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Tuesday, 28 September 1993
Page: 1345

(Question No. 535)

Senator MacGibbon asked the Minister for Defence Science and Personnel, upon notice, on 25 August 1993:

  With reference to the 1993-94 Budget measures concerning unused annual leave and long service leave lump sum payments:

  (1) How will this measure affect members of the Australian Defence Force.

  (2) Are both the Defence Force Retirement and Death Benefits and Military Superannuation Schemes `approved early retirement schemes'.

Senator Faulkner —The answer to the honourable senator's question is as follows:

  (1) For the Australian Defence Force, unused long service leave lump sum payments accrued up to 17 August 1993 will continue to attract a concessional rate of tax. Future long service leave lump sum entitlements as well as all unused annual leave will be taxed as normal income. As announced in the Budget, existing concessions will remain for bona fide redundancies, invalidities and approved early retirement schemes. This is identical to the way the Budget measures apply to the rest of the community.

  (2) No. The Defence Force Retirement and Death Benefits Scheme and the Military Superannuation and Benefits Scheme are not early retirement schemes. They are Funds providing superannuation, invalidity and death benefits and are not to be confused with early retirement schemes which provide for the early termination for employment of employees. The Budget measures have no effect on the two military superannuation schemes.