Rebekha Sharkie (Mayo, Centre Alliance) Share this | Hansard source

Military service is unlike any other form of employment. The risks are real and the consequences are life-changing for those who have experienced war or warlike service. They will have no superannuation; instead, they are provided with a fortnightly pension. This is a pension that is not fixed, but rather is subject to review by the Commonwealth Superannuation Corporation—known as the CSC. They will live with the threat of reassessment and review for the rest of their lives, with every financial decision viewed through the prism of that uncertainty. They will be entirely dependent on the pension administered by the CSC, and therefore entirely dependent on the conduct of the CSC.

They are definitive examples of a fiduciary relationship, yet the government has refused to extend the terms of reference for the banking royal commission to those who receive a CSC pension. The refusal is predicated on the belief that the current regulatory regime surrounding the CSC is sufficient. The government argues that the additional standards for governance and scrutiny prevent the trustee from behaving in a manner that would amount to misconduct or conduct that would fall below community expectations, but we already know that the CSC is failing to meet community expectations. Anyone who has taken the time to speak with our veterans will be aware that the actions of the CSC have a profound impact on the lives of veterans and their families. And in light of Commissioner Hayne's interim report, it is incredible to me that the government still seeks to rely on purported 'regulatory oversight' as a justification for excluding the CSC from the scope of the royal commission.

Consumers are entitled to expect that their dealings with financial institutions will be conducted in a manner that is fair and honest. As the commissioner noted in the interim report, treating people fairly and honestly has important economic consequences. When you are a young veteran struggling to adjust to life-changing injuries and with the CSC pension as your only source of income, we know that the consequences of misconduct are far more than purely economic. The consequences are far-reaching and they are devastating. The 2017 Senate report The constant battle: suicide by veterans highlighted the fact that our veterans are particularly vulnerable during the period of transition from Defence to civilian life, and that vulnerability is exacerbated by those systems and practices of those departments and institutions that our veterans fought for.

I acknowledge that the government is working to improve the discharge process through veteran-centric reforms, and I note the Productivity Commission is currently investigating the compensation and rehabilitation scheme, but in my view these measures only lend further support to the idea that the CSC should be included in the royal commission. We know there are problems, so let's not sweep them under the rug yet again. Let's review the system, give our veterans a voice and see how we can improve it.

The government may say that the commission is independent of the government and that it is a matter for the commissioner to investigate if he so chooses, but I would draw the House's attention to a letter from the office of the royal commission to the Alliance of Defence Service Organisations dated July 2018, wherein it is stated: 'The scope of the commission's terms of reference is a matter for government.' So, on the one hand, we have the royal commission saying the inclusion of the CSC is a matter for government and, on the other, we have the government saying the inclusion of the CSC is a matter for the royal commission. Which is it? Government, I urge you to look at this closely and put our veterans first with respect to this.

I would like to close by expressing my heartfelt gratitude and thanks to our veterans. Whether you are young or not—I know we still have people from Korea, people who fought for us in Vietnam and people who have fought in the modern conflicts such as Afghanistan, Timor and the Solomons—to our veterans and our serving members: my heartfelt gratitude to you. Thank you for all you do.

See this speech in context