PM Press Release - ADF Pay Indexation Increase

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JOINT PRESS RELEASE
THE HON. TONY ABBOTT MP, PRIME MINISTER
THE HON. KEVIN ANDREWS MP, MINISTER FOR DEFENCE

 

AUSTRALIAN DEFENCE FORCE PAY

The Australian Government understands that the work performed by members of the Australian Defence Force is unique and crucial to our nation and our security.
In recognition of these unique circumstances, the Government has decided to increase the wage offer for ADF personnel to two per cent per annum, over the life of the agreement, with effect from the next pay day.

This keeps ADF pay above the current annual inflation rate of 1.7 per cent.

In making today's decision the Government has listened to the concerns of the defence community. The advocacy of Senator Linda Reynolds CSC and Mr Andrew Nikolic AM CSC MP, who both served in senior roles in the ADF, has been central.

The Government will ask the Chief of the Defence Force and the Minister Assisting the Prime Minister for the Public Service to seek the Defence Force Remuneration Tribunal's agreement to vary the terms of the current Workplace Remuneration Agreement.

ADF personnel are trained and prepared to put their personal safety at risk in the interests of our nation and this should be recognised.

This decision provides certainty to ADF personnel and their families, who play such a significant role in supporting them.

4 March 2015

Media Release Gai Brodtmann MP - ‘Clunky’ Two -Tiered Superannuation Scheme for ADF

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Shadow Parliamentary Secretary for Defence Gai Brodtmann has condemned the Abbott Government's plan to create a two-tiered superannuation scheme for the ADF.

It follows the Abbott Government's decision to cut the real pay of our servicemen and women.

From 1 July 2016 the existing superannuation scheme for serving ADF personnel will be closed to new members.

A specific superannuation fund for ADF personnel will replace it, to be known as ADF Super.

Under ADF Super, the Government contribution rate will be 15.4 per cent, increasing to 18 per cent for those engaged in war-like operations.

"There are significant concerns that this will undermine the team ethos of the ADF," Ms Brodtmann said.

"The Chief of the Defence Force, Air Chief Marshal Mark Binskin, raised concerns with the Government's approach at Senate Estimates."

"My preference would be to try and do a flat rate which is a mid-point that actually doesn't have the clunkiness between the war-like operations and the peacetime." Chief of the Defence Force, Air Chief Marshal Mark Binskin - Senate Estimates - 25 February 2015

"The Defence Force Welfare Association has criticised the Abbott Government over its lack of consultation on the new scheme.

"The consultation has more been information sessions on what the administration is coming up with rather than listening" David Jamison, President of the Defence Force Welfare Association - ABC Radio - 25 February 2015

"This is yet another example of the Abbott Government ignoring the concerns of our servicemen and women and comes after it delivered a real wage cut to ADF personnel."

Friday, 27 February 2015

Media Contact: Claire Wheton 0422 370 036

ADF Super - New superannuation arrangements proposed for 2016

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From 2016, the default super fund for new members will be ADF Super.

MILITARY superannuation membership is set to become portable and more flexible from mid-next year.

The new arrangements seek to establish ADF Super and ADF Cover on July 1, 2016.

From that date, it is proposed the current Military Superannuation Benefits Scheme (MSBS) will be closed to new members.

New superannuation arrangements will apply to:
 anyone joining the permanent ADF for the first time; and
 serving and returning MSBS members, as well as reservists on continuous full-time service, who choose to move to the new scheme.

Under these arrangements, existing members will be able to choose which superannuation fund they belong to. 

The default fund for all new permanent members, ADF Super, will be a fully funded accumulation plan with an employer contribution rate of 15.4 per cent, increasing to 18 per cent during periods of warlike service.

Head People, Policy and Culture Richard Oliver said these new arrangements would be the most contemporary military superannuation arrangements available.

"It's important to note that no current serving members will be required to move to the new arrangements," he said. 

"However, if they wish, serving and returning members of MSBS may choose to move to the new arrangements at any time from July 1, 2016."
Members will have the ability to transfer their accumulated benefits to a new fund if they leave the ADF and will no longer be required to make personal contributions, unless they elect to. Individual circumstances will determine whether changing to the new military superannuation arrangements will provide better value for the individual, according to Head People Capability AVM Anthony Needham. 

"If you are a current MSBS member wishing to consider changing to the new military superannuation, I strongly encourage you to seek independent financial advice," AVM Needham said.

"These new superannuation arrangements will contribute to the flexible career options Project Suakin is delivering." The new arrangements will be underpinned by a death and invalidity scheme that will continue to recognise the unique nature of military service.

The new scheme, to be known as ADF Cover, will be consistent with what is available now under MSBS.

Any members considering options will have ample opportunity to consider the finer details as they are finalised and before the new military superannuation is introduced.

For more information, visit here  or email This email address is being protected from spambots. You need JavaScript enabled to view it.  To find an independent financial adviser, visit www.adfconsumer.gov.au

Source: Army Newspaper FEBRUARY 26TH 2015

ADF pay offer: Joint union bulletin

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Your three main Defence unions, CPSU, AMWU and PA are united in condemning the unfair ADF pay deal which provides for pay increases of only 1.5% per annum and cuts leave. Union members in the civilian Defence workforce stand in solidarity with our Australian Defence Force colleagues. This unfair deal constitutes a real wage cut and an attack on working rights that no employee should be forced to take. Union members in the Department of Defence and their military colleagues are facing the same harsh Government agenda when it comes to public sector pay and conditions.

 

Should we be mindful of the budget?


The “budget crisis” and the rationale behind cutting wages in the public sector are based on false premises.


1. Cutting the public sector doesn’t work. Austerity measures in the form of cutting funding from public
services and jobs has not assisted comparable countries like the United Kingdom in improving the
economy. Similarly, the US is now looking to grow investment in public services rather than cut funding.
Australia’s economy is in much better shape than most other OECD countries and our debt levels are
minimal by comparison.


2. Public sector wages are reasonable. Parliamentary wages have far outstripped the ADF or their
civilian colleagues – see graph opposite. Since 1991, the base pay of a federal parliamentarian has grown
by around 240 per cent, whereas Defence members’ salaries have only grown by about 110 per cent.

3. The APS is highly efficient and not bloated. In comparison to other OECD countries, Australia not
only has low rates of taxation, but highly effective provision of government services.

International comparisons also demonstrate that the public sector workforce is not bloated or causing
undue stress on the federal budget. The size of the general government sector in Australia is on par with
other OECD nations and the Commonwealth public sector workforce only accounts for 7% of total
Commonwealth Government expenditure. To the extent that the Commonwealth public sector workforce
has grown, this has been proportional with growth in GDP and has been significantly outstripped by
population growth.

 

APS negotiations
graph

Bargaining in more than 70 Commonwealth agencies covering 165,000 staff is currently underway, but to date not one employer has been able to put forward an acceptable deal to a staff vote. Unlike the military, civilians can join their unions and fight this attack on working conditions. Unfortunately their ADF colleagues are being forced to cop cuts with no room for negotiation. It’s time the Abbott Government reconsiders its approach to “bargaining” in the ADF and the public sector more broadly, and negotiates a fair deal that protects conditions and – at a minimum - keeps wages in line with inflation.

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