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DEFENCE LEGISLATION AMENDMENT (SUPERANNUATION AND ADF COVER) BILL 2015

 

 

 

2013-2014-2015 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

Defence Legislation Amendment 

(Superannuation and ADF Cover) Bill 

2015 

 

No.      , 2015 

 

(Defence) 

 

 

 

A Bill for an Act to amend the law relating to 

defence and superannuation, and for related 

purposes 

   

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

i 

 

Contents 

Short title ........................................................................................... 1

 

Commencement ................................................................................. 1

 

Schedules ........................................................................................... 2

 

Schedule 1--Main amendments

 

4

 

Part 1--Amendments

 

4

 

Defence Act 1903

 

4

 

Defence Force Retirement and Death Benefits Act 1973

 

6

 

Future Fund Act 2006

 

11

 

Governance of Australian Government Superannuation Schemes Act 

2011

 

12

 

Income Tax Assessment Act 1997

 

14

 

Military Rehabilitation and Compensation Act 2004

 

14

 

Military Superannuation and Benefits Act 1991

 

15

 

Superannuation Act 2005

 

16

 

Superannuation Industry (Supervision) Act 1993

 

17

 

Superannuation (Resolution of Complaints) Act 1993

 

17

 

Part 2--Application provisions

 

19

 

Schedule 2--Flexible service arrangements in the Permanent 

Forces

 

21

 

Air Force Act 1923

 

21

 

Defence Act 1903

 

24

 

Defence Force Retirement and Death Benefits Act 1973

 

27

 

Naval Defence Act 1910

 

27

 

Schedule 3--Amendments contingent on the Acts and 

Instruments (Framework Reform) Act 2015

 

31

 

Australian Defence Force Superannuation Act 2015

 

31

 

 

 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

1 

 

A Bill for an Act to amend the law relating to 

defence and superannuation, and for related 

purposes 

The Parliament of Australia enacts: 

1  Short title 

 

  This Act may be cited as the Defence Legislation Amendment 

(Superannuation and ADF Cover) Act 2015

2  Commencement 

 

(1)  Each provision of this Act specified in column 1 of the table 

commences, or is taken to have commenced, in accordance with 

10 

column 2 of the table. Any other statement in column 2 has effect 

11 

according to its terms. 

12 

   

   

 

 

2 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

 

Commencement information 

Column 1 

Column 2 

Column 3 

Provisions 

Commencement 

Date/Details 

1.  Sections 1 to 3 

and anything in 

this Act not 

elsewhere covered 

by this table 

The day this Act receives the Royal Assent. 

 

2.  Schedule 1 

The later of: 

(a) the beginning of the day after this Act 

receives the Royal Assent; and 

(b) the commencement of the Australian 

Defence Force Superannuation Act 2015

However, the provisions do not commence 

at all if the event mentioned in paragraph (b) 

does not occur. 

 

3.  Schedule 2 

The later of: 

(a) the beginning of the day after this Act 

receives the Royal Assent; and 

(b) the beginning of 1 July 2016. 

 

4.  Schedule 3 

The later of: 

(a) immediately after the commencement of 

Schedule 1 to this Act; and 

(b) the commencement of Schedule 1 to the 

Acts and Instruments (Framework 

Reform) Act 2015

 

Note: 

This table relates only to the provisions of this Act as originally 

enacted. It will not be amended to deal with any later amendments of 

this Act. 

 

(2)  Any information in column 3 of the table is not part of this Act. 

Information may be inserted in this column, or information in it 

may be edited, in any published version of this Act. 

3  Schedules 

 

  Legislation that is specified in a Schedule to this Act is amended or 

repealed as set out in the applicable items in the Schedule 

10 

   

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

3 

 

concerned, and any other item in a Schedule to this Act has effect 

according to its terms. 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

4 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

Schedule 1

--Main amendments 

Part 1

--Amendments 

Defence Act 1903 

1  Part IIIAA (heading) 

Repeal the heading, substitute: 

Part IIIAA--Superannuation 

2  After section 52 

Insert: 

52A  Department's employer superannuation contributions 

 

(1)  This section applies in relation to a person if: 

10 

 

(a)  the person: 

11 

 

(i)  renders service as a member of the Permanent Forces on 

12 

or after 1 July 2016; or 

13 

 

(ii)  renders continuous full time naval, military or air force 

14 

service as a member of the Reserves on or after that day; 

15 

and 

16 

 

(b)  the person: 

17 

 

(i)  is a member of the Australian Defence Force 

18 

Superannuation Scheme; or 

19 

 

(ii)  would have been a member of ADF Super except that 

20 

another fund has become the person's chosen fund for 

21 

contributions by the Department. 

22 

Employer superannuation contributions 

23 

 

(2)  Each payday for the person, the Department must contribute to the 

24 

person's chosen fund, for the benefit of the person, 16.4% of the 

25 

ordinary time earnings paid by the Department for the person for 

26 

the pay period. 

27 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

5 

 

Definitions 

 

(3)  In this section: 

ADF Super has the meaning given by the Australian Defence 

Force Superannuation Act 2015

chosen fund for a person: 

 

(a)  if the person has chosen a fund under section 32F of the 

Superannuation Guarantee (Administration) Act 1992--has 

the same meaning as in that section; or 

 

(b)  otherwise--means ADF Super. 

ordinary time earnings for a person is the number of dollars in the 

10 

person's ordinary time earnings (within the ordinary meaning of 

11 

the expression): 

12 

 

(a)  including any payments of parental leave; but 

13 

 

(b)  excluding any amount that is deducted from those earnings 

14 

under a salary sacrifice arrangement. 

