on external instruments. These are the practical "gotchas" to watch for when advising members, payroll or HR teams.

Commencement versus transitional period timing. The Determination commences on 27 December 2018 (s 2), while Schedule 2(2) gives a transitional payment entitlement for the period 17 May 2018 to the commencement of the Determination. That makes the transitional entitlement retroactive for a period of more than five months. Payroll must therefore be prepared to calculate and pay retrospective amounts. Misreading "commencement of this Determination" could lead to incorrect payment windows.

Eligibility is anchored to status on a specific historical date. Schedule 2(1) requires that the member met all the specified conditions on 16 November 2016. Establishing eligibility therefore depends on accurate historical records for rank, employment category and pay grade as at that precise date. Incomplete or inconsistent historical records could generate disputes about entitlement.

Complex rate calculation. Schedule 2(2) directs use of particular DFRT schedules to determine the "rate of salary payable to the member on 16 November 2016", and then Schedule 2(3) permits adjustments for increments and DFRT general increases that applied to the period. This requires payroll to (a) identify the Schedule B.12 rate from DFRT Determination No. 15 of 2008 as amended to 3 April 2017, (b) identify the corresponding rate under DFRT Determination No. 2 of 2017 from 4 April 2017, and (c) calculate increments owed under the cited part of the 2016 Determination. Errors in mapping historical DFRT schedules or increments will produce incorrect retrospective payments.

Multiple overlapping entries for apparently identical roles. Schedule 1 substitutes three separate table items (6, 10, 14) with identical entries for Manager Surveillance Target Acquisition (Reserves) each showing 27 December 2018 to 31 December 2020 (Schedule 1, items 1-3). Without careful attention it may appear redundant or create confusion in implementation about whether these represent distinct cohorts or clerical duplication. The same applies to the addition of multiple subitems (36-36C) that split similar roles across Permanent Forces and Reserves and vary the end date (17 November 2020 v 31 December 2020). Administrators must map these entries carefully to personnel records to determine which table entry applies to which member.

Cessation triggers are broad and administrative. Schedule 2(4) lists several events that terminate the transitional entitlement, including "the member's performance of duty being unsatisfactory" and "the member being subject to disciplinary action" (Schedule 2, par 4.a-b). These are factual determinations typically made through internal processes. There is a risk of inconsistency or dispute if cessation is applied without clear documentation and procedural fairness. Advisers should ensure disciplinary and performance processes are properly documented if they are used to terminate entitlements arising under this Determination.

Dependency on external instruments. Correct calculation of the transitional entitlement depends on interpreting and applying DFRT Determination No. 15 of 2008 (as amended) and DFRT Determination No. 2 of 2017, as well as Defence Determination 2016/19’s rules on increments (Chapter 3 Part 2 Division 5). If those source instruments have amendments or interpretative questions, they will affect the payment calculation here. Auditors and payroll should gather the precise text and amendment history of the referenced DFRT determinations before calculating amounts.

No procedural dispute mechanism in the Determination. The instrument contains no internal process for disputing an eligibility decision or a calculation. There is no express requirement to notify members of the transitional entitlement or its cessation. Practical implementation should build in notice and review processes, although those are not mandated in the Determination itself.

Date precision for end of non‑reduction periods. The substituted entries include different end dates: 31 December 2020 and 17 November 2020. Confusingly, some items in Part 2 were changed by substituting "2020" for "2018" (extending the year) but the precise day and month remains as previously recorded in the 2016 Determination. Implementers must ensure they apply the precise day and month given in the amended table rather than relying solely on the year.

Limited beneficiary class. The instrument benefits a very small, defined class of members. Advisers should not generalise protections to other ranks or roles unless they appear in Annex 3.2.B as amended. Misapplication to ineligible members could create overpayments and subsequent recovery issues.

Record of increments and general salary increases. Since Schedule 2(3) instructs that increments and DFRT general salary increases be applied to the base rate, administrators must have reliable records of increment entitlements and DFRT determinations for the relevant periods. Such records are often maintained separately and may require coordination across HR, remuneration and payroll teams.

Operational checklist for Defence administrators and payroll teams. To implement the Determination and avoid errors, follow a stepwise process that mirrors the instrument’s structure and dependencies:

1. Confirm commencement and effective windows. Note that the Determination commences on 27 December 2018 (s 2). Schedule 1 non‑reduction entries generally commence 27 December 2018 and run to either 31 December 2020 or 17 November 2020 depending on the table item (Schedule 1). Schedule 2’s transitional payment window is 17 May 2018 to commencement (27 December 2018) (Schedule 2, par 2).

