25Service obligation debts

#### 25 Service obligation debts (1) A member owes a debt (the service obligation debt) to the Commonwealth if: (a) the Chief of the Defence Force changes a period of service for the member; and (b) the member applied for the change; and (c) the change means that the member will not complete a period of service (the covered service) that is: (i) an initial minimum period of service; or (ii) a period of service required under a return of service obligation. (2) The amount of the service obligation debt is the amount worked out using: (a) the initial obligation amount for the covered service; and (b) the service debt calculation method for the covered service. (3) The initial obligation amount for the covered service is the amount: (a) determined by the Chief of the Defence Force for the covered service; and (b) notified to the member: (i) before the member began the initial minimum period of service; or (ii) before the training or other activities or events that gave rise to the return of service obligation. (4) The service debt calculation method for the covered service is the method for reducing the initial obligation amount for the covered service according to the portion of the covered service that has been completed that was: (a) determined by the Chief of the Defence Force for the covered service; and (b) notified to the member: (i) before the member began the initial minimum period of service; or (ii) before the training or other activities or events that gave rise to the return of service obligation. Covered service begun before commencement (5) However, if the period of covered service began before the commencement of this section, the amount of the service obligation debt is the amount determined by the Chief of the Defence Force as if: (a) the Defence (Personnel) Regulations 2002, as in force immediately before the commencement of this section, continued in effect; and (b) references in regulations 88 to 98 of those Regulations to the Chief of the member’s service were references to the Chief of the Defence Force; and (c) the service obligation debt were an amount covered by a condition that the member pay a specified amount of money. Waiver of service obligation debts (6) The Chief of the Defence Force may waive all or part of a service obligation debt.