Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

The Australian Defence Force Superannuation Bill 2015 is important legislation. It is timely legislation. It was introduced on 25 June 2015 and provides new, modern and flexible superannuation arrangements for people joining the Australian Defence Force on or after 1 July 2016.

This new military superannuation scheme will be a fully funded accumulation scheme. The current Military Superannuation and Benefits Scheme, MSBS, will be closed to new members from 1 July 2016. Importantly, serving contributing MSBS members will not be compelled to move to ADF Super although they may choose to do so. For the first time, ADF members will be able to join the superannuation fund of their choice. A default military superannuation scheme will also be established, as is required under law.

Our Royal Australian Navy, Australian Army and Royal Australian Air Force men and women have a unique and remarkable role, both at home and abroad. That is recognised by everyone who sits in this place. In recognition of this unique role, ADF Super members will receive a generous employer contribution rate of 16.4 per cent, regardless of the superannuation fund they choose. I say 'generous' but it is also wholly appropriate. This rate is higher than that offered to Australian public servants, which is 15.4 per cent, and significantly higher than the 9.5 per cent available to the majority of Australians through the Superannuation Guarantee. I know we all recognise that ADF members have a unique and special role. They place their lives on the line—many of them, each and every day, when they go out to do their duty. In fact, all of them at some stage or another do just that.

There will be no requirement for ADF Super members to make employee contributions to their superannuation. As a result, serving contributing MSBS members, who currently contribute a minimum five per cent of their salary, who choose to become ADF Super members will immediately receive a five per cent increase to their take-home pay. ADF Super fixes one of the long-running grievances of the veteran and ex-service community—namely, the lack of flexibility and portability of a member's superannuation benefit.

Accompanying legislation was also introduced to establish ADF Cover, the Australian Defence Force Cover Bill 2015. ADF Cover is a new scheme that will continue to provide members of the ADF with death-and-invalidity cover. The government recognises that the nature of military service makes it extremely difficult for ADF members to obtain death-and-invalidity cover at a reasonable cost. ADF Cover addresses this issue by ensuring that all ADF personnel who are members of ADF Super have full death-and-invalidity cover.

ADF Cover provides the same level of death-and-invalidity cover as is provided to members of the current MSBS. ADF Cover 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 and all benefits paid under ADF Cover will be met from consolidated revenue. 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. That is important because many who serve—and proudly wear their uniform—find it difficult when they transition back into civilian life, none more so than if they have a medical condition caused by that service on behalf of the nation. It is difficult enough for them to be able to fit back into normal civilian life. To be able to do it with financial security is vitally important.

If an ADF member dies in service or an invalid dies whilst receiving an invalidity pension, benefits will be paid to the dependents of that member or invalid or to their estate. The Defence Legislation Amendment (Superannuation and ADF Cover) Bill 2015 and the Australian Defence Force Cover Bill 2015, for flexible service, is very important legislation in this place. Accompanying the introduction of ADF Super and ADF Cover is legislation which provides for significantly more flexible service for permanent 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. That is an important distinction: subject to Defence capability requirements. If they are wearing their uniform, we want them to put that first and foremost, as all ADF personnel do, but these are groundbreaking reforms.

These significant reforms will improve the ADF's workforce model and will provide additional flexibility for members of the military. We need to understand that the world is a changing place and that we need to be able to provide flexibility for our Defence people who sacrifice a lot to wear the uniform. Deputy Speaker Mitchell, you and I are well aware of that, having done a number of the Australian Defence Force parliamentary programs together. You and I have seen it firsthand, as I know the member for Moreton has in the various capacities that he has undertaken in his parliamentary career. When you go to the bases and you have an in-depth look at what those people do, their commitment never ceases to amaze. They put extraordinary ability and talent into their work every day, and they have to because their lives and the lives of many others are very much in their hands.

This legislation will also improve the ADF's employment offer, leading to improved recruitment and retention of personnel. That is important too, because retention of personnel is something that Defence needs to ensure. Defence needs to ensure they have good working conditions and good superannuation security in order to make Defence a place that people want to go to take up a career. I was so pleased that I was able to take part in a review of the gap year program that the coalition government introduced and to see so many of those young people who might have done other things for their gap year after year 12 or, indeed, perhaps would not have chosen to participate too much at all. The experiences that they had at Royal Australian Air Force Base Forest Hill at Wagga Wagga and the Army Recruit Training Centre at Kapooka, the home of the soldier, will provide advantages for life for those young people, no matter what they choose to do in their life.

Defence is a modern, flexible and responsive employer. I say the word 'responsive'. I know the great work that the Kapooka commandants do at Wagga Wagga. Theirs is one of the most difficult jobs in the nation. We think that we have an important job to govern the country and, in your case, Deputy Speaker Mitchell, and the member for Moreton's case, to keep the government accountable. The Kapooka commandant has the job of making sure that all the recruits who do not go to Duntroon—they are not officers; they are young recruits, and some are not so young—are the future of the Army. They are the future of the long line of khaki which has served us steadfastly, proudly and staunchly since 25 April 1915, and even a little bit before that. Colonel Stephen Jobson is doing a fantastic job. He follows a long line of wonderful people who have held that job—one of the most, I believe, important in this nation.

I am digressing a little bit from the superannuation legislation before us, but what that commandant has done to ensure that bullying is no longer a part of any military establishment that he runs and certainly the Kapooka Army base and to ensure that respect for women is first and foremost, front and centre, of anything that that base does is to be commended. I know that he is headed for much bigger things in his future military career. He certainly is, because the sorts of things that he has improved upon from previous commandants are to be admired. Whilst I am speaking of that, the member for Bass was formerly a Kapooka commandant. As I say, it is one of the most difficult, most demanding and challenging jobs in the nation, but they have all done a very, very fine job.

Getting back onto this legislation: the government is steadfastly committed to supporting ADF personnel, and these reforms will help bolster Defence's capability. Importantly, these reforms will improve conditions of service for members of the ADF. We want to make it attractive. We must make it attractive for people to want to be able to serve our nation, because, as we all know, there are challenges which lie ahead, and we are going to need the very best and brightest people wearing our military uniforms.

The closure of MSBS and establishment of ADF Super were announced as part of the budget. These changes will reduce the government's unfunded liabilities by about $100 billion by 2050. It is important to note that this is not a savings measure. ADF Super has a forecast total cash cost of $433 million over the forward estimates to 2018-19 and $3.196 billion over the decade. ADF Super will be a new, modern and flexible superannuation arrangement for people joining the ADF on and after 1 July 2016. Members will receive a generous employer contribution rate of 16.4 per cent—but, as I said, it is not so much generous as appropriate. ADF Super fixes the long-running issues of inflexibility and portability of a member's superannuation benefit. That is vitally important.

ADF Cover is a new scheme which will provide members of the ADF with death and invalidity cover, given that they are unlikely to be able to source this cover at a reasonable price, given the very unique and dangerous nature of their work.

Flexible service is a groundbreaking reform which adds flexibility to the ADF's workforce model. Flexible service will allow ADF members, where possible, to serve part time. This new flexibility arrangement will vastly improve the ADF service offer, which will improve recruitment and retention. As the member for Riverina, I want to see more people going through Kapooka. I want to see the government committing to making sure that some of those gap-year young people—they are not students anymore—and those people who want to join the ADF at whatever age are able to have that security of superannuation guaranteed.

The government has 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, and I am encouraged to hear that the Australian Labor Party will also vote to support these bills. I thank them for that bipartisan commitment. The Abbott government is steadfastly committed to supporting ADF personnel. These reforms will help bolster Defence's capability and, importantly, these reforms will improve conditions of service for members of the Australian Defence Force.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

I thank the parliamentary secretary as we say good morning to the students up there in the gallery, including the wonderful kids from Saint Brigid's in Gisborne.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to 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.