15 

payday for a person means the day on which the person's ordinary 

16 

time earnings are ordinarily paid for a pay period. 

17 

pay period for a person means the period in relation to which 

18 

person's ordinary time earnings are ordinarily paid. 

19 

52B  Providing information to CSC in relation to invalidity 

20 

 

  The Department may disclose information obtained by the 

21 

Department to CSC if: 

22 

 

(a)  the information relates to a person: 

23 

 

(i)  who has been, or is to be, retired from the Defence 

24 

Force; or 

25 

 

(ii)  whose service in the Defence Force has been, or is to be, 

26 

terminated; 

27 

 

  as a result of physical or mental impairment; and 

28 

 

(b)  the information is provided to CSC for the purposes of: 

29 

 

(i)  Part V of the Defence Force Retirement and Death 

30 

Benefits Act 1973 (invalidity benefits); or 

31 

 

(ii)  Division 2 of Part 3 of the Schedule to the Military 

32 

Superannuation and Benefits Trust Deed (invalidity 

33 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

6 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

benefits) made under section 4 of the Military 

Superannuation and Benefits Act 1991

Note: 

This section constitutes an authorisation for the purposes of other 

laws, such as the Privacy Act 1988

Defence Force Retirement and Death Benefits Act 1973 

3  Subsection 3(1) 

Insert: 

continuous full-time Reservist has the meaning given by the 

Australian Defence Force Superannuation Act 2015

4  Subsection 3(1) (definition of eligible child

10 

Omit "16" (wherever occurring), substitute "18". 

11 

5  Subsection 3(1) (subparagraphs (a)(i) and (ii) of the 

12 

definition of eligible member of the Defence Force

13 

After "re-engagement", insert "that occurred before 1 July 2016". 

14 

6  Subsection 3(1) (at the end of the definition of eligible 

15 

member of the Defence Force

16 

Add: 

17 

Note: 

For a continuous full-time Reservist whose engagement spans 30 June 

18 

2016, see section 5B. 

19 

7  Subsection 3(1) (subparagraph (a)(ii) of the definition of 

20 

period of effective service

21 

Omit "57 or 58", substitute "5B or 57". 

22 

8  Subsection 3(1) (paragraph (b) of the definition of period of 

23 

effective service

24 

Omit "subsection 62(3) or section". 

25 

9  Subsection 3(1) (definition of recipient member

26 

Repeal the definition, substitute: 

27 

recipient member

28 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

7 

 

 

(a)  means a member of the scheme who is entitled to retirement 

pay or invalidity pay; and 

 

(b)  includes a member of the scheme who, apart from the 

suspension of his or her invalidity pay under 

subsection 35(3), would be entitled to invalidity pay. 

10  Subsection 3(1) (definition of total period of effective 

service

Omit ", subject to subsections 62(4) and (5)". 

11  At the end of section 5 

Add: 

10 

 

(4)  Subsection (3) does not apply in relation to a person who is taken 

11 

to have retired under section 5B. 

12 

12  Paragraph 5A(2)(b) 

13 

Repeal the paragraph. 

14 

13  After section 5A 

15 

Insert: 

16 

5B  Continuous full-time Reservists whose engagements span 30 June 

17 

2016 

18 

 

(1)  This section applies if: 

19 

 

(a)  a person is an eligible member of the Defence Force; and 

20 

 

(b)  the person commences as a continuous full-time Reservist as 

21 

a result of an engagement that is made before 1 July 2016; 

22 

and 

23 

 

(c)  the period of the engagement is extended on or after that day. 

24 

 

(2)  For the purposes of this Act, the person is taken: 

25 

 

(a)  to have retired, but not at his or her own request, on the day 

26 

before the day (the extension day) the period of the 

27 

engagement is extended; and 

28 

 

(b)  to have commenced as a continuous full-time Reservist on 

29 

the extension day. 

30 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

8 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

Note: 

The effect of this section is that this Act applies in relation to service 

before the extension day, while the Australian Defence Force 

Superannuation Act 2015 applies in relation to service on and after the 

extension day. 

 

(3)  For the purposes of this Act, disregard as a period of effective 

service the service rendered on or after the extension day of any 

member who is taken to have retired under this section. 

14  Subsection 23(1) 

Repeal the subsection, substitute: 

 

(1)  A contributing member is entitled, on the member's retirement, to 

10 

retirement pay at the rate applicable to the member under this 

11 

section if: 

12 

 

(a)  the member retires and is not entitled to invalidity benefit; 

13 

and 

14 

 

(b)  on the member's retirement: 

15 

 

(i)  the member's total period of effective service is not less 

16 

than 20 years; or 

17 

 

(ii)  the member's total period of effective service is not less 

18 

than 15 years and the member has attained the retiring 

19 

age for the rank held by the member immediately before 

20 

the member's retirement. 

21 

15  Subsection 23(5) 

22 

Repeal the subsection. 

23 

16  Subsection 24(1A) 

24 

Omit "subsection 62(1) or (2)", substitute "section 62". 

25 

17  Paragraph 24(1B)(a) 

26 

Omit "subsection 62(1)", substitute "section 62". 

