Jacqui Lambie tells Albanese government it is 'selling diggers a dud' over Defence pay

The senator and former military service woman used Senate question time on Tuesday to continue her interrogation of the current Defence pay deal on offer which she said was an effective cut and would not be enough in the face of rising cost of living pressures.

She had a testy exchange with the Defence Force Chief (CDF) General Angus Campbell last month at Senate estimates over the pay deal after she raised top brass getting a special vehicle allowance. He accused her of "maliciously attempting to drive a wedge" between senior command and personnel and told her she should be "ashamed of herself".

General Campbell later withdrew his comments, but did not apologise.

Senator Lambie said the 11.2 per cent over three years is being offered to both Defence public servants and uniformed personnel, but they are being treated differently.

"The public service, which has a very active union (CPSU), sees this for what it is. A pay cut! And are taking industrial action to address it," she told Parliament.

"Our diggers, on the other hand, have to smile and take what the CDF gives them while they're unique service to our country goes unrecognised."

"Minister, why is it that the public service union has a seat at the negotiating table why diggers have to take what the CDF gives them?"

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The Minister representing the Defence Minister, Murray Watt, said the government is managing its budget and making "responsible offers" when undertaking enterprise bargaining with people who are paid by the commonwealth.

However, the senior Labor politician accepted that service people do not have the same support in pay bargaining.

"I think in one respect, you've put forward exactly why unions play such an important role in the workplace by being able to bring employees together to negotiate on behalf of everyone to seek a better deal," he told Parliament.

"Of course, you would be aware as a former service woman that there aren't unions covering service people and that means that they don't benefit, I guess, from the union arrangements that are in place for other members who work for the Defence Department."

In light of the latest cash rate rise by the Reserve Bank of Australia, Senator Lambie again described the deal as a "dud" in not keeping up with inflation and the government was the "Christmas Grinch handing out pay cuts for Christmas".

Senator Watt said he did not accept that position and stated the Albanese had done "more than most" when it comes to providing cost of living relief for all Australians, "whether they be service personnel or any other person working in the community."

"You're aware of some of the things that we've done that benefit service personnel just as much as they do any other worker, whether it be cheaper medicines, cheaper childcare," the minister said.

"We understand that this will be hitting a lot of Australians hard and we will keep working hard to provide as much cost of living relief as we can."