Public sector superannuation bill to be introduced, union seeks urgent briefing

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The federal government has said it will introduce legislation on Wednesday about the public service’s superannuation as it faces a looming Federal Court case.

In a media release, minister for the public service and finance Katy Gallagher gave three reasons for the introduction of the legislation, in addition to the court case.

The three were:

1. the possibility commonwealth employees could receive a “significant windfall” because they live in rent-free housing,
2. a small number of employees could incur debt from unpaid membership fees, and
3. the government could incur “significant additional costs” in regards to superannuation benefits. 

“The bill protects against these potential unintended outcomes and ensures that the entitlements of Commonwealth employees remain fair and reasonable and, importantly, that they continue to represent a responsible use of taxpayers’ money,” Gallagher said in the statement.

Community and Public Sector Union deputy national secretary Beth Vincent-Pietsch told The Mandarin the union will be seeking an “urgent briefing” from the Department of Finance about the bill’s impact on public servants. 

“The payment of superannuation on rent-free housing has been a long and fraught issue for workers in areas of the APS. It is very disappointing for those involved in the current Federal Court case and those affected by the outcome, to have the new government change the goalposts in this way.

“Members affected by this superannuation issue are highly distressed by the government decision that pulls the rug out from under the case before the Federal Court,” Vincent-Pietsch said. 

The Federal Court case involves former Department of Foreign Affairs and Trade (DFAT) staff Brendan Peace, Peter Fennell and Timothy Vistarini, as reported by the ABC. 

The three, through lawyers, have argued DFAT did not properly include their rent-free housing arrangements and allowances as part of their salaries whilst they were posted overseas. 

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