Louise Markus (Macquarie, Liberal Party) Share this | Hansard source

I am delighted to speak on the Australian Defence Force superannuation and cover bills. In the electorate of Macquarie I have two defence bases—RAAF Base Richmond and RAAF Base Glenbrook—involving around 2,399 personnel and their families. Today is important because this legislation recognises their contribution to our nation, the significant sacrifices they make and also the uniqueness of their service. The Australian government is absolutely committed to supporting Australian Defence Force members throughout their service and also, most importantly, in their retirement. As part of this commitment, today we have this landmark legislation that will work to establish a new military superannuation scheme for ADF members, to be known as ADF Super. As part of the government's recognition of the unique nature of military service, accompanying legislation will also be introduced to establish ADF Cover, a new scheme that will continue to provide members of the ADF with death and invalidity cover. This legislation will enable ADF members to seek part-time work, subject to defence capability requirements, as well.

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, particularly for those who are under the MSBS. The government has worked with stakeholders such as the RSL, the Defence Force Welfare Association and the Australian Defence Association in developing these policies, and all major stakeholders are keen to see these measures introduced.

The Australian Defence Force Superannuation Bill requires the minister to create a trustee by 1 July 2016, and this trustee will establish the ADF Super scheme. It will establish the ADF Super Fund and that fund will be vested in the Commonwealth Superannuation Corporation. It will also set out the functions and powers of the CSC and make rules for the administration of ADF Super.

The bill also sets out who is eligible to be a member of ADF Super on and after 1 July 2016. It is important to note who is eligible: new members of the permanent forces; new members of reserves on continuous full-time service; members of the permanent forces who are MSBS members who elect to transfer to ADF Super; members of the reserves on continuous full-time service who are MSBS members who elect to transfer ADF Super—and, importantly, former DFRDB or MSBS members who may wish to transfer lump sum amounts received from either of those schemes for the purposes of buying an account-based pension. For DFRDB contributing members who cannot become ADF Super members, the bill provides that a DFRDB recipient member who re-enters for a new period of service on or after 1 July 2016 will become an ADF Super member. The person will continue to be paid the DFRDB pension and will accrue a new superannuation benefit in ADF Super.

These provisions are very important given that many Defence and military personnel enter or re-enter the Defence Force or maintain service after they retire and move onto another job. They may also remain in the reserves or be re-employed in positions where their experience can be utilised, so these measures are very important.

The bill also sets out the two ways of becoming an ADF Super member: by choosing ADF Super and where ADF Super is the mandated fund, if no choice is made.

The Defence Legislation Amendment (Superannuation and ADF Cover) Bill also sets out the rate of contributions that Defence must make to ADF Super or a member's chosen fund. This will allow Defence to provide CSC with information to enable CSC to determine a person's capacity for civilian employment.

The Defence Force Retirement and Death Benefits Act will be changed to remove the requirement for elections and for the compulsory transfer to MSBS if an election is invalid or not made. The changes will also provide for the continued payment of pensions if the DFRDB pensioner is undertaking further service and accruing a further superannuation benefit in ADF Super. The bill also ensures that the DFRDB members who participate in flexible service arrangements pay contributions on their total salary and not the reduced salary they may be paid because they are not working full-time. This is important given that many Defence personnel, as I mentioned earlier, return to reservist positions where they may be operating or working on a part-time basis. These flexible arrangements are very important.

With regard to the Military Rehabilitation and Compensation Act 2004, it is important to ensure that ADF Cover benefits are treated in the same manner as superannuation payments when determining the quantum of the compensation payments. It is also important to provide the chiefs of service or a delegate with the flexibility to allow members of permanent forces to render flexible service in lieu of continuous full-time service. It is also vital that members of the permanent forces are able to apply to the chiefs of service or a delegate to render flexible service. This is particularly important for many of our men and women who have served for decades. It is vital that we are able to maintain their future pension and superannuation benefits while offering them the opportunity to continue to serve our nation.

It is an absolute privilege to represent a community where our Defence Force serves not just in our local community, but also around the globe. With the arrival of the new C27s we will see our Air Force providing significant transport, particularly for our Army, and also to be able to be deployed to our region, given the challenges around natural disasters and the need for us to respond to emergencies in our region.

I would like to particularly acknowledge the RAAF and Army personnel who serve at Richmond and at Glenbrook. I am delighted to commend this legislation to the House.

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