Assistant Minister for Defence - Landmark reforms to ADF conditions of service

Today the Senate passed legislation that will establish a new superannuation scheme for members of the Australian Defence Force.

The new military superannuation scheme, to be known as 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 when they leave the ADF.

I sincerely thank the RSL, Australian Defence Association (ADA) and Defence Force Welfare Association (DFWA) for their constructive input and support of this landmark legislation. I also acknowledge the Federal Opposition for supporting these reforms.

ADF Super will, for the first time, give ADF members the option to select any complying superannuation fund to invest their superannuation benefit. It enables ADF members to choose their financial future.

In recognition of the unique nature of military service ADF Super members will receive a community leading employer contribution rate of 16.4 per cent, regardless of the superannuation fund they choose.

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.

Owing to the unique nature of military service, the Government is also establishing ADF Cover, which provides full death and invalidity cover for ADF personnel who are members of ADF Super.

Importantly, ADF Cover will provide death and invalidity cover consistent with that provided to members of the current MSBS.

The package of Bills passed today in the Senate also establishes the legislative basis for creating more flexible service arrangements for permanent ADF members.

For the first time, ADF members will be able to seek part-time work arrangements, subject to Defence’s capability requirements, thereby providing additional flexibility for members of the military while also improving the ADF’s ability to recruit and retain personnel.

The Abbott Government has long recognised the unique nature of military service and the sacrifices military personnel and their families make on behalf of all Australians.

The Government’s resolve in delivering new, modern and flexible superannuation arrangements, as well as flexibility for ADF members, reflects our unwavering commitment to all Defence personnel and to bolstering Defence’s capability.

Media contacts:

Richard Briedis (Minister Robert's Office) (02) 6277 7730 or 0477 391 174

Defence Media Operations (02) 6127 1999