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House of Representatives

Defence, Veterans' and Families' Acute Support Package Bill 2022

Explanatory Memorandum

(Circulated by authority of the Minister for Veterans' Affairs and Minister for Defence Personnel, The Honourable Matt Keogh MP)

OUTLINE AND FINANCIAL IMPACT

This Bill extends and consolidates the initial response to recommendation 19 of the Senate Foreign Affairs, Defence and Trade References Committee report The Constant Battle: Suicide by Veterans. It also responds to Recommendation 19.2 of the Productivity Commission's report A Better Way to Support Veterans. This Bill provides more vulnerable veterans and their families with more flexible support through the Defence, Veterans' and Families' Acute Support Package, extending to a wider eligible group the levels of financial support available through the current Family Support Package.

The measures in this Bill will increase access to support when it is needed most. It will ensure support is provided on the basis of need rather than service type, supporting vulnerable veterans and their families to adjust to challenging life circumstances.

The Bill will amend the Veterans' Entitlements Act 1986, Military Rehabilitation and Compensation Act 2004 and Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 to extend eligibility to veterans and their family members covered by the three Acts, who are sat risk of or in crisis, whether or not the veteran is participating in a rehabilitation program or has rendered warlike service.

The Bill will provide for an instrument to be made under each Act which will contain additional eligibility criteria and financial caps on the total support that can be provided, while removing existing financial caps on individual types of services. The intent is to provide choice and flexibility for families to access the help that will be most beneficial to them. A support plan, developed between the family and a DVA service coordinator, will set out the services on which the capped amount may be spent, based on individual family need.

Some services available to families under the Package, such as household assistance and counselling, may also be provided to veterans under separate legislative provisions. This is an intended outcome of the Package, which is specifically designed to provide supports to the family unit as a whole, rather than specifically to the veteran. DVA service coordinators will work with individual families to ensure there is no duplication of services under different legislative provisions.

Families will be able to access services for a period of time which will be specified in the instrument. The intention of the Defence, Veterans' and Families' Acute Support Package is to provide short-term, targeted support to build the family's ability to manage challenging situations, both at the time the support is provided and into the future.

The Bill will additionally expand the range of supports available under the existing program. This includes child care, household assistance such as garden maintenance and meal preparation, and capacity building support including in relation to financial literacy, relationship skills, and mental health first aid. These additional supports will assist families to adjust to challenging life circumstances.

The key eligibility criteria and supports available under the Package are contained in this Bill. The instruments will contain additional eligibility criteria, specify financial and time limits for a family accessing support under these arrangements, and detail the types and limits of support. These details will be contained in the instruments in order to maintain sufficient administrative flexibility and responsiveness to support veteran families in line with the intention of the program.

The inclusion of additional eligibility criteria and limits in the primary legislation for the Package would restrict DVA's capacity to effectively support vulnerable veteran families. Families may become vulnerable for a range of reasons related to military life, and the purpose of this program is to provide timely, flexible support for them to adjust to challenging life circumstances. The proposed approach provides DVA with the flexibility to consider the changing experiences of families and, as appropriate, adapt program parameters to address identified needs whilst satisfying the policy intent.

This approach is consistent with the existing program instrument and a number of other DVA programs which deal with such matters in delegated legislation, including under subsection 117(5) of the Veterans' Entitlements Act 1986 and subsections 268(D)1 and 286(1) of the Military Rehabilitation and Compensation Act 2004.

Schedule 1 - Amendments

Part 1 - Main Amendments

The amendments proposed to be made in Part 1 make amendments to the three primary acts administered by DVA.

The amendments proposed to the Military Rehabilitation and Compensation Act 2004 (MRCA) amend the Act by removing the requirement to have warlike service and be participating in a rehabilitation plan, extending support to more working age veterans and their families including former partners under certain circumstances. It also extends support to more widowed partners of veterans whose death was related to service, including suicide. The amendments also replace the current list of assistance or benefits that can be provided under the MRCA with a more extensive but not exhaustive list. This is to make it clear that the range of support and assistance that can be provided has been expanded as a result of these amendments.

The Bill provides for the Repatriation Commission and the Military Rehabilitation and Compensation Commission (the Commissions) to delegate decision making powers for the purposes of the Package. These delegations will be limited to the DVA team directly administering the program. This team may comprise Australian Public Service (APS) employees and non-APS contracted staff. The delegations will provide these professionals with the necessary powers and functions to provide key services and decision-making that will assist the Commissions in fulfilling their roles.

This ability to delegate functions or powers is consistent with delegation powers available to the Commission for the purposes of administering other programs and packages delivered by DVA, including programs administering the payment of compensation and income support.

The amendments proposed to the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) amend the Act to create a new part in the Act to provide support for working age veterans covered by the DRCA and their families, including working age widowed partners of deceased veterans and former partners under certain circumstances. This support will mirror the support that will be available to veterans covered by the MRCA. The amendments will provide assistance with child care, counselling, household services and other support.

