Ex-serving ADF members' income and sources of income

This report contributes to the understanding of ex-serving Australian Defence Force (ADF) members’ financial situations, including household financial status and income sources after separation from the ADF. Specifically, household income and financial stress, personal income and income support paid by Services Australia was explored using data available in the Multi-Agency Data Integration Project (MADIP) and the Survey of Income and Housing (SIH). A range of payments by Services Australia and/or Department of Veterans’ Affairs (DVA) are considered income support payments (Services Australia 2022; DVA n.d.). For this report, income support payments are limited to those paid by Services Australia and do not include payments from DVA.

Findings from this report show that the majority of ex-serving ADF members were doing relatively well financially from 2013–14 through to 2019–20. Many had higher personal and household income and experienced less financial stress than the Australian population. Fewer were receiving income support paid by Services Australia than the Australian population, although it is not known if or to what extent payments from DVA may have affected this.

It is important to note however this was not the case for everyone. Those who separated involuntarily for medical reasons had lower household income and received a higher percentage of income from superannuation or annuity (also known as a lifetime or fixed-term pension) than those who separated for any other reason. Ex-serving ADF females had lower personal income than ex-serving ADF males, which is similar to the pattern seen in the Australian population. Those who served fewer years also had lower household and personal income when compared with those who served longer. Overall, ex-serving ADF members were less likely to earn an income from businesses compared with the Australian population.

The nature of ADF service exposes members to both protective and risk factors that may impact their and their family’s financial wellbeing, employment and income options once they separate from the ADF. While the situation is not well researched in Australia, internationally, multiple deployments have been shown to disrupt family life, which can reduce financial wellbeing and increase financial strain (Elbogen et al. 2012). The same research identified the following potential challenges faced by veterans: achieving a sense of material security, being able to make ends meet, being able to grow financially through work, and possessing the knowledge and skills for money management (Elbogen et al. 2012). In Australia, the DVA and Department of Defence have programs available to Australian veterans to assist with financial planning and management.

Findings from this report show that:

• In 2016, the median equivalised total household income was higher for ex-serving ADF member households ($1,000–$1,249 per week) compared with Australian households ($800–$999 per week).
• Median personal total income (as reported on personal tax returns) was higher for ex-serving ADF males ($77,700) and females ($58,200) compared with Australian males ($57,600) and females ($41,200) for the 2017–18 financial year.  The difference remains when age is taken into consideration.
• In 2017–18, 9.8% of ex-serving ADF males and 13% of ex-serving ADF females received income support paid by Services Australia; this was lower than the Australian population (23% and 29%, respectively), however it is not known if or to what extent payments from DVA may have impacted this.
• Ex-serving ADF members, who separated involuntarily due to medical reasons were more likely to report receiving income from annuity or superannuation compared with those who separated voluntarily for the financial year 2017–18. This occurred across all age groups.
• Across 2013–14 to 2017–18, ex-serving ADF members were less likely to earn income from businesses compared with the Australian population.
• Current and ex-serving ADF member households (72%) were more likely to report experiencing no financial stress than non-ADF member households (64%).