Pay cut for military to become a small rise as PM responds to colleagues, soldiers

TONY Abbott today relented on another major policy position by increasing a pay rise for the armed services from 1.5 per cent to two per cent.

Job ID PD427942. The Prime Minister Tony Abbott during a visit to the ADF PM at JOCHQ at Bungendore. Pic by Gary Ramage

TONY Abbott today relented on another major policy position by increasing a pay rise for the armed services from 1.5 per cent to two per cent.

The $200 million cave-in was on yet another decision which was unpopular as soon as it was revealed but which Mr Abbott had insisted was a good and necessary policy.

The announcement came the day after dumping the “dead, buried, cremated” GP tax, and the Prime Minister revelation an extra 300 military trainers would be sent to Iraq.

Last November the Government imposed a pay restriction of 1.5 per cent a year for three years which was in effect a pay cut because it was below the inflation rate. The two per cent is just above the inflation rate.

Prime Minister Abbott used the 1.5 per cent Defence pay decision as a benchmark, telling the public service their rises would not be any greater.

But the move attracted waves of protest from inside the armed services and organisations such as the RSL.

Independent senator Jacqui Lambie, a former Army member, vowed never to vote for Government legislation unless the pay offer was increased.

Senator Jacqui Lambie (pictured at Lavarack Barracks) has been fighting for an increased pay offer for Defence personnel. Picture: Evan Morgan

The Prime Minister today credited his change of mind to submissions from two Liberals who are former Army brigadiers — Tasmania Andrew Nikolic and West Australian Senator Linda Reynolds.

Visiting a Defence facility outside Canberra today the Prime Minister said there was a “special” agreement between the public and the military.

And Mr Abbott acknowledged the deployment of more troops overseas also contributed to his decision: “It does reinforce just how much we ask of our Defence forces. It does reinforce the special status our Defence forces have.”

Mr Abbott called it a “modest catch-up” for Defence. Public services wages had increased 26 per cent between 2008-13, and Defence wages by 21 per cent.

The Prime Minister said the sudden generosity was a recognition of “the pressures on Defence families”.

He said: “In the end these are questions of judgment, these are questions of balance.

“We appreciate that Defence families in particular make significant sacrifices because their loved ones are away from home for periods of time, their loved ones are in dangerous, hazardous circumstances.”

Originally published as Pay cut for military to become a small rise as PM responds to colleagues, soldiers