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

I move:

That this bill be now read a second time.

The Australian Defence Force Cover Bill 2015 (the bill) gives effect to the government's commitment to introduce new, modern superannuation arrangements for people joining the Australian Defence Force (ADF) on and after 1 July 2016. The bill establishes a new statutory death and invalidity scheme to be known as ADF Cover.

Due to the unique nature of military service it is often difficult for ADF members to obtain death and invalidity cover at a reasonable cost under group insurance arrangements. ADF Cover addresses this issue by ensuring all ADF personnel who are members of the ADF Super scheme have full death and invalidity cover.

ADF Cover provides all members who join on and after 1 July 2016 with death and invalidity cover consistent with that provided to members of the current Military Superannuation and Benefits Scheme (MSBS). It will apply regardless of the superannuation fund chosen by the ADF member.

As is the case for current MSBS members, 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.

Benefits for i ncapacity

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.

If that capacity is reduced by 60 per cent or more, they will be classified as c lass A and receive an appropriate pension.

If that capacity is reduced by 30 per cent or more, but less than 60 per cent, then they will be classified as c lass B and receive an appropriate pension.

If a member ' s capacity is reduced by less than 30 per cent they will be classified as c lass C and their superannuation will be preserved in the fund of their choice. The preserved benefit is subject to the normal age preservation rules for release.

Under ADF Cover the death and invalidity benefits provided will be consistent with the death and invalidity benefits provided under the current MSBS.

Benefits for d eath

If an ADF member dies in service, or if an invalid dies while receiving an invalidity pension, benefits will be paid to the dependants of that member or invalid, or to their estate.

In the case of an invalid or ADF member who dies, their spouse (if any) will receive a reversionary pension or lump sum. The pension will be increased if there are eligible children. If that spouse later dies and was themselves receiving a pension, any eligible children will also receive a reversionary pension.

If an invalid dies with no spouse but with eligible children, the eligible children will receive a reversionary pension. If an ADF member dies in service with no spouse but with eligible children, then the eligible children will receive a lump sum. In the case of an ADF member who has no spouse or eligible children, a lump sum will go to the estate or the legal personal representative of the ADF member.

ADF Cover recognises the unique nature of military service and offers important protection for ADF members and their family consistent with that provided under the current MSBS.

I commend the bill to the House.

Debate adjourned.