You do the math

18 Jul 2013

Minister Snowdon in a reply to Tony Windsor MP, has introduced a new rebuttal reason for why the CPI is okay as an indexation measure…

“Those campaigning to change indexation arrangements suggest that the Consumer Price Index (CPI) is inadequate. Commonwealth Military (and civilian) superannuation retirement pay is indexed in January and July each year by CPI. Over the period November 2007 to 1 January 2013, the salary for Private through to Colonels in the Australian Defence Force has increased in excess of 19 per cent. From 1 January 2008 to 1 January 2013, comparable compound CPI increases have been in excess of 17 per cent. These figures do not support the argument that military superannuants are not receiving reasonable increases from CPI-based indexation.

Using their same methodology… in 1988 when I retired I received $11000 per year in DFRDB, as my final salary was $33000. My equivalent rank and mustering is today grossing $86000.

So from 1988 – 2013

Salary increase – 160.6061%
DFRDB increase – 72.7273%

You do the math. My DFRDB is approximately 53% down on what it should be… now $19000 should be $29000. I realise that this is not the correct way to determine loss, but I am not the one that opened this can of worms.

Benjamin Disraeli once said there are lies, damn lies, and then there are statistics. Politicians are damn liars, and they hide behind contrived statistics. Maybe we should bring up the point of three pay rises for themselves in the past 10 months, and are now the highest paid politicians in the world. We all know who is paying for that.

What the statement really shows is the pay rises to the military under Labor 2007 – 2013 are grossly inadequate. MTAWE rise for the same period is 23%, so our DFRDB net loss for the period is -26.087%. I dont call that reasonable or fair.

Sources: (Currency – 8 November 2012) (for pay levels)…ocument_PayRates.pdf (for pay rates)

Gordon Wright RADTECHG 1968-1988
I am a human being and I vote.