Chapter 1
Referral
1.1
On 24 May 2018, the Veterans' Affairs Legislation Amendment
(Veteran-centric Reforms No. 2) Bill 2018 (the bill) was introduced to the
House of Representatives by the Minister for Veterans' Affairs, the Hon Darren
Chester MP.[1]
1.2
As a time critical bill, the provisions of the bill were referred on the
same day to the Senate Foreign Affairs, Defence and Trade Legislation Committee
(the committee) for inquiry and report by 18 June 2018.[2]
Conduct of inquiry
1.3
The committee advertised the inquiry on its website, calling for
submissions by 8 June 2018. The committee also wrote directly to a range of
organisations to invite them to make written submissions. Submissions received are
listed at Appendix 1.
1.4
The committee decided to prepare its report on the basis of submissions
received and available information. The committee thanks those who made
submissions.
Background to the bill
1.5
The wellbeing of veterans and their families has been a focus of
parliamentary concern over recent years, as indicated in a number of inquiry
reports.[3]
The National Mental Health Commission also reported to government in March 2017
on the suicide and self harm prevention services available to current and
former serving Australian Defence Force (ADF) members and their families.[4]
1.6
These reports made recommendations for how to improve support provided
to veterans and their families, including updating the Department of Veterans'
Affairs (DVA) IT systems.[5]
1.7
The Australian Government responded to the committee's 2017 report, The
Constant Battle: Suicide by Veterans, by acknowledging the committee's
finding that 'many veterans have reported negative experiences with the
Department, and that there is a pressing need to streamline administrative
practices'.[6]
Veteran Centric Reform program
1.8
DVA is undertaking a program of Veteran Centric Reform (VCR), which it
described as important because:
DVA operations and infrastructure are no longer fit for
purpose as current business systems are claims based, requiring the veteran to
approach the Department, and lack the information sharing and data analysis
necessary to meet veterans' expectations of a quality service. Without change,
some veterans may continue to be disengaged from DVA services, which can
inhibit a successful transition from the Australian Defence Force and lead to
poor health and life outcomes.[7]
1.9
DVA confirmed that the reforms will 'provide the veteran community with
a greater standard of service through reform of DVA's culture, operating model,
business processes and systems'.[8]
1.10
Funding has been allocated for the VCR program in the three most recent
Australian Government budgets, starting with $24.8 million for the development
of a business case in the 2016–17 budget.[9]
The 2017–18 budget allocated $166.6 million over four years to the VCR
program to 'commence transforming and improving veterans' services to more
effectively and efficiently meet the current and future needs of veterans and
their dependants'.[10]
Measures included:
- the targeted redevelopment of the Department of Veterans'
Affairs' (DVA) ICT systems, including improvements to cyber security;
- reform of DVA's business processes; and
- piloting improved services to veterans and their dependants
to ensure the long-term financial sustainability of military compensation
schemes administered by DVA.[11]
1.11
The 2018–19 budget allocated a further $111.9 million over four years
for the VCR program to 'continue to transform and improve veterans' services to
more effectively and efficiently meet the current and future needs of veterans
and their dependants'.[12]
Previous legislation
1.12
Prior to the introduction of the bill, the Veterans' Affairs
Legislation Amendment (Veteran-centric Reforms No. 1) Act 2018 passed both
Houses and received Royal Assent in March 2018. The Parliamentary Library
summarised the purpose of that Act as follows:
- provide additional childcare, counselling, household
services and attendant care for current and former members of the Australian
Defence Force (ADF) with warlike service, and their families;
- provide a new Veteran Payment to veterans with little or no
financial support until their compensation claims for liability for a mental
health condition are determined;
- commence the Coordinated Veterans' Care Mental Health
Pilot, a two-year pilot in rural and regional areas targeting those with mild
to moderate mental health conditions such as anxiety or depression who also
have a physical condition requiring pain management;
- make it quicker to provide financial assistance with
household and attendant care services to certain veterans with catastrophic
injuries or diseases;
- allow for the automated determination an individual's
qualifying service under the VEA [Veterans' Entitlements Act 1986]
removing the need for all veterans to manually apply for a determination of
their defence service as qualifying service;
- make a large number of changes to the Safety,
Rehabilitation and Compensation (Defence-related Claims) Act 1988 (the DRCA)
replacing redundant references and repealing provisions unrelated to the
operation of this Act;
- makes technical amendments to the VEA to ensure
consistent references to the Special Medical Review Council; and
- a range of minor amendments including extending Gold Card
eligibility under the Australian Participants in British Commonwealth
Occupation Force (Treatment) Act 2006 to ADF members who served in Japan
prior to the British Commonwealth Occupation Force and technical amendments to
the VEA.[13]
1.13
Some of these measures were announced in response to the committee's 2017
report The Constant Battle, namely the household and care services and Veteran
Payment.[14]
However, the Veterans' Affairs Legislation Amendment (Veteran-centric Reforms
No. 1) Bill 2018 was not referred to this committee for inquiry.
