Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

I rise to support the Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Bill 2014. This legislation implements the government's commitment to veterans and their families. This legislation will index the Defence Force Retirement Benefits, DFRB, scheme pensions and the Defence Force Retirement and Death Benefits, DFRDB, scheme pensions using the same methodology as age and service pensions. From 1 July 2014, these new arrangements will apply to superannuants aged 55 and over.

We are fulfilling our commitment because this government acknowledges the unique nature of military service. It is important that those who have served our nation not be treated differently from age and service pensioners. We have long believed in the need for fair indexation, first announcing our policy on 27 June 2010. We took fair indexation to the people at the 2010 election. Despite Labor retaining government, it was the coalition who introduced fair indexation legislation in the Senate on 18 November 2010. We did this because military superannuant recipients had waited too long for fair, just and equitable indexation. Unfortunately, our legislation was not supported by the Greens and Labor, who used a Senate inquiry to oppose the fair indexation and then voted to defeat the legislation on 16 June 2011. Since this time, members on this side of the House have remained committed to the introduction of fair indexation for military superannuants. As the then Leader of the Opposition, and now Prime Minister, Tony Abbott, rightly said in September 2011:

It has long been to me and my colleagues in the coalition, verging on the scandalous that defence retirees do not enjoy the same indexation arrangements as other people who have retired.

On 5 March 2012, Mr Abbott, together with the then shadow minister for veterans' affairs, signed the coalition's pledge to deliver fair indexation. In July 2013, I was honoured to join with the then shadow minister for veterans' affairs, Senator the Hon. Michael Ronaldson, and representatives from the Alliance of Defence Service Organisations—the ADSO—to sign the coalition's pledge to deliver fair indexation to 57,000 military superannuants and their families.

The ADSO has always been a staunch advocate for fair indexation. The ADSO was formed to protect and represent the Defence family's past and currently serving Australian Defence Force members and their immediate families. I am fortunate to have met and worked with the Central Coast ADSO members for over three years, and I commend them on their campaign and fight for fair indexation. I personally thank Robert Ihlein and Cliff Hobson of the Central Coast ADSO for taking the time to educate me on this important issue.

On 28 July 2010, the alliance launched the Fair Go Campaign, which championed the need for the fair indexation of military superannuation pensions. I would like to take a moment to share with the House the story of Robert Ihlein, the New South Wales ADSO state action group leader and a local resident of Dobell. Robert joined the Army in January 1968 and by October 1968 had completed his training and was posted to South Vietnam as a Sapper driver. Robert's career in the Army spanned 20 years, and in 1988 Robert took his discharge hoping that the DFRDB superannuation would keep pace with price increases over the following years. Unfortunately, this was not the case.

Robert first became involved in fighting for fair indexation of military superannuation in June 2011, shortly after the Senate rejected the coalition's bill. Robert remembers this time as quite an emotive one, after the betrayal of senators who had revoked their support for the legislation. In June 2012, the frustrations of Robert and the ADSO's fight for fair indexation was heightened when it was revealed that the DFRDB pension increase would be $0.81 per fortnight in line with the CPI increase. The ADSO has welcomed our legislation, and they have stated:

The Alliance of Defence Service Organisations (ADSO) thanks the Government for today introducing legislation to the House to restore fair indexation to DFRB and DFRDB military superannuation pensions.

They have also asked that all political parties and the Independents are encouraged to not block this long-awaited legislation.

In Dobell, this bill will benefit 329 individual recipients and their families. As the member for Dobell, I am honoured to be in this parliament representing members of the Central Coast community who committed their careers and lives to protect Australia's freedom. Our veterans and their families deserve fair indexation. The government has made the pledge to deliver this legislation, and I have personally made the pledge to deliver fair indexation to my community. It is now incumbent on those opposite to back what is fair—to back fair indexation and to allow the parliament to confirm our commitment to our nation's military superannuants. I commend this bill to the House.

See this speech in context