Regional District Allowance update
As you would be aware, the 2013 Regional Price Survey saw a drop in the Regional Price Index (RPI) of a number of regional locations. RPI is the measure used as the cost of living component used in the calculation of District Allowances and, consequently, the allowance rates in these locations also decreased; most significantly in Karratha/Dampier, the Pilbara and the Kimberley.
In recognition of the impact large reductions in District Allowances would have on public sector workers, it was decided that the 2013 rates should not be implemented “by the book” in these three areas but rather phased in over a 2 year period.
This meant that members did not have to bear the brunt of the reduction in one hit and instead saw the lower rates eased in over 2 years. The phased arrangement allowed members to retain greater amounts of District Allowance than a strict implementation of the Agreement would have delivered, adding up to more than $5,000 in the Kimberley, and more than $10,000 in the Pilbara and Karratha/Dampier regions.
The benefit of the phased agreement to members is outlined in the graphs below: