House of Representatives

Explanatory Memorandum

Circulated By the Authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, the Hon Jenny Macklin MP

Schedule 7 - Essential medical equipment payment

Summary

This Schedule provides for an annual indexed payment of $140 to certain households where a person, for medical reasons, must use essential medical equipment, resulting in higher than average energy use. The payment is sufficient to cover the expected change in running costs for the highest energy use machine expected to be covered by this payment.

Background

There is a proportion of the population who have significantly higher than average electricity costs due to a medical condition or disability. This includes people using essential medical equipment, as well as people who are unable to self-regulate their body temperature and, therefore, use additional energy for heating and cooling.

These people will require further assistance in addition to the general cash assistance they may receive through the broader Clean Energy Household Assistance Package.

This Commonwealth assistance is sufficient to cover the expected change in energy costs as a result of the introduction of the carbon price in addition to assistance already provided by States and Territories. The scope of State and Territory schemes already supporting such individuals at 30 June 2011 will guide the scope of Commonwealth assistance.

The essential medical equipment payment will be administered by Centrelink and the Department of Veterans' Affairs. A cash payment gives households greater freedom to adjust and spend assistance how they see fit. Centrelink customers who claim the essential medical equipment payment will be able to use the Centrepay service to apply part or all of their assistance payments directly to their energy bills.

Qualification

An essential medical equipment payment will be available to households within Australia, where a person has a medical condition requiring the use of essential medical equipment or is unable to self-regulate their body temperature, and who, therefore, has to use additional energy for heating and cooling. To be eligible, the person with the disability or medical condition, or their carer must hold a concession card or be listed on a concession card.

A medical practitioner must certify that the relevant condition exists, that the equipment is required, and is being used unless the Secretary or Repatriation Commission is otherwise satisfied this requirement is met. The Secretary or Repatriation Commission may otherwise be satisfied, for example, where the equipment user can show that a State or Territory energy authority has accepted their medical condition and is giving a rebate. The types of medical equipment to be covered, and the nature of medical conditions resulting in the inability to regulate body temperature will be specified by legislative instrument.

Where the essential medical equipment is being used by a dependent child, the child's carer may be qualified to receive the payment based upon the child's medical need for the equipment, or for additional heating or cooling. More generally, if a carer provides care and attention on a regular and ongoing basis for a person they live with, including a non-dependent adult with medical needs, the carer may be qualified for the payment.

No priority in qualification as between a carer and a person with a medical condition is imposed by the provisions. However, a claim by a person who cares for a non-dependent young person or adult with a medical condition must be signed by the person with the medical condition, ensuring that the equipment user is aware that the payment has been claimed. Existing arrangements for a person who is limited in dealing with such formalities would also apply to the new claim process - for example, many of these people would already have a nominee who would act on their behalf.

The payment will be focused primarily on electricity usage, as this is the most common energy source for medical equipment used in private homes. However, other types of energy use may also be expanded by legislative instrument, as required.

The essential medical equipment payment will be limited generally to being paid only once in relation to the same medical equipment in a particular residence for an income year (ending on 30 June). An essential medical equipment payment will be available for each piece of equipment used in a residence, whether used by one or by a number of users. In some instances, such as shared care arrangements of children, payment of the essential medical equipment payment may be made in relation to each household in which the equipment using person lives, although limited to two households.

People will only need to claim the essential medical equipment payment in the first year, and then payments will made on the anniversary of the date of claim, provided nothing has changed which renders the claimant no longer qualified at that time. Like all social security and Veterans' Affairs recipients, the claimant is subject to an obligation to inform Centrelink or the Department of Veterans' Affairs of the occurrence of any event or change which might affect the payment. In general, the types of medical condition resulting in the need for medical equipment are stable, such that loss of qualification is unlikely. However, the Secretary or Repatriation Commission will have discretion to seek further information, including a recertification by a medical practitioner where necessary.

The essential medical equipment payment will be $140 in 2012-13 and will be indexed.

The amendments made by this Schedule commence on 14 May 2012, but payments will only be made from 1 July 2012.