John Alexander (Bennelong, Liberal Party) Share this | Link to this | Hansard source

It gives me great pleasure 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. These bills give me the opportunity to highlight the fact that the Abbott government is resolutely committed to supporting Australian Defence Force members throughout the period of their service and also in their retirement. This commitment is evident from this landmark legislation introduced to the House on 25 June 2015, which will 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, further 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. Also introduced was groundbreaking legislation enabling ADF members to seek part-time work, subject to Defence capability requirements.

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 has 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. This government is steadfastly committed to supporting ADF personnel and these reforms will help bolster Defence capability. Importantly, these reforms will improve conditions of service for members of the ADF.

Several weeks ago I was very fortunate to accept an invitation to join Battle Group Waratah at the 2nd/17th Royal New South Wales Army Reserve for a personal training session. The Prime Minister also attended. Attending was a mistake—it was a rigorous and tough workout with some exceptionally fit men from a range of age groups. Our Prime Minister was magnificent—I was good for weight and age! Having been in many training groups myself, what struck me was the camaraderie in this group. It was an extraordinary thing to see. It is one thing for an athlete to train to try to win a game, but the fitness level that a Defence member must have means that their life and the life of their team mates may well depend on their ability to lift and run and carry and make decisions, literally, under fire. To see the rapport between our ADF service men and women really made me proud to be Australian. Their professionalism and work ethic left me feeling confident that our nation's defences are in the best possible hands. This is why it is so important for government to do everything we can to support our ADF personnel, as evidenced by the bills being discussed here today.

ADF Super represents a new, modern and flexible superannuation arrangement for people joining the ADF on and after 1 July 2016. This will be a fully-funded accumulation scheme. The current Military Superannuation and Benefits Scheme will be closed to new members from 1 July 2016. Members currently contributing to MSBS will not be required to move to ADF Super, although they will be given the option to do so. This legislation means that for the first time ADF members will be able to join the superannuation fund of their choice. A default military superannuation scheme will also be 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—15.4 per cent—and significantly higher than the 9.5 per cent 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 superannuation. As a result, serving contributing MSBS members who currently contribute a minimum of 5 per cent of their salary and who choose to become ADF Super members will immediately receive a 5 per cent increase in their take-home pay.

ADF Super will apply to those joining the ADF for the first time on and after 1 July 2016, to those contributing MSBS members who choose to join ADF Super, to those preserved MSBS members who rejoin the ADF and choose to become a member of ADF Super, and to those MSBS and Defence Force Retirement and Death Benefits scheme members who receive retirement pay and rejoin the ADF on a full-time basis or as a reservist on continuous full-time service on or after 1 July 2016. Current contributing DFRDB members are unable to transfer to ADF Super. The introduction of ADF Super does not affect the government's delivered election commitment to provide new indexation of DFRB and DFRDB military superannuation pensions.

Underlying this, ADF Super is being established to provide members of the ADF with a modern and flexible accumulation superannuation scheme. This modern workforce has far greater needs for flexible working arrangements, with new mums having varying needs as an example. ADF Super will facilitate a flow of people in and out of Defence and in and out of the super provider of their choice, which is a big change on the previous rigid arrangements and should help to attract a new cohort to serving their nation.

Throughout our extensive consultations the lack of flexibility and portability of a member's superannuation benefit was one of the longest running grievances of the veteran and ex-service community. Australian Government Actuary modelling confirms that ADF personnel who serve less than 15 years will especially benefit under the new superannuation arrangement. Approximately 80 per cent of ADF personnel separate after serving less than 15 years.

The Australian Defence Force Cover Bill 2015 establishes a new statutory death and invalidity scheme to be known as ADF Cover. The government recognises that as a result of the unique nature of military service it is difficult for ADF members to obtain death and invalidity cover at a reasonable cost. ADF Cover addresses this issue by ensuring all ADF personnel who are members of ADF Super have full death and invalidity cover. ADF Cover provides the same level of death and invalidity cover as is provided to members of the current MSBS. ADF Cover 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 and all benefits paid under ADF Cover will be met from consolidated revenue. 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 permanent 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 and will provide additional flexibility for members of the military. It will also improve the ADF's employment offer, leading to improved recruitment and retention of personnel. Defence is a modern, flexible and responsible employer. The introduction of flexible part-time work for full-time ADF members will encourage skilled and experienced people to stay in the ADF longer.

In this centenary year of Anzac, it is fitting that the Abbott government is making these changes to further support ADF personnel. These reforms will help bolster Defence's capability and improve the conditions of service for members of the ADF. I commend these bills to the House.

Tony Zappia (Makin, Australian Labor Party, Shadow Parliamentary Secretary for Manufacturing) Share this | Link to this | Hansard source

As the opposition have already made clear, we support these bills and, in fact, believe that they are most appropriate. As we are talking about our Defence personnel, I will also take this opportunity to acknowledge that yesterday was Vietnam Veterans Day and also the 49th anniversary of the Battle of Long Tan. This year also marks the 50th anniversary since Australia's first regiment left for Vietnam. To commemorate the day, I am aware that services were held right across Australia in remembrance of those Australians who served in Vietnam and, indeed, in remembrance of all those families that were, in one way or another, affected by the Vietnam War.

As with World War I and World War II, I believe that there are few communities across Australia that would not have direct links with the Vietnam War, in one way or another. In my own electorate—indeed, in my own neighbourhood—a service was again held at Montague Farm where several years ago a memorial was built in recognition of Australia's Vietnam veterans. When Montague Farm was established as a new residential estate in the early 1990s, each of the streets of the estate were named in memory of one of the 58 fallen South Australian soldiers, with brief details about that solider printed on the street name. It was the idea of Fred Pritchard, the South Australian Housing Trust project manager of the estate, who was himself a Vietnam veteran. Being in Canberra I was unable to attend the Montague Farm service this year, but I was represented by Deb Matheson from my office, who laid a tribute on my behalf.

I was, however, able to attend, as I have done for years, the annual Vietnam veterans march, memorial service breakfast and family and friends day held at Torrens Parade Ground last Sunday. Each year, the event attracts hundreds of veterans, their families and their friends for a wonderful afternoon of entertainment. Sadly, because the veterans are ageing and it requires a huge organisational effort to put on the event, I understand that this year's family and friends day event may have been the last.

The Vietnam War was a defining period in Australian history, as was the Battle of Long Tan. As has been pointed out by several other speakers, some 62,000 Australians served in Vietnam and 521 lost their lives over there and perhaps others died after their return to Australia. Three thousand were injured and many, many more still carry the mental scars of their service in Vietnam.

Last week I mentioned the work of Dr Glen Edwards, a person I have come to know. He was a medic over there in Vietnam who, since coming back from Vietnam, has written two books—one called Vietnam: theWar Within and the other Beyond Dark Cloudswhich track the effects of the Vietnam War on the lives of not only the soldiers but also their families. He has done work with respect to families here in Australia, in New Zealand and in the USA. There is no question that many veterans are still suffering from the nightmare of the service over there.

The Battle of Long Tan—which, again, others have spoken about at length, as I have on other occasions—was something that defined Australia. It not only replicated the courage, mateship and bravery that we saw at Gallipoli 100 years ago; it also, once again, saw Australian and New Zealand soldiers fighting side by side. That battle ended up with 18 Australians killed and 24 wounded. In terms of the casualties of the Vietnam War, it was one of the more significant occasions.

I have spoken about the war on other occasions and I do not want to go into a great deal of detail about the Vietnam War per se today. But I do want to make this observation. The Vietnam War resulted in a mass migration of Vietnamese to Australia. Some 57,000 Vietnamese came to Australia in the years immediately after the war. This year we celebrated the 40th anniversary of the post Vietnam War arrivals of Vietnamese people to Australia. There was a celebratory function held here in Parliament House several weeks ago. I spoke about that earlier on today in the Federation Chamber.

In that spirit, it is most appropriate that the Vietnam War Memorial, located at the Torrens Parade Grounds in Adelaide and opened in 2004, depicts both Australian and South Vietnamese soldiers and that, each year, former South Vietnamese soldiers now living in Australia join Australian Vietnam War veterans in the military parade and memorial service that I referred to earlier on in my remarks.

