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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
MILITARY REHABILITATION AND COMPENSATION AMENDMENT BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Veterans' Affairs,
Senator The Honourable Michael Ronaldson)
Table of Contents
Outline and Financial Impact ............................................................. ii
1 Short Title .......................................................................................... iii
2 Commencement ................................................................................. iii
3 Schedule(s) .......................................................................................... iii
Schedule 1 - Amendments ................................................................ 1
Statement of Compatibility with Human Rights ....................................... 5
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MILITARY REHABILITATION AND COMPENSATION
AMENDMENT BILL 2014
OUTLINE AND FINANCIAL IMPACT
The Bill will enable the Military Rehabilitation and Compensation Commission to
retrospectively apply the new methodology resulting from the Review of Military Compensation
Arrangements. Application of this methodology will maintain or increase transitional permanent
impairment compensation payable under the Military Rehabilitation and Compensation Act 2004
for persons with a condition accepted under the Veterans' Entitlements Act 1986 and/or the
Safety, Rehabilitation and Compensation Act 1988, where the permanent impairment
compensation resulted from a claim that was the subject of a:
claimant initiated reconsideration by the Military Rehabilitation and Compensation
Commission; or
a review by the Veterans' Review Board; or
a review by the Administrative Appeals Tribunal.
FINANCIAL IMPACT STATEMENT
The Bill has no financial impact. Funding for the measure was provided in the 2012-13 Budget.
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Military Rehabilitation and Compensation Amendment Bill 2014
Short Title Clause 1 sets out how the Act is to be cited.
Commencement Clause 2 sets out the commencement date of the provisions of this Act.
Schedules Clause 3 provides that each Act that is specified in a Schedule to this Act
is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect
according to its terms.
This explanatory memorandum uses the following abbreviations:
`Military Rehabilitation and Compensation Act' means the Military Rehabilitation and
Compensation Act 2004;
`Commission' means the Military Rehabilitation and Compensation Commission;
`Safety, Rehabilitation and Compensation Act' means the Safety, Rehabilitation and
Compensation Act 1988; and
`Veterans' Entitlements Act' means the Veterans' Entitlements Act 1986.
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Schedule 1 - Amendments
Overview
The Bill will enable the Commission to retrospectively apply the new methodology
resulting from the Review of Military Compensation Arrangements. Application of
this methodology will maintain or increase transitional permanent impairment
compensation payable under the Military Rehabilitation and Compensation Act for
persons with a condition accepted under the Veterans' Entitlements Act and/or the
Safety, Rehabilitation and Compensation Act, where the permanent impairment
compensation resulted from a claim that was the subject of a:
claimant initiated reconsideration by the Military Rehabilitation and
Compensation Commission; or
a review by the Veterans' Review Board; or
a review by the Administrative Appeals Tribunal.
Background
As a result of the Review of Military Compensation Arrangements, a new
methodology is being applied from 1 July 2013, to determine the amount of
transitional permanent impairment compensation payable under the Military
Rehabilitation and Compensation Act. Transitional permanent impairment
compensation is permanent impairment compensation that becomes payable under the
Military Rehabilitation and Compensation Act to a person who already has an injury
or disease accepted under the Veterans' Entitlements Act and/or the Safety,
Rehabilitation and Compensation Act. Section 13 of the Military Rehabilitation and
Compensation Act (Consequential and Transitional Provisions) Act 2004, provides
for inclusion in the guide under section 67 (GARP M) of the Military Rehabilitation
and Compensation Act, a method for working out the amount of transitional
permanent impairment compensation payable.
As part of the Review of Military Compensation Arrangements, it was agreed that,
from 1 January 2014, the Commission would review transitional permanent
impairment compensation payable under the Military Rehabilitation and
Compensation Act and retrospectively apply the new methodology to maintain or
increase permanent impairment compensation that was calculated using the
methodology that applied prior to 1 July 2013.
The new methodology is set out in Chapter 25 of GARP M, a legislative instrument
made under section 67 of the Military Rehabilitation and Compensation Act to
determine the amount of compensation payable.
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Existing section 347 of the Military Rehabilitation and Compensation Act, enables the
Commission to undertake these recalculations for claims for transitional permanent
impairment compensation that were not the subject of a:
claimant initiated reconsideration by the Commission, or
a review by the Veterans' Review Board; or
a review by the Administrative Appeals Tribunal.
These claims result in original determinations which may be reconsidered by the
Commission on its own initiative under section 347. However, where the person's
transitional permanent impairment compensation had been determined as a result of a
claimant initiated reconsideration under section 349 of the Military Rehabilitation and
Compensation Act, or on review by the Veterans' Review Board or the
Administrative Appeals Tribunal, the existing legislation does not enable the
Commission to recalculate these amounts of transitional permanent impairment
compensation using the new methodology.
The amendments in the Bill will enable the Commission to retrospectively apply the
new methodology to maintain or increase the amount of transitional permanent
impairment compensation paid or payable that was calculated using the methodology
in Chapter 25 of the GARP M that was in force prior to 1 July 2013.
