The ADF is simplifying the way allowances are paid to serving members. 

Tranche 1 of the allowance modernisation takes will come into effect on 13 May 2021. From payday 27 May 2021, you’ll notice some changes that may affect your super. If you’re a trainee or reservist, the way your salary is calculated may change. If you’re a member of the permanent forces, your Ordinary Time Earnings will not be affected.

There are further changes planned within the ADF allowance modernisation, and we’ll keep you informed about any impacts on your super, as they’re rolled out. For more information about the program, please visit https://pay-conditions.defence.gov.au/adf-employment-modernisation

ADF Super – Permanent Forces including reservists on continuous full-time service

What effect will this have on my employer contributions?

As an ADF Super member, your employer contributions are paid as a percentage (16.4%) of your Ordinary Time Earnings (OTE). OTE generally includes earnings that relate to your ordinary hours of work. Because many allowances including Service and Uniform Allowances are counted towards OTE your employer contributions generally won’t be affected.  

What does this mean for my voluntary contributions? 

Any contributions that are calculated as a percentage of your salary may be affected. If you want to change your voluntary contribution rate you should contact Defence Service Centre on 1800 DEFENCE.

What about my final benefit?

ADF Super is an accumulation scheme so your final benefit is based on accumulated contributions – that is your contributions and their earnings, less any withdrawals or taxes. Your new Military Salary won’t affect the way your final benefit is calculated, but it may affect the amount of contributions that are made, and their earnings.

ADF Super – Trainees

What effect will this have on my employer contributions?

As an ADF Super member, your employer contributions are paid as a percentage (16.4%) of your Ordinary Time Earnings (OTE). OTE generally includes earnings that relate to your ordinary hours of work. Your employer contributions may change with the calculation of your new Military Salary.

What does this mean for my voluntary contributions?

Any contributions that are calculated as a percentage of your salary may be affected. If you want to change your voluntary contribution rate you should contact Defence Service Centre on 1800 DEFENCE.

What about my final benefit?

ADF Super is an accumulation scheme so your final benefit is based on accumulated contributions – that is your contributions and their earnings, less any withdrawals or taxes. Your new Military Salary won’t affect the way your final benefit is calculated, but it may affect the amount of contributions that are made, and their earnings. 

The ADF is simplifying the way allowances are paid to serving members.

 Tranche 1 of the ADF’s allowance modernisation will come into effect on 13 May 2021. From payday 27 May 2021, you’ll notice some changes that may affect your super. 

If you’re a member of the permanent forces or a reservist rendering continuous full-time service, your salary will increase as your Uniform Allowance is rolled into your new Military Salary. 

Your new Military Salary will become your super salary for the calculation of MilitarySuper contributions and benefits.

There are further changes planned within the ADF allowance modernisation, and we’ll keep you informed about any impacts on your super, as they’re rolled out.

For more information about the program, please visit https://pay-conditions.defence.gov.au/adf-employment-modernisation

What effect will the changes have on my contributions? 

Your member contributions, paid as a percentage of your fortnightly super salary, may increase slightly as a result of your new annual super salary. Productivity contributions paid by Defence may also increase as they are calculated as 3% of your gross fortnightly super salary.

What about my final average salary?

Your final average salary (FAS) is normally the average of your super salary payable over the last 1095 days of contributory membership. Your FAS will therefore reflect this increase in your super salary. It will also reflect any other changes in your salary such as the annual 2% increase.

Will my maximum benefit limits change?

If you have already reached one of your maximum benefit limits (MBLs), that limit won’t be affected. If you’ve already ceased making contributions to MilitarySuper after reaching an MBL, your increased super salary will be taken into account when your employer benefit is calculated. However, if you haven’t reached one or more of your MBLs yet, the thresholds will be calculated based on your new FAS.

For more information about how MBLs work, you can find our MilitarySuper Maximum Benefit Limits (MBLs) factsheet here.

The ADF is simplifying the way allowances are paid to serving members. 

Tranche 1 of the ADF’s allowance modernisation will come into effect on 13 May 2021. From payday on 27 May 2021, you’ll notice some changes that may affect your super. As a member of the permanent forces (including reservists rendering continuous full-time service), your salary for DFRDB purposes may increase as your Uniform Allowance is rolled into your new Military Salary. 

There are further changes planned within the ADF allowance modernisation, and we’ll keep you informed about any impacts on your super, as they’re rolled out. For more information about the program, please visit https://pay-conditions.defence.gov.au/adf-employment-modernisation

What effect do these changes have on my contributions?

Your member contributions, paid at 5.5% of your salary for DFRDB purposes, may increase slightly if your salary for DFRDB purposes is impacted by this change. Productivity contributions paid by Defence may also be affected as they are calculated as 3% of your gross fortnightly salary for DFRDB purposes.

What about my final benefit?

If you discharge voluntarily after completing 20 years or more of effective service, your retirement pay will reflect this increase in your salary. This is because your retirement pay (pension) is based on your final salary for DFRDB purposes at discharge, and the number of complete years of effective service.