Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Hansard source

Thank you, Senator Lambie. In relation to the point you make about a pay cut: can I be clear that the pay increase that is recommended, on the advice I have, is above the RBA's estimates for inflation over the next three years. We know where inflation is currently, and you are correct to raise that as a concern.

In terms of how this pay increase has been assessed: this is a pay arrangement which, firstly, is the highest pay increase in over a decade and, secondly, is above the RBA estimates for inflation over the next three years. If those estimates are correct, that is a good thing because that will be a real pay increase. I note also that the advice to me is that the pay offer that has been made reflects the same offer as provided to the ADF.

Pay rises for non-public officeholders are determined by the Defence Force Remuneration Tribunal. The tribunal agreed to joint submissions from the CDF and the Commonwealth for a new workplace remuneration arrangement for 2023-26. The arrangement aligns with the revised APS offer of 11.2 per cent over three years and applies to both star rank and non-star rank members, with effect on 9 November 2023. In addition, many ADF personnel will receive allowances to recognise the unique environmental conditions in which they operate, as Senator Lambie would know, including operating in land, maritime and air domains. (Time expired)