It was equally fitting that the South Australian Governor, His Excellency Hieu Van Le, a former Vietnamese refugee himself, was at the dais to receive the military salute of both Australian and Vietnamese soldiers marching past in the parade. I doubt if any of those Australian Vietnam veterans marching in the parade on Sunday could ever have imagined that decades after the war they would be saluting a Vietnamese born South Australian Governor.

The treatment of Australian returned Defence personnel has not always been handled well by governments on both sides of politics over the years. Since being in public life, I have developed a close friendship with countless veterans and veteran organisations and I have taken up so many causes and grievances, not always successfully, on their behalf. I have often sat down with veterans and listened with absolute disappointment to their stories about the way that they have been treated as veterans, quite often by the very Defence organisation that they served under. I have watched their health deteriorate from a combination of aging, sometimes mental anguish and dispiritedness. Indeed, only last Sunday I was reminded of a veteran who is still seeking recognition and justice for his service to Australia decades ago. In a similar way, I continue to fight for those people who were affected by the atomic nuclear testing here in Australia, many of whom have since passed away but many of whom are still battling for recognition and justice.

Also yesterday I wrote to the Minister for Veterans' Affairs about the health of veterans of 111 Light Anti-Aircraft Battery, who served at RAAF Base Butterworth in Malaysia between 1964 and 1966. I understand that half of those Defence personnel have died, in most cases from unusual cancers. Whilst the evidence is anecdotal, there is a belief that the death rate is unusually high and that it may be attributable to one, or perhaps a combination, of the following causes: insect repellent fog containing the chemicals DDT and dieldrin; range fuel used for cleaning and deemed by the Commonwealth as a carcinogenic fluid; or cordite, the projectile propellant used in ammunition, creating toxic smoke and fumes. We do not know for certain whether the death rate is attributable to one, two or a combination of all three of those substances. But, given the statistics and the number of those veterans that have died, with the cause of death in most cases being cancer, the veterans are requesting that the government carry out a more scientific investigation to try to determine whether there is a pattern and whether the deaths are indeed attributable to their service in Malaysia on behalf of Australia.

This bill quite properly makes several improvements relating to the employment conditions of serving ADF personnel, and I understand that, in a couple of cases, those changes will commence from next year. We as a country need to take the same responsibility for Defence personnel who have ceased serving the country. Our support for our Defence personnel should not be limited to the years in which they are serving; it should take into account the years following that. We now have considerable evidence that, in many cases, their injuries, their ailments and their health deteriorate much more so after their service has been completed. In that respect, I think we as a nation could do better.

Labor supports this legislation. I understand that a new ADF superannuation scheme, with an employer rate at 16.4 per cent for any ADF member joining after 1 July 2016, will be implemented. As other members on this side of the House have made clear, we also support Project Suakin, which provides the necessary flexibility to enable a range of full-time and part-time service categories and options. Today we are starting to see more flexible conditions of employment operate in all areas of employment. That reflects the nature of the society that we live in. The same conditions should apply to ADF personnel. This particular change will be equally beneficial for females and males who want to serve in our defence forces but who, for one reason or another, might need to have time out or to commit themselves on a part-time basis to their service to the country because of other obligations or commitments. It is quite appropriate that we accommodate those needs. I also note the measures to create ADF Cover, replacing the existing death and disability scheme. That is an improvement to the current support that we provide our ADF personnel.

As I said at the outset, it is important that we provide appropriate conditions and the appropriate level of support to our ADF personnel who serve this country. It is a unique service, and that point has been made time and time again by speakers in this place. In recognition that it is a unique service, we should also recognise the unique fallouts that quite often result once their service has ended. Our support for our ADF personnel should not be limited to the period of their direct service to the country but should also apply to their years in retirement. With those comments, I repeat our support for this legislation.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

Today I speak in favour of the Australian Defence Force Superannuation Bill 2015 and related bills. The people of Lindsay have long had a firm relationship with our defence forces. To this day, the Lindsay electorate includes and is surrounded by many defence bases. To our north is Richmond RAAF Base and to our west is RAAF Base Glenbrook. Inside the electorate we have the Orchard Hills Defence establishment, and of course the Penrith engineers still call the region home. It is the Defence history and the Defence personnel that brought my mother's family to the Penrith region, when my grandfather worked in the munitions site on the north side of Penrith, now called Thornton.

Lindsay is very proud of our key military history. In fact, Lindsay is named after Norman Lindsay, a lot of whose work, in cartoons and caricatures, was about the recruitment of young people into the Army. We deeply respect our defence forces and we honour and respect what they have done in keeping our country strong, free and safe. Whether it be the efforts in the Middle East involving peacekeeping missions, or national security or analysing intelligence, the men and women who are part of our forces are the backbone of the way of life we often take for granted and the peace in which we live.

We are reminded that yesterday was Vietnam Veterans Day, when we commemorate not only the 1966 Battle of Long Tan but the whole war, where much of the fighting took place with small enemy groups who used the dense forests and tunnelling systems to ambush Allied troops. At the Battle of Long Tan 18 Australians were killed, while estimates place enemy deaths at well over 1000. That battle is considered the first major conflict of that war in which Australians were engaged. They were outnumbered, but they held our ground. Yesterday was a reminder of the heroics and the sacrifices our troops are prepared to make to defend the values that we hold so dear.

We were also reminded last weekend of the 70th anniversary of the VJ Day or VP Day, which marked the end of World War II. After six long years of fear and sacrifice, our nation finally tasted freedom. We get a glimpse of that moment through those indelible images of people dancing in the streets and throwing masses of tick-a-tape across the footpaths of our towns and cities. They finally got to share in the joy of peace, but not before facing the reality of some terrible costs—not just numbers of those killed and wounded, but the stories of unimaginable horrors. I was honoured last week to have heard the story of the journey of the father of Tanya Davies, the member for Mulgoa in the New South Wales parliament, who endured many of these horrors and wounds. People still get shivers up their spines from the mere mention of places like Sandakan and Bataan, where people were sent on death marches; or places like Borneo or Kokoda, where people were cannibalised. In a little over a month's time, I will be joining the Panthers on the Prowl—11 wonderful young women from my community—to trek Kokoda. Then there was the infamous Burma Railway, where people were so starved their bones protruded through their skin and many died. There was the horror of the Australian ship, the Centaura well-marked hospital ship that was mercilessly torpedoed just off the coast of Brisbane, drowning 268 nurses and medics. We still do not know exactly how many people died in the air raids on Darwin or in the other raids on Western Australia, Queensland and New South Wales—when midget submarines entered Sydney Harbour.

The war brought so many horrors to the world and to our country. My grandfather, a young man from Stanthorpe, was sent to the clean-up of Nagasaki only weeks after the bomb had been detonated. He saw the extreme suffering of many Japanese people. Peace in the Pacific, and peace to the world, should be celebrated by the whole world. Earlier this year my electorate paid tribute to all those Australians killed in every theatre of war since the Sudan Conflict in 1885. They placed 102,807 poppies—that is equivalent to more than twice the capacity of the SCG and represents more than half those killed on the battlefields of France and Belgium during World War I.

Today it is important that we look at the sacrifices the Australian Defence Forces have made so that we can live freely. It is important that we provide the right superannuation for Defence personnel. They are the real heroes of Australia—those men and women who tirelessly serving in our Defence Forces. I support this bill, as it recognises the need for a superannuation fund that is better tailored to the needs of defence force personnel. Previously there was the Defence Force Retirement and Death Benefits Scheme, the DFRDB, which closed in 2001, and the current Military Super Scheme, which currently has around 56,500 contributing members and 96,000 former members, who no longer contribute because they have left the forces, and 11,000 pensioners. This old Military Super scheme offers our Defence personnel good benefits, but it does not give them flexibility.