27 

18  Paragraphs 24(2A)(a) and (b) 

28 

Repeal the paragraphs, substitute: 

29 

 

(a)  any amount or amounts specified in any previous election or 

30 

elections by the person, under this section or section 32A of 

31 

this Act, to commute a portion or portions of his or her 

32 

retirement pay or invalidity pay, as the case may be; and 

33 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

9 

 

 

(b)  any amount paid to the person as a result of an application, 

under section 74 of the previous Act, to commute a portion of 

any pension payable to him or her under that Act reduced by 

any amount or amounts required, under subsection 69(1B) or 

69(3A) of the previous Act, to be paid by the person to the 

Defence Forces Retirement Benefits Fund established under 

the previous Act, in respect of that commutation; 

19  Subsections 24(5) to (7) 

Repeal the subsections. 

20  Subsection 30(3) 

10 

Omit "subsection 62(1)", substitute "section 62". 

11 

21  Subsection 32A(1A) 

12 

Omit "subsection 62(1) or (2)", substitute "section 62". 

13 

22  Paragraphs 32A(4)(a) and (b) 

14 

Repeal the paragraphs, substitute: 

15 

 

(a)  any amount or amounts specified in any previous election or 

16 

elections by the member, under this section or section 24 of 

17 

this Act, to commute a portion or portions of his or her 

18 

retirement pay or invalidity pay, as the case may be; and 

19 

 

(b)  any amount paid to the member as a result of an application, 

20 

under section 74 of the previous Act, to commute a portion of 

21 

any pension payable to him or her under that Act reduced by 

22 

any amount or amounts required, under subsection 69(1B) or 

23 

69(3A) of the previous Act, to be paid by the member to the 

24 

Defence Forces Retirement Benefits Fund established under 

25 

the previous Act in respect of that commutation; 

26 

23  Subsection 49Q(1) 

27 

Repeal the subsection, substitute: 

28 

 

(1)   If: 

29 

 

(a)  a person's invalidity pay, worked out having regard to 

30 

section 49N, is cancelled under section 62; and 

31 

 

(b)  after that cancellation, the person becomes entitled to 

32 

retirement pay or invalidity pay; 

33 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

10 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

the rate of the person's retirement pay or invalidity pay mentioned 

in paragraph (b) is to be reduced in accordance with section 49N. 

24  Subsection 49Q(2) 

Omit "retirement pay or". 

25  Section 58 

Repeal the section. 

26  Sections 61B to 61D 

Repeal the sections. 

27  Subsection 62(1) 

Omit "(1)". 

10 

28  Subsection 62(1) 

11 

Omit "retirement pay or invalidity pay, as the case may be,", substitute 

12 

"or her invalidity pay". 

13 

29  At the end of subsection 62(1) 

14 

Add "(except if the rate of the invalidity pay is determined under 

15 

subsection 31(3))". 

16 

30  Subsections 62(2) to (8) 

17 

Repeal the subsections. 

18 

31  At the end of sections 63 and 64 

19 

Add: 

20 

 

(3)  This section does not apply in relation to a person who is taken to 

21 

have retired under section 5B. 

22 

32  Section 98C 

23 

Omit ", 61C(1), 61D(2) or 135(2)". 

24 

33  Subsection 102(1) 

25 

After "Part", insert "or Part 5 of the Australian Defence Force Cover 

26 

Act 2015". 

27 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

11 

 

34  Subsection 102(1) (note) 

After "Note", insert "1". 

35  At the end of subsection 102(1) 

Add: 

Note 2: 

Part 5 of the Australian Defence Force Cover Act 2015 provides for 

CSC to refer to the Panel a decision of CSC under that Act if a person 

affected by the decision requests CSC to reconsider the decision. 

36  Subsection 106(1) 

After "referred to it", insert "under section 99". 

37  At the end of subsection 106(1) 

10 

Add: 

11 

Note: 

Part 5 of the Australian Defence Force Cover Act 2015 contains 

12 

similar provisions for CSC to take into account recommendations of 

13 

the Panel relating to decisions referred to it under that Part, and to 

14 

confirm or vary those decisions or set them aside and substitute new 

15 

decisions. 

16 

38  Subsection 135(1) 

17 

Omit "(1)". 

18 

39  Subsection 135(2) 

19 

Repeal the subsection. 

20 

Future Fund Act 2006 

21 

40  Section 5 (after paragraph (g) of the definition of 

22 

superannuation benefit

23 

Insert: 

24 

 

(ga)  the Australian Defence Force Cover Act 2015; or 

25 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

12 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

Governance of Australian Government Superannuation 

Schemes Act 2011 

41  After subparagraph 3(b)(iv) 

Insert: 

 

 or (v)  the Australian Defence Force Superannuation Act 2015

or 

 

(vi)  the Australian Defence Force Cover Act 2015

42  Section 4 (after paragraph (d) of the definition of Act 

administered by CSC

Insert: 

10 

 

(da)  the Australian Defence Force Superannuation Act 2015; or 

11 

 

(db)  the Australian Defence Force Cover Act 2015; or 

12 

43  Section 4 

13 

Insert: 

14 

ADF Cover (short for the Australian Defence Force Cover 

15 

Scheme) means the scheme provided for by the Australian Defence 

16 

Force Cover Act 2015

17 

ADF Super (short for the Australian Defence Force 

18 

Superannuation Scheme) has the same meaning as in the 

19 

Australian Defence Force Superannuation Act 2015

20 

ADF Super Fund has the same meaning as in the Australian 

21 

Defence Force Superannuation Act 2015

22 

44  Section 4 (at the end of the definition of governing deed

23 

Add: 

24 

 

; or (d)  in relation to the ADF Super--the Trust Deed (within the 

25 

meaning of the Australian Defence Force Superannuation 

26 

Act 2015). 

