Don Farrell (SA, Australian Labor Party, Shadow Minister for the Centenary of ANZAC) Share this | Hansard source

I rise to support the Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Bill 2014. This bill will allow for what is described as triple indexation of the DFRB and the DFRDB military superannuation pensions in the same way that we index age and service pensions.

Approximately 57,000 retired military personal aged 55 and over will receive a $160 million boost to their pensions from 1 July if this legislation passes this afternoon. As I indicated, it is with much pleasure that the opposition indicates that it is going to support the bill. We will continue to support improving the circumstances of our ex-servicemen and ex-servicewomen, just as we did in the lead-up to the 2013 federal election.

The Labor Party believes that one of the greatest responsibilities for a country is to be proud of its veterans and its ex-servicemen and ex-servicewomen, and to ensure that they are looked after in times of need. We are proud of our veterans and grateful that they have helped protect our nation and its interests. The Labor Party has a proud record of looking after veterans. In our last budget we committed a record $12.5 billion to veterans, including mental health programs and greater support for veterans and their families. We worked to make steady improvements to veterans' pensions and supports, even in the face of the enormous challenges posed to our budgetary situation by the global financial crisis.

Prior to the election, the Labor government announced the addition of the Pensioner and Beneficiary Living Cost Index—the PBLCI—indexation mechanism to the consumer price index for the DFRB and the DFRDB pensions, cutting in at the age of 65. This would have cost $34 million over four years, and would have increased unfunded liabilities by $1.1 billion. We were committed to looking for opportunities to make further improvements within the bounds of fiscal responsibility. We are therefore happy to support these measures.

It would certainly be helpful to this side of the chamber if the government could give some indication as to the funding of these changes. We remain concerned about the impact of the legislation on the Future Fund and unfunded liability. We would like some explanation from the minister—I am pleased he is here this afternoon—as to how the government intend to manage the issues associated with the Future Fund, and how that will develop in the years ahead.

While in government we estimated the coalition's indexation plans to cost $175 million over four years, and increase the unfunded liabilities by $6.2 billion. In Senate estimates, the government indicated the financial impact of the legislation: on the cash balance, $58.1 million; on the fiscal balance, $780.1 million over the 2013-14 budget forward estimates period; and the government's net worth would be reduced by around $4.4 billion over the same period.

We are seeking assurances on the potential for inequality with other types of military pensions. We will closely monitor the implementation of these changes to ensure that none of our veterans are worse off under these changes. While these pensions apply mainly to ex-service men and women, it is important that the conditions of our current soldiers are not undermined in order to pay for these changes. The government needs to explain how the measures are going to be dealt with in terms of the Future Fund.

In supporting this legislation, it is appropriate to explain some of the achievements of Labor in the area of veterans' affairs and particularly the role that the former minister, Mr Snowdon, played in those achievements. In the 2013-14 budget, there was over $12.5 billion in funding for the veteran community annually, including $6.8 billion in pensions and income support, $5.6 billion in health services and $85 million for commemorative activities. This includes an additional $26.4 million over four years to expand access to mental health services for current and former members of the ADF and their families. We expanded eligibility for treatment of certain mental health conditions on a non-liability basis and VVCS counselling. Thanks to Labor, dedicated staff from the On Base Advisory Service of the Department of Veterans' Affairs operate on more than 35 Defence bases around Australia to provide advice and support on injury, physical and mental health and compensation issues as part of the support to wounded, injured and ill.

In February 2013, a memorandum of understanding was signed between DVA and Defence to facilitate closer cooperation in the support for current and former military personnel veterans, including the transition process. Our Veterans' Pharmaceutical Reimbursement scheme helps veterans with out-of-pocket expenses for medications for their war caused conditions—$30 million over four years. Initial payments were made in the first quarter of 2013. Veterans, partners, war widows and widowers were given a further boost to their payments from March 2013 for the clean energy supplement, a regular payment under the Household Assistance Package.