Changing to a new system will open Defence personnel to a range of new access options to their pensions, especially for those who are over 55, and more flexibility over their contributions and investment options. The current scheme has no portability arrangements for those who leave the forces, and access to the contributions is not available until preservation age. Perhaps the most significant change is the separation of the superannuation scheme from statutory death and invalid cover. This not only gives personnel more choice, but also offers those who have other superannuation arrangements access to death and invalid cover. These changes have the broad support of the Defence Welfare Association and the RSL, because it offers a modern superannuation scheme. As the new ADF Superannuation scheme will offer fully portable benefits, personnel can choose any complying fund. They will not be forced to contribute five per cent, as they currently do. This new fund will be fully funded and invested and available to members in a lump sum from the age of 55.

The new arrangements are also generous. The employer contribution rate for the Australian Defence Force Superannuation scheme is 16.4 per cent. Of the schemes currently available, only judges have a better pension arrangement. The Parliamentary Superannuation Accumulation scheme, which has been in place for almost 11 years now and which replaced an older and more generous scheme, is one percentage point lower than the contributions than the new ADF scheme. This additional contribution recognises the special place that Australian Defence Force personnel have in our society and is small thanks for their commitment and service.

It is 70 years since the end of World War II, 100 years since we landed on those fatal shores on Gallipoli, 130 years since the Sudan conflict, 40 years since the end of Vietnam and 60 years since the outbreak of hostilities in Korea. We owe it to the men and women in our military to give back just a little when they have risked so much for us.

Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

I am pleased to speak on the Australian Defence Force Superannuation Bill 2013, the Australian Defence Force Cover Bill 2015 and the Defence Legislation Amendment (Superannuation and ADF Cover) Bill 2015. The provisions in this legislation, which was introduced on 25 June this year, establish a new military superannuation scheme for ADF members, to be known as ADF Super. As the member of parliament whose electorate contains Holsworthy Army Barracks, and with many of my constituents serving in the military, I am very pleased to be part of the government that bring this legislation to parliament.

At the outset, this legislation recognises that the military service in this country is unique. One of the hardest things I have done since becoming a member of parliament was to attend a funeral at Woronora Cemetery for one of our servicemen killed fighting to protect freedoms in Afghanistan. It tugs at our heartstrings to see a deceased soldier, a deceased digger, and his widow and his young kids.

It is perhaps apt that we are debating this legislation one day after the 49th anniversary of the Battle of Long Tan, which was brought up by other speakers. Reflecting on that important concept of the importance and unique nature of military service, I would like to quote a few passages from some of our soldiers who fought in the Battle of Long Tan. This is one from Private Jim Richmond, who was caught in that battle. He wrote:

I rolled over on my side hoping that the mud would dry out the wound and help to stop the bleeding. The artillery was still coming in and it was dark by now and I knew I'd get no help till the morning at least.

I kept hoping that the artillery wouldn't get me. I was worried about my mother, and I kept thinking if I died she would be up shit creek, so I prayed a lot and made a lot of promises, but I'm afraid I never really kept any of them after I got back home. It was the longest night I've ever known.

The artillery was still coming in and I can remember thinking, 'This one's going over, and this one's falling short, and this one's for you Jim.'… The other thing that I was really worried me was the thirst. He drank all my water during the night and I got painfully thirsty. I reckoned that if I could survive the Viet Cong troops and the artillery I'd probably finish up dying of thirst.

I just lay there helpless and praying and trying to stay awake and wishing to hell it would get light soon.

That is just a small example of the unique nature of military service. I would also like to quote Private Terry Burstall, another survivor of Long Tan, as an example of the unique nature of military service in this country. He wrote at the aftermath of the battle:

We recovered the bodies of our friends who had been laughing living beings the day before. Nothing takes the supposed glory out of war more quickly than the sight of dead mutilated friends.

Unfortunately it brings about a hardening of feeling toward your enemy that pushes normal human feelings of compassion to the back of the mind. It brings conflict down to a very personal level and gives you the licence to remain aloof from the suffering of others as long as your own little band is protected.

I personally do not care how many troops we faced at Long Tan or whether the body count is accurate or not. Jingoism is the last thing we need. I do not care who claims victory.

The only fact I care about is that a lot of good men from both sides died that day and I will be for ever saddened by that.

They are the words of Private Terry Burstall. And yet, one of the great shames of this nation is that when the servicemen returned home after the efforts they put up in Vietnam they were denigrated and ostracised and were even spat at and had red paint thrown over them. Of course, that left many of the returned veterans deeply traumatised. That was a shameful time for our country—something we should all be ashamed of.

If we learnt something from the past, we learnt that we must give our ADF members all the support that we can, and that is what this legislation does. It is fixes one of the longest running grievances of the veterans and ex-service community—namely, the lack of flexibility and portability of members' superannuation.

These reforms will improve the conditions and services for members of the ADF. The new military superannuation scheme will be a fully-funded accumulation scheme, and will be known as ADF Super. Most importantly all members will not be compelled to move to ADF Super, but they can chose to do so. For the first time ADF members will be able to join their superannuation fund of choice. So we are saying that your superannuation, and where those funds to ADF members go, is your choice. This is the first time, since the superannuation funds were put in place, that we are giving our service personnel a choice that they can make. They can either stay with the default fund or they can go out and put their superannuation in other funds.

Also, 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 is significantly higher than the rate available to the majority of Australians of 9.5 per cent through the superannuation guarantee but, again, the difference simply recognises the unique nature of military service in this country. We do not know what will happen in the years ahead, but we know it is highly likely that we in this parliament will have to call on ADF members to fight, and perhaps very soon we will be asking many more than those who are already serving in the Middle East to go and contribute to the fight against the evils of Islamic terrorism that are currently ravaging the Middle East. By doing what we are doing today we are recognising the unique nature of this service.

The Australian Defence Force Superannuation Bill establishes a new statutory death and invalidity scheme known as ADF Cover. ADF Cover ensures that all ADF personnel who are members of the ADF Super fund have full death and invalidity cover. ADF Super provides the same level of death cover as is provided to members of the current MSBS. The ADF cover will be provided regardless of the superannuation fund chosen by the ADF member and, importantly, ADF members will not be required to make any contributions to this ADF cover and all benefits paid under the ADF cover will be met from consolidated revenue. So there will be no additional cost for that ADF cover for our defence members.

Finally on the general issue of superannuation, one thing we need to remember is that superannuation belongs to the person who earned the funds in the first place. It does not belong to some union movement or some government body—it belongs to the person. As a personal opinion, I would like to see both sides of this House consider enabling young Australians to access funds that they have in their superannuation accounts for a deposit for a house. We have seen the figures—for the first time in our nation's history there is a significant decline in homeownership rates for young people. We need to take steps to address the supply shortfall, and that is being done, but we need to ask how we can help more young people get a deposit for their first house. When I first started work, like many other Australians of my age I was able to put aside a percentage of my salary—10 per cent—to save for a deposit for a house. Now we are asking young Australians to put aside that money but to put it in a superannuation fund. I would like to see young Australians being able to access their superannuation fund so they can get a deposit for a house. But there has to be some quid quo pro. Perhaps that could be that down the track the money they used to get themselves established in their own home has to be considered as part of their assets outside their house, as occurs when we do the assets and income test for the pension. We need to look at housing affordability in this country. It is important for our country that young Australians have the goal of owning their own home, and that includes members of the ADF.

This bill shows that the government recognises the importance of military service in this country. We are addressing a problem that has been raised and we are making sure that ADF personnel have flexibility in where they put their super. I commend the bill to the House.

Louise Markus (Macquarie, Liberal Party) Share this | Link to 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.

Darren Chester (Gippsland, National Party, Parliamentary Secretary to the Minister for Defence) Share this | Link to this | Hansard source

It is with great pleasure that I join the debate this morning on the Australian Defence Force Superannuation Bill 2015 and cognate bills. I note the contribution by the member for Macquarie, who, like me and all members in this place I am sure, has just paid great tribute to the men and women of the Australian Defence Force, who continue to serve our nation with distinction.

