Increased support for Australia's veterans and ex-service personnel

A Coalition Government will introduce new indexation arrangements for Defence Force Retirement and Death Benefits Scheme (DFRDB) members, said the Federal Member for Mitchell, Alex Hawke.

“This is an area of great concern which I have discussed with many local veterans and members of the ex-service community,” Mr Hawke said. “I have been pursuing this with the Shadow Ministry and spoke about this in Parliament earlier this year.”

Mr Hawke said that these changes recognise the unique nature of military service. Better indexation arrangements are a necessary part of a fair, equitable and fiscally responsible military superannuation system.

Under a Coalition government, from 1 July 2011 those DFRDB members aged 55 years or older will have their military superannuation pensions indexed to the greater of the Consumer Price Index (CPI), Male Total Average Weekly Earnings (MTAWE) or the Pensioner and Beneficiary Living Cost Index (PBLCI).

Currently this superannuation scheme is indexed only in line with movements with the CPI.

Widows of DFRDB superannuates will also benefit from the announced changes.

“Australia’s service personnel, past and present, deserve to live out their lives in the knowledge that they have financial security,” Mr Hawke said.

“Labor broke its election promise to ‘fix’ the issue of military superannuation indexation and this has yet another example that the Labor Government is all talk and no action.

“This is a fully costed and fully funded policy. Savings already identified by the Coalition will be used to offset the $98 million cost over the forward estimates. A further $100 million will be invested into the Future Fund as a first step towards funding the new arrangements beyond the forward estimates.”

This change brings into line the indexation of DFRDB superannuation with the aged pension. Currently DFRDB superannuation is indexed according to the CPI.

If the indexation rate had increased in line with the aged pension, military superannuates would have received an extra $28.40 per fortnight to their pension (if they received the full pension rate) in March this year. 

“We are committed to real action to support our veterans, and will ensure that those who have served their nation are properly looked after in their retirement,” Mr Hawke said.

“Military service is unique and unique solutions are required to recognise that service.”