27 

45  Section 4 (definition of military schemes

28 

Repeal the definition, substitute: 

29 

military schemes means: 

30 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

13 

 

 

(a)  the DFRB, DFRDB, DFSPB, MSB, ADF Super or ADF 

Cover; or 

 

(b)  the DFRB, DFRDB, DFSPB, MSB, ADF Super and ADF 

Cover. 

46  Section 4 (after paragraph (b) of the definition of 

superannuation fund administered by CSC

Insert: 

 

(ba)  the ADF Super Fund; or 

47  Section 4 (after paragraph (f) of the definition of 

superannuation scheme administered by CSC

10 

Insert: 

11 

 

(fa)  the ADF Super; or 

12 

 

(fb)  the ADF Cover; or 

13 

48  After paragraph 8(3)(d) 

14 

Insert: 

15 

 

or (e)  the Australian Defence Force Superannuation Act 2015; or 

16 

 

(f)  the Australian Defence Force Cover Act 2015

17 

49  Subparagraph 30(1)(c)(i) 

18 

After "DFSPB", insert ", ADF Cover". 

19 

50  After paragraph 30(2)(b) 

20 

Insert: 

21 

 

(ba)  the Australian Defence Force Cover Act 2015; and 

22 

51  Paragraphs 34(1)(b) and (2)(b) and 35(3)(a) 

23 

After "DFSPB", insert ", ADF Cover". 

24 

52  Subsection 35(5) 

25 

After "Act)", insert ", and the Australian Defence Force 

26 

Superannuation Act 2015 and the Trust Deed (within the meaning of 

27 

that Act)". 

28 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

14 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

53  Subsection 36(2) (cell at table item 1, column headed 

"If 

the decision was made by CSC or its delegate under 

...

") 

Repeal the cell, substitute: 

 

(a) the Defence Force Retirement 

and Death Benefits Act 1973 or 

regulations made under that 

Act; or 

(b) the Defence Forces Retirement 

Benefits Act 1948 or regulations 

made under that Act; or 

(c) the Australian Defence Force 

Cover Act 2015 or rules made 

under that Act 

Income Tax Assessment Act 1997 

54  After paragraph 55-5(1)(c) 

Insert: 

 

(ca)  Australian Defence Force Superannuation Act 2015

 

(cb)  Australian Defence Force Cover Act 2015

10 

Military Rehabilitation and Compensation Act 2004 

11 

55  Subsection 5(1) (paragraphs (aa) and (a) of the definition 

12 

of Commonwealth superannuation scheme

13 

After "authority" (last occurring), insert "and the Australian Defence 

14 

Force Cover Act 2015". 

15 

56  Subsection 5(1) (at the end of paragraph (b) of the 

16 

definition of Commonwealth superannuation scheme

17 

Add "or the Australian Defence Force Cover Act 2015". 

18 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

15 

 

Military Superannuation and Benefits Act 1991 

57  Subsection 3(1) 

Insert: 

member of the Scheme has the meaning given by sections 6 and 7. 

58  Section 6 

Repeal the section, substitute: 

6  Membership of Superannuation Scheme 

 

(1)  Each of the following persons is a member of the Scheme: 

 

(a)  a person who is a member of the Permanent Forces; 

 

(b)  a member of the Reserves: 

10 

 

(i)  whose undertaking to render a period of continuous 

11 

full-time service has been accepted; and 

12 

 

(ii)  who is rendering that continuous service under the 

13 

undertaking. 

14 

 

(2)  This section is subject to section 7. 

15 

7  Persons excluded from membership of Superannuation Scheme 

16 

Defence Force Retirement and Death Benefits scheme 

17 

 

(1)  A person is not a member of the Scheme if the person is an eligible 

18 

member of the Defence Force for the purposes of the DFRDB Act. 

19 

Those commencing on or after 1 July 2016 

20 

 

(2)  A person is not a member of the Scheme if: 

21 

 

(a)  the person does not have a preserved benefit that includes an 

22 

amount of employer benefit; and 

23 

 

(b)  on or after 1 July 2016: 

24 

 

(i)  the person becomes a member of the Permanent Forces; 

25 

or 

26 

 

(ii)  the person, as a member of the Reserves, begins to 

27 

render continuous full-time service under an 

28 

undertaking that has been accepted. 

29 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

16 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

Those choosing Australian Defence Force Superannuation 

 

(3)  A person is not a member of the Scheme if the person has chosen 

to become an ADF Super member under section 12 of the 

Australian Defence Force Superannuation Act 2015 (whether or 

not the person is still an ADF Super member). 

59  After section 48 

Insert: 

48A  CSC may rely on information supplied by the Department 

 

(1)  For the purposes of the Trust Deed in its application to or in 

respect of a person who is or has been a member of the Scheme, 

10 

CSC may presume that any information provided to CSC by the 

11 

Department is correct. 