In this year of the Centenary of Anzac it is important that we in this place, as members of parliament, reflect on and remember not only the level of service and sacrifice for our nation that has occurred in the past—the 102,000 men and women who died and paid the ultimate sacrifice—but also on the fact that we still have people serving today and putting themselves in harm's way in the service of our nation.

It was a former Parliamentary Secretary to the Minister for Defence and former Leader of the Liberal Party, Brendan Nelson, who stood at the despatch box, in one of the early contributions I saw in the House, and made the comment that there is no greater service that an Australian could give to their nation than to put on the uniform of the Australian Defence Force and place themselves in harm's way to help those who cannot help themselves. I give great credit to Brendan Nelson for the work he has done not only in this place as a former minister and a former leader, but also in his post-parliamentary career at the Australian War Memorial.

In many ways, I sense that Brendan Nelson's contribution to our nation might be more significant in his post-parliamentary career than even his contribution in this place. His ability to pull together the threads of service of the Australian Defence Force and provide a narrative to people through the Australian War Memorial, through the Last Post ceremony and through the many public speaking engagements he is involved in around the nation are a great contribution and a real credit to him. I pay tribute to him, particularly in this year of Centenary of Anzac commemorations, where he has played such an important role in educating the next generation of Australians about the service that has gone before them.

I note that we are considering this legislation during this week of all weeks, when we have in the parliament—as you may have seen, Mr Deputy Speaker Vasta, in the corridors of this building—an increased presence of uniforms. We have 16 members of the Australian Defence Force here, serving in an unusual way: they are serving in members of parliament's offices this week. It is part of the Australian Defence Force Parliamentary Program, which I am very pleased and quite proud to coordinate in my role as parliamentary secretary for defence. This is one of the great programs that operate between the Australian parliament and the Defence Force. It has always enjoyed bipartisan support. It started, I think, about 12 years ago, when it was recognised that there were not many members of parliament who had direct experience of the Defence Force. We do have a few members who have served; however, it was recognised about 12 years go that we needed to increase the opportunities for members of parliament to understand what happens in the Defence Force.

So, every year, members of parliament, both in the House of Representatives and in the Senate, have the opportunity to go on an exchange with the Defence Force. This year, I think we have had in the order of 30 members join the ADF—the Air Force, the Navy, the Army—on location, whether it be in training bases around Australia or, in a couple of instances, overseas, working alongside the ADF and getting a better appreciation of the work they do on a daily basis. The reverse of that is what is occurring this week, when we have these 16 members of the ADF coming to the parliamentary offices and getting an understanding of the work we do. I think the ADF personnel get the short straw when it comes to this exchange program! We get to spend time in helicopters, fast jets, Navy assets, Bushmasters in the Army; they get to spend time in our offices! That is just the way it works.

I have met with the 16 ADF personnel who are here this week, and they are really enjoying this opportunity. I thank them for making themselves available, for being willing to answer some of our questions, but I also thank the members of parliament who are hosting the ADF personnel. It is a terrific thing they do. The previous speaker, the member for Macquarie, is hosting one of our Air Force personnel in her office. I have a Navy captain in my office, Captain Mona Shindy. Captain Shindy has been very much part of my team this week and she has enjoyed that opportunity.

This year, I myself had the chance to go to the Middle East as part of the ADFPP—and I acknowledge the member for Lingiari as he joins us in here today. He was instrumental, I believe, in setting up the ADFPP many years ago and has been a regular participant in the program. I thank him for the work he did then and does now in continuing to support the program.

As I was saying, I had the opportunity to go to the Middle East earlier this year with a delegation of four other MPs. We spent some time in the UAE but also went across to Kabul and had a couple of nights in Afghanistan, getting a better understanding of the training that our troops are providing now for the Afghan National Army. I think that every one of the participating parliamentarians would have gone there with preconceived ideas, but they would have been completely changed by the time we left. We were able to go out on the base, walk around the hillside with our Army personnel and get a more practical understanding of the challenges they face on a daily basis in securing their own protection in what is still a hostile environment as well as passing on their knowledge to the young officer trainees in Afghanistan who are then going to go out and fight, this summer. They take their responsibilities very seriously, and their challenge is to try and make sure those young Afghani officers are ready to lead and take on the Taliban, and to try and keep them alive in that battle.

We in this place should always be mindful of the duties we impose on these young men and women in the ADF. Having the opportunity to go out there and walk the ground with them, share a meal with them, talk to them about their job but also about their life back in Australia is a really great privilege and something I am pleased to be a part of through the ADFPP. I commend all members of the House who have been involved in the past in the program and I encourage those who may not have participated yet to consider signing up to it next year. I note again the presence here of the member for Lingiari, who has been a very strong supporter of the program. I think he is probably close to having the record for the member who has been on the most deployments, but he has come back unscathed on every occasion.

The ADF Superannuation Bill and the other bills before the House today reflect the fact that the nature of serving our nation in the ADF is changing, and the government recognise that. We are making changes to provide more flexibility for our personnel so they can save for their futures beyond their years in the Australian Defence Force. I am very pleased to see that there is bipartisan support for the legislation. Members opposite and members on this side of the House are all absolutely committed to supporting Australian Defence Force members through their service and into their retirement years.

I digress again to point out that my family has a close relationship with the Air Force in my electorate. Obviously, I lived under the flight path of the RAAF Base East Sale, but I also married a RAAF brat—and that, I can assure you, is a friendly term. My wife's father spent more than 20 years in the Air Force, so we are very familiar with the trials and tribulations of a service career, the moves involved in the multiple postings and the unsettling effect it can have on young people and other family members, as well as the unique nature of service in the Defence Force.

This legislation, which was introduced on 25 June this year, provides for a new military superannuation scheme for ADF members which will be known as ADF Super. I will not go into all the details of the scheme, because I know many members have already spoken about the scheme and there are still others to speak, but it does fix one of the longest running grievances, if you like, of the veterans and ex-service community, namely the lack of flexibility in and portability of their superannuation benefits. The coalition government are committed to supporting our ADF personnel not just during their time of service but also, as I said, after they retire. Importantly, these reforms will improve conditions into the future for serving members of the ADF as well. So it is new, it is modern and it provides more flexible superannuation arrangements for people joining the ADF on and after 1 July 2016. So it does not impact on the current members; it is for the new recruits after 1 July 2016.

The legislation recognises the unique nature of military service, and ADF Super will provide a generous employer contribution of 16.4 per cent regardless of the superannuation fund the ADF members choose to participate in. This is a higher rate than the Australian Public Service rate of 15.4 per cent and it is significantly higher than the 9.5 per cent which is available to the majority of Australians through the superannuation guarantee.

I think it is a well-accepted principle on both sides of the House that there is something unique about the service provided by our ADF personnel. I go back to my earlier comments in relation to the former Liberal leader, Brendan Nelson, who made the point that there is no greater service you can give to your nation than to put on the uniform of the Army, Air Force or Navy and place yourself in harm's way.

I am very proud, as a member of the coalition government, to support the legislation before the House. I congratulate the ministers responsible for their consultation and for the work they have done in developing the legislation. I congratulate the members who have spoken in support, and I again congratulate members and senators who have participated in the Australian Defence Force Parliamentary Program in the past and who are hosting officers in their offices this year. I encourage members to continue to support the ADFP Program and to do whatever they can to support our Australian Defence Force servicemen and women as they go about their difficult task.

Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

I thank the parliamentary secretary for his kind words and for his contribution to this debate on the Australian Defence Force Superannuation Bill 2015 and two related bills. I will deal in the first instance with the ADFP Program which he referred to. It was the former member for Wannon and I who thought this idea up, and I have to say that his advocacy was very important. To get the program started required a bit of educating—not only of parliamentarians but also of our friends in Russell. It quickly became apparent that it was in the mutual interests of the parliament and the defence community for parliamentarians to have a deeper understanding of the Defence Force and Defence Force personnel in particular. That was in part as a result of the fact that very few members of the then parliament, apart from Mr Edwards, were service veterans; whereas, in the periods post the Second World War and the First World War, a large proportion of the members of parliament had been serving personnel and had a deep and ongoing relationship with the Defence Force community. That is not the case in parliament today.

