Karen Andrews (McPherson, Liberal Party) Share this | Hansard source

I am very pleased to outline my strong support for the Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Bill 2014, which delivers on a key coalition election commitment to provide fair indexation to the members of the Defence Forces Retirement Benefits scheme, the DFRB, and the Defence Force Retirement and Death Benefits scheme, the DFRDB. As we methodically work through delivering our election commitments, it is a reflection of our values that we have put this promise high on the list of priorities.

The coalition has a very proud history of advocating on behalf of our defence personnel and of affording the utmost respect to those who have served our nation in this noble way. We are very proud of the job our defence forces do. As a result we are determined to strengthen our nation's defence forces rather than weaken them, as Labor did in office. It is a national shame that under the Gillard and Rudd governments defence force spending as a proportion of GDP fell to just 1.59 per cent, the lowest level since 1938.

We are committed to stopping the defence budget cuts and to putting forward legislation like this bill where we ensure our ex-service men and women are treated fairly. Put simply, this legislation will ensure that indexation for DFRB and DFRDB pensions is calculated in the same way that age pensions currently are. Linking the indexation not only to CPI but to the Pensioner and Beneficiary Living Cost Index and male total average weekly earnings will mean a better deal for some 57,000 military superannuants.

Some of those listening at home might consider it an odd quirk that this has not already occurred. Why would you change age pension calculations to make them fairer and not extend that to military superannuants? But there is quite a history to this issue. I note that it was actually Labor that promised to introduce fair indexation for DFRB and DFRDB recipients, before they were first elected in 2007. But, as was to become their style, they did not actually deliver on their promise.

So the coalition made a commitment at the 2010 election to deliver indexation fairness if elected. Even after we narrowly lost the 2010 election, we introduced legislation to the Senate in November 2010 to provide fair, just and equitable indexation for DFRB and DFRDB military superannuants. And what was the Greens and Labor's response? In March 2011, they called for a Senate inquiry into the legislation, in typical Labor style, when there had already been more than half-a-dozen inquiries, all of which supported fair indexation. The Greens and Labor then used the inquiry to oppose fair indexation, the first time the parliament has ever opposed fair indexation. Then in June 2011, with Labor and the Greens voting it down in the Senate, the coalition's fair indexation legislation was defeated. So there is quite a history, and this bill finally reverses the injustice of that very shabby episode. There is a long list of what Labor did wrong during their terms in office, but the decision to oppose fair indexation of veterans' pensions was really a low point. And yet they stand up in this place and move an MPI like they did today and expect us to forget the shabby treatment they meted out to our veterans.

My electorate of McPherson is home to a very strong and active ex-service and veterans community. I note that some 483 McPherson residents are DFRB or DFRDB recipients. It is one of the most rewarding aspects of this job to be able to deliver just benefits and make our system fairer. I am very proud to support this legislation, just as I am always proud to support the work of my local RSLs and other veterans organisations. It is something very dear to my heart. My late father was a World War II veteran and became a tireless advocate as National Secretary and Treasurer of the Australian Federation of Totally and Permanently Incapacitated Ex Servicemen and Women. As someone who believed in a fair go, he would have been very pleased and proud that I have the opportunity to support this legislation today, to provide a better deal for deserving military superannuants. I wholeheartedly commend this bill to the House.

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