We initiated and completed the review into our military compensation and rehabilitation arrangements under the Military Rehabilitation and Compensation Act 2004 and the government accepted 96 of the 108 recommendations. We implemented a number of changes to ensure compensation and health care for our veterans and their families continues to meet their needs—$17.4 million over four years. Legislation putting into effect recommendations arising from the review were passed in the parliament on 27 June 2013. Obviously that date was very close to the rising of the last parliament. More than $140 million in funding was provided for the Anzac centenary, including $27 million for the upgrade of the First World War galleries, which are magnificent, and I hope you have had a chance to see some of the work that has been done there. There was $100,000 per federal electorate for the Anzac Centenary Local Grants Program; $5 million for the Australian Memorial in Wellington, New Zealand; and $10 million for the Australian Remembrance Trail in France and Belgium. Over the weekend I had the privilege of catching up with the Belgium Buglers, who are in Australia, and they are a very proud group indeed. There was the announcement of ballot arrangements for Anzac Day 2015 at Gallipoli.

From September 2011, there is $500 per fortnight for the prisoner of war recognition supplement—$20 million over four years. The Co-ordinated Veterans' Care Program—$152.7 million over four years—provides ongoing, planned and coordinated primary and community care, led by a general practitioner, with a nurse coordinator, to eligible Gold Card holders who have chronic conditions, complex care needs and are at risk of an unplanned hospitalisation. In August 2011, the government instituted the Graves of Our Bravest program, which provides for the ongoing maintenance of the graves of recipients of the Victoria Cross, the Cross of Valour and the George Cross. The graves of these recipients are beautifully maintained by the Office of Australian War Graves.

From 1 July 2011, the Commonwealth Superannuation Corporation became responsible for the investment and management of public sector and military superannuation schemes. The establishment of the CSC as the consolidated trustee helps to secure increased superannuation benefits for thousands of military and civilian superannuants. In the 2011-12 budget, additional funding of $8 million per annum was provided to the Australian War Memorial. I commend people to see some of the tremendous ways in which that has improved the Australian War Memorial. In the 2011-12 budget, $3.3 million was put towards a world-first education centre in Washington DC honouring Vietnam veterans. In the 2010-11 budget, the government provided $55 million over five years as part of its response to the recommendations of the parliamentary inquiry into the concerns of F111 deseal-reseal maintenance workers. The parliamentary inquiry report was tabled on 25 June 2009.

In the 2010-11 budget the government provided $24.2 million over five years to provide Australian Defence Force British nuclear test participants with access to compensation under the Veterans' Entitlements Act 1986. This measure recognised the unique nature of these tests and the fact that service in these operations involved hazards beyond those of normal peacetime duties. Submariners who participated in certain special operations have also had the qualifying nature of their service recognised.

On 20 September 2009, as part of the government's Secure and Sustainable Pensions commitment, a one-off increase of $65 per fortnight was made to the single rate of service pension—available at the age of 60 to veterans with warlike or other qualifying service—and the age pension. Smaller increases were given to couples, including the partner service pension.

Since 2009, following the Dunt Review, Defence and DVA have undertaken significant reform in the mental health and rehabilitation programs available to Defence members during their service life and when they transition to civilian life. DVA provides $9.5 million and Defence provides $83 million. Since 2008 the Department of Veterans' Affairs disability compensation pensions have been indexed in the same way as income support payments. That legislation was passed in September 2007.

In September 2009 an additional indexation factor, the pensioner and beneficiary living cost index, was introduced for income support payments. In addition, the male total average weekly earnings benchmark was increased from 25 per cent to 27.7 per cent at the single rate. Disability pensions and income support pensions continue to be indexed in the same way.

Labor's other achievements in this area include:

As you can see, Mr Acting Deputy President, Labor has achieved much in this area. I am very proud of our veterans and grateful they have helped to protect our nation and its interests. I am very pleased to indicate our support for the bill today.