Explanatory Memorandum
(Circulated by the authority of the Minister for Veterans and Defence Personnel, the Honourable Darren Chester MP)Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Defence Legislation Amendment (Miscellaneous Measures) Bill 2020
This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
1. This Bill contains two measures:
- a.
- to amend the Defence Home Ownership Assistance Scheme Act 2008 to extend the period after a member leaves the Australian Defence Force (ADF) when they can access the Defence Home Ownership Assistance Scheme from two years to five years (Schedule 1); and
- b.
- to amend the Australian Defence Force Superannuation Act 2015 to clarify that ADF Super can be opened up so that former ADF members can continue to make contributions to their ADF Super accounts, and to make associated amendments to the Superannuation Industry (Supervision) Act 1993 (Schedule 2).
Schedule 1: Defence Home Ownership Assistance Scheme Act 2008 (DHOAS measure)
Overview and background to the measure
2. The amendments will increase the period during which an ADF member who leaves the ADF can access the home loan subsidy under this scheme. Currently, veterans who have completed sufficient service to be eligible for the subsidy must apply for a subsidy certificate within two years of leaving the ADF. A subsidy certificate is in force for a maximum of 12 months, and former ADF members are unable to apply for a second certificate. The practical effect is that veterans must have applied for the subsidy certificate within two years of leaving the ADF, and generally have purchased a home with an eligible home loan within three years of leaving the ADF.
3. Given the significance of the transition process for ADF members moving into civilian life, this is not always enough time for veterans and their families to consider all of their options in relation to purchasing a home. Extending the period for applying for a subsidy certificate from two years to five years means that veterans and their families will not be rushed into making this important decision.
Human rights implications
4. This measure promotes the right to an adequate standard of living in Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR), in particular as it relates to housing. The amendments expand access to the Defence Home Ownership Assistance Scheme, which provides a subsidy for serving and former ADF members to enhance their capacity to purchase a home. The amendments increase the time during which members who have left the ADF can access the scheme, so that more members are able to take up the subsidy.
Conclusion
5. This Schedule is compatible with human rights because it promotes and advances the right to an adequate standard of living, and does not otherwise engage any human rights.
Schedule 2: ADF Superannuation Act 2015 and Superannuation Industry (Supervision) Act 1993 (ADF Super measure)
Overview and background to the measure
6. Since 1 July 2016, ADF Super is the default superannuation fund for Permanent ADF members and Reserve members rendering continuous full-time service. For members who joined the ADF since that date, Defence makes contributions to ADF Super (or an alternative superannuation fund chosen by the member) at 16.4% of their salary. ADF members who are members of the older defined benefit schemes may also choose to become ADF Super members.
7. At present, when an ADF Super member leaves the ADF, they can no longer make contributions to ADF Super. Any superannuation contributions from a subsequent civilian employer, for example, must be made to a different superannuation fund. The intention is to open up ADF Super so that, when ADF Super members leave the ADF, they can continue to make contributions to the fund. While this change will take effect through changes to the AFD Super Trust Deed, the amendments to the ADF Superannuation Act 2015 clarify that these changes can be made.
8. Due to the difficulty in obtaining insurance for serving ADF members for death and permanent incapacity, the ordinary requirements in the Superannuation Industry (Supervision) Act 1993 for superannuation funds to obtain this type of insurance does not currently apply to ADF Super. The Bill includes amendments to that Act to ensure that ADF Super obtains relevant insurance for ADF Super members who are no longer serving ADF members.
9. These amendments increase superannuation choice for ADF Super members when they leave the Permanent ADF.
Human rights implications
10. This measure does not engage any human rights.
Conclusion
11. This Schedule is compatible with human rights because it does not engage any human rights.