The amendments will result in beneficial or neutral outcomes only. No person will be
disadvantaged by the retrospective application of the new methodology. Where the
application of the new methodology would result in the same or a lower amount of
permanent impairment compensation, the existing amount of permanent impairment
compensation will continue to apply until a new determination results in a change in
the amount of compensation payable.
Permanent impairment compensation, including transitional permanent impairment
compensation, is payable under Part 2 of Chapter 4 of the Military Rehabilitation and
Compensation Act.
Explanation of the Items
Military Rehabilitation and Compensation Act 2004
Item 1 amends paragraph (a) of the definition of `original determination' in
subsection 345(1) to make it clear that a determination made under new subsection
347A(2) or (4) is an `original determination' for the purposes of the Military
Rehabilitation and Compensation Act.
This means that, in relation to a determination of the Commission made under new
subsection 347A(2) or (4), the claimant may ask the Commission to reconsider the
original determination or seek review of the original determination by the Veterans'
Review Board. If dissatisfied with that outcome, the claimant may seek review by the
Administrative Appeals Tribunal.
2
The amendments are not expected to impact the workload of the Veterans' Review
Board or the Administrative Appeals Tribunal as there will be no reductions to
transitional permanent impairment compensation as a result of these determinations.
Item 2 inserts new section 347A after section 347.
Where:
a reviewable determination was made in relation to permanent impairment
compensation, or
the Administrative Appeals Tribunal made a decision in a review under Part 5
of Chapter 8 of the Military Rehabilitation and Compensation Act in relation
to permanent impairment compensation;
new subsection 347A(1) will enable the Commission to, on its own initiative, review
the amount of permanent impairment compensation by applying the new methodology
that was agreed as part of the Review of Military Compensation Arrangements to
amounts of compensation that were calculated using the previous methodology. The
new methodology came into effect on 1 July 2013 and is set out in Chapter 25 of the
guide (GARP M), referred to in section 67 of the Military Rehabilitation and
Compensation Act. The guide is a legislative instrument and is subject to
disallowance by the Parliament. The review will apply the guide (GARP M) in force
as at the time the review is undertaken.
A note at the end of new subsection 347A(1) advises that, the Commission's powers
under new section 347A are in addition to its powers under section 347 to reconsider
an original determination it made in relation to permanent impairment compensation
under Part 2 of Chapter 4.
Increase in compensation
New subsection 347A(2) enables the Commission to make a written determination
increasing the amount of transitional permanent impairment compensation, where it is
satisfied after undertaking a review, that the amount of permanent impairment
compensation is less than it should be.
New subsection 347A(3) provides that a determination under subsection 347A(2)
takes effect on the day specified in the determination. This may be a day earlier or
later than the day the determination is made.
No change in compensation
New subsection 347A(4) enables the Commission to make a written determination
confirming the amount of permanent impairment compensation, where it is satisfied
after undertaking a review, that the amount of permanent impairment compensation
should not be increased.
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New subsection 347A(5) provides that a determination under subsection 347A(4)
takes effect on the day the determination is made.
Item 3 is an application provision. Subitem 3(1) provides that new paragraph
347A(1)(a) applies in relation to compensation paid or payable before, on or after the
commencement of this item.
Subitem 3(2) provides that new paragraph 347A(1)(b) applies in relation to a
reviewable determination, or a decision of the Administrative Appeals Tribunal, made
before, on or after the commencement of this item.
Commencement
Clause 2 provides that the amendments commence on the day after this Act receives
Royal Assent.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act
2011
Military Rehabilitation and Compensation Amendment Bill 2014
Schedule 1 - Amendments
This Schedule is compatible with human rights and freedoms recognised or declared
in the international instruments listed in section 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011.
Overview of the legislative amendments
The Bill will enable the Commission to retrospectively apply the new methodology
resulting from the Review of Military Compensation Arrangements. Application of
this methodology will maintain or increase transitional permanent impairment
compensation payable under the Military Rehabilitation and Compensation Act for
persons with a condition accepted under the Veterans' Entitlements Act and/or the
Safety, Rehabilitation and Compensation Act, where the permanent impairment
compensation resulted from a claim that was the subject of a:
claimant initiated reconsideration by the Military Rehabilitation and
Compensation Commission; or
a review by the Veterans' Review Board; or
a review by the Administrative Appeals Tribunal.
Human rights implications
The Bill engages the following human right:
Right to social security
Article 9 of the International Covenant on Economic, Social and Cultural Rights
(ICESCR) recognises the right of everyone to social security, including social
insurance.
The Bill has a beneficial or neutral impact by enabling the payment of additional
permanent impairment compensation or maintaining the existing amount of
permanent impairment compensation. No person will be disadvantaged by the
changes in the Bill.
Conclusion
The Bill is compatible with human rights because it does not negatively impact on a
persons right to permanent impairment compensation under the Military
Rehabilitation and Compensation Act.
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