Currently there are sign on bonuses on offer but read the fine print should one be offered to you in time. For example, Lateral SGT’s/CAPT’s can get them but WO2’s/MAJ’s cannot. So, its math time!

• What is the annual pay increase between your current rank and one up for your trade and role?
• What tax band will your pay increase or bonus go into?
• Will your DHA rental contribution go up as a result of promotion?
• What will your actual annual/fortnightly take home pay increase from promotion after tax and rent deductions be?
• Can you split the bonus over 2 years or place it direct to your ADF Super to reduce tax/losses?
• Have you maximised concessional contributions for the last few years?
• Does the bonus attract a 16.4% ADF Super contribution?

In some cases, taking the the bonus can mean you ‘take home’ more over 3 years than promotion with the associated deductions (DHA/higher tax bracket). Your tax agent will be able to calculate this for you.

Also factor in the increased promotion work load vs actual take home pay depending on your role. Reward vs Effort!