Australian Government, 2009‑10 Budget
Budget

Part 2: Expense Measures

Veterans' Affairs

Clarke Review — review of unimplemented recommendations

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - - - - -

The Government will provide $0.2 million over two years from 2008‑09 to review the recommendations of the Clarke Review, not accepted by the previous government, with a particular focus on recommendations relating to Australian members of the British Commonwealth Occupational Force in Japan and Australian Defence Force participants in the British nuclear tests in Australia.

The Clarke Review was conducted in 2002 and considered potential anomalies in access to veterans' entitlements and the benefits available to disability pensioners. The Review made a total of 109 recommendations, with 58 of the recommendations being implemented. This review will ensure that the remaining recommendations are further considered in conjunction with new submissions from the veteran community.

The cost of this measure will be met from within the existing resourcing of the Department of Veterans' Affairs.

Commemorations — Western Front ANZAC Trail

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - 1.3 3.1 2.7 2.9

The Government will provide $10.0 million over four years to assist visitors to the battle fields of France and Belgium to better understand Australia's contribution on the Western Front in World War I.

This measure will help establish partnerships with local communities on Australian World War I battlefields, such as Fromelles and Villers‑Bretonneux, to create a trail of local museums and memorials, and to provide information and education packages to support the trail concept.

The trail will also help illustrate Australia's contribution on the Western Front in the lead−up to the centenary of conflicts in World War I.

Further information can be found in the press release of 24 April 2009 issued by the Minister for Veterans' Affairs.

Defence Services Home Insurance Scheme — extension of eligibility

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - 1.3 2.2 2.9 3.2
Department of Veterans' Affairs - 1.5 2.5 3.1 3.5

The Government will expand eligibility for the Defence Services Home Insurance Scheme to members of the Defence Home Ownership Assistance Scheme. This measure will allow Australian Defence Force personnel, who are entitled to assistance under the new Defence Home Ownership Assistance Scheme, to access Defence Services Home Insurance Scheme building and contents insurance products. This expansion of the Defence Services Home Insurance Scheme is an additional benefit offered to serving members and will assist in the retention of Australian Defence Force personnel.

This measure will result in a net saving of $1.0 million over four years, representing the difference between premiums received and claims paid during this period. Over time this measure is expected to be budget neutral, with the cost of claims matching the premiums received.

Department of Veterans' Affairs — additional departmental funding

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs 15.0 - - - -

The Government will provide an additional $15.0 million in 2008‑09 to the Department of Veterans' Affairs to supplement departmental funding. This funding will support the department in delivering services to the veteran community.

Dependant Pension — lump‑sum payment and closure

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs .. 5.3 -2.2 -2.0 -1.9

The Government will simplify the veterans' compensation system by closing the Dependant Pension from the end of September 2009, providing existing recipients with a one‑off lump‑sum payment equivalent to three years of payments. The Dependant Pension was initially implemented to compensate widows and children who had suffered as a result of a war‑caused disability to a veteran. New grants for the Dependant Pension ceased in 1985. Rates for the pension have been frozen since 1964, with the exception of a one‑off increase in July 2000 to compensate for the impact of the GST.

This measure will provide net savings of $0.8 million over four years, primarily from reduced administration costs.

HomeFront, Rehabilitation Appliance program and Veterans' Home Care assessments

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - -1.0 -1.1 -1.1 -1.1

The Government will improve access to veterans' services by streamlining the current assessment processes used to determine eligibility for the HomeFront, Rehabilitation Appliance and Veterans' Home Care programs. These programs aim to help veterans remain in their homes and thereby delay entry into residential aged care facilities. All three programs will now be accessed through a Veterans' Home Care program assessment. This new centralised assessment process will reduce the need for multiple assessments and ensure that veterans are linked effectively to the program that best suits their needs.

This measure will provide savings of $4.2 million over four years.

Improved payment arrangements for veterans residing overseas

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - 0.2 0.1 0.1 0.1

The Government will provide $0.5 million over four years to allow the Department of Veterans' Affairs to make payments to clients residing overseas directly into their overseas bank accounts. Clients will be able to choose whether they continue with their existing arrangements or have payments made directly into an overseas bank account. These changes are consistent with existing payment arrangements for other Australian Government agencies, including Centrelink and the Child Support Agency.

Military compensation — review of current arrangements

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs 0.1 0.5 - - -

The Government will provide $0.5 million over two years to fund a review of military compensation arrangements. The review will examine the operation of the Military Rehabilitation and Compensation Act 2004 to date, the legislative schemes that governed military compensation prior to the Act, and the level of medical and financial care provided to injured Defence personnel. It will also examine the suitability of access to military compensation schemes for members of the Australian Federal Police who have been deployed overseas. The review will ensure that members and former members of the Australian Defence Force and their dependants have access to appropriate compensation arrangements that give due recognition to the effects of their defence service.

Suicide prevention — response to the Independent Study into Suicide in the Ex‑service Community

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - 2.3 2.6 2.3 2.3

The Government will provide $9.5 million over four years to fund the Government's response to the Independent Study into Suicide in the Ex‑service Community. The study, prepared by Professor David Dunt, was commissioned in August 2008 to examine the broad issues of suicide in the ex‑service community.

The Government has accepted the recommendations made by Professor Dunt. The Government's response will include appointing five full‑time clinical psychologists to the Department of Veterans' Affairs to provide mental health advice to new specialised claims managers and assist with broader mental health policy and program design and delivery. In addition, existing mental health and suicide prevention programs will be strengthened and improvements made to processing for complex claims, especially those involving chronic mental conditions.

Further information can be found in the press release of 4 May 2009 issued by the Minister for Veterans' Affairs.

War‑caused disabilities — review of pharmaceutical costs

Expense ($m)
2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Department of Veterans' Affairs - 0.4 0.1 - -

The Government will provide $0.5 million over two years to conduct a study into the cost to veterans of pharmaceuticals used to treat war‑caused disabilities. The study will investigate the concerns of the ex‑service community regarding the pharmaceutical co‑payment, which requires veterans to contribute to the cost of pharmaceuticals. The study will provide the Government with options for managing the cost to veterans of pharmaceuticals for war‑caused disabilities and will include consultation with the ex‑service community.

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