12 

 

(2)  If a tribunal, authority or person is empowered: 

13 

 

(a)  to review a decision of CSC under this Act, the regulations or 

14 

the Trust Deed; and 

15 

 

(b)  to vary, or make a decision in substitution for, CSC's 

16 

decision under this Act, the regulations or the Trust Deed; 

17 

the tribunal, authority or person is not bound by any presumption 

18 

made by CSC under subsection (1). 

19 

60  Paragraph 51(a) 

20 

After "CSC", insert "or an employee of CSC". 

21 

Superannuation Act 2005 

22 

61  After subsection 5(1) 

23 

Insert: 

24 

 

(1A)  To avoid doubt, a person who is a member of the Defence Force is 

25 

not a public sector employee by reason only of being a member of 

26 

the Defence Force. 

27 

Main amendments  Schedule 1 

Amendments  Part 1 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

17 

 

Superannuation Industry (Supervision) Act 1993 

62  Subsection 68AA(9) 

Repeal the subsection, substitute: 

 

(9)  This section does not apply to: 

 

(a)  a defined benefit member; or 

 

(b)  an ADF Super member (within the meaning of the Australian 

Defence Force Superannuation Act 2015); or 

 

(c)  a person who would be an ADF Super member apart from the 

fact that the regulated superannuation fund is or was, for the 

purposes of Part 3A of the Superannuation Guarantee 

10 

(Administration) Act 1992, a chosen fund for contributions 

11 

for the person's superannuation by the Commonwealth. 

12 

Superannuation (Resolution of Complaints) Act 1993 

13 

63  After section 4B 

14 

Insert: 

15 

4C  Application of Act in relation to Australian Defence Force Cover 

16 

 

(1)  This Act applies in relation to the scheme provided for by the 

17 

Australian Defence Force Cover Act 2015 as if: 

18 

 

(a)  the scheme were a regulated superannuation fund; and 

19 

 

(b)  a covered ADF member (as defined in that Act) were a 

20 

member of the fund; and 

21 

 

(c)  subparagraph (a)(ii) of the definition of death benefit in 

22 

subsection 3(2) of this Act and subparagraph (a)(ii) of the 

23 

definition of disability benefit in that subsection had not been 

24 

enacted; and 

25 

 

(d)  subparagraph 36(b)(ii) had not been enacted; and 

26 

 

(e)  in connection with a complaint relating to the scheme, 

27 

paragraphs 64(b) and 65(1)(b) of this Act required the 

28 

Tribunal Chairperson to give particulars of a contravention of 

29 

a law, or of a refusal or failure by a party to the complaint to 

30 

give effect to a determination by the Tribunal, to both the 

31 

Schedule 1  Main amendments 

Part 1  Amendments 

 

 

18 

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2015 

No.      , 2015 

 

following Ministers instead of to APRA or ASIC (or both 

APRA and ASIC): 

 

(i)  the Minister administering the Australian Defence 

Force Cover Act 2015

 

(ii)  the Minister administering the Public Governance, 

Performance and Accountability Act 2013

 

(2)  Paragraph (1)(b) does not limit section 4B. 

Main amendments  Schedule 1 

Application provisions  Part 2 

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

19 

 

Part 2

--Application provisions 

64  Application of section 52A of the Defence Act 1903 

Section 52A of the Defence Act 1903 (as inserted by this Schedule) 

applies on and after 1 July 2016. 

65  Application of section 52B of the Defence Act 1903 

Section 52B of the Defence Act 1903 (as inserted by this Schedule) 

applies in relation to any information, whether the information was 

obtained before or after this item commences. 

66  Application of amendments of the Defence Force 

Retirement and Death Benefits Act 1973 

10 

(1) 

The amendments of the Defence Force Retirement and Death Benefits 

11 

Act 1973 made by this Schedule apply (subject to this item) on and after 

12 

1 July 2016. 

13 

(2) 

The amendments or repeals of the following provisions of the Defence 

14 

Force Retirement and Death Benefits Act 1973 do not apply in relation 

15 

to any suspension of retirement pay or invalidity pay under section 61C 

16 

or 61D of that Act that is in force immediately before 1 July 2016: 

17 

 

(a)  the definition of recipient member in subsection 3(1); 

18 

 

(b)  sections 61C and 61D; 

19 

 

(c)  section 98C. 

20 

(3) 

The amendments or repeals of the provisions of the Defence Force 

21 

Retirement and Death Benefits Act 1973 referred to in subitem (4) do 

22 

not apply in relation to any cancellation of retirement pay that occurs 

23 

under subsection 62(1) or (2) of that Act: 

24 

 

(a)  before 1 July 2016; or 

25 

 

(b)  on or after 1 July 2016 as a result of being taken to have 

26 

retired under section 5B of that Act. 

27 

(4) 

The provisions of the Defence Force Retirement and Death Benefits Act 

28 

1973 are the following: 

29 

 

(a)  section 23; 

30 

 

(b)  section 24; 

31 

Schedule 1  Main amendments 

Part 2  Application provisions 

 

 

20 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

 

(c)  section 30; 

 

(d)  section 32A; 

 

(e)  section 49Q; 

 

(f)  section 58; 

 

(g)  section 135. 

Flexible service arrangements in the Permanent Forces  Schedule 2 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

21 

 

Schedule 2

--Flexible service arrangements in 

the Permanent Forces 

   

Air Force Act 1923 

1  After section 4G 

Insert: 

4H  Flexible service arrangements for members of the Permanent 

Air Force 

General determinations 

 

(1)  The Chief of Air Force may determine, in writing: 

10 

 

(a)  a class of persons who are members of the Permanent Air 

11 

Force who may render flexible service instead of continuous 

12 

full time air-force service; and 

13 

 

(b)  a period of service, or pattern of service, that constitutes that 

14 

flexible service. 