While there is some minor difference in terms, particularly in the use of the word 'employee', this is because the DRCA uses the word 'employee' rather than veteran or member. The DRCA defines the term 'employee' in subsection 5(1) to mean a member of the defence force.

The amendments proposed to the Veterans' Entitlements Act 1986 (VEA) amend the Act to create a new part in the Act to provide support for veterans covered by the VEA and their families, including working aged widowed partners of deceased veterans and former partners under certain circumstances. Again the support available will be consistent with the support that will be provided under the DRCA and the MRCA. The amendments will provide assistance with child care, counselling, household services and other support.

These proposed amendments will provide additional types of support to those veterans and their families who are eligible for support under the MRCA. In addition, they will extend that support to those veterans and their families who are eligible under the DRCA and the VEA. This ensures that no veteran or their family is unable to access the support solely because they are not eligible under the MRCA.

Part 2 - Other Amendments

The amendments proposed to be made in Part 2 ensure that any veteran or their family receiving assistance and support under this Bill will not be disadvantaged by ensuring that support payments for veterans and their families are exempt from income tax and are not included as income for the purposes of social security law. This recognises that these payments are reimbursement for support provided under the legislation.

Financial Impact

The indicative cost of this measure is $36.8 million over four years.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

DEFENCE, VETERANS' AND FAMILIES' ACUTE SUPPORT PACKAGE BILL 2022

The Defence, Veterans' and Families' Acute Support Package Bill 2022 is compatible with the 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 Bill

The Bill will amend the Military, Rehabilitation and Compensation Act 2004 to extend eligibility to family members of working age veterans who are at risk of or in crisis, whether or not the veteran is participating in a rehabilitation program or has rendered warlike service. The Bill will also make this support available for the first time to families of working age veterans whose service is covered by the Veterans' Entitlements Act 1986 and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988.

The Bill will outline the key eligibility criteria and expand the range of supports available under the existing program. This includes child care, household services such as garden maintenance and meal preparation, and capacity building support including in relation to financial literacy, relationship skills, cooking lessons and mental health first aid. These additional supports will assist families to adjust to challenging life circumstances.

The substantive measures in the Bill will commence 7 days after receiving the Royal Assent.

Human rights implications

Right to social security and the right to an adequate standard of living

The amendments proposed to be made by Schedule 1 engage both Article 9 of the International Covenant on Economic Social and Cultural Rights (ICESCR), specifically, the right to social security, and Article 11, the right to an adequate standard of living, of the ICESCR.

The right to social security and the right to an adequate standard of living requires, amongst other things, the right to a minimum essential level of benefits to all individuals and families that will enable them to acquire essential health care, basic shelter and housing, water and sanitation and the most basic forms of education.

The purpose of the Defence, Veterans' and Families' Acute Support Package is to provide targeted, flexible support to families managing challenging life circumstances. It is intended to provide intensive support to families, complementing other services provided by the DVA and other Government services.

The Bill will provide for an instrument under each Act which will contain additional eligibility criteria and replace prescribed financial limits on each service category with an annual financial cap to assist veteran families to navigate potentially complex life challenges. The amendments will also allow for the support to be provided to some veterans and their families who are unable to access the support under the current eligibility criteria, for example veterans who have not rendered warlike service or whose service is covered under the Veterans' Entitlements Act 1986 or the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988.

The amendments promote the right to social security and the right to an adequate standard of living by financially supporting veterans and their families at risk or in crisis and providing further assistance complementing, but not duplicating, other services provided by Government.

Conclusion

This Schedule is compatible with the right to social security and the right to an adequate standard of living as it will provide veteran families with additional support and assistance to manage challenging circumstances. It will also provide this support to a wider class of persons.

Right to work

The amendments proposed to be made by Schedule 1 engage Article 6 of the ICESCR, specifically, the right to work.

Article 6.1 of the ICESCR states that "States Parties ...recognize the right to work, which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right."

Article 6.2 of the ICESCR further states that "The steps to be taken by a State Party to the present Covenant to achieve the full realisation of this right shall include technical and vocational guidance and training programs, policies and techniques to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual."

This schedule is in accordance with the right to work and will significantly bolster employment opportunities for veteran families. Expanded support under the Package includes services to build capacity such as financial literacy training. These kinds of educational tools provide veteran families with access to a greater range of employment opportunities. Similarly, added support such as child care and household services may enable some veteran families to more effectively balance the competing demands between employment and family responsibilities, particularly in times of crisis.

Conclusion

This Schedule is compatible with the right to work as it assists veteran families to improve their skills which may increase their chances of finding work, and provides support which may assist with retaining work when the family unit is at risk of, or experiencing, crisis.

