Defence pay decision: Abbott backs down on defence allowance cuts

PRIME Minister Tony Abbott has announced the federal government is abandoning plans to cut allowances for Defence personnel.

Question Time in the House of Representatives in Parliament House in Canberra. The Prime Minister Tony Abbott with Leader of the Opposition Bill Shorten, during question time in the House of Representatives at Parliament House, Canberra. Pic by Gary Ramage

THE federal government is abandoning plans to cut allowances for Defence personnel.

Speaking in Canberra ahead of parliament’s final sitting week of the year, Prime Minister Tony Abbott announced the government “it not proceeding with those changes to allowances”.

The backdown means the changes to allowances will not change, but the 1.5 per cent pay increase that has angered soldiers and supporters still stands.

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Prime Minister Tony Abbott says the government isn’t in a position to boost a below-inflation pay offer of 1.5 per cent a year for the next three years.

“All of us would like to see our defence forces paid more but what’s possible with a $20 billion surplus is not always possible with a $40 billion deficit,” he told reporters in Canberra on Monday.

“I think we just have to be realistic about defence force pay.”

The government has notified the independent Defence Force Remuneration Tribunal the changes to allowances are not supported by the government and asked that they be discontinued.

Tony Abbott has backed down on plans to cut ADF allowances.

Restoring the allowances will mean discretionary leave, food and motor vehicle allowances will remain.

Mr Abbott says the decision will cost the Defence budget $17 billion.

“There won’t be extra money put in so the CDF (chief of the defence force) will have to find the money,” he said.

Senator Jacqui Lambie — who quit the Palmer United Party last week to sit as an independent — has vowed to vote against all government legislation until it lifts the defence personnel pay offer to three per cent.

Earlier Labor warned the Mr Abbott had until the end of the day to overturn the decision on defence force pay.

While the prime minister was not expected to lift the 1.5 per cent annual increase, the reinstatement of leave entitlements was foreshadowed by News Corp on Sunday.

ADF personnel are set to learn if their Christmas leave is reinstated.

Labor says defence personnel are facing a real cut in wages unless the prime minister intervenes.

“Tony Abbott loves to talk about Team Australia but he refuses to pay the team that protects Australia properly,” Labor leader Bill Shorten told ABC Radio.

More than 50,000 have supported an online petition to reconsider the Australian Defence Force pay decision and “show our ADF the respect it deserves”.

Senator Jacqui Lambie is not backing down on her stance on the pay deal.

Senator Lambie has rejected the government’s reported defence pay backdown, saying she won’t be taking any prisoners in her “all or nothing” crusade.

Senator Lambie has vowed to vote against all government legislation until Defence personnel get a fair pay rise.

“It’s all or nothing on the ADF pay deal. I’m not going to take any prisoners. It’s time to empty the magazine, fix bayonets and charge,” she said.

Senator Lambie had been due to hold talks with Mr Abbott on Monday, but those talks have been postponed.

“This is the second time, so I’m not real happy about it,” she said arriving at parliament this morning.

“Obviously he should realise the seriousness of the defence pay and their Christmas leave.

“I’m actually really disappointed.”