Open Arms $50m unpaid super scandal ‘absolutely not acceptable’, says Richard Marles

Richard Marles has described as ‘absolutely not acceptable’ the historical underpayment of superannuation to psychologists responsible for counselling soldiers, veterans and their families.

Defence Minister and Deputy Prime Minister Richard Marles says the Open Arms superannuation underpayment scandal is ‘a wrong which needs to be rectified’.

Defence Minister Richard Marles has described as “absolutely not acceptable” the historical ­underpayment of superannuation by the federal government to psychologists responsible for counselling soldiers, veterans and their families.

The Australian revealed on Wednesday that Open Arms – a government-funded crisis-­support service run by the ­Department of Veterans’ Affairs – had failed to pay up to $50m in superannuation between 2012 and this year to at least 2500 mental health ­professionals who provide the free and confidential clinical treatment.

Mr Marles said it was still “being worked through” how the decade-long underpayment occurred, and promised to “work to make sure this historic wrong is rectified”. “Superannuation is not a discretionary payment, it’s a compulsory payment under law,” he told ABC Radio National.

“And this is a matter which needs to be rectified and the Department of Veterans’ Affairs will be working on that … it’s absolutely not acceptable.”

Defence Minister Richard Marles. Picture: Fiona Goodall

Tasmanian independent senator Jacqui Lambie – an army veteran who has long advocated for major reform of the DVA – said Open Arms was “a mess”.

“I’ve been getting stories over the last 12 to 18 months (about Open Arms),” Senator Lambie said. “The staff are underpaid, overworked, the books are filled and it’s not a nice place to be working in. They’re not coping and they’re overloaded.”

The Royal Commission into Defence and Veteran Suicide ­recommended a wide-ranging review of Open Arms to begin in 2027, warning that the rapid growth in demand for the service had led to pressure on the ­workforce and driven fears it was not sustainable.

In Wednesday’s mid-year economic and fiscal outlook, the government said it would spend $30.4m on the Department of Veterans’ Affairs to support service delivery to address increased demand from the determination of claims.

The fresh MYEFO papers also confirmed that Open Arms had reduced its reliance on external labour.

The royal commission report found that in August 2022, 65 per cent of the Open Arms workforce were labour hire workers. That figure reduced to 19 per cent in December last year.

If you or someone you know is at risk of suicide, call Lifeline (13 11 14) or the Suicide Call Back Service (1300 659 467), Beyond Blue (1300 224 636), or see a doctor.