Assistant Minister for Defence – Landmark reforms to ADF conditions of service – 25 June 2015
The Government today introduced legislation establishing a new military superannuation scheme for members of the Australian Defence Force (ADF) and accompanying legislation to enable ADF members to work part time.
The new military superannuation scheme, to be known as ADF Super, will for the first time allow ADF members to join the superannuation fund of their choice. They will also have access to a default military superannuation fund.
ADF Super fixes one of the longest running grievances of the veteran and ex-service community, namely the lack of flexibility and portability of a member’s superannuation benefit.
In recognition of the unique nature of military service ADF Super members will receive an employer contribution rate of 16.4 per cent, regardless of the superannuation fund they choose.
This rate is higher than that offered to Australian Public Servants (15.4 per cent) and significantly higher than the 9.5 per cent available to the majority of Australians through the Superannuation Guarantee.
ADF Super will apply to ADF members who join on and after 1 July 2016. Additionally, members of the current Military Superannuation and Benefits Scheme (MSBS) may choose to move to the new scheme or remain in the current scheme – they will not be compelled to move to ADF Super. The MSBS will be closed to new entrants from 1 July 2016.
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.
To ensure ADF members continue to receive full death and invalidity cover the Government is also establishing ADF Cover, which will provide death and invalidity cover consistent with that provided to members of the current MSBS.
Accompanying the introduction of ADF Super and ADF Cover is legislation that will provide for significantly more flexible service for permanent ADF members. ADF members will, for the first time, be able to seek part-time work arrangements, subject to Defence’s capability requirements.
This significant improvement to the ADF’s workforce model will provide additional flexibility for members of the military while also improving the ADF’s ability to recruit and retain personnel.
The Abbott Government is steadfastly committed to supporting ADF personnel and these reforms will help bolster Defence’s capability and will improve conditions of service for members of the ADF.
Media contacts:
Richard Briedis (Minister Robert’s Office) (02) 6277 7730 or 0477 391 174
Defence Media Operations (02) 6127 1999