Firstly, the Navy already run a retention bonus scheme. PACMAN Ch 3 Pt 5 Div 15 outlines the conditions that are required for payment of a completion bonus. As far as calculation of retention bonuses is done, firstly a case for retention of a particular trade has to be made. In this case, a number of factors would have been considered to initiate this business case. Capability effect, position vacancy rates, time for training etc are all taken into account. One of the issues with the process is that it is reactive. It is too hard to get in front of the game when admin action gets taken after the problem arises.
The ADF Aircrew case at the end of 2008 will primarily focus on the new category of Air Combat Officer (RAAF) with a review of Flying Allowance at the same time. The date of effect is when the determination is signed. Only federal politicians wages are under "freeze". The ADF has pay cases conducted under a Workplace Remuneration Agreement decided by the DFRT, an industrial relations commission with the same powers as a Federal Court. The can not be influenced by the political process. What gets decided is done through a court process, with two parties, advocates and a case to argue. The Commonwealth is represented by DEWR, whilst the ADF argument is provided by DMSA-P. Most cases are presented for ratification by the DFRT as 'agreed' cases, that is, the Commonwealth does not oppose the work value case presented by the ADF.