Bert Van Manen (Forde, Liberal Party) Share this | Hansard source

It is with great pleasure that I rise today to speak on the Australian Defence Force superannuation bills. It is great to follow the member for Batman and to see that this legislation is being done on a bipartisan basis for the benefit of our Defence men and women, who do such a great job for our country. This legislation will establish a new military superannuation scheme for our Australian Defence Force members, to be known as ADF Super. The Australian government is resolutely committed to supporting Australian Defence Force members throughout their service and in their retirement.

Over the winter break, I had the opportunity to spend time with some of our troops at the Shoalwater Bay Training Area near Rockhampton, during Exercise Talisman Sabre. Talisman Sabre brings together more than 33,000 Australian Defence Force troops and US Armed Forces to conduct combined task force operations. It is about improving combat readiness and the ability of our two armed forces to work together on a variety of missions, from conflict to peacekeeping and humanitarian assistance efforts. During my time in Shoalwater Bay, I enjoyed seeing the US paratroopers jump from a C17 after a 22-hour flight from Alaska. It was a sight to behold and a great pleasure to be a part of that.

Visiting our troops was also a great opportunity to discover firsthand the tremendous amount of training and hard work our ADF personnel undertake to prepare for their future missions. Their hard work and their making of huge sacrifices—literally putting their lives on the line for the welfare of our country—are reasons to recognise and appreciate the service that they give. For this reason it is only fair that the Australian government takes care of its Defence personnel both during their service and in the years after.

This commitment has seen the development of this landmark legislation to establish a new military superannuation scheme for ADF members, known as ADF Super. As part of the government's recognition of the unique nature of military service, accompanying legislation was also introduced to establish ADF Cover—a new scheme that will continue to provide members of the ADF with death and invalidity cover. Groundbreaking legislation to enable ADF members to seek part-time work, subject to Defence capability requirements, has also been introduced.

ADF Super fixes one of the longest running grievances of the veteran and ex-service community—namely, the lack of flexibility and portability of a member's superannuation benefit. The government, together with those opposite, have worked with stakeholders, such as the RSL, the Defence Force Welfare Association and the Australian Defence Association, in developing these policies. All major stakeholders support these important reforms, as do the opposition. The Abbott government is committed to supporting ADF personnel and these reforms will help bolster Defence capability. Importantly, these reforms will also improve conditions of service for members of the Australian Defence Force.

ADF Super introduces new, modern and flexible superannuation arrangements for people joining the ADF on or after 1 July 2016. The new military superannuation scheme will be a fully-funded accumulation scheme and the current Military Superannuation and Benefits Scheme, MSBS, will be closed to new members from 1 July 2016. Importantly, current serving MSBS members will not be compelled to move to ADF Super, although they can choose to do so. For the first time, ADF members will be able to join the superannuation fund of their choice, with a default military superannuation scheme established as is required under law.

In recognition of the unique nature of military service, ADF Super members will receive a generous employer contribution rate of 16.4 per cent, regardless of the superannuation fund they choose. This rate is higher than that offered to Australian public servants and is significantly higher than that available to the majority of Australians through the superannuation guarantee. There will be no requirement for ADF Super members to make employee contributions to their super. As a result, should serving MSBS members choose to move across to ADF Super they will receive an additional five per cent in their salary because they will no longer have to make five per cent compulsory contributions to the MSBS.

ADF Cover establishes a new statutory death and invalidity scheme that provides the same level of cover as is provided to members of the current MSBS. Due to the unique nature of military service, it can often be difficult for ADF members to obtain death and invalidity cover at a reasonable cost. ADF Cover seeks to address this issue. It ensures all ADF personnel who are members of ADF Super have full death and invalidity cover and it will apply regardless of the superannuation fund chosen by the ADF member. ADF members will not be required to make any contributions to ADF Cover. ADF Cover will provide benefits for ADF members who are medically discharged and whose capacity to undertake civilian employment is limited as a result of a medical condition that occurs while serving in the ADF.

Accompanying the introduction of ADF Super and ADF Cover is legislation that will provide for significantly more flexible service for our ADF members. The government has introduced groundbreaking reforms that, for the first time, will enable ADF members to seek part-time work, subject to Defence capability requirements. These significant reforms will improve the ADF's workforce model as well as provide additional flexibility for members of the military. This legislation will also improve the ADF's employment offer, leading to improved recruitment and retention of personnel. Our Defence Force is a modern, flexible and responsive employer, and the introduction of these flexible part-time arrangements for full-time ADF members will encourage skilled and experienced people to stay in the ADF longer.

The government is committed to supporting Australia's Defence Force personnel and these reforms will greatly improve the conditions of service for the ADF. I would like to congratulate our Assistant Minister for Defence, Stuart Robert, on these reforms that will take care of our Defence personnel now and into the future. I commend these bills to the House.

See this speech in context