Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

My question is to Senator Johnston, the Minister for Defence. The Australian Defence Force is responsible for keeping our country safe and secure. Our Australian Defence Force personnel demonstrate the most extraordinary courage by putting their own lives at risk to keep the lives of all Australians safe and secure, both at home and abroad. The risk of terrorism has increased in recent times and military personnel are being targeted across the world. Our own military personnel are being told not to wear their uniforms in public for safety reasons. The previous Australian Defence Force remuneration agreement from 2011-2014 included a nine per cent increase over three years. The government is currently negotiating a three-year agreement and is only offering our defence personnel an increase of 1.5 per cent per year. Senator Johnston, why is your government trying to shaft the Australian Defence Force by only offering them an increase of 1.5 per cent per year? Do you think this is an acceptable result for Australia's Defence Force personnel?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I sincerely do thank the senator for his question, and may I say that this is an extremely important issue that was very parsimoniously glossed over at Senate estimates last week. It was barely touched on. The Commonwealth position taken before the Defence Force Remuneration Tribunal reflects the unique nature of military service. The proposed offer to the next ADF workplace remuneration arrangement agreed between the Chief of the Defence Force and the government has been put before the independent Defence Force Remuneration Tribunal. On 15 October the DFRT, the remuneration tribunal, heard submissions from the Australian Defence Force, the Commonwealth and service organisations. In accordance with standard practice in complex cases, that decision has been reserved and it would be premature to speculate on the outcome. If agreed by the Defence Force Remuneration Tribunal, the workplace remuneration arrangement will see more than 70,000 permanent and reserve ADF personnel receive an increase in their pay each year for three years. The first pay rise will take effect from 6 November this year and will be paid on 20 November.

The proposed workplace arrangement does not alter the conditions of service for ADF members serving on operations, who will continue to be supported through additional remuneration and preferential tax treatments reflecting the nature of the operations they are undertaking. The proposed workplace arrangement also supports Defence's intention to streamline ADF salaries and allowances and simplify administration for ADF members and Defence. This will be achieved by rolling a range of discretionary leave and other benefits into salary increases which will benefit all ADF personnel.

Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Australia's Defence Force personnel cannot be paid enough. These people are putting their lives on the line to keep our country safe. Offering a pay increase of only 1.5 per cent per year is effectively a pay reduction as inflation is running at around three per cent. This means the pay of our Defence personnel—diggers, airmen and sailors—will not keep up with the cost of living, yet I understand that most senior officers of the Australian Defence Force received pay increases of up to 40 per cent over the last two years.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Lazarus, your time has expired. I did not hear a question there. I will be guided if the senator is happy for you to quickly put a question to that preamble. That is a warning to all senators not to have a long preamble if you wish to get your question asked. Senator Lazarus.

Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

Senator Johnston, could you please explain why you are cutting the pay of our Defence personnel and yet giving significant pay increases to senior Defence Force officers?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

Senator, that is not correct. The Parliamentary Budget Office figure of 3.9 per cent average growth for total wages and salaries over the forward estimates does not reflect changes to Defence workforce levels. The claim in the article which I am sure you are drawing your question from that the quantum for operational allowances paid to deployed personnel is linked to base pay is clearly incorrect. That is where I think you have, if I may say so, fallen into a misunderstanding of what is going on. Allowances are not calculated as a loading on base pay and there is no link between the workplace arrangement and operational allowances. Since 1999, Defence has had two distinct allowances payable in operational situations—international campaign allowance for warlike operations and deployment allowance for non-warlike operations. The quantum of allowances is calculated having regard to an assessment of the level of operational and environmental hazards that exist for each operation. There is a— (Time expired)

Glenn Lazarus (Queensland, Palmer United Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. In addition to cutting the pay of Australia's Defence Force personnel in real terms, the Australian government is also trying to reduce other benefits and entitlements provided to our Defence personnel in order to save money. Senator Johnston, will your government stop trying to shaft Australian Defence Force personnel, pay them what they deserve, and maintain or, even better, increase the entitlements and benefits that they receive?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

Let me make one thing very, very clear here and now and on the record. We are not cutting the pay of ADF personnel. The fact is that the increase that we are paying may not be in line with what you perceive is necessary—and may I say that, to some greater degree, I share that concern. But, more importantly, I am focused on managing a budget that has been bequeathed to me by probably Australia's most incompetent financial managers in our history. So I, the government and the CDF need to balance budgets in a way that tries to equate to equity for all parties. National security is extremely important. The budget underpins our success in providing security for Australians. That is at the heart of this matter—and I can tell you we inherited a mess.