Media Releases → 2014


New Military Superannuation Scheme Arrangements

Senator the Hon. Mathias Cormann
Minister for Finance

Senator the Hon. David Johnston
Minister for Defence

Date: Tuesday, 13 May 2014

The Abbott Government is introducing new modern military superannuation arrangements for people joining the Australian Defence Force (ADF).

The new arrangements will allow ADF members to choose which superannuation fund they belong to and, for the first time, give those members the ability to transfer their accumulated benefits to a new fund if they leave the ADF.

As part of these changes, the Government will establish ADF Super on 1 July 2016.

These new arrangements form an important part of the Government’s plan to provide flexible working conditions for all ADF members under Project Suakin, the ADF’s future workforce model.

ADF Super will apply to:

  • those joining the ADF from 1 July 2016; and
  • serving and returning members of the Military Superannuation and Benefits Scheme who choose to join the new scheme.

Importantly, current members of the Military Superannuation and Benefits Scheme who are currently serving or who rejoin the ADF from 1 July 2016 can choose to stay in that scheme, or to join ADF Super. There will be no compulsion to transfer to the new arrangements.

The current Military Superannuation and Benefits Scheme will be closed to new members from 1 July 2016.

Under the new arrangements, the employer contribution rate will be 15.4 per cent, increasing to 18 per cent during periods of warlike service in recognition of the unique nature of military service.

There will be no requirement for ADF members to contribute to their superannuation under the new arrangements. This will provide greater flexibility for individuals in how they manage their finances at various stages of their working life.

The Government recognises that military service can be a dangerous undertaking and will ensure ADF members continue to receive statutory cover for death and invalidity. Importantly, benefits under the new arrangements for these members will be the same as what exists under the current scheme.

ADF Super will be established and managed by the Commonwealth Superannuation Corporation, which is currently the trustee for the major Commonwealth schemes, including the current and past military superannuation schemes.

The introduction of modern superannuation arrangements for ADF members, combined with the delivery of new indexation for DFRB and DFRDB members, demonstrates the Government’s commitment to ensuring appropriate superannuation arrangements are available to current and former ADF members.

The Government will work with ex-service organisations such as the RSL, Defence Force Welfare Association and Alliance of Defence Service Organisations to ensure the successful introduction of the new superannuation arrangements.

This initiative is part of the Government’s Action Strategy to build a strong, prosperous economy and a safe and secure Australia.


Media Contact(s)

For Senator Cormann - Karen Wu - 0428 350 139
For Senator Johnston - Mark Dodd - 0477 389 560