Setting up the program was a way of raising the awareness of members of parliament who are policymakers, decision makers and legislators around issues to do with the defence community, giving them an experience of what happens in the defence forces. The member sitting opposite me, Ms Ley, has been on the defence participation program. If my memory serves me correctly, she even went to the Middle East with the former member for Bendigo on one of our naval vessels. Those experiences do a number of things. They open up the eyes of members of parliament to the work which our Defence Force members undertake in all areas—not only those who are at the front line and carry weapons but also those who do the cooking, those who look after the health care of our serving personnel and those who work in the ACAT program currently in the Northern Territory looking at the civilian participation and looking at developing civil infrastructure in Aboriginal communities, which happens each year. There is not an area of Defence Force activity—apart from Special Forces—which has not been open to participation in this program. I credit the former Howard government, initially, and the subsequent governments for continuing the program; and I commend the defence community and the defence forces in particular for playing host to members of parliament and for helping them to overcome their ignorance, and perhaps their unfitness, to allow them to see what they do, how they do it and to work with them wherever they might be. I thank the parliamentary secretary for that.

This bill is the culmination of a lot of discussion. In February 2007 there was a policy proposal from the then Howard government which announced a review of military superannuation arrangements. I want to thank the Bills Digest for reminding me of this. A review was undertaken, commonly known as the Podger review, and it made a number of recommendations that did not come to light even though the report was finished in March of 2006, I think. I cannot quite recall the date, but it was not released by the government, so it was not until the Rudd government was elected that the report was released. I was then the minister responsible and released that Podger report, and then we undertook a further period of discussion and consultation. Then in 2010, we made it clear that, as a result of those communications and the consultation across the breadth of the Defence and veterans communities, we would not be proceeding with the recommendations of the Podger report.

The new superannuation scheme which is being proposed brings about quite important change. It brings the ADF into line with the rest of the government sector, in not having a defined benefit scheme with its attendant long-term liabilities—and that is a huge responsibility. The unfunded liability that exists is enormous. For the first time, ADF members will be able to transfer their super scheme to new employment when they leave the ADF, and it is now possible for ADF members to move in and out of the service without incurring costs and rigidities in their superannuation. For example, employer contributions can be carried across to new employment, which would not be possible under the old defined benefit scheme. That was a real issue, because people legitimately said: 'Look, I've been serving in the Defence Force for 10 years. I'm leaving the Defence Force. I want to go to a new employer, and I can't take my superannuation with me.'

The bill contains arrangements for the establishment of the trust deed for ADF Super and the administration of the scheme by the Commonwealth Superannuation Corporation. It provides eligibility requirements for the scheme and other provisions relating to the variation of the trust deed and legislation relating to ADF Super. Importantly, although not a provision of the bill, this is proposing a contribution rate of 16.4 per cent as an important element in assessing whether a new superannuation scheme is desirable balanced against the other changes. We strongly support the fact that the employer contribution rate is to be 16.4 per cent, which is higher than the general public sector rate. This reflects, as it should, the unique nature of military service, which arises from a number of factors, including: the liability for combat operations, the military disciplinary code, the regimented way of life, long and irregular working hours, statutory retiring ages well below the community norms, higher standards of physical fitness, frequent relocation and separation from family.

I recommend that young Australians think about having a career in the Defence Force, for a range of reasons. I note that the member for Leichhardt will shortly be speaking on this. He will, no doubt, tell of us of his proud record and proud history as a Defence Force member. I am sure that he, like me, would encourage young Australians to think about a career in the Defence Force because it offers enormous opportunity. Not only does it offer enormous opportunity in terms of careers; it places you in a position of great respect by the broader community. I think that the average length of service is around seven or eight years; it is not long. It is a young Defence community; we see young people sign up and do their service, and many have left by their mid-20s, but they have left with skills. That is very important. They have left with an experience of managing themselves in a team environment, of looking after themselves and those around them, and of seeing what good leadership principles may be. Of course, others stay in the Defence Force—particularly those who become offices or senior NCOs. Some stay in the Defence Force for their working life, and they are to be commended for it, because it is a huge obligation. It has great benefits, but it also has great sacrifices. That is why this legislation is important and that is why the contribution rate of 16.4 per cent is appropriate.

The ADF program that we spoke about earlier is so important. I do not think that there is a wide enough understanding in the general community of the sacrifices which are made by our Defence Force members as individuals and by their families. Whether you are on a patrol boat off the northern Australia coast, on a frigate in the Middle East, working at Al Minhad or one of the other bases for an extended period of time, flying fast jets into Iraq, looking after fuel tankers or whatever it is, it is a really important function. However major or however minor they might appear to those outside, they are very important things that are being done on our behalf.

Internationally, we have a tremendous reputation because of our Defence Forces. As much as we applaud what they do, as we should, we need to recognise far more the sacrifices which are made by their families—by their partners, by their children, by their mothers and by their fathers—sadly, those who, we know, suffer as a result of war casualties. We know also that, as a result of our experience in Middle East over the last decade or so, we have many young Australians who finish their service with real mental health issues. It is important that, when we think about this superannuation bill, we understand all of these things. We are not doing this because we want to just be beneficent. We are doing this because it should be a national requirement for us to do it—through this legislation, to give our men and women in uniform, and their families, the recognition that they so properly deserve.

I was what we called in the sixties a 'Saturday soldier'; I was in the CMF for a few years, but I have never been in harm's way. I have never been asked to do the dreadful jobs that our seamen have to do off the coast of northern Australia on patrol boats. I have never been asked to make a life-and-death decision about what should happen at a particular moment in time. I have never been asked to make those sorts of sacrifices, and very few people in this parliament have. And too few in the community understand what that actually means for us. So this Defence Force program which we spoke about earlier is important in enlightening us as legislators and making us aware of the obligations we have. But it is very important that we say to the wider Australian community that they should not only be very proud of our Defence Force members and what they do but, most importantly, they should also understand the sacrifices which their families are making for them to be able to do the job that we are so proud of. It is fundamental. So when we are looking at this sort of legislation we need to ensure that we say to everyone that this is just what they should be getting. Our Defence Force members are different from us; they are not like those of us in this House. They are different because they have agreed to put a uniform on and potentially sacrifice their lives for us. That alone should be enough to validate the importance of ensuring that their employer contribution to their superannuation is higher than for the general public sector rate and higher than for most other Australians. That alone should be the reason for doing it. I commend the legislation to the House.

Warren Entsch (Leichhardt, Liberal Party) Share this | Link to this | Hansard source

I thank the member for Lingiari for his contribution. His commitment to Defence Force personnel goes back over a lot of years, including when he had portfolio responsibility for our Defence Force. The Australian government is certainly very committed to supporting Australian Defence Force members throughout their service and into their retirement. This legislation is a reflection of that commitment that will be very much supported and greatly appreciated. As the member for Lingiari said, I served in the Defence Force myself. I was in the Air Force for a period of nine years up until 1978. That was a very formative time for me and has never been replicated in any other period of my life.

Recently I again had the opportunity of seeing firsthand the amazing work that is being carried out by our defence forces. I travelled with Senator O'Sullivan and Senator McGrath to the Middle East, where we spent some time with our troops there. We worked with them very closely in the work that they do in carrying out the commitments that have been made in this place. We travelled across to the Middle East from Darwin with a rotation crew that was going there. They generally go there for about six months. We spent a couple of days working with them doing the orientation work. We had the opportunity of going to the air base at which our Hornets and aerial tankers are based. From here they go up into the theatre area where they are operating. It is amazing to see. Those pilots strap themselves into the F18s knowing that they will be away for anywhere from eight to 12 hours and have no capacity to return home with the fuel that they have; they have to refuel not once but up to six times during the course of a particular operation. The work that they do is phenomenal. We participated in the refuelling of aircraft and met many of our troops over there. One thing I can say—and it is one of the reasons why we have to be very supportive of this legislation—is that I now understand comprehensively why middle-aged overweight men are not recruited to the front line in the Middle East. It is very hard work over there. All the time we were there, there were absolutely no complaints about personal circumstances. Everybody wanted to be there.