15 

Note: 

A person may choose not to apply to render flexible service even if the 

16 

person is in a class of persons in relation to whom a determination is 

17 

made under this subsection. 

18 

Application to render flexible service 

19 

 

(2)  A person who is a member of the Permanent Air Force may, in 

20 

writing, apply to the Chief of Air Force to render flexible service 

21 

instead of continuous full time air-force service (whether or not the 

22 

person is in a class of persons covered by a determination made 

23 

under subsection (1)). 

24 

Approving and refusing application to render flexible service 

25 

 

(3)  The Chief of Air Force may determine, in writing: 

26 

 

(a)  that a person who has applied under subsection (2) to render 

27 

flexible service may render that service; and 

28 

 

(b)  the period of service, or pattern of service, that constitutes 

29 

that flexible service; and 

30 

Schedule 2  Flexible service arrangements in the Permanent Forces 

   

 

 

22 

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2015 

No.      , 2015 

 

 

(c)  the period during which the determination is in force. 

Note: 

The determination may be varied or revoked (see subsections (7), (9) 

and (10)). 

 

(4)  Without limiting subsection (3), if a person is in a class of persons 

covered by a determination made under subsection (1), the Chief of 

Air Force may: 

 

(a)  still refuse the person's application; or 

 

(b)  determine under subsection (3) a different period of service, 

or pattern of service, from the period or pattern determined 

under subsection (1); 

10 

but only if the Chief of Air Force is satisfied that it is appropriate 

11 

to do so because of operational or other requirements of the 

12 

Permanent Air Force. 

13 

Flexible service taken to be continuous full time air-force service 

14 

for certain purposes 

15 

 

(5)  A person rendering flexible service in accordance with a 

16 

determination under subsection (3) is taken to be rendering 

17 

continuous full time air-force service for the purposes of the 

18 

following: 

19 

 

(a)  section 120B of the Defence Act 1903

20 

 

(b)  the Defence Force Discipline Act 1982

21 

 

(c)  the Defence Force Retirement and Death Benefits Act 1973

22 

 

(d)  the Military Superannuation and Benefits Act 1991

23 

 

(e)  a determination made for the purposes of section 58B or 58H 

24 

of the Defence Act 1903

25 

 

(f)  any instrument made for the purposes of a provision or Act 

26 

referred to in any of paragraphs (a) to (d); 

27 

 

(g)  any other Act, instrument or provision prescribed by the 

28 

regulations. 

29 

Determination may deal with the treatment of flexible service 

30 

 

(6)  Without limiting subsection (1) or (3), a determination under that 

31 

subsection in relation to a person or class of persons may deal with: 

32 

 

(a)  the treatment of flexible service (including how remuneration 

33 

and allowances are to be treated) for the person or persons in 

34 

that class; and 

35 

Flexible service arrangements in the Permanent Forces  Schedule 2 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

23 

 

 

(b)  whether, when the person or persons in that class are 

rendering flexible service, the person or persons are fulfilling 

their obligation to render continuous full time air-force 

service under section 4G. 

Varying and revoking determinations--Chief of Air Force 

 

(7)  The Chief of Air Force may, at any time, vary or revoke a 

determination under subsection (1) or (3). 

 

(8)  A determination under subsection (3) in relation to a person is 

taken to be revoked if: 

 

(a)  the person is appointed to a position under section 179, 

10 

188FB, 188FL, 188GF or 188GP of the Defence Force 

11 

Discipline Act 1982; or 

12 

 

(b)  the person ceases to be a member of the Permanent Air 

13 

Force; or 

14 

 

(c)  the person is in a class of persons covered by a determination 

15 

made under subsection (1) that is revoked. 

16 

Revoking determinations--directions by Chief of the Defence 

17 

Force 

18 

 

(9)  The Chief of the Defence Force may at any time direct, in writing, 

19 

the Chief of Air Force to revoke a determination under 

20 

subsection (3) if the Chief of the Defence Force is satisfied that it 

21 

is appropriate to do so because of operational or other requirements 

22 

of the Defence Force. 

23 

 

(10)  The Chief of Air Force must comply with a direction given under 

24 

subsection (9). 

25 

Status of determinations 

26 

 

(11)  A determination under subsection (1) or (3), and a direction under 

27 

subsection (9), are not legislative instruments. 

28 

2  After subsection 8A(1) 

29 

Insert: 

30 

Schedule 2  Flexible service arrangements in the Permanent Forces 

   

 

 

24 

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2015 

No.      , 2015 

 

 

(1AA)  The Chief of Air Force may, by instrument in writing, delegate his 

or her powers under section 4H to an officer of the Permanent Air 

Force who holds a rank not below the rank of Air Commodore. 

Defence Act 1903 

3  After section 45 

Insert: 

46  Flexible service arrangements for members of the Regular Army 

General determinations 

 

(1)  The Chief of Army may determine, in writing: 

 

(a)  a class of persons who are members of the Regular Army 

10 

who may render flexible service instead of continuous full 

11 

time military service; and 

12 

 

(b)  a period of service, or pattern of service, that constitutes that 

13 

flexible service. 