Right to protection and assistance to the family

The amendments proposed to be made by Schedule 1 engage Article 10 of the ICESCR. Article 10 of the ICESCR states that "The widest possible protection and assistance should be accorded to the family..."

The Package will improve health and wellbeing by significantly broadening the scope of support available to veteran families. Additional support such as child care, household services and academic support for children are intensive supports that are often critical to a veteran and their family when a veteran is transitioning to civilian life or experiencing a challenging life situation. The Bill provides for an instrument which will replace prescribed limits on each service category with an annual cap. This provides families with the additional flexibility to access the most relevant supports, and choose the help they need.

Conclusion

This Schedule is compatible with the right to protection and assistance to the family as the Package will ensure that veteran families are able to access flexible support mechanisms which will assist veteran families. It will also make the support available to more families.

Right to health

The proposed amendments also engage Article 12 of the ICESCR, which refers to the "right of everyone to the enjoyment of the highest attainable standard of physical and mental health".

The primary purpose of the Package is to support veterans and their families to adjust to challenging circumstances. Military service is unique in nature, and the mental health impacts of service on the veteran family can be complex. The Package will provide for clinical counselling which may not be available under other DVA arrangements.

The extended eligibility requirements will ensure that these critical supports are available to a larger subsection of veteran families.

Conclusion

This Schedule is compatible with the right to health as the support provided will include support for mental health issues. Providing such support will facilitate improved health for veterans and their families and will now be available to a greater number of veterans and their families.

This Explanatory Memorandum uses the following abbreviations and acronyms:

Abbreviation Definition
ADF means the Australian Defence Force
Commission means the Repatriation Commission
Commissioners means members of the Repatriation Commission
Defence means the Department of Defence
DRCA means the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988
DSS means the Department of Social Services
DVA means the Department of Veterans' Affairs
MRCA means the Military Rehabilitation and Compensation Act 2004
MRCC Commissioners means members of the MRCC
MRCC means the Military Rehabilitation and Compensation Commission
Social Security Act means the Social Security Act 1991
social security law has the same meaning as provided in subsection 23(17) of the Social Security Act 1991
VEA means the Veterans' Entitlements Act 1986

NOTES ON CLAUSES

Clause 1 sets out how the new Act is to be cited - that is, as the Defence, Veterans' and Families' Acute Support Package Act 2022.

Clause 2 provides a table setting out the commencement dates of the various sections in, and Schedule to, the new Act. The amendments set out in Schedule 1 will commence 7 days after receiving the Royal Assent.

Clause 3 provides that each Act that is specified in a schedule of the Bill is amended or repealed as set out in that Schedule, and any other item in a Schedule to the Bill has effect according to its terms.

SCHEDULE 1 - AMENDMENTS

Part 1 - Main amendments

Military Rehabilitation and Compensation Act 2004

Item 1 amends section 3 which is the simplified outline of the Act. It omits the words 'counselling or' and substitutes the words 'counselling and' in the description of 'certain assistance'. The amendment makes it clear that the assistance that is available to specified persons under the Act is varied and not limited to one type of assistance.

Item 2 amends Section 268A (Simplified outline of Part 1 of Chapter 5A) by omitting the words 'counselling or' and substituting the words 'counselling and' in the description of 'certain assistance'. The amendment makes it clear that the assistance and benefits that are available to specified persons under Chapter 5A - Family support of the Act are varied and not limited to one type of assistance or benefits.

Item 3 amends the heading 'Chapter 5A - Family and employment support' by substituting the word 'Acute' so that the heading reads 'Acute and employment support'.

Item 4 amends the heading 'Part 1 of Chapter 5A' by omitting "Family" and substituting "Acute".

Item 5 amends section 268A (Simplified outline of Part 1 of Chapter 5A) by removing the words 'The member, former member or deceased member must have rendered warlike service on or after 1 July 2004'.

Prior to this amending Act the simplified outline of this Part in Section 268A made it clear that the MRCC could only make a legislative instrument to provide assistance to members, former members, related persons of a member or former member and deceased members if the member had rendered warlike service on or after 1 July 2004.

By omitting the words 'The member, former member or deceased member must have rendered warlike service on or after 1 July 2004' the limitation is removed from the simplified outline found in section 268A. The removal of the limitation will have the effect that this Part of the MRCA will now enable the MRCC to make a legislative instrument providing for assistance or benefits such as child care, counselling and household services to members or former members of the Australian Defence Force, or to a related person of a member, former member, including former partners or a wholly dependent partner of a deceased member, who has not rendered warlike service on or after 1 July 2004.

Item 6 amends section 268B by repealing the current section 268B and substituting a new section.

New paragraph 268B is titled 'Acute support package'. New subsection 268B(1) provides that the Commission may, by legislative instrument, provide for and in relation to granting of a package (known as the 'Acute Support Package') with assistance or benefits of a specified kind to, at paragraph (a) a person who is a member or former member, or (b) who is or was a related person of a member, former member or deceased member, to assist the person to adjust to challenging life circumstances.