I want to take this opportunity to acknowledge Major Stuart Roesler. He kept us in tow and provided a fantastic opportunity for us. He was our military escort and he did an outstanding job. I also acknowledge Brigadier Nagy Sorial, the Deputy Commander of the Middle East Area of Operations. He is another outstanding Australian. We greatly appreciated his company and his advice, and nothing seemed to be too much trouble for him. We also went to see HMAS Newcastle, which is doing fantastic work patrolling the Arabian Gulf and down through Somalia and so on. In four operations they have taken close to $2 billion worth of heroin off the market. It is amazing stuff. This is heroin coming out of Afghanistan and going into Pakistan and then being sold to fund the operations of Daesh.

The conditions over there were very difficult. The temperature was up to 55 degrees. When you have a shower, the water temperature is up to 50 degrees. These men and ladies do this with a great deal of enthusiasm. Coming back home, we were with a group that was coming out of there after doing their six months. While they were happy to be getting back to their families, they were equally enthusiastic in their commitment to the job they are doing. I cannot speak highly enough of them. The legislation that we are talking about today is a very small acknowledgement of the commitment that these men and women make when they sign up to the Defence Force. I think we should be very proud of them.

There are two others that I would like to mention. They are both originally from Cairns. Lieutenant Michael Holman is over there on a six-month deployment with HMAS Cairns. His family is still based in Cairns. Squadron Leader Michael Sciberros, who is Squadron Leader Engineer, is stationed at the refuelling base. His job is to keep those aircraft flying. He is from Innisfail originally but was educated at Trinity Bay State High School. It was great to go all the way over there and see these young people from home. One thing I have to say is that, as someone who served in the Air Force for nine years and who left in 1978, it is a very different military now than it was during the time in which I served. Yet, in many ways, it is exactly the same—the camaraderie, the sense of pride and commitment has not changed one little bit, and the only way you are going to get that is to be a member of these forces. It was something that was really driven home to me.

Given the uniqueness of this service, it is important that we acknowledge it through changes such as those we are making here in relation to superannuation. This landmark legislation was introduced on 25 June 2015. Its purpose is to introduce a new military superannuation scheme for all our ADF members, known as ADF Super. It is part of the government's recognition of the unique nature of military service, which I spoke of a moment ago. 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. This groundbreaking legislation will enable ADF members to seek part-time work, subject to defence capability requirements.

ADF Super fixes one of the longest running grievances of the veteran and ex-service community—namely, the lack of flexibility and portability of members' superannuation benefits. The government has 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. Again, it was great listening to the member for Lingiari's contribution. He was there very much at the beginning, working both sides closely together to develop this legislation. It is great to have a piece of legislation here that is embraced so comprehensively by all sides of the chamber. It is great to see, and I am sure it will be greatly appreciated. There is no doubt that these reforms will improve conditions of service for members of the ADF.

The Australian Defence Force Superannuation Bill 2015 introduces new, modern, flexible arrangements for people joining the ADF on or after 1 July 2016. The new military superannuation scheme, which will be a fully funded accumulation scheme, will be known as ADF Super. The current Military Superannuation Benefits Scheme, the MSBS, will be closed to new members from July 1, 2016. Importantly, current serving and contributing MSBS members will not be compelled to move to ADF Super, though they may choose to do so.

For the first time, ADF members will be able to join a superannuation fund of their own choice. A default military superannuation scheme will also be established, as it is required under law. In recognition of the unique nature of military service, ADF service members will receive a generous employer contribution rate of 16.4 per cent, regardless of the superannuation fund that they choose. This rate is higher than is offered to Australian public servants, 15.4 per cent, and significantly higher than the 9.5 per cent available to the majority of Australians through superannuation guarantees. Again, that is very much in recognition of the unique nature of the service that is given by our people from all areas of the ADF, and I think it is important that we recognise that service. There will be no requirement for the ADF Super members to make an employee contribution to their superannuation and, as a result, serving MSBS members who currently contribute a minimum of five per cent of their salary and choose to become ADF Super members will immediately receive a five per cent increase in their take-home pay.

Importantly, current serving MSBS members will not be compelled, as I said, to move to ADF Super. After 1 July 2016, all DFRDB scheme retirement pay recipients who re-enter for further service will be able to choose which superannuation fund they belong to, noting that they will not be able to rejoin the DFRDB scheme, because that will be closed at that time to any further membership. Likewise, those members currently receiving an MSBS pension who re-enter for a further period of service will also continue to receive their pension during that period of service, while accumulating further superannuation benefits.

A single employer contribution rate simplifies the administrative arrangements, including for ADF Super members. ADF Super is being established to provide members of the ADF with a modern and flexible accumulation superannuation scheme. It is great to see that, as I said earlier, under this scheme they will be able to have freedom of choice as to which way they go.

This is certainly not a savings measure, nor should it be; it is just recognition of the uniqueness of the service. ADF Super has forecast a total cost of about $433 million over the forward estimates to 2018-19 and some $3.196 billion over the decade. Some are asking if anyone will be worse off, and ADF Super fixes one of the longest grievances of veterans and ex-service community members, namely the lack of flexibility and portability for a member's super. There are numerous benefits. Australian Government Actuary modelling confirms that ADF personnel who serve less than 15 years will especially benefit under the new superannuation arrangement. Approximately 80 per cent of ADF personnel separate after serving less than 15 years, this is generally the trend. The introduction of ADF Super does not affect the government's delivered election commitment to provide new indexation for DFRB and DFRDB military superannuation pensions.

In summing up it is important to note that this is something that has been a long-time coming. I know there have been some issues as we waited for delivery of the bill, but it very clearly shows that this government and this parliament is steadfastly committed to supporting ADF personnel and these reforms will help boost Defence capability. More importantly, these reforms will clearly improve conditions of service for members and those members who leave the ADF. We need to be very appreciative of the outstanding service of these wonderful Australians.

Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

I rise to support the Australian Defence Force Superannuation Bill 2015 and cognate bills. I have spoken previously in this place about the contribution, the commitment and the dedication of our ADF personnel. I once again take this opportunity to thank them for their contribution to this nation. I also join with the member for Leichhardt in recognising the hard work of the deployed personnel in the Middle East. I had the pleasure of joining them in April this year and saw the conditions in which they operate and live, especially at the air base at Al Dhafra in the UAE, where the temperature was up to 50 degrees. I raise my hat to these young men and women for their contribution. I also want to acknowledge the ADF personnel who are participating in the ADF parliamentary program this week. It has been an honour to host Squadron Leader Chris Lowe, who is here with me today.

The Australian government is resolutely committed to supporting ADF members throughout their service and in their retirement. As part of this commitment, landmark legislation was introduced on 25 June 2015 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 was also introduced to establish ADF Cover—which is a new scheme that will continue to provide members of the ADF with death and invalidity cover. As part of this legislation, we have also introduced groundbreaking legislation to enable ADF members to participate in part-time work subject to Defence capability requirements. ADF Super seeks to correct one of the longest-running grievances of the veteran and ex-service community—namely, the lack of flexibility and portability of member's superannuation benefits.

As part of the consultative process, the government has worked with stakeholders—including the RSL, the Defence Force Welfare Association and the Australian Defence Association—in the development of this legislation and subsequent policies. As I understand it, all major stakeholders support these important reforms, as do the opposition, and I congratulate those speakers opposite for their support. The Abbott government is steadfast in its commitment to supporting ADF personnel, and these reforms will help bolster Defence capability. Importantly, these reforms will improve conditions of service for members of the ADF.