Provisions with the same effect as those for the purposes of the social security law will be inserted into the Veterans' Entitlements Act. Households holding concession cards under the Veterans' Entitlements Act may be entitled to an essential medical equipment payment paid under that Act. Generally, an essential medical equipment payment cannot be received under both Acts.

Explanation of the changes

Part 1 - Amendment of the social security law

Items 1 to 10 amend the Social Security Act.

Item 1 inserts the essential medical equipment payment into the definition of clean energy payment inserted by Schedule 1.

Items 2, 3, 4, and 5 insert definitions of EMEP residence, essential medical equipment payment, medical equipment and person with medical needs, all by reference to new section 917A ( inserted by item 6, below).

Item 6 adds new Division 4 after Division 3 of new Part 2.18A, inserted by Schedule 1.

New section 917B deals with qualification for the essential medical equipment payment . Essential medical equipment payment is defined at new section 917A to mean a payment under new Division 4 (except in new section 917F, where it has the meaning given by that section). New subsection 917B(1) provides that a person is qualified for an essential medical equipment payment for an income year if the Secretary is satisfied that, on the EMEP test day (defined in new subsection 917B(3) below), the claimant satisfies the medical needs requirement in new section 917C, the concession card requirement in new section 917D and the energy account requirement in new section 917E.

Additionally, the person must not be prevented from receiving an essential medical equipment payment by new section 917F, and must be in Australia on the EMEP test day. The claimant must also not be a dependent child of another person on the EMEP test day. This restricts dependent children from claiming the payment in their own right. However, a claim may be made by the parent or carer of a dependent child with medical needs if all other requirements are met.

Additionally, a medical practitioner must have certified (subject to new subsection (2)) that the claimant or another specified person meets the medical needs requirement under new subsection 917C(1) on a day . Medical practitioner is defined in section 23 of the Social Security Act to mean a person registered and licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners. This does not require that the certification be in respect of the EMEP test day. However, the certification must confirm that all elements of new subsection 917C(1) are present on a day and more generally.

New subsection 917B(2) provides an exception to the requirement for a medical certification, where the Secretary is otherwise satisfied that the claimant or another specified person meets the medical needs requirement in new section 917C. The Secretary may otherwise be satisfied, for example, where the equipment user can show that a State or Territory energy authority has accepted their medical condition and is giving a rebate for a type of equipment specified for the essential medical equipment payment.

The EMEP test day is defined in new subsection 917B(3). In the income year of claim, this day is the day on which the claimant makes the claim for the payment. In subsequent income years, the EMEP test day is the anniversary of the day on which the claimant made the claim in a previous year, provided that, since the claimant made the claim, the Secretary has not determined that the claimant has ceased to be qualified for the payment. If the Secretary has determined that the claimant is no longer qualified and cancelled the payment, the person may reclaim.

A note highlights that section 11 of the Social Security Administration Act requires that a person make a claim for a social security payment in order to be paid the payment.

A second note highlights that additional rules relating to claims for the essential medical equipment payment are provided by new section 19 of the Social Security Administration Act (inserted by item 10 below).

New subsection 917B(4) allows the Secretary to act on the basis of documents and information in his or her possession when determining whether a person is qualified for an essential medical equipment payment for an income year after the income year in which the claim is made. The Secretary is additionally not required to conduct any inquiries or investigations into the matter or to require the giving of any information or the production of any document for this purpose. Any person who has made a claim for or received a social security payment or concession card has an obligation to inform the Department of any event or change of circumstances that might affect payment or qualification (see section 66A of the Social Security Administration Act).

The Secretary has general information-seeking powers under Part 5 of the Social Security Administration Act, if the Secretary considers the information may be relevant to matters such as qualification for a payment. Additionally, new subsection 917B(5) makes it clear that the Secretary may require a further certification from a medical practitioner, or a further document for the purposes of new subsection (2) in an income year after the income year in which the claim is made. This further certification may be required where the medical condition may change over time, for example, in situations where the person is likely to recover from the medical condition.

