NEWS ITEMS 3

Thursday 4 December 2003

MILITARY REHABILITATION AND COMPENSATION BILLS INTRODUCED

The Minister for Veterans' Affairs, Danna Vale, today introduced legislation into Federal Parliament that lays the framework for military rehabilitation and compensation for Australian Defence Force (ADF) personnel for decades to come.

"This legislation delivers on the Government's commitment to care for those who serve in the defence of Australia and has been developed in close consultation with the defence force and veteran communities," Mrs Vale said.

"As a package it enhances benefits available in the event of injury or death, particularly for those personnel who are severely incapacitated, and for widowed partners of ADF members."

The new scheme has a strong focus on rehabilitation to help injured ADF members make a full recovery, including a requirement that the Service Chief appoint a case manager for those being discharged on medical grounds to assist with the transition to civilian life.

It also draws on the best aspects of existing health care arrangements, with the payment of reasonable expenses for conditions not requiring ongoing treatment and the provision of DVA Gold and White Cards to provide free health care for members needing ongoing treatment.

The attached document outlines other key features that will assist ADF members and their families.

The Minister said draft legislation was released in June and extensive consultation had been undertaken with the defence force and veteran communities in developing the final Bills.

"We have listened to ADF members and veterans and have incorporated a number of their comments into the Bill," she said.

"The Government has decided not to proceed with a measure to offset future grants of the T&PI pension paid under the Veterans' Entitlements Act 1986 by the Commonwealth-funded component of superannuation.

"This reflects the conclusion that it would be unreasonable to treat differently two veterans with the same service and same incapacity," Mrs Vale said.

The Minister said the Government also had addressed concerns about the requirement that a veteran be unable to work at all to be eligible for the 'safety net' payment under the new scheme.

"The provision is more generous. It now extends eligibility for the safety net to cover those who are unable to work more than 10 hours a week"

"We also have extended the time allowed for veterans or their families to choose between lump sum or periodic payments from three to six months, with provisions for financial advice."

Subject to the passage of the legislation, Mrs Vale said the new Military Rehabilitation and Compensation Scheme was to commence on 1 July 2004.

Media Contact: Claire Bannon 02) 6277 7820 or 0423 781 896

MILITARY REHABILITATION AND COMPENSATION BILLS KEY FEATURES

Rehabilitation

* Rehabilitation will be a primary focus and the scheme will include assessments for all members or former members who have a claim accepted, aimed at full recovery, return to work where possible, or reaching optimum health and well-being.

* Defence Service Chiefs will retain responsibility for the rehabilitation of serving ADF members.

Compensation

* Compensation payments match those provided under existing legislation, with significant enhancements for severe injury and incapacity.

* The scheme will offer a choice between a lump sum or regular pension payments for permanent impairment or a combination of both.

* For severely injured personnel, a choice between incapacity payments to age 65 or a lifetime Special Rate Disability Pension 'safety net' payment.

Common income maintenance regardless of service

* The scheme introduces common income maintenance entitlements for warlike, non-warlike and peacetime service. Special arrangements will be made for entitlements under reserve or cadet service.

Widowed partners

* The scheme will offer a choice for widowed partners: a regular pension, equivalent to the war widow's pension, or a lump sum based on the lifetime pension value plus an age-based additional death benefit of up to $103,000 if death is related to warlike service or up to $41,200 if death is related to non-warlike or peacetime service

* Lump sum benefits for widows are enhanced. For example, the 25-year-old partner of an ADF member whose death was caused by warlike service (with two children) will have benefits totalling approximately $600,000 if taken entirely as a lump sum. In addition, the widowed partner will be eligible for free health care for themselves and dependent children, military superannuation benefits, weekly allowances for dependent children, and other ancillary benefits.

Health care

* Payment of reasonable expenses for members not requiring ongoing treatment.

* Provision of the White Card, providing free care for members needing ongoing treatment for conditions accepted as service-related.

* Provision of the Gold Card for members with 60 or more permanent impairment points, or those eligible for the 'safety net', providing free care for all conditions regardless of whether they are service-related.

Financial advice

* In some circumstances where a choice is available, the Federal Government will pay up to $1236 towards the cost of independent financial advice to assist injured personnel and their families in choosing the most appropriate benefits.

Continuation of Veterans' Entitlements Act benefits

* Links between the new scheme and existing veterans' entitlements will provide benefits to new veterans with warlike service, such as the automatic treatment for certain conditions such as PTSD, the Gold Card at age 70 and the service pension at age 60.

Commencement

* The new scheme will cover all ADF service from the date the legislation takes effect, planned for 1 July 2004.