Since the new ADF Super scheme was first announced in the 2014-15 Budget, ADSO has been making strong and persistent representations during extensive discussions with the Government to improve the scheme from its original design.
These discussions have centred on the rate of employer contributions, portability provisions, governance and dispute resolution. As a result, we believe ADF Super and its accompanying ADF Cover provisions will incorporate our suggested changes and result in legislation that far better benefits the majority of ADF members than otherwise would have been the case.
We have been assured by the Government that the employer contribution rate will recognise the uniqueness of ADF service and will not equate to other Commonwealth schemes of a similar nature. In addition, transfer to the new scheme has the potential to remove the detrimental impact of the MBL for current long serving ADF members.
Initial evaluation of the ADF Super provisions being considered by the Government indicate that while the vast majority of members may be better off, the ADF Super outcomes for future ADF members who serve for extended periods may not be as beneficial as MSBS.
Current ADF members will need to carefully consider the actual details of the Government’s Legislation in making their decision on whether to transfer or not.
We await the Government’s announcement and tabling of its Legislation before seeking further comment from ADF members and making further representations to the Government.
The new ADF Super Scheme is expected to be tabled in Parliament shortly. Its implementation date is 1 July 2016.