Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

Can I thank 'Brigadier' Reynolds for the question and acknowledge her long and distinguished service to the ADF. As announced by the minister and the Prime Minister today, the government is committed to increasing the ADF pay offer to two per cent per annum over the life of the agreement with effect from the next pay day. Today's decision follows considerable consultation and representations from the defence community. Over the decade from 2004 to 2013, annual ADF pay increases have totalled 38 per cent while annual median wage increases for Commonwealth public servants totalled 42 per cent compared to CPI, totalling 28 per cent. In other words, public servants have done around four per cent better than members of the ADF.

ADF personnel fell behind the Commonwealth public servants under the previous Labor government. In the years 2008 to 2013, annual ADF remuneration increases totalled 21 per cent while APS increases totalled 26 per cent. Further, defence as a whole suffered. The government now needs to find an additional $16,000 million just to replace what Labor stripped out of defence in its six years of government.

Increasing ADF pay by two per cent per annum will increase the likelihood that, going forward, ADF members do better than inflation and politicians. Salary is, of course, only one important component. ADF personnel also receive competency-based allowances, free medical and dental treatment, subsidised housing and a range of other benefits. This increase allows the ADF to catch-up with the cuts they suffered under Labor. (Time expired)