The medical needs requirement is set out in new section 917C. New subsection 917C(1) deals with the person who has a medical condition meeting the medical needs requirement. New paragraph 917C(1)(a) covers a person who uses specified essential medical equipment. The person will meet the requirement if the person has a medical condition on that day that requires the use of specified essential medical equipment in a residence that is the person's home, the residence is either a private residence or a specified residence, and the person uses that equipment in that residence. It is not necessary that the equipment be used by the person on the particular day provided the conditions are met more generally.

New paragraph 917C(1)(b) covers a person who is unable to regulate his or her body temperature because of a specified medical condition. The person will meet the requirement if the person has a specified medical condition, additional heating or cooling is required in a residence that is the person's home to manage the person's condition, the residence is either a private residence or a specified residence, and the person uses additional heating or cooling in that residence. It is not necessary that additional heating or cooling is used by the person on the particular day, provided the conditions are met more generally.

For both cases, the EMEP residence is the residence that is the person's home, and is either a private residence or a specified residence. This term is defined in new section 917A by reference to new subsection 917C(1).

Medical equipment is defined in new section 917A in relation to a person who has a specified medical condition and, as a result, is unable to regulate his or her body temperature, as meaning the heating or cooling system of the residence that is the person's home described in new paragraph 917C(1)(b). Medical equipment also includes specified free-standing medical equipment used by a person such as an external heart pump, or a dialysis machine.

New subsection 917C(2) allows a carer for a person with medical needs to satisfy the medical needs requirement on a day in their own right, based upon the person with medical needs satisfying the medical needs requirement under new subsection 917C(1) on the day (including being specified in the required certification or otherwise satisfying the Secretary of the requirements). A person with medical needs is defined in new section 917A by reference to new paragraph 917C(2)(b).

To be a carer for a person with medical needs, the carer must provide care and attention on a regular and ongoing basis for the person with medical needs. The carer's home must also be the EMEP residence that is the home of the person with medical needs. A parent or person responsible for a dependent child who has medical needs would meet this requirement, including a foster carer of such a child.

New subsection 917C(3) provides that the Minister may specify, by legislative instrument, essential medical equipment for the purposes of new paragraph 917C(1)(a), medical conditions for the purposes of new paragraph 917C(1)(b), and residences for the purposes of paragraphs 917C(1)(a) and (b). A specified residence which is not a private residence may be, for example, a supported disability group residence. Allowing these matters to be specified by legislative instrument provides flexibility in the nature of equipment, conditions and types of residence covered.

New section 917D sets out the concession card requirement for the purposes of new section 917B. (Concession card is defined for the purposes of the Social Security Act in section 6A to mean a pensioner concession card, a health care card or a seniors health card.) A person satisfies the concession card requirement on a day if the person is a holder of a concession card, or the person's name is included on a concession card. Sections 240A and 240B of the Social Security Administration Act allow dependants of the holder of a concession card to be listed on the card in many instances (which will generally include the person's partner and any dependent children - section 6A of the Social Security Act).

A person will also meet the concession card requirement if the person cares for a person who has medical needs, and the person with medical needs is the holder of, or included on, a concession card on that day.

New section 917E sets out the energy account requirement on a day to meet new section 917B. A person satisfies the energy account requirement if the energy account for the relevant EMEP residence is in the name of that person or the person's partner. Alternatively, the person will satisfy the energy account requirement if the person contributes (whether wholly or partly) to paying the energy account for the relevant EMEP residence. This would potentially give rise to qualification in situations where the account is held within the household by someone other than the person or the person's partner.

For situations where the claim is being made by the carer for the person with medical needs, and the carer or their partner does not hold the energy account, the carer may none the less be qualified if the person with medical needs contributes (whether wholly or partly) to paying the energy account for the relevant EMEP residence.

The word, account, is to take its ordinary meaning. This will cover households who can supply some or all of their own energy needs, for example, with solar panels, provided the household has a service relationship with an energy supplier.

An energy account means any account for electricity, or any other form of energy specified for the purposes of this provision by the Minister by legislative instrument.

New section 917F sets out the rules around the availability of payments. New subsection 917F(1) provides that no essential medical equipment payment may be made for an income year in relation to medical equipment that is used in an EMEP residence if an essential medical equipment payment has already been made for that income year in relation to the same equipment and the same residence.