Purpose of the bill
1.14
According to the second reading speech this government bill:
...has six schedules and would implement several new
initiatives to deliver a range of services to veterans and their families to
give them the support and services they need...This bill demonstrates the
commitment this government made in 2016 to put veterans first and continues on
from the eight measures we introduced earlier this year under the Veterans'
Affairs Legislation Amendment (Veteran-centric Reforms No. 1) Act 2018.[15]
Financial implications
1.15
The Explanatory Memorandum (EM) stated that the financial implications
of the bill total $17 million, comprising:
-
$10.8 million: Schedule 1—Compensation for incapacity for work
for former members; and
-
$6.2 million: Schedule 2 —Veteran Suicide Prevention Pilot.[16]
1.16
The EM noted that there is no financial impact for Schedules 3—6.[17]
Discussion of the schedules
1.17
The bill amends the Acts that legislate support and compensation for
veterans and their families, particularly the Veterans' Entitlements Act
1986 (VEA), the Safety, Rehabilitation and Compensation (Defence-related
Claims) Act 1988 (DRCA) and the Military and Compensation Act 2004 (MRCA).[18]
Schedule 1—Compensation for
incapacity for work for former members
1.18
Schedule 1 amends the DRCA and MRCA. These amendments allow eligible
former members to continue to receive incapacity payments at 100 per cent of
their normal earnings for the week after 45 weeks of incapacity if they are
undertaking full time study as part of their rehabilitation program as
determined by the Military Rehabilitation and Compensation Commission (MRCC) through
a legislative instrument.[19]
1.19
Currently, incapacity payments 'stepdown' to 75 per cent (or a higher
percentage depending on weekly hours worked) of normal earnings after 45 weeks.[20]
DVA noted:
Veterans are naturally concerned about their ongoing
financial security. To ensure that veterans can focus on their study and not be
concerned about financial matters, the amendments would allow those veterans
studying full time as part of their rehabilitation plan to receive payments
based on their pre-injury earnings while they continue to study.[21]
1.20
The amendments made by Schedule 1 would have effect from the later of 1 November
2018 or the seventh day after Royal Assent is received until 1 July 2022.[22]
Discussion of Schedule 1
1.21
In the 2017 report The Constant Battle, the committee recommended
addressing 'disincentives for veterans to undertake work or study resulting
from the legislative or policy frameworks of the Department of Veterans'
Affairs'.[23]
The amendments made by Schedule 1 appear to address this recommendation.
Schedule 2—Veteran Suicide
1.22
Schedule 2 amends the VEA to enable people to receive services
under the Veteran Suicide Prevention pilot (the pilot) from 1 July 2018 or a
week after Royal Assent is received.[24]
1.23
The amendments permit the Repatriation Commission to determine the class
of people eligible to participate in the pilot through a legislative instrument.[25]
1.24
As a measure to support the mental health of veterans, the Veteran
Suicide Prevention Pilot was supported by the Royal Australian & New
Zealand College of Psychiatrists.[26]
1.25
However, the Partners of Veterans Association of Australia indicated:
We are disappointed (Schedule 2) that the mental health of
the Partner has not also been considered as the mental well being of the
Veteran is in so many ways dependent upon the strength of the Partner.[27]
Discussion of Schedule 2
1.26
The pilot, also known as the Mental Health Clinical Management Pilot,
was allocated funding over two years in the 2017-18 Australian Government budget
to deliver services to up to 100 people with complex mental health needs on
discharge from a mental health hospital.[28]
The EM states that the pilot:
...will provide intensive and assertive management services to
support a veteran's mental health outcomes after they have been discharged from
a hospital following an attempted suicide, suicide crisis, or for those who may
be at increased risk of suicide because of their mental health or other
factors. This will include support to access other relevant government and
non-government treatment and services that will help reduce the risk of suicide
and enhance their quality of life.[29]
1.27
The government indicated that the evaluation of this pilot will 'inform
future policy direction for veterans' mental health services'.[30]
DVA also explained that the amendments are required because 'for the purposes
of the pilot, the services will only be available in certain locations'.[31]
1.28
The EM implies that the pilot addresses recommendations made by the
National Mental Health Commission to provide:
...coordinated care options for very vulnerable and ill clients
and enhancing stepped care options available for those with mental health
conditions... that take into account factors that may lead to suicide, such as
primary health, financial stress, housing and employment.[32]
1.29
This schedule also may be seen to partially address recommendation 1
from The Constant Battle report, part of which encouraged government to 'develop
and implement specific suicide prevention programs targeted at those veterans
identified in at-risk groups'.[33] This was acknowledged by
DVA.[34]
1.30
The other mental health pilot funded in the 2017-18 budget (the
Coordinated Veterans' Care Mental Health Pilot) was legislated in the Veterans'
Affairs Legislation Amendment (Veteran-centric Reforms No. 1) Act 2018.[35]
Schedule 3—Compensation for
member's death for wholly dependent partners
1.31
Under the MRCA, compensation may be provided to the partners of deceased
members who died from a service death or who suffered a serious impairment from
a service injury or disease. Partners who were wholly dependent on the member
prior to their death can choose to receive their compensation as a weekly
amount, or receive some or all of it as a lump sum. A partner who makes a
choice under the MRCA cannot change it.[36]
1.32
Schedule 3 amends the MRCA to extend the time from six months to two
years for wholly dependent partners to make a decision about whether to receive
their compensation as a weekly payment or convert it, wholly or partly, into a
lump sum payment.[37]
The MRCC can currently extend the period specified in the MRCA under special
circumstances, and Schedule 3 does not affect this ability.