14 

Note: 

A person may choose not to apply to render flexible service even if the 

15 

person is in a class of persons in relation to whom a determination is 

16 

made under this subsection. 

17 

Application to render flexible service 

18 

 

(2)  A person who is a member of the Regular Army may, in writing, 

19 

apply to the Chief of Army to render flexible service instead of 

20 

continuous full time military service (whether or not the person is 

21 

in a class of persons covered by a determination made under 

22 

subsection (1)). 

23 

Approving and refusing application to render flexible service 

24 

 

(3)  The Chief of Army may determine, in writing: 

25 

 

(a)  that a person who has applied under subsection (2) to render 

26 

flexible service may render that service; and 

27 

 

(b)  the period of service, or pattern of service, that constitutes 

28 

that flexible service; and 

29 

 

(c)  the period during which the determination is in force. 

30 

Flexible service arrangements in the Permanent Forces  Schedule 2 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

25 

 

Note: 

The determination may be varied or revoked (see subsections (7), (9) 

and (10)). 

 

(4)  Without limiting subsection (3), if a person is in a class of persons 

covered by a determination made under subsection (1), the Chief of 

Army may: 

 

(a)  still refuse the person's application; or 

 

(b)  determine under subsection (3) a different period of service, 

or pattern of service, from the period or pattern determined 

under subsection (1); 

but only if the Chief of Army is satisfied that it is appropriate to do 

10 

so because of operational or other requirements of the Regular 

11 

Army. 

12 

Flexible service taken to be continuous full time military service 

13 

for certain purposes 

14 

 

(5)  A person rendering flexible service in accordance with a 

15 

determination under subsection (3) is taken to be rendering 

16 

continuous full time military service for the purposes of the 

17 

following: 

18 

 

(a)  section 120B of this Act; 

19 

 

(b)  the Defence Force Discipline Act 1982

20 

 

(c)  the Defence Force Retirement and Death Benefits Act 1973

21 

 

(d)  the Military Superannuation and Benefits Act 1991

22 

 

(e)  a determination made for the purposes of section 58B or 58H 

23 

of this Act; 

24 

 

(f)  any instrument made for the purposes of a provision or Act 

25 

referred to in any of paragraphs (a) to (d); 

26 

 

(g)  any other Act, instrument or provision prescribed by the 

27 

regulations. 

28 

Determination may deal with the treatment of flexible service 

29 

 

(6)  Without limiting subsection (1) or (3), a determination under that 

30 

subsection in relation to a person or class of persons may deal with: 

31 

 

(a)  the treatment of flexible service (including how remuneration 

32 

and allowances are to be treated) for the person or persons in 

33 

that class; and 

34 

Schedule 2  Flexible service arrangements in the Permanent Forces 

   

 

 

26 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

 

(b)  whether, when the person or persons in that class are 

rendering flexible service, the person or persons are fulfilling 

their obligation to render continuous full time military 

service under section 45. 

Varying or revoking determinations--Chief of Army 

 

(7)  The Chief of Army may, at any time, vary or revoke a 

determination under subsection (1) or (3). 

 

(8)  A determination under subsection (3) in relation to a person is 

taken to be revoked if: 

 

(a)  the person is appointed to a position under section 179, 

10 

188FB, 188FL, 188GF or 188GP of the Defence Force 

11 

Discipline Act 1982; or 

12 

 

(b)  the person ceases to be a member of the Regular Army; or 

13 

 

(c)  the person is in a class of persons covered by a determination 

14 

made under subsection (1) that is revoked. 

15 

Revoking determinations--directions by Chief of the Defence 

16 

Force 

17 

 

(9)  The Chief of the Defence Force may at any time direct, in writing, 

18 

the Chief of Army to revoke a determination under subsection (3) 

19 

if the Chief of the Defence Force is satisfied that it is appropriate to 

20 

do so because of operational or other requirements of the Defence 

21 

Force. 

22 

 

(10)  The Chief of Army must comply with a direction given under 

23 

subsection (9). 

24 

Status of determinations 

25 

 

(11)  A determination under subsection (1) or (3), and a direction under 

26 

subsection (9), are not legislative instruments. 

27 

4  Subsection 120A(4AA) 

28 

Omit "and section", insert "and sections 46 and". 

29 

Flexible service arrangements in the Permanent Forces  Schedule 2 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

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27 

 

Defence Force Retirement and Death Benefits Act 1973 

5  At the end of section 19 

Add: 

 

(3)  If a member is rendering flexible service in accordance with a 

determination under subsection 32(3) of the Naval Defence Act 

1910, subsection 46(3) of the Defence Act 1903 or 

subsection 4H(3) of the Air Force Act 1923, then the fortnightly 

rate of pay applicable to the member is the rate of pay that would 

have been applicable if the member were not rendering that 

flexible service. 

10 

Naval Defence Act 1910 

11 

6  After section 31 

12 

Insert: 

13 

32  Flexible service arrangements for members of the Permanent 

14 

Navy 

15 

General determinations 

16 

 

(1)  The Chief of Navy may determine, in writing: 

17 

 

(a)  a class of persons who are members of the Permanent Navy 

18 

who may render flexible service instead of continuous full 

19 

time naval service; and 

20 

 

(b)  a period of service, or pattern of service, that constitutes that 

21 

flexible service. 

22 

Note: 

A person may choose not to apply to render flexible service even if the 

23 

person is in a class of persons in relation to whom a determination is 

24 

made under this subsection. 

