Entitlements
Normally, eligible members are entitled to one year of subsidy for each completed year of service after completing their respective basic service period, up to a maximum of 20 years of subsidy.
For example, an eligible member who has completed ten years of effective full-time service would be entitled to five years of subsidy payments.
The subsidy is a rebate of the interest on a home loan, calculated at 40% of the average monthly interest of the loan over a 25 year loan repayment period. You may wish to check the current interest rates.
Warlike Service
Personnel serving in operational areas who enlisted after 15 May 1985 or who revoked their Defence Service Homes (DSH) entitlement may be eligible for additional assistance for warlike service.
Warlike Service is the period of service in the operational area defined as warlike by the Minister for Defence. The basic service period for personnel with warlike service is waived and an additional period of between two years and five years, depending on the length of warlike Service, is added to the subsidy period.
The additional period is based on the length of time served in a locality during which service in that area is deemed 'warlike' (Service in Somalia, Cambodia, the former Yugoslavia, Rwanda, East Timor, current Gulf i.e. Op Falconer, Afghanistan & Iraq).
The subsidy period entitlement for eligible members with warlike service is calculated on the number of completed years, plus the additional years of subsidy in accordance with the following:
| Total of periods during which warlike service was performed | Additional years of subsidy |
|---|---|
| Not more than three months | Two |
| Not more than three but not more than six months | Three |
| More than six but not more than nine months | Four |
| More than nine months | Five |
Warlike service members may accrue a subsidy entitlement up to a maximum of 25 years.
The subsidy period for eligible personnel with allotted warlike operational service in the Middle East region between 2 August 1990 and 9 June 1991 (Gulf War) is calculated on the number of completed years of service, with a minimum of 16 years to a maximum of 20 years. Therefore, an eligible person who served for two years but had Operational Service between 1990 and 1991 is entitled to 16 years' subsidy. The same person with 19 years' service would be entitled to 19 years.
Eligible personnel with allotted warlike Middle East operational service between 2 August 1990 and 9 June 1991 may also use their entitlement at any time. The two year sunset clause does not apply.