New subsections 268B(2) - 268B(6) deal with eligibility criteria for the acute support package.

New subsection 268B(2) provides that the instrument must provide that a person is not eligible for the Acute support package unless criteria mentioned in subsection (3),(4),(5) or (6) are satisfied.

New subsection 268B(3) provides that for a member or former member the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the person is receiving, or is eligible to receive, compensation for incapacity under Part 3 or 4 of Chapter 4 or a Special Rate Disability Pension;
(c)
the Commission is satisfied that the person, or a related person, is experiencing, or is at risk of experiencing, crisis.

New subsection 268B(4) provides that for a related person of a member or former member the criteria are as follows:

(a)
the member or former member is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the member or former member is receiving, or is eligible to receive, compensation for incapacity under Part 3 or 4 of Chapter 4 or a Special Rate Disability Pension;
(c)
the Commission is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 268B(5) provides that for a wholly dependent partner of a deceased member the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the deceased member's death occurred no more than 2 years before the day the person's eligibility for the package is determined;
(c)
either:

(i)
the deceased member's death was related to service rendered by the member; or
(ii)
the Commission is satisfied that the deceased member's death was a suicide related to service rendered by the member.

New subsection 268B(6) provides that for the former partner of a member or former member the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
at the time the person's eligibility for the is determined, either or both of the following apply:

(i)
the person ceased being the member's or former member's partner within the previous 12 months;
(ii)
a child of the member or former member who is under 18 years lives with the person;

(c)
the Commission is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 268B(7) is titled 'Instrument may deal with various matters' and provides more clarity concerning the types of possible assistance and benefits that persons eligible under subsections 268B(3) to (6) can receive as provided for in the legislative instrument.

The subsection provides examples of the kinds of assistance or benefits that may be granted to members, former members and related persons of a member, former member or deceased member. The list serves to provide some examples but does not limit the types of support that can be provided under section 268B.

Without limiting subsection 268(B)(1), the instrument may provide for and in relation to the following:

(a)
additional eligibility criteria for the acute support package;
(b)
criteria for the granting of assistance or benefits;
(c)
the kinds of assistance or benefits that may be granted, which may include child care, counselling, household assistance, services to build capacity and academic and extra-curricular support for children;
(d)
the conditions on which assistance or benefits are granted;
(e)
limits (whether financial or otherwise) on the provision of assistance or benefits;
(f)
the suspension or cancellation of the provision of assistance or benefits;
(g)
arrangements for the payments of assistance or benefits.

The support that may be granted by the MRCC under the instrument includes the following:

(a)
child care (including home-based care, centre-based care, family day care, occasional care and outside school hours care);
(b)
counselling (including financial counselling and other life skills counselling);
(c)
household assistance (including meal delivery, meal preparation, cleaning and household and garden maintenance);
(d)
services to build capacity (including in relation to financial literacy, relationship skills, cooking lessons and mental health first aid);
(e)
academic and extra-curricular support for children (including in relation to tutoring, music lessons and sporting activities).

Limits (including financial limits and periods of support being provided) on the types of support that can be provided will be included in the legislative instrument. This approach allows the necessary flexibility for the type of support provided to change as feedback is received from those who access the support.

The intention is that the instrument will provide additional limitations on the people that are eligible for a specified support or assistance and the types of specific support available, and will include financial and time limits on the support that can be provided.

It is anticipated that there will be a need to fine tune the types of support available to make the support as relevant and effective as possible. To prescribe these limits in the legislation may hamper DVA's ability to provide relevant and effective support that ensures the best outcome to those persons who are in need in accordance with the objectives of the provision of support under Chapter 5A of the Act.

The assistance and benefits are provided to assist the person to adjust to challenging life circumstances and are not intended to be provided long term.

New subsection 268B(8) provides that without limiting the additional criteria in paragraphs 268B(7)(a) or (b), meeting the criteria may depend on the MRCC being satisfied of one or more specified matters set out in the legislative instrument that are required to be met, have been met, in order for a person to be eligible to receive the specified benefits or assistance.

An example would be in relation to child care in relation to a member, former member or dependant person - who would be eligible to access child care, the types of child care and the amount of financial support available.

The current instrument made under subsection 268B(1), the Military Rehabilitation and Compensation (Family Support) Instrument (No.2) 2018 includes criteria that the MRCC need to be satisfied with in order to grant assistance or benefits under the provision.

New subsection 268(B)(9) is titled 'Definition of related person - extended meaning of member' and provides that for the purposes of the definition of 'related person' in subsection 15(2), a reference to a member includes a reference to a deceased member. Section 15 of the MRCA deals with definitions of 'dependant' and 'related person'.

