Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise to speak on the Australian Defence Force Superannuation Bill 2015, the Australian Defence Force Cover Bill 2015 and the Defence Legislation Amendment (Superannuation and ADF Cover) Bill 2015. The Labor Party is always happy to provide bipartisan support for good policy. This is important, sensible legislation to support our Defence Force personnel, and I am happy to personally support it.

We are extremely lucky in this country. Apart from many of the people who live near military bases, most Australians do not often see our Defence forces as we go about our everyday lives. When we do see the occasional convoy of Army vehicles driving through our streets our reaction is usually surprise that we have seen them at all and then pride in our wonderful men and women who are there to serve and defend us if and when needed or help us during a time of natural disaster, as they often do in Queensland. In other countries, sadly, when they see their army or air force or navy, this is not the case. There can be quite a different scenario in other countries where it is sadly commonplace to see combat personnel patrolling the streets for a much more sinister reason.

We truly do live in a safe, stable and lucky country and we must always cherish that. We must always remember that we can live so freely in this country because of the wonderful men and women who have served this country in the past and who are serving this country now, always at the ready to defend those freedoms we cherish so deeply. I particularly acknowledge the around 2½ thousand ADF personnel who are deployed overseas right now and the challenges that that can place on their families. Obviously we cannot be complacent about our Defence Force, even though each of the three forces is respected around the world as amongst the best defence forces.

The men and women who make up our Defence Force are not like any other sector of our workforce. They have a very regimented and demanding way of life. They must abide by a severe military disciplinary code. They have long and irregular working hours, certainly not the nine-to-five lifestyle that many people in the population enjoy. They have a very high standard of physical fitness that they must maintain throughout their career. The statutory retirement ages are well below the community norms. This is not to mention those frequent relocations and separation from family. Sadly, the ADF personnel have a divorce rate that is much higher than average. I think it is only topped by politicians. Obviously, they receive less pay than politicians and they are in a lot more danger than politicians.

Nevertheless, despite those challenges, the ADF is an honourable calling, but it is definitely a tough life. That is why Labor fully supports the employer contribution rate for ADF personnel of 16.4 per cent, which is obviously higher than the general public sector. The bills before the chamber will establish a new superannuation scheme, the Australian Defence Force Superannuation Scheme, or ADF Super, which will kick in from 1 July 2016. They will also provide a stand-alone statutory death and invalidity cover, or ADF Cover, for ADF personnel who are members of ADF Super and also for those personnel who choose their own superannuation fund.

The Podger review, released in 2007, identified several important problems with the current Military Superannuation and Benefits Scheme. Although the MSBS is very generous to ADF personnel who are long-serving members of the forces, it is much less generous to personnel who serve shorter periods of time. The MSBS is complex and difficult for members to understand. There are no portability provisions in the MSBS. Members are not able to roll over their employer benefit to another superannuation fund of their choice. There is a maximum benefit limit with the current MSBS scheme. Personnel with ADF long service are forced to stop contributing to the scheme once they have reached the total payout limit. These bills will largely correct these deficiencies.

The government's original proposal for changes to the ADF superannuation structure, announced in their May budget, included a two-tier system. The two-tier system was criticised not only by Labor but also by the Defence Force Welfare Association and the Returned and Services League. The main objections to the proposed two-tier system were important objections that go to the heart of the culture of our defence forces. The contribution rate under this initial proposal was 15.4 per cent with an additional 2.6 per cent for any period in which members were serving in war-like operations. The base rate of 15.4 per cent did not distinguish between ADF personnel and civilian personnel.

It is important to recognise that ADF personnel have a unique and challenging career path. ADF personnel would still be exposed to danger, they would still be away from their families, they would still be enduring the physically and emotionally demanding aspects of ADF life regardless of whether or not they are exposed to war-like operations or involved in peace-keeping missions, and obviously the peace-keeping missions would not attract the extra 2.6 per cent. Such a distinction between war-like operations and other duties of Defence Force personnel could be detrimental to the morale of the entire Defence Force. Another objection to the proposed two-tiered rate of superannuation is that it would be an administrative nightmare. It would be costly and difficult for both administrators and Defence personnel to keep track of what rate was applicable when. I am sure all of us have dealt with veterans, even from the Vietnam War, who have had problems keeping track of what actually went on, or widows of World War II veterans.

The single rate of 16.4 per cent reflects the unique nature of Defence Force service. It is a generous rate that is well above community standards, and so it should be. It is higher than the contribution rates under the superannuation guarantee, the Commonwealth public sector scheme and the parliamentary superannuation accumulation scheme. The latter applies to all parliamentarians first elected after 31 August 2004, which I understand is about 80 per cent of the personnel in the parliament. About 80 per cent of the government's frontbench is on a different scheme, but that is a story for another day.

The flexibility built into the ADF Superannuation Scheme allows for the reality of personnel moving in and out of the ADF. This particular element of the scheme will be crucial in encouraging women to participate in the Defence forces. The percentage of women in the ADF has been increasing over the past few decades, with several milestones responsible for large jumps in the number of women entering the forces. I particularly commend the leadership of the ADF, who have been have helping to set the culture. I particularly mention the former head of the Army, Lieutenant General Morrison, who delivered the line, 'The standard you walk past is the standard you accept', which I think has done so much to change the culture in the ADF, particularly in the Army.

In 1992 the Keating government announced that women could serve in all Army, Navy and Air Force positions except direct combat units. In 2005, women were permitted to serve in the headquarters and the administrative companies of artillery, armoured and infantry units of the forces. This allowed women to take up roles in combat units. Women are now able to be employed in approximately 90 per cent of positions in the ADF. However, women still only account for 15 per cent of ADF personnel. Like any workplace, to encourage more women to participate the Defence Force needs to make it easier for women to plan their career in the ADF and accommodate changes that become necessary. This legislation, in terms of a sensible retirement, is part of that package. The flexibility built into the ADF Superannuation Scheme will not cure the low participation rate of women in the defence forces but it will give women the comfort to know they will not be penalised for a break in their career path, particularly when having children.

It is vitally important that we look after all of our Defence Force personnel. Defence Force personnel should be confident that they can comfortably retire and that the superannuation accrued throughout their career, whether continuous or interrupted, will sustain them in their retirement. How could we have the people charged with defending our nation worried about how they will survive in retirement? ADF personnel are in a unique position in our society. There are not many jobs where you cannot get sent overseas until you have a will. That is the sad reality for people on deployment. I particularly acknowledge all the legal officers who support people going on deployment. All ADF personnel should know that we appreciate the sacrifices they make, both big and small. They should know that all of us in this place have their best interests at heart, just as they have the best interests of our country in their hearts. These bills will modernise the conditions of the ADF workforce. The changes are important and necessary. Labor is always willing to provide bipartisan support to good policy. These bills reflect good policy, and I am happy to support them.

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