1.33
The application provisions establish that the amendment applies to
partners who received notice before commencement and have not yet informed the
MRCC of their choice, as well as those who receive notice on or after
commencement (the 28th day after Royal Assent is received).
Discussion of Schedule 3
1.34
DVA indicated that Schedule 3 responds to community concerns, stating:
This issue was raised at the Department's inaugural
legislation workshop, held on 9 November 2017, and has also arisen
during other consultations with Ex-Service Organisations. These amendments
would address concerns raised by Ex Service Organisations that six months is
not a long enough period of time in which to make the important decision about
how to receive compensation, particularly during a difficult period.[38]
Schedule 4—Veterans' Children
Education Scheme
1.35
Under the VEA, the Veterans' Children Education Scheme (VCES) provides 'special
assistance, student support services, guidance and counselling for eligible
children to help them achieve their full potential in full-time education or
career training'.[39]
The amendments under Schedule 4 create a new cohort of people potentially
eligible for the VCES—the grandchildren of Vietnam veterans.
1.36
Item 1 adds new definitions for 'eligible grandchild of a Vietnam
veteran', 'grandchild' and 'Vietnam service' to apply to the VCES under Part
VII of the VEA.
1.37
Items 2 and 3 reword the headings of sections 116B and 116C to make it
clear they refer to the eligible children of veterans.
1.38
Item 4 inserts three sections following 116C (proposed 116CA, 116CB and
116CC). These enable the grandchildren of Vietnam veterans (or someone on their
behalf) to apply in writing to test whether they meet the definition of
eligible grandchildren as determined by the Repatriation Commission in a
legislative instrument. The three proposed sections replicate similar sections
applying to the children of Vietnam veterans (sections 116A, 116B and 116C).
1.39
Items 7, 8 and 9 add to sections 117 and 118 to enable the Repatriation
Commission to provide benefits under the VCES to the grandchildren of Vietnam
veterans including the provision of scholarships, education and training.
1.40
Items 5 and 10 provide for the review of Repatriation Commission decisions
for children of Vietnam veterans under 116C(1) and grandchildren under
116CC(1).
1.41
The amendments made by Schedule 4 commence on 1 July 2019.
1.42
These amendments were welcomed by the Partners of Veterans Association
of Australia who stated:
...we are pleased to note the inclusion of the grandchildren of
Vietnam Veterans in the Long Tan Bursary scheme. (Schedule 4) Thank you for
this inclusion which is very meaningful to our members and demonstrates the
continued recognition of the service of the Vietnam Veteran and the family.[40]
Discussion of Schedule 4
1.43
An aspect of the VCES is the Long Tan Bursary, which is established by
an instrument made under subsection 116A(1).[41]
The government indicated that the amendments under Schedule 4 extend the Long
Tan Bursary to the grandchildren of Australian Vietnam veterans who undertook operational
service in Vietnam.[42]
Eligible grandchildren would be provided with support to undertake
post-secondary education.[43]
1.44
The EM described that grandchildren will be assessed according to
similar eligibility criteria as children of Vietnam veterans, and will include:
...a requirement that a grandchild is considered by an
appropriately qualified professional as vulnerable. The factors taken into
account for this assessment will include social demographics, disadvantage due
to socioeconomic status and family stability. In addition, consideration will
be given to applicants who are both deserving and have the aptitude and
potential to achieve solid educational outcomes.[44]
1.45
The eligibility of the children of Vietnam veterans is not affected by
the amendments under Schedule 4, and their applications 'will be given first
priority during the assessment process'.[45]
1.46
The Military Rehabilitation and Compensation Act Education and Training
Scheme under the MRCA is not affected by these amendments.