A note to the subsection provides that a reference to member in the definition at subsection 15(2) also includes a reference to a former member, and refers to section 20 (which provides that a reference to a member is a reference to a former member, for the purposes of certain sections, including section 15).

Item 7 inserts new section 345B at the end of Part 1 of Chapter 8 (which provides for reconsideration and review of determinations under the MRCA). Section 345B is titled 'Application of this Chapter to decisions about acute support packages' and has the effect of providing merits review under Chapter 8 in relation to a decision made by the MRCC under the acute support package instrument.

Item 8 inserts new paragraph 415(1)(aa) at Part 3, Division 1, which deals with recovery of overpayments under the Act.

Insertion of new paragraph 415(1)(aa) will have the effect that an amount paid under an instrument made under section 268(B) to a person as a result of a false or misleading statement, or a failure or omission to comply with the MRCA or the instrument, will be recoverable by the MRCC from the person in a court of competent jurisdiction as a debt due to the Commonwealth (as per subsection 415(3)).

Under subsection 415(4) the recoverable amount may be deducted from an amount that is payable to or for the benefit of the person.

Item 9 is a transitional provision. Sub-item 7(1) provides that the item applies to a person if before commencement of the item the person had been granted assistance or benefits under the current section 268B instrument.

Sub-item 7(2) has the effect that existing clients receiving assistance under the acute support package instrument will continue to receive benefits and assistance granted to them under the current legislative instrument, until the new instrument made under section 268B commences.

Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988

Item 10 inserts a definition of 'related person of another person' to subsection 4(1) (Interpretation section) of the DRCA. The term 'related person of another person' has been used to ensure that related persons of deceased employees (as provided for under paragraph 41B(1)(b) will be eligible to apply for benefits or assistance.

The new definition provides that a related person of another person includes:

(a)
any of the following persons:

(i)
the spouse of the other person;
(ii)
a parent or step-parent of the other person;
(iii)
a parent or step-parent of the partner of the other person;
(iv)
a grandparent of the other person;
(v)
a child or stepchild of the other person;
(vi)
a child or stepchild of the partner of the other person;
(vii)
a grandchild of the other person;
(viii)
a sibling or half-sibling of the other person; or

(b)
a person in respect of whom the other person stands in the position of a parent; or
(c)
a person who stands in the position of a parent to the other person.

The definition of the terms "spouse" and "child" is provided in subsection 4(1) of the Act.

Item 11 inserts a new Part IIIA titled 'Acute support' after Part III.

This part consists of a new section 41B titled 'Acute support package' and mirrors the Acute Support provisions under the amended Chapter 5A of the MRCA.

New subsection 41B(1) provides that the MRCC may by legislative instrument provide for and in relation to granting an acute support package of assistance or benefits of a specified kind to a person:

(a)
who is an employee; or
(b)
who is or was a related person of an employee or deceased employee.

to assist the person to adjust to challenging life circumstances.

A note to the subsection provides that decisions of the MRCC under the instrument are reviewable and refers to section 60A, the Interpretation section under Part 6 of the DRCA, which deals with reconsideration and review of determinations made under the Act.

New subsections 41B(2) - 41B(6) concern eligibility criteria for the acute support package. New subsection 41B(2) provides that the instrument must provide that a person is not eligible for the acute support package unless the criteria mentioned in subsections (3),(4),(5) or (6) are satisfied.

New subsection 41B(3) provides that if the person is an employee (member of the Defence Force) the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the person is receiving, or is eligible to receive, compensation under Division 3 of Part II; and
(c)
the MRCC is satisfied that the person, or a related person, is experiencing, or is at risk of experiencing, crisis.

New subsection 41B(4) provides that if the person is a related person of an employee, the criteria are as follows:

(a)
the employee is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the employee is receiving, or is eligible to receive, compensation under Division 3 of Part II; and
(c)
the MRCC is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 41B(5) provides that if the person was the spouse of a deceased employee immediately before the employee's death the criteria are as follows:

(a)
the person was wholly or partly dependent on the employee at the date of the employee's death;
(b)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(c)
the deceased employee's death occurred no more than 2 years before the day the person's eligibility for the package is determined;
(d)
the deceased employee's death resulted from an injury.

New subsection 41B(6) provides that if the person was the spouse of an employee, the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
at the time the person's eligibility for the package is determined, either or both of the following apply:

(i)
the person ceased being the employee's spouse within the previous 12 months;
(ii)
a child of the employee who is under 18 years lives with the person;

(c)
the Commission is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 41B(7) provides that the legislative instrument made by the MRCC under subsection 41B(1) may deal with various matters including::

(a)
additional eligibility criteria for the acute support package
(b)
criteria for the granting of assistance or benefits;
(c)
the kinds of assistance or benefits that may be granted, which may include child care, counselling, household assistance, services to build capacity and academic and extra-curricular support for children;
(d)
the conditions on which assistance or benefits are granted;
(e)
limits (whether financial or otherwise) on the provision of assistance or benefits;
(f)
the suspension or cancellation of the provision of assistance or benefits;
(g)
arrangements for the payment of assistance or benefits.

