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.

Measures to implement ADF Super and ADF Cover

The Australian Defence Legislation Amendment (Superannuation and ADF Cover) Bill 2015(the bill) contains the consequential amendments necessary to establish the ADF Super and ADF Cover arrangements. In line with the government's drive to cut red tape, the bill also contains a number of measures to reduce the administrative complexity of the current and previously closed military superannuation schemes.

Measures for c hildren

The current Military Superannuation and Benefits Scheme (MSBS) and closed Defence Force Retirement and Death Benefits (DFRDB) scheme provide pensions for children of deceased Australian Defence Force (ADF) members and former ADF members. To qualify for a benefit, children over 16 must demonstrate they are in full-time education.

In contemporary Australia the majority of high school students do not leave school until they reach 18. This bill modernises the arrangements of the current and closed schemes so that children only have to demonstrate they are in full-time education once they reach the age of 18.

This will reduce the administrative burden on families receiving a benefit under the current and closed military schemes, as well as the burden on the administrator of those schemes.

Re-entered m embers

At present all DFRDB retirement pay recipients who re-enter the ADF full time or as a reservist on continuous full-time service must make an election to either become an MSBS member, not become an MSBS member or to again become a DFRDB contributing member before commencing their further service.

If no election is made or the election is not made before commencing re-entered service, the re-entered member becomes an MSBS member by operation of the law.

If the person elects to become a member of the MSBS their retirement pay is suspended until such time they complete their period of service.

If the person elects to again become a DFRDB contributing member their retirement pay is cancelled and recalculated after the further period of service is completed, noting that the additional service must be for more than 12 months for this to apply.

After 1 July 2016, all DFRDB scheme retirement pay recipients who re-enter for further service will be able to choose which superannuation fund they belong to, noting they cannot rejoin the closed DFRDB scheme.

Importantly, they will continue to receive their retirement pay while accumulating further superannuation benefits in the fund of their choice. Put another way, they will no longer have their retirement pay suspended or cancelled as is currently the case.

Likewise, those members currently receiving an MSBS pension who re-enter for a further period of service will also be able to join a superannuation fund of their choice, again noting they cannot rejoin the closed MSBS. They will also continue to receive their pension during that period of service while accumulating further superannuation benefits.

Flexible s ervice

The bill also facilitates the introduction of significant reforms to the ADF's future workforce model. This bill enables a new category of flexible service for members of the permanent ADF.

Defence is a modern, flexible and responsive employer. The introduction of flexible service arrangements will better secure the ADF's capability by:

The bill will enable permanent ADF members to seek flexible service arrangements that can be structured on the number of days worked per week, weeks per month, or even months per year.

Importantly, the application of the flexible service arrangements will remain cognisant of the need to balance the ADF member's needs with Defence's capability requirements.

ADF personnel should be encouraged to pursue long-term and worthwhile careers within a modern and innovative Defence Force. This bill facilitates the introduction of a new workforce model and will help to ensure Defence get the most out of its people and those people get the most out of their Defence career.

I commend the bill to the House.

Debate adjourned.