2. Identify affected personnel. Produce a list of members who fall within the amended Annex 3.2.B entries: Manager Surveillance Target Acquisition (including Reserves), Manager Operations Ground Based Air Defence, Manager Operations Offensive Grade 2, and any other listed roles by table item and rank (Schedule 1). Separately, identify members who on 16 November 2016 were sergeants in the two specified employment categories and at pay grade 6 for Schedule 2 eligibility (Schedule 2, par 1).

3. Verify historical records. For each candidate under Schedule 2, verify rank, employment category and pay grade as at 16 November 2016. Retain documentary evidence (personnel files, pay slips, position descriptions). Eligibility turns on those historical facts (Schedule 2, par 1).

4. Gather DFRT and increment data. Obtain copies of DFRT Determination No. 15 of 2008 Schedule B.12 as amended to 3 April 2017 and DFRT Determination No. 2 of 2017 Schedule B.12 as amended, together with any DFRT general increase determinations that apply to the period (Schedule 2, par 2-3). Also obtain records of increment entitlements under Defence Determination 2016/19 Chapter 3 Part 2 Division 5 to determine any increment advancements owed during the transitional period (Schedule 2, par 3.a).

5. Calculate transitional amounts. For each eligible member, calculate the salary rate that was payable on 16 November 2016 using the DFRT schedules and then apply permitted adjustments: increments owed and DFRT general increases that applied to the 17 May 2018 to commencement period (Schedule 2, pars 2-3). Document the calculation steps and the source materials used for each element of the calculation.

6. Apply cessation triggers. Review each eligible member for events listed in Schedule 2(4) that would terminate the entitlement: unsatisfactory performance, disciplinary action, administrative sanction, voluntary transfer to another employment category, reduction in rank, cessation of required competency, or DFRT‑determined transitional salary structures (Schedule 2, par 4). If any event occurred during the transitional period, do not apply or cease payment as required; document the factual basis and the timing.

7. Update payroll and process retrospective payments. Where the transitional entitlement applies and no cessation trigger intervenes, process the retrospective payment for 17 May 2018 to 27 December 2018 in line with the calculated rates and applicable payroll rules. Ensure taxation, superannuation and other on‑costs are calculated in accordance with existing payroll policy and legal requirements (note: the Determination itself does not specify tax treatment; apply standard payroll procedures).

8. Apply ongoing non‑reduction protections. For members listed in the amended Annex 3.2.B, ensure payroll applies the non‑reduction rate from 27 December 2018 through the stated end date (either 31 December 2020 or 17 November 2020 as applicable) and document the applicable table item for each member (Schedule 1).

9. Recordkeeping and documentation. Keep comprehensive records of eligibility decisions, calculations, DFRT instruments used, increment documentation, and any cessation‑related actions. Because entitlement depends on historical conditions and external instruments, auditable records will be essential for future review.

10. Communications. Although not mandated by the Determination, practical compliance suggests notifying affected members in writing of the application of the transitional entitlement or the extended non‑reduction protection, the relevant period, the basis for the calculation (including DFRT references), and any cessation conditions that will be monitored. Maintain a file copy of the notification.

11. Reconciliation and budget accounting. Coordinate with finance and budget teams to reconcile the retrospective payroll impact and to ensure funds are available to meet the obligations created by this Determination for the specified periods.

12. Review internal procedures. Update internal pay and HR guidance materials to reflect the amended Annex 3.2.B entries and the Schedule 2 transitional clause. Train payroll staff on the particularities of the DFRT schedule references and increment application rules.

Advisory points for members and their advisers. Members who believe they fall within Schedule 2 should request documentary verification of their status as at 16 November 2016 and ask Defence to confirm the calculation method and quantum. Where a member’s entitlement has been denied, they should seek internal review within Defence and, if necessary, explore any available statutory review or industrial remedies outside this Determination.

Audit and controls. Given the retroactive payments and the risk of misapplication, consider an internal audit of the implementation, including sampling of affected members, verification of DFRT instruments applied, and confirmation of the correct application of cessation triggers.

Limitations. All compliance actions should be taken with the awareness that this Determination amends the 2016 Determination and uses DFRT instruments as rate references. Any further amendments to those underlying instruments (post‑commencement) may affect the implementation for future periods, but not the retrospective period covered by Schedule 2 unless the DFRT itself prescribes otherwise.

By following these steps and retaining a clear audit trail of the factual basis for each eligibility and calculation decision, Defence administrators can implement the Determination in a manner consistent with its text and reduce the risk of dispute or error.