This does not limit the MRCC's ability to make provisions in relation to the acute support package.

New subsection 41B(7) provides for examples of the kinds of assistance or benefits that may be granted to employees and related persons. The list is inclusive and serves to provide some examples but does not limit the types of support that can be provided under section 41B.

Paragraph 41B(7)(a) reflects the fact that while the legislative instrument will include additional eligibility criteria, the Act itself as proposed to be amended already includes eligibility criteria. The intention is that the instrument will provide additional limitations on the people that are eligible for a specified support or assistance, the types of specific support available and will include financial and time limits on the support that can be provided. An example would be in relation to child care in relation to a member, former member or dependant person - who would be eligible to access child care, the types of child care and the amount of financial support available

Limits (including financial limits and periods of support being provided) on the types of support that can be provided will be included in the legislative instrument. This approach allows the necessary flexibility for the type of support provided to change as feedback is received from those who access the support.

It is anticipated that there will be a need to fine tune the types of support available to make the support as relevant and effective as possible. To prescribe these limits in the legislation may hamper DVA's ability to provide relevant and effective support that ensures the best outcome to those persons who are in need in accordance with the objectives of the provision of support under new Part IIIA of the Act.

The kinds of assistance or benefits that may be granted under an instrument made under new subsection 41B include the following:

(a)
child care (including home-based care, centre-based care, family day care, occasional care and outside school hours care);
(b)
counselling (including financial counselling and other life skills counselling);
(c)
household assistance (including meal delivery, meal preparation, cleaning and household and garden maintenance);
(d)
services to build capacity (including in relation to financial literacy, relationship skills, cooking lessons and mental health first aid);
(e)
academic and extra-curricular support for children (including in relation to tutoring, music lessons and sporting activities).

The assistance and benefits are provided to assist the person to adjust to new or challenging life circumstances, and they are not intended to be provided long term.

New subsection 41B(8) has the effect that without limiting the additional criteria in paragraph 268B(7)(a) or (b), meeting the criteria may depend on the MRCC being satisfied of one or more specified matters set out in the legislative instrument that are required to be met, have been met, in order for a person to be eligible to receive the specified benefits or assistance.

Item 12 inserts new section 60A at Part 6 of the DRCA (Reconsideration and review of determinations). Section 60 is the Interpretation section for Part 6.

New section 60A is titled 'Application of this Part to decisions about acute support packages' and has the effect that a decision made by the MRCC under the acute support package instrument attracts the reconsideration and review available under Part 6 in relation to a determination.

Item 13 new paragraph (aa) at section 114 (Recovery of overpayments) after paragraph 114(1)(a). New paragraph (aa) refers to an amount paid under an instrument made under section 41B of the DRCA to a person as a result of a false or misleading statement or representation, or a failure or omission to comply with the Act or the instrument.

The effect of inserting the new paragraph is that an amount paid to a person under section 41B as a result of false or misleading statements or representations or a failure or omission to comply with the Act or instrument, can be recovered from the person in a court of competent jurisdiction as a debt due to the MRCC.

The amendment also has the result that where an amount is recoverable from a person and an amount is payable under the DRCA to or for the benefit of that person, the recoverable money may be deducted from the amount payable.

Item 14 inserts new subsection (1A) at section 152 (Delegation section) of the DRCA. New subsection (1A) enables the MRCC by resolution to delegate any of its functions or powers under an instrument, made under new section 41B of the DRCA, to a person to whom it can delegate functions or powers to under section 384 of the MRCA.

Item 15 inserts new subsection 160(1B) at section 160 (the Appropriation section), which would allow for the Consolidated Revenue Fund (the CRF) to be appropriated for the purposes of paying assistance or benefits made under section 41B.

There is no need for a similar amendment to the MRCA as paragraph 423(bb) of the MRCA already provides that the CRF is appropriated for the purposes of paying assistance or benefits granted under section 268B.

Veterans' Entitlements Act 1986

Item 16 inserts a new paragraph 5H(8)(zze) at the end of subsection 5H(8) of the VEA, which provides an extensive list of payments and amounts which are excluded from being considered income in relation to a person for the purposes of provision of payments under the VEA. Paragraph 5H(8)(zze) is added to ensure that any money paid to a person as support, under an instrument made under:

(i)
section 115S of the VEA;
(ii)
section 268B of the MRCA; or
(iii)
section 41B of the DRCA

is not considered income in relation to a person for the provision of payments under the VEA.

This provision ensures that no recipient will be worse off by being required to declare any amount provided for support as income.