Example

If Susan has two children, Jane and Martha, where Jane uses a dialysis machine, and Martha a sleep apnoea monitor, then Susan may receive an essential medical equipment payment in respect of Jane's machine, and an essential medical equipment payment in respect of Martha's monitor. However, if Susan's partner, Chris, claims an essential medical equipment payment in relation to Jane or Martha's equipment when Susan has already been paid for that equipment for that income year, no essential medical equipment payment may be paid to Chris.

However, an exception is made for situations in which an equipment user has a number of homes, and the medical equipment is used at each of the homes. In this case, no more than two essential medical equipment payments may be made in relation to the same medical equipment for one income year. New subsection 917F(2) provides that no more than two essential medical equipment payments may be made in relation to the same medical equipment for an income year (subject to new subsection 917F(1)). Because new subsection 917F(1) limits payments within a particular residence to one per piece of medical equipment per residence, this results in more than one payment being available only if the same equipment is used in a number of residences, that is, where the user has a number of homes. However, essential medical equipment payments for an income year may not be made, in relation to a person with medical needs, in relation to more than two EMEP residences (new subsection 917F(3)).

Example

In the example above, if Susan and Chris separate, but share care of Martha and Jane, who take their equipment from one home to the other, Susan and Chris may each be paid an essential medical equipment payment in an income year for each of Martha's monitor and Jane's dialysis machine.

New subsection 917F(4) provides that essential medical equipment payment for the purposes of this section, means such a payment under new Division 4, or under new Division 3 of Part IIIE of the Veterans' Entitlements Act, inserted by this Schedule. In other words, the same rules apply, regardless of whether an essential medical equipment payment is paid under the Social Security Act or the Veterans' Entitlements Act.

New section 917G provides that the amount of an essential medical equipment payment for an income year is $140.00. However, a note alerts the reader that the payment is indexed on each 1 July by reference to sections 1190 and 1191 of the Social Security Act.

New section 917H provides for special rules to restrict the unintended consequence of a person who has been paid an essential medical equipment payment becoming entitled because of this to other benefits. It provides that, if a provision provides a benefit (whether a pension, benefit, payment supplement or any other sort of benefit) if a person meets specified criteria, and one of the criteria is that the person is receiving a social security payment, or is a recipient of a social security payment, then, for the purposes of the provision, a person is not taken to be receiving a social security payment, or to be a recipient of a social security payment, merely because the person receives an essential medical equipment payment.

Items 7, 8 and 9 amend sections 1190, 1191 and 1192 to provide for indexation by the Consumer Price Index of the essential medical equipment payment, with the first indexation taking place on 1 July 2013. The indexed payment will be rounded to the nearest dollar.

Item 10 amends the Social Security Administration Act by inserting new section 19, in relation to claims for the essential medical equipment payment. New subsection 19(1) provides that an essential medical equipment payment claim must include a statement by the person making the claim that the medical equipment to which the claim relates is used in the relevant EMEP residence.

New subsection 19(2) provides that, if a person who provides care and attention for a person with medical needs makes a claim for an essential medical equipment payment, and the person with medical needs is not a dependent child of that or any other person, then the claim must be signed by the person with medical needs. This ensures administratively that an adult person with medical needs is aware when a claim for an essential medical equipment payment is made in respect of the equipment they use.

Part 2 - Amendment of the Veterans' Entitlements Act

Items 11 to 34 amend the Veterans' Entitlements Act.

Items 11 to 15 insert new terms into the index of definitions.

Item 16 inserts a reference to the essential medical equipment payment into the definition of clean energy payment in subsection 5Q(1).

Items 17 to 21 insert definitions of EMEP residence, essential medical equipment payment, income year, medical equipment and person with medical needs into subsection 5Q(1).

Item 22 makes a technical amendment to paragraph (b) of the definition of tax year in subsection 5Q(1).

Item 23 adds new Divisions 3 and 4 after Division 1 of new Part IIIE.

Division 3 - Essential medical equipment payment

Subdivision A - Definitions

New section 63A defines terms used in new Division 3.

