Offering $40,000 Cash Bonuses to Retain Military Personnel

The Australian Defence Force (ADF) is set to improve its retention strategy with a renewed Continuation Bonus, providing two separate $40,000 bonuses to members at critical career stages.

The government announced on Nov. 5 that after the current bonus pilot, which offers a one-time $50,000 payment for an additional three years of service, ends in June 2025, defence will introduce an expanded initiative until June 2028.

The plan consists of two bonuses. The first bonus is for permanent members who have fulfilled their initial service obligation and completed four years of service.

The second bonus is aimed at individuals who have served at least seven years and are at least three years past their initial service obligation.

Recipients of both bonuses must commit to three more years of continuous service to strengthen the ADF’s workforce and ensure long-term personnel commitment.

The government has also announced plans to increase operational reserves by an additional 1,000 personnel by 2030.

This initiative aims to reinforce the defence workforce with a $5.7 billion commitment over the forward estimates. The government plans to invest $50.3 billion over the next decade to develop a capable, self-reliant force.

This new investment aligns with the 2024 Defence Workforce Plan, outlining strategic objectives for workforce growth, recruitment, retention, and wellbeing.

Defence Minister Richard Marles emphasized the importance of maintaining a skilled defence workforce.

“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,” he said.

He acknowledged the increasing challenge of retaining defence personnel while expanding both full-time and part-time workforce.

“We are very confident that we can achieve these targets because we have properly funded them and have a plan to enhance the terms of service,” Marles told ABC.

“The bonuses target those in their seventh, eighth, and ninth years of service, focusing on the middle ranks where there is a challenge.”

The May federal budget projected a defence force of 58,600 people by June 30, 2025, below the required 63,000.

Minister for Defence Industry and Capability Delivery Pat Conroy emphasized the synergy between this plan and the Defence Industry Development Strategy.

“The Defence Workforce Plan builds on the Defence Industry Development Strategy, which is implementing necessary reforms to enhance the capability of the Australian defence industry workforce,” he said.

A Transformational Focus on Workforce Culture

The Defence Workforce Plan also addresses institutional and cultural changes within the ADF, a key area highlighted in the government’s response to the Royal Commission into Defence and Veteran Suicide.

Minister for Veterans’ Affairs Matt Keogh outlined the plan’s comprehensive approach to transformation, emphasizing its focus on workforce safety, health, and culture.

“The Defence Workforce Plan outlines a transformation and details how we will ensure the right number of people with the right skills, while continuing to cultivate a positive and effective work environment for our personnel,” he said.