Item 17 inserts a new Part VIC titled 'Acute support' after Part VIB and mirrors the acute support provisions under the amended Chapter 5A of the MRCA and Part IIIA of the DRCA.

Part VIC inserts a new section 115S titled 'Acute support package'.

New subsection 115S(1) authorises the Commission (being the Repatriation Commission), by legislative instrument, to make provision for and in relation to the acute support package for granting of assistance or benefits of a specified kind to a person:

(a)
who is a veteran; or
(b)
who is or was a related person of a veteran or a deceased veteran.

The subsection states that the purpose of the support is to assist the person to adjust to challenging life circumstances. This provides a limitation on when the provision of the support can be made available to eligible persons listed in new subsection 115S(2), these being a veteran, related person of a veteran including a former partner in certain circumstances, or a war widow of a veteran.

A note to the subsection provides that decisions of the MRCC under the instrument are reviewable, and refers to section 135A of the VEA. Section 135A is a new provision created under Division 3 which will enable decisions made by the Commission under the acute support package instrument to be subject to review.

New subsections 115S(2) - 115S(6) deal with eligibility criteria for the acute support package.

New subsection 115S(2) provides that the instrument must provide that a person is not eligible for the acute support package unless the criteria mentioned in subsections (3),(4),(5) or (6) are satisfied.

New subsection 115S(3) provides that if the person is a veteran the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the person is receiving, or is eligible to receive, a pension at a rate provided for by section 23, 24 or 25 or a veteran payment;
(c)
The Commission is satisfied that the person, or a related person, is experiencing, or is at risk of experiencing, crisis.

New subsection 115(S)(4) provides that if the person is a related person of a veteran the criteria are as follows:

(a)
the veteran is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
the veteran is receiving, or is eligible to receive, a pension at a rate provided for by section 23, 24 or 25 or a veteran payment;
(c)
the Commission is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 115S(5) provides that if the person is a war widow or war widower, the criterion is that the person is under 65 years of age at the time the person's eligibility for the acute support package is determined.

New subsection 115S (6) provides that if the person was the partner of a veteran the criteria are as follows:

(a)
the person is under 65 years of age at the time the person's eligibility for the acute support package is determined;
(b)
at the time the person's eligibility for the package is determined, either or both of the following apply:

(i)
the person ceased being the veteran's spouse within the previous 12 months;
(ii)
a child of the veteran who is under 18 years lives with the person;

(c)
the Commission is satisfied that the person is experiencing, or is at risk of experiencing, crisis.

New subsection 115S(7) provides that the instrument may deal with various matters, and make provision for and in relation to the following:

(a)
additional eligibility criteria for the acute support package;
(b)
criteria for the granting of assistance or benefits;
(c)
the kinds of assistance or benefits that may be granted, which may include child care, counselling, household assistance, services to build capacity and academic and extra-curricular support for children;
(d)
the conditions on which assistance or benefits are granted;
(e)
limits (whether financial or otherwise) on the provision of assistance or benefits;
(f)
the suspension or cancellation of the provision of assistance or benefits;
(g)
arrangements for the payment of assistance or benefits.

Subsection 7 provides examples of the kinds of assistance or benefits that may be granted to veterans, related persons, former partners and war widow(er)s. The list serves to provide some examples but does not limit the types of support that can be provided under section 115S(7).

Limits (including financial limits and periods of support being provided) on the types of support that can be provided will be included in the legislative instrument. This approach allows the necessary flexibility for the type of support provided to change as feedback is received from those who access the support.

It is anticipated that there will be a need to fine-tune the types of support available to make the support as relevant and effective as possible. To prescribe these limits in the legislation may hamper DVA's ability to provide relevant and effective support that ensures the best outcome to those persons who are in need in accordance with the objectives of the provision of support under new Part VIC of the Act.

The assistance and benefits are provided to assist the person to adjust to new or challenging life circumstances, and they are not intended to be provided long term.

New subsection 115S(8) has the effect that without limiting the additional criteria in paragraphs 115S(7)(a) or (b), meeting the criteria may depend on the Commission being satisfied of one or more specified matters set out in the legislative instrument that are required to be met, have been met, in order for a person to be eligible to receive the specified benefits or assistance.

New subsection 115S(9) provides the meaning of related person for the purpose of section 115S(1). It provides that the following persons would be a related person of the veteran:

(a)
any of the following persons:

(i)
the partner of the veteran;
(ii)
a parent or step-parent of the veteran;
(iii)
a parent or step-parent of the partner of the veteran;
(iv)
a grandparent of the veteran;
(v)
a child of the veteran;
(vi)
a child of the partner of the veteran;
(vii)
a grandchild of the veteran;
(viii)
a sibling of the veteran; or

(b)
a person in respect of whom the veteran stands in the position of a parent; or
(c)
a person who stands in the position of a parent to the veteran.

