Stuart Robert (Fadden, Liberal Party, Assistant Minister for Defence) Share this | Hansard source

Let me thank the shadow minister for his questions. Let me first of all deal with the budget. The Veterans' Affairs budget for this government this year was exactly the same as forecast by Labor—exactly the same. Forget the hyperbole and the hypocrisy of a '$107 million' cut; it was exactly the same. Secondly, where was Labor's 2013 election policy for veterans? That's right, they didn't have one. So to come in here and lecture the coalition on veterans policies, when Labor could not even be bothered to get off that couch in a drunken stupor and put together a veterans' affairs policy is a long, long bow to draw.

Let me move onto the next point that the member for Batman, the shadow minister, raised in terms of indexation—which is hilarious, because over the last six long years the government voted down the coalition's legislative attempt to increase support for our veterans three times. Labor believed that CPI was an appropriate measure voted against our moves. In fact, on 11 June, 2011, the member for Batman, who was then Senator Feeney, voted against us in the other place. Clearly, hypocrisy knows no bounds.

In relation to the question, it is misleading to draw a direct comparison between the treatment of superannuation schemes and pension schemes. In opposition, the government campaigned to change the method of indexing DFRDB and DFRB superannuation schemes because we were convinced the existing arrangements were unjust. We have delivered on that commitment. We are proud of it. Those changes will not be taken away.

The government's position on military superannuation and pension reform is entirely consistent. Superannuation schemes are limited to a set number of members who make contributions from their salary and are entitled to draw on them. In the case of DFRDB, we are talking about a declining number of eligible members, in most cases with a 20-year service entitlement. Pension schemes are entirely different, because eligibility is not circumscribed in the same way and because recipients do not make any specific contributions. The government's changes to the indexation of pensions are necessary to ensure the pension system remains sustainable in the medium to long term. Age and service pensions will continue to increase twice a year. Every March, every September they will go up and purchasing power will be maintained through indexation of the CPI. This change will bring indexation into line for all social security payments.

Let us have a look for the moment at what those opposite have said about the CPI. Apparently on their trip to Damascus, they have had a change, a blinding light. The member for Lingiari, the former minister for defence personnel and veterans' affairs said in this House on 17 June that the matter of CPI indexation was reviewed by Matthews in 2008. He came to the view it was an appropriate method of indexation—

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