The Australian Defence Force Superannuation Bill 2015 was introduced on 25 June 2015. This bill 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 will be known as ADF Super. The current Military Superannuation and Benefits Scheme will be closed to new members as of 1 July 2016. Importantly, current serving and contributing MSBS members will not be compelled to move to ADF Super, although the option is there if they choose to do so. For the first time, ADF members will be able to join the superannuation fund of their choice. A default military superannuation scheme will also be established, as is required by 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. It should also be noted that this rate is higher than that offered to Australian public servants, who currently receive 15.4 per cent, and significantly higher than the 9.5 per cent available to the majority of Australians through the superannuation guarantee. Further to this, there will be no requirement for ADF Super members to make employee contributions to their superannuation. As a result, serving and contributing MSBS members, who currently contribute a minimum five per cent of their salary, who then choose to become ADF Super members will immediately receive five per cent increase to their take-home pay. ADF Super will apply to those joining the ADF for the first time on or after 1 July 2016. It will also apply to MSBS and Defence Force Retirement and Death Benefits, DFRDB, scheme members who receive retirement pay and then later rejoin the ADF on a full-time basis or as a reservist on continuous full-time service on or after 1 July 2016. Importantly, current serving contributing MSBS members will not be compelled to move to ADF Super. Current serving and contributing DFRDB members are unable to transfer to ADF Super.

Those DFRDB members receiving retirement pay who re-enter the ADF full time or as a reservist on continuous full-time service must make an election to become an MSBS member, to not become an MSBS member or to once again become a DFRDB contributing member before commencing further service. Likewise, those members currently receiving an MSBS pension who re-enter for a further period of service will also be able to join a superannuation fund of their own choice—again noting that they cannot rejoin the closed MSBS. They will also continue to receive their pension during that period of service while accumulating further superannuation benefits.

As I previously mentioned, in further 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. A single employer contribution rate simplifies administrative arrangements, including for ADF Super members. ADF Super is being established to provide members of the ADF with a modern and flexible accumulation superannuation scheme. ADF Super will, for the first time, allow ADF members to join the superannuation fund of their choice.

It should also be noted that this is not a savings measure. ADF Super has a forecast total cash cost of $433 million over the forward estimates to 2018-19 and $3.196 billion over the decade. The introduction of ADF Super has numerous benefits. Australian Government Actuary modelling confirms that ADF personnel who serve less than 15 years will especially benefit under the new superannuation arrangements. Approximately 80 per cent of ADF personnel leave the service after serving less than 15 years.

Importantly, the introduction of ADF Super does not affect the government's delivered election commitment to provide new indexation of DFRB and DFRDB military superannuation pensions. The specific details regarding fees and charges will be worked out as part of the implementation plan for ADF Super and will be made available before the new scheme commences.

What is important is that ADF Super will, for the first time, allow ADF members to join the superannuation fund of their choice. Individual circumstances and preferences will determine which superannuation fund will provide the best value for the individual ADF member. ADF members will be encouraged to seek their own independent financial advice. Additionally, both the ADF Financial Services Consumer Centre and the Commonwealth Superannuation Corporation can provide lists of recommended financial advisers to ADF members. The recommended advisers are so named because of their understanding of and expertise in military financial matters. Defence is also developing tools that will explain the DFRDB, MSBS, ADF Super and ADF Cover to financial advisers to better equip them to provide relevant financial advice.

The Australian Defence Force Cover Bill 2015 establishes a new statutory death and invalidity scheme to be known as ADF Cover. The government recognises that, as a result of the unique nature of military service, it is difficult for ADF members to obtain death and invalidity cover at a reasonable cost. ADF Cover addresses this issue by ensuring that all ADF personnel who are members of ADF Super have full death and invalidity cover. The ADF Cover provides the same level of death and invalidity cover as is provided to members of the current MSBS.

Additionally, ADF Cover 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 and all benefits paid under ADF Cover will be met from consolidated revenue. 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 medical conditions that occur while serving in the ADF. If an ADF member dies in service or an invalid dies while receiving an invalidity pension, benefits will be paid to the dependents of that member or invalid or to their estate.

Accompanying the introduction of ADF Super and ADF Cover is legislation that will provide for significantly more flexible service for permanent ADF members. The government has introduced 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 and will provide additional flexibility for members of the military. It will also improve the ADF's employment offer, leading to improved recruitment and retention of personnel. Defence is a modern, flexible and responsible employer. The introduction of flexible part-time work for full-time ADF members will encourage skilled and experienced people to stay in the ADF longer .

The Abbott government is steadfastly committed to supporting ADF personnel, and these reforms will help bolster Defence's capability. Importantly, these reforms will improve conditions of service for members of the ADF. It is an honour to commend this bill to the House.

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

In summing up the debate to implement a new superannuation accumulation scheme for ADF members on and after 1 July 2016, I will first thank all members for their contribution to the debate today, particularly the members for Forde, Ryan, Herbert, Gilmore, Bennelong, Lindsay, Hughes, Macquarie, Gippsland, Leichhardt, Dobell, Batman, Canberra, Moreton, Makin, Lingiari and Indi. I thank the whole House for the constructive debate.

I would also like to thank the Defence Force Welfare Association, the RSL and the Australian Defence Association for their valuable feedback on and support for this legislation. I again acknowledge the opposition for its support. I thank the opposition shadow ministry team for the constructive way in which we have worked together for the last 18 months to achieve what are some foundation reforms for ADF super.

The Australian government is resolutely committed to supporting Australian Defence Force members throughout their service and in their retirement. The introduction of ADF Super gives effect to the government's intent to introduce new, modern and flexible superannuation arrangements for people joining the ADF on and after 1 July 2016. Importantly, the bills also fix some of the longest running grievances of the veteran and ex-service community, namely a lack of flexibility in the current military superannuation scheme and the lack of portability of a member's superannuation benefit when they leave the ADF.

ADF Super will be a modem, fully funded accumulation superannuation scheme and it will, for the first time, allow ADF members to choose the superannuation fund they belong to. It will provide superannuation choice and enable ADF members to select any complying superannuation fund in which to invest their superannuation benefit, including self-managed super funds. The key is that they are complying super funds. ADF Super will apply to those joining the ADF for the first time on and after 1 July 2016; contributing Military Superannuation and Benefits Scheme—MSBS—members who choose to join ADF Super; preserved MSBS members who re-join the ADF and choose to become a member of ADF Super; and MSBS and Defence Force Retirement and Death Benefits Scheme—DFRDB—members who receive retirement pay and re-join the ADF on a full-time basis or as a reservist on continuous full-time service on or after 1 July 2016.

For clarity, and so that there is no doubt, I reiterate that current serving personnel who are members of the MSBS may opt to join ADF Super, but they will not be compelled to do so; this is a personal choice. The government recognises the unique nature of military service, which is why the government will provide a single employer contribution rate of 16.4 per cent to all ADF Super members. This is a generous rate, and one that is well above community standards.

Also in recognition of the unique nature of military service, the government will establish a new statutory death and invalidity scheme, to be known as ADF Cover. ADF Cover will be consistent with the death and invalidity arrangements currently provided to members of the MSBS. It will ensure that ADF members are properly looked after, for the rest of their life if required, in the event they are injured during ADF service.

The package of bills also facilitates the introduction of significant reforms to the ADF's future workforce model, thereby enabling a new category of flexible service for members of the permanent ADF. The introduction of flexible service arrangements will better secure the ADF's capability by encouraging skilled and experienced people to stay in the ADF longer and by promoting greater consistency in the application of formal flexible service arrangements. The package of legislation facilitates the introduction of a new workforce model and will help to ensure Defence gets the most out of its people and, more importantly, people get the most out of their Defence career. The new flexible service arrangements will balance the ADF member's needs with Defence's capability requirements.

These bills will implement important reforms, and I again thank members for their contributions. Collectively, these bills recognise the unique nature of military service, address long-running grievances of the Defence and ex-service community and provide ADF members with peace of mind in the event they are injured while serving in the ADF. I commend the package of bills to the House.

Question agreed to.

Bill read a second time.