New subsection 115S (10) provides that for the purposes of the section, the partner of a veteran is a person in respect of whom at least one of the following applies:

(a)
if the veteran is a member of the Aboriginal race of Australia or a descendant of Indigenous inhabitants of the Torres Strait Islands-the person is recognised as the veteran's husband, wife or spouse by the custom prevailing in the tribe or group to which the veteran belongs;
(b)
the person is legally married to the veteran;
(c)
a relationship between the person and the veteran (whether the person and the member are the same sex or different sexes) is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;
(d)
the person (whether of the same sex or a different sex to the member):

(i)
is, in the Commission's opinion, in a de facto relationship with the veteran; and
(ii)
is not an ancestor, descendant, brother, sister, half-brother or half-sister of the veteran.

New subsection 115S(11) provides that the definition of child in subsection 5F(1) does not apply for the purposes of this section.

Item 18 inserts a reference to section 135A at subsection 132(5). Section 132 provides in relation to payment of traveling expenses for claimants for a veteran payment. Inclusion of a reference to section 135A at subsection 132(5) will have the effect that an applicant seeking review under new section 135A (which will provide for review of decisions relating to acute support packages) who travels in Australia for the purpose of attending a hearing of the review by the Board may receive such travelling expenses in connection with that travel as are prescribed.

Item 19 inserts a new section 135A at Division 3 of the VEA (Review by the Board of decisions). The new section is titled 'Review of decisions relating to acute support packages'.

New subsection 135A(1) provides that if the Commission makes a decision in relation to a person under an instrument made under section 115S (about acute support packages) and the person is dissatisfied with the decision, the person may make an application to the Veterans' Review Board for a review of the Commission's decision.

New subsection 135A(2) provides that an application for review must be made within 3 months after the decision is made.

Item 20 inserts new subsection 136(4) at section 136 (Application for review). The subsection provides that an application under subsection 136(1) about the acute support package may be made by the person to whom the decision relates.

Item 21 amends section 137, which provides that the Secretary is to prepare a report in relation to an application for review made under section 135, by adding a reference to subsection 135A(1) at subsection 137(1). This has the effect that the Secretary must provide a person seeking review under new subsection 135A(1) with a report referring to the evidence under the control of the department that is relevant to the review.

Item 22 amends section 137A, which provides an ongoing requirement for a party to a review application to lodge documents relevant to the review, by inserting a reference to section 135 at paragraph 137A(a).

Item 23 inserts a reference to subsection 135A at paragraph 175(1)(a), which has the effect that where a decision of the Repatriation Commission has been reviewed by the Veterans' Review Board and the Board affirms, varies or sets aside a decision, the person seeking review may apply to the Administrative Appeals Tribunal for review of the Board's decision.

Item 24 inserts a new paragraph 199(e) after paragraph 199(da) at section 199 (the Appropriation section). This new paragraph provides for the Consolidated Revenue Fund to be appropriated for the purposes of paying assistance or benefits granted under an instrument made under new section 115S.

Part 2 - Other amendments

Part 2 makes necessary amendments to the Income Tax Assessment Act 1997 and the Social Security Act 1991 to ensure that family support payments for veterans and their families are exempt from income tax and from being assessed as income for the purposes of the Social Security Act 1991.

Income Tax Assessment Act 1997

Item 25 inserts a new item in section 11-15 of the Act. Division 11 deals with kinds of non-assessable income. Section 11-15 of the Act is a guide to the legislation and includes a table of ordinary or statutory income that are exempt from income tax.

The amendment inserts (before the table item headed 'agricultural industry exit grants') a new heading 'acute support packages for veterans and their families'. Insertion of this term updates the guide and directs a taxpayer to the operative provision at section 52-185 of the Act as inserted by item 15 of the amending Act.

Item 26 inserts a new section 52-185 (titled 'Acute support packages are exempt) at the end of Subdivision 52-H of the Act. Section 52-185 of the Act provides that payments under an instrument made under the following:

(i)
section 268B of the Military Rehabilitation and Compensation Act 2004;
(ii)
section 41B of the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988; and
(iii)
Section 115S of the Veterans' Entitlements Act 1986

are exempt from income tax.

Item 27 provides that the amendments made by items 25 and 26 of this Schedule apply for the 2022-23 income year and later income years.

Social Security Act 1991

Item 28 would insert new paragraph 8(8)(zsa) after paragraph 8(8)(zs). Subsection 8(8) is titled 'Excluded amounts - general' and lists amounts that are not income for the purposes of the social security law.

New paragraph (zsa) would provide that a payment under an instrument made under the following:

(i)
section 268B of the Military Rehabilitation and Compensation Act 2004;
(ii)
section 41B of the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988; and
(iii)
section 115S of the Veterans' Entitlements Act 1986

is not income for the purposes of the social security income test.


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