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Australia announces $600m to improve ADF continuation bonus, increase operational reserves

Australian Army soldiers from 1 RAR conduct a beach assault on Cowley Beach, Queensland. Photo: LSIS David Cox

The federal government has announced more than $600 million to extend and expand the continuation bonus for permanent members of the Australian Defence Force and increase ADF operational reserves by 1,000 personnel.

The federal government has announced more than $600 million to extend and expand the continuation bonus for permanent members of the Australian Defence Force and increase ADF operational reserves by 1,000 personnel.

The funding coincides with the release of the 2024 Defence Workforce Plan, which seeks to address ADF recruitment and retention, as well as Defence’s organisational culture, wellbeing and support to ADF members and their families.

The document examines planning and development, including the growth and future needs of the integrated workforce as outlined in the National Defence Strategy and Integrated Investment Program.

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“People are Defence’s most important capability. The delivery of Australia’s National Defence is only achieved through our dedicated ADF, APS and external workforce, supported by Defence families,” Minister of Veterans’ Affairs and Defence Personnel Matt Keogh said.

“The Defence Workforce Plan details a transformation and sets out how we will deliver the right number of people with the right skills, while continuing to shape a positive and effective work environment for our people.

“The plan focuses our effort to deliver lasting institutional change to improve Defence culture and the health, safety and wellbeing of our people and ADF families.”

The government has committed to extending the continuation bonus for eligible, permanent members at the end of their initial service obligation, who have served a minimum of four years.

In addition, the continuation bonus will be expanded for a second cohort of eligible, permanent members after a minimum of seven years of service, to encourage continuation of service and career progression to middle ranks in the Defence Force.

Operational Reserves will be increased by an additional 1,000 personnel by 2030 and improvement sought in wellbeing and mental health support as well as organisational culture.

“Australia’s defence industry is an essential partner in keeping Australians safe in an increasingly challenging strategic environment,” Minister of Defence Industry and Capability Delivery Pat Conroy said.

“The Defence Workforce Plan builds on the Defence Industry Development Strategy which is delivering the necessary reforms to uplift the capability of the Australian defence industry workforce.”

Defence’s ability to implement the workforce plan is underpinned by generational investment in the ADF. The federal government has committed an additional $5.7 billion over the forward estimates and $50.3 billion over the decade to grow the ADF and deliver a more capable, self-reliant Defence Force.

“Our ADF personnel are our greatest capability, which is why it is crucial that the Defence workforce has the people it needs to help protect Australia’s strategic interests,” Deputy Prime Minister Richard Marles said.

“The 2024 Workforce Plan will help ensure Defence can recruit and retain the highly specialised and skilled workforce required to meet its capability needs.

“The Albanese government is committed to making the necessary investments to support our current Defence workforce and grow it for the future.”

Implementation of the workforce pan will deliver growth in the permanent ADF workforce, strengthen the ADF Reserve and will allow the APS workforce to continue to rebalance, including through reduced reliance on the external workforce.

These efforts build upon the work underway in relation to the government response to the findings of the final report of the Royal Commission into Defence and Veteran Suicide, continuing to promote a culture that supports all of Defence’s people and their families.

The workforce plan also complements ongoing work to uplift the nation’s defence industry workforce including through implementation of the Defence Industry Development Strategy.

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