Schedule 5—Service on submarine
special operations
1.47
The EM noted:
In 2010 the Government reclassified any service on a
submarine on Submarine Special Operation (SSO) during the period 1 January 1978
– 31 December 1992 (relevant period) as operational and qualifying service
for the purposes of the VEA. Due to the continuing high level of secrecy around
these clandestine operations, the eligibility test implemented for this service
was almost unique in the history of veterans' entitlements.[46]
1.48
The government identified 'difficulties in determining whether an injury
sustained or disease contracted by a submariner is related to service on a
secret operation'.[47]
The EM indicated that this included establishing members' eligibility to
receive a disability pension.[48]
1.49
Schedule 5 amends the VEA to repeal section 6DB and substitute proposed
section 6DB. This ensures submariners are deemed to have been rendering
operational service for all continuous full-time service on a submarine
they undertook during the relevant period, if they undertook any
continuous full-time service on SSO during the relevant period.
1.50
The criteria for determining whether the member was on SSO during the
relevant period remain the same in proposed section 6DB as the current MRCA.
Specifically, if the member:
- has been awarded the Australian Service Medal with Clasp ''SPECIAL OPS''
for the special service; or
-
has become eligible for that award for the special service; or
-
would have been eligible for that award for the special service if the
member had not already been awarded it for other service.
1.51
The amendment takes effect the day after Royal Assent is received.
Discussion of Schedule 5
1.52
The government noted that the amendment 'means submariners who are
deemed to have operational service will have their claims assessed against the
more generous provisions than those that apply to peacetime service'.[49]
The Minister for Veterans' Affairs stated it 'will benefit those veterans and
their widowers to be able to access the benefits to which they are entitled'.[50]
1.53
DVA noted that this measure would:
...give full effect to the intent of the Clarke Review and will
benefit those veterans and their widowers to be able to access the benefits to
which they are entitled. The amendments would ensure that the classified nature
of information about SSO does not hinder access by these personnel to the
benefits and entitlements available to those with operational service.[51]
Schedule 6—Claims for compensation
1.54
To receive benefits under the MRCA, a person is generally required to make
a claim under section 319 for one or more of the following:
- acceptance of liability by the Commission for a
service injury sustained by a person or a service disease contracted by a
person;
- acceptance of liability by the Commission for the
service death of a person;
- acceptance of liability by the Commission for the
loss of, or damage to, a member’s medical aid;
- compensation.
1.55
Items 1 and 2 of Schedule 6 amend subsection 319(2) to specify that a
claim for compensation must be made to the MRCC either in writing or orally.
Claims of acceptance of liability by the MRCC are not affected by Items 1 and
2, and will continue to be required to be made in writing.
1.56
Item 4 repeals subsection 319(4) and replaces it with proposed
subsection 319(4), which allows for the MRCC to advise the Chief of the Defence
Force of a claim for compensation for permanent impairment, rather than
specifying that the MRCC must 'give a copy' of the claim.
1.57
Item 7 adds subsection 323(5A) which regulates the lodgement of oral
claims under the Act, establishing that they are taken to have been given to
the MRCC on the day on which the claim was made. Items 5 and 6 clarify that
subsections 323(2) or (3) are not relevant to the lodgement of oral claims.
1.58
Schedule 6 commences on the 28th day after Royal Assent is
received, and the amendments made under this schedule apply to claims made on
or after that date.
Discussion of Schedule 6
1.59
The government described how the amendments in Schedule 6 would make it
easier for veterans to make claims as:
...a client will be asked during a needs assessment telephone
call whether they want to make a claim for compensation and their oral
statement will be treated as a valid claim under the act. This means a client
will have the option to make a claim for compensation in writing or orally.[52]
1.60
The EM also noted that requiring claims for compensation to be in
writing 'creates administrative inefficiencies for the MRCC'.[53]
Scrutiny by other committees
1.61
The Scrutiny of Bills Committee and the Parliamentary Joint Committee on
Human Rights had not reported on the bill at the time of tabling this report.
Conclusion
1.62
The government is committeed to putting veterans first and delivering a
range of services to veterans and their families to ensure they are well looked
after, long after their service ends.
1.63
The committee recognises that the measures introduced in this bill
continue on from the eight measures introduced through the Veterans' Affairs
Legislation Amendment (Veteran-centric Reforms No.1) Act 2018.
1.64
The committee notes the observations of the Partners of Veterans Association
of Australia in relation to Schedule 2, the new Veteran Suicide Prevention
Pilot. The committee acknowledges the important role of partners in veterans'
wellbeing. The committee notes this is a pilot program and encourages the
government to takes these concerns into consideration in the development,
implementation and evaluation of the pilot.
Recommendation 1
1.65
The committee recommends that the bill be passed.
Senator Linda Reynolds
CSC
Chair
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