$40,000 Cash Bonuses to Retain Military Personnel

Personnel from the Defence Forces of Australia, Japan, South Korea and the United States, plus officers from the Australian Federal Police and New South Wales Police Force, participate in a boarding exercise as part of training activities for Exercise Pacific Protector 2024, at Sydney Harbour in Sydney, Australia, on Sept. 26, 2024. DAVID GRAY/AFP via Getty Images

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

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

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

The second bonus targets those who have served at least seven years, and are at least three years past their initial service obligation.

Both bonuses require recipients to commit to three more years of continuous service, aiming to strengthen the ADF’s workforce and ensure long-term personnel commitment.

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

This initiative aims to strengthen the defence workforce as part of a broader $5.7 billion commitment over the forward estimates. Over the next decade, the government plans to invest $50.3 billion to build a capable, self-reliant force.

The new investment aligns with the 2024 Defence Workforce Plan, which outlines strategic goals for workforce growth, recruitment, retention, and wellbeing.

Defence Minister Richard Marles stressed 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 noted the increasing challenge of retaining defence personnel, on top of growing both the full-time and part-time workforce.

“We are very much confident that we can meet these targets and that’s because we have properly funded them and we have a plan to get there which is about really improving the terms of service,” Marles told ABC.

“[The bonuses are] really targeting those who are in their seventh, eighth, ninth years of service, which gets to the middle ranks where we’ve got an issue.”

The May federal budget forecasted 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 highlighted the synergy between this plan and the Defence Industry Development Strategy.

“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,” he said.

A Transformational Focus on Workforce Culture

The Defence Workforce Plan also addresses institutional and cultural change within the ADF, a key area raised 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, emphasising its focus on workforce safety, health, and culture.

“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,” he said.