John Alexander (Bennelong, Liberal Party) Share this | Hansard source

I rise to support this bill which honours this government's election commitment to aged pensioners who have made the most selfless of decisions, to serve in our nation's defence forces. I am conscious of a very long list of coalition members who wish to speak on this important issue and will therefore keep my comments very brief. In contrast, I note a total of just two opposition speakers have taken an interest in this important issue.

This bill amends the Defence Forces Retirement Benefits Act 1948 and the Defence Force Retirement and Death Benefits Act 1973 to deliver the government's commitment to fairly index Defence Forces Retirement Benefits and Defence Force Retirement and Death Benefits pensions for recipients aged 55 and over from 1 July 2014. The veteran and ex-service community have long been advocating for governments to implement this change. This was an election commitment made by the previous Labor government in 2007. Yet, after the Labor government was elected, this commitment, like so many promises made by those on the other side, was not honoured. This represented a major slap in the face to those who have served our nation. In 2010 the coalition adopted this policy and, despite not winning government, we twice presented bills in this place to implement this change, only to be rejected by the Labor government. It is a pity it has taken this long to finally get to this point we are at here today, but it is not a surprise that it took the election of a coalition government to implement fair indexation for DFRB and DFRDB recipients.

I was honoured to sign a pledge that I would ensure, if elected, that this change would be presented to parliament. We have kept our word. Australia's veterans have risked all for our nation and they deserve better than the previous government, who said one thing before an election and another after. This bill shows that the coalition government understands the unique nature of military service. The bill will ensure recipients with significant past service but modest superannuation pensions will not incur a taxation liability resulting from these changes. Those on high annual incomes will not be excluded from an ongoing annual liability. The new measures extend fair indexation provisions to invalidity pensions, reversionary pensions and pensions for those associates in receipt of a pension as a result of a family law split who are aged 55 and over on the current relevant indexation date. From 1 July this year the proposed changes will immediately impact approximately 45,000 current DFRB and DFRDB pensioners aged 55 or over.

On behalf of all those Bennelong residents who have served our nation, and those who currently serve, I applaud the minister and this government for acting so quickly in our first term to honour this commitment. I commend this bill to the House.

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