25 

Application to render flexible service 

26 

 

(2)  A person who is a member of the Permanent Navy may, in writing, 

27 

apply to the Chief of Navy to render flexible service instead of 

28 

continuous full time naval service (whether or not the person is in a 

29 

class of persons covered by a determination made under 

30 

subsection (1)). 

31 

Schedule 2  Flexible service arrangements in the Permanent Forces 

   

 

 

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No.      , 2015 

 

Approving and refusing application to render flexible service 

 

(3)  The Chief of Navy may determine, in writing: 

 

(a)  that a person who has applied under subsection (2) to render 

flexible service may render that service; and 

 

(b)  the period of service, or pattern of service, that constitutes 

that flexible service; and 

 

(c)  the period during which the determination is in force. 

Note: 

The determination may be varied or revoked (see subsections (7), (9) 

and (10)). 

 

(4)  Without limiting subsection (3), if a person is in a class of persons 

10 

covered by a determination made under subsection (1), the Chief of 

11 

Navy may: 

12 

 

(a)  still refuse the person's application; or 

13 

 

(b)  determine under subsection (3) a different period of service, 

14 

or pattern of service, from the period or pattern determined 

15 

under subsection (1); 

16 

but only if the Chief of Navy is satisfied that it is appropriate to do 

17 

so because of operational or other requirements of the Permanent 

18 

Navy. 

19 

Flexible service taken to be continuous full time naval service for 

20 

certain purposes 

21 

 

(5)  A person rendering flexible service in accordance with a 

22 

determination under subsection (3) is taken to be rendering 

23 

continuous full time naval service for the purposes of the 

24 

following: 

25 

 

(a)  section 120B of the Defence Act 1903

26 

 

(b)  the Defence Force Discipline Act 1982

27 

 

(c)  the Defence Force Retirement and Death Benefits Act 1973

28 

 

(d)  the Military Superannuation and Benefits Act 1991

29 

 

(e)  a determination made for the purposes of section 58B or 58H 

30 

of the Defence Act 1903

31 

 

(f)  any instrument made for the purposes of a provision or Act 

32 

referred to in any of paragraphs (a) to (d); 

33 

 

(g)  any other Act, instrument or provision prescribed by the 

34 

regulations. 

35 

Flexible service arrangements in the Permanent Forces  Schedule 2 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

29 

 

Determination may deal with the treatment of flexible service 

 

(6)  Without limiting subsection (1) or (3), a determination under that 

subsection in relation to a person or class of persons may deal with: 

 

(a)  the treatment of flexible service (including how remuneration 

and allowances are to be treated) for the person or persons in 

that class; and 

 

(b)  whether, when the person or persons in that class are 

rendering flexible service, the person or persons are fulfilling 

their obligation to render continuous full time naval service 

under section 31. 

10 

Varying or revoking determinations--Chief of Navy 

11 

 

(7)  The Chief of Navy may, at any time, vary or revoke a 

12 

determination under subsection (1) or (3). 

13 

 

(8)  A determination under subsection (3) in relation to a person is 

14 

taken to be revoked if: 

15 

 

(a)  the person is appointed to a position under section 179, 

16 

188FB, 188FL, 188GF or 188GP of the Defence Force 

17 

Discipline Act 1982; or 

18 

 

(b)  the person ceases to be a member of the Permanent Navy; or 

19 

 

(c)  the person is in a class of persons covered by a determination 

20 

made under subsection (1) that is revoked. 

21 

Revoking determinations--directions by Chief of the Defence 

22 

Force 

23 

 

(9)  The Chief of the Defence Force may at any time direct, in writing, 

24 

the Chief of Navy to revoke a determination under subsection (3) if 

25 

the Chief of the Defence Force is satisfied that it is appropriate to 

26 

do so because of operational or other requirements of the Defence 

27 

Force. 

28 

 

(10)  The Chief of Navy must comply with a direction given under 

29 

subsection (9). 

30 

Status of determinations 

31 

 

(11)  A determination under subsection (1) or (3), and a direction under 

32 

subsection (9), are not legislative instruments. 

33 

Schedule 2  Flexible service arrangements in the Permanent Forces 

   

 

 

30 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

No.      , 2015 

 

7  After subsection 44B(3) 

Insert: 

 

(3AA)  The Chief of Navy may, by instrument in writing, delegate his or 

her powers under section 32 to an officer of the Permanent Navy 

who holds a rank not below the rank of Commodore. 

Amendments contingent on the Acts and Instruments (Framework Reform) Act 2015  

Schedule 3 

   

 

 

No.      , 2015 

Defence Legislation Amendment (Superannuation and ADF Cover) Bill 

2015 

31 

 

Schedule 3

--Amendments contingent on the 

Acts and Instruments (Framework 

Reform) Act 2015 

   

Australian Defence Force Superannuation Act 2015 

1  Subsection 7(2) 

Omit "Legislative Instruments Act 2003", substitute "Legislation Act 

2003". 

2  Subsection 8(5) 

Repeal the subsection, substitute: 

10 

 

(5)  Despite regulations made for the purposes of paragraph 44(2)(b) of 

11 

the Legislation Act 2003, section 42 (disallowance) of that Act 

12 

applies to an instrument under subsection (1) of this section. 

13 

3  Subsection 21(3) 

14 

Omit "Legislative Instruments Act 2003", substitute "Legislation Act 

15 

2003". 

16 

 


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