Government must clarify its intentions for Military Superannuation - 5 Apr 2007
It has been publicly alleged
that new superannuation regulations being drafted by Treasury apparently threaten
that from 1 July this year commuted lump-sum payouts from the Defence Force
Retirement and Death Benefits (DFRDB) Scheme will be taxed at double the current
The Australian Defence Association today criticised these alleged moves by the Howard Government. This follows numerous enquires to Labor members from Defence Personnel that have heard rumours of the same nature.
ADF members are anxious at what they are hearing about these proposed changes, with some even considering resignation before 1 July.
Labor finds it hard to believe that the Government would consider implementing such a change given the problems they are facing in recruitment and retention.
Given that there is clearly confusion regarding these changes among defence personnel and organisations such as the Australian Defence Association, the Government should publicly state its intentions in regards to the taxation of lump sum superannuation payments to ADF members. They should also guarantee that not one ADF member will be a single cent worse off under these new regulations.
The Government should clarify the situation immediately as the morale of current members is being severely affected by this confusion. With the current high tempo of Defence operations current ADF members should not have to spend their Easter break concerned about the security of their hard earned superannuation.