Australian Defence Personnel set for bonanza continuation bonuses

In a bid to tackle a recruitment crisis, the ADF is set to offer its members huge bonuses from July 1. Here’s what you need to know.

A new continuation bonus of $40,000 for Australian Defence Personnel is among many major financial and legal changes set to roll out across the country from July 1 and will aim to boost the ADF’s plummeting staffing levels.

From the start of the new financial year, the ADF will offer the bonus to eligible workers for an additional three years of service and is part of a wider scheme to retain personnel.

The ADF has struggled with a staffing crisis for a few years.

Just last year, the Albanese government expanded its eligibility criteria to enable more people to join the ADF, including permanent residents who had been living in Australia for 12 months and who passed relevant security checks and entry standards.

Under the changes, foreign citizens, including New Zealanders and permanent residents from the UK, US, Canada and Pacific island nations would be able to join the ADF.

Here’s everything you need to know about the new continuation bonus.

WHAT DOES THE ADF CONTINUATION BONUS INVOLVE?

You would be offered the bonus if you are a member of the permanent forces and have agreed to complete an additional period of service.

The new version of the continuation bonus, running from July 1 2025 to June 30 2028, could see ADF offering you $40,000 for an additional three years of service at two points in your career:

• After you finish your initial service obligation, with a minimum four years service
• Three years after you finish your initial service obligation, with a minimum seven years service

CATEGORY A BONUS

Category A bonuses are usually for individuals which could be offered as either a retention bonus (paid upfront) or a completion bonus (paid after an agreed period of service).

People eligible for a category A bonus include those who the CDF believes is critical to capability, and those who are expected to complete the agreed period of service for a category A bonus.

According to the ADF, the agreed period of service for a category A bonus will be either a specified number of days of service between one and five years if you’re a member of the Permanent Forces or a specified number of days, minimum 20, of service each year for between one and five years if you’re a member of the Reserves.

Those eligible for the bonus must have received a valid offer for the bonus, accepted the offer and completed the agreed period of service.

Those eligible could get up to $200,000 which they can choose to have it paid in one lump sum or two payments.

CATEGORY B BONUS

Category B bonuses are for those within and groups of specific employment categories and could be offered as either a retention bonus (paid upfront) or a completion bonus (paid after an agreed period of service).

Those eligible for a category B bonus include those who the CDF believes are in a work group that is critical or at risk employment category.

Those who complete the agreed period of service for a category B bonus will also be eligible.

The agreed period of service for a category B bonus will be either a specified number of days of service between one and three years if you’re a member of the Permanent Forces or a specified number of days, minimum 20, of service each year for between one and three years if you’re a member of the Reserves.

Those eligible for the bonus must have received a valid offer for the bonus, accepted the offer and completed the agreed period of service.

Those eligible could receive up to $100,000 which they can choose to have it paid in one lump sum or two payments.

RESERVE CAPABILITY COMPLETION BONUS

Members of the Reserves in Service Category 4 (SERCAT 4) could be eligible for a $5000 bonus.

You must be SERCAT 4 and have a written agreement to provide service at short notice. You can get this bonus more than once.

Those eligible must have served for 12 months as SERCAT 4, served for the minimum number of days specified in your written agreement and meet any other conditions specified.

WHEN YOU’RE NOT ELIGIBLE FOR A BONUS

Those medically unfit for service won’t be eligible to receive the bonus.

Those who are one year away from retirement, are less than one year away from the end of their fixed period of service and have been given a notice of involuntary separation.

WILL I NEED TO REPAY THE BONUS?

You may need to repay some or all your bonus if:

• you don’t complete your agreed period of service
• you voluntarily leave the position, employment category or skill for which the bonus was offered
• you transfer to another service, or between the Permanent Forces and the Reserves
• your service ends due to involuntary separation.

Originally published as Australian Defence Personnel set for bonanza continuation bonuses