Subdivision B - Eligibility for essential medical equipment payment

New section 63B deals with eligibility for the essential medical equipment payment . Essential medical equipment payment is defined at new section 63A, to mean a payment under this Division (except in new section 63F, where it has the meaning given by that section). A person is eligible for an essential medical equipment payment for an income year if the Repatriation Commission is satisfied that, on the EMEP test day, the claimant satisfies the medical needs requirement in section 63C, the concession card requirement in section 63D and the energy account requirement in section 63E.

Additionally, the person must not be prevented from receiving an essential medical equipment payment by new section 63F, and must be in Australia on the EMEP test day. The claimant must also not be a dependent child of another person on the EMEP test day (defined in subsection (3)). This restricts dependent children from claiming the payment in their own right. However, a claim may be made by the parent or carer of a dependent child with medical needs if all other requirements are met.

Additionally, a medical practitioner must have certified (subject to subsection 63B(2)) that the claimant or another specified person meets the medical needs requirement under subsection 63C(1) on a day. This does not require that the certification be in respect of the EMEP test day. However, the certification must confirm that all elements of new subsection 63C(1) are present on a day and more generally.

Subsection 63B(2) provides an exception to the requirement for a medical certification, where the Repatriation Commission is otherwise satisfied that the claimant or another specified person meets the medical needs requirement in section 63C. The Repatriation Commission may otherwise be satisfied, for example, where the equipment user can show that a State or Territory energy authority has accepted their medical condition and is giving a rebate for a type of equipment specified for the essential medical equipment payment.

The EMEP test day is defined in subsection 63B(3). In the income year of claim, this day is the day on which the claimant makes the claim for the payment. In subsequent income years, the EMEP test day is the anniversary of the day on which the claimant made the claim in a previous year, provided that, since the claimant made the claim, the Repatriation Commission has not determined that the claimant has ceased to be eligible for the payment. If the Repatriation Commission has determined that the claimant is no longer eligible and cancelled the payment, the person may reclaim.

A note advises that claims for the essential medical equipment payment are provided by new sections 63J to 63P in Subdivision C.

Subsection 63B(4) allows the Repatriation Commission to act on the basis of documents and information in his or her possession when determining whether a person is qualified for an essential medical equipment payment for an income year after the income year in which the claim is made. The Repatriation Commission is additionally not required to conduct any inquiries or investigations into the matter or to require the giving of any information or the production of any document for this purpose.

Additionally, subsection 63B(5) makes it clear that the Repatriation Commission may require a further certification from a medical practitioner, or a further document for the purposes of subsection (2) in an income year after the income year in which the claim is made. This further certification may be required where the medical condition may change over time, for example, in situations where the person is likely to recover from the medical condition.

The medical needs requirement is set out in new section 63C. Subsection (1) deals with the person who has a medical condition meeting the medical needs requirement. Paragraph (a) covers a person who uses specified essential medical equipment. The person will meet the requirement if the person has a medical condition on that day that requires the use of specified essential medical equipment in a residence that is the person's home, and if the person uses that equipment in that residence. It is not necessary that the equipment be used by the person on the particular day provided the conditions are met more generally.

Paragraph (b) covers a person who is unable to regulate his or her body temperature because of a specified medical condition. The person will meet the requirement if the person has a specified medical condition, additional heating or cooling is required in a residence that is the person's home to manage the person's condition, and the person uses additional heating or cooling in that residence. It is not necessary that additional heating or cooling is used by the person on the particular day provided the conditions are met more generally.

For both cases, the EMEP residence is either the private residence that is the person's home or a specified residence. A specified residence is defined at new subsection 63C(3)below.

Medical equipment is defined in new section 63A in relation to a person who has a specified medical condition and, as a result, is unable to regulate his or her body temperature, as meaning the heating or cooling system of the residence that is the person's home.

Subsection 63C(2) allows a carer for a person with medical needs to satisfy the medical needs requirement on a day in their own right, based upon the person with medical needs satisfying the medical needs requirement under subsection (1) on the day (including being specified in the required certification or otherwise satisfying the Repatriation Commission of the requirements). To meet this requirement, the carer must provide care and attention on a regular and ongoing basis for the person with medical needs. The carer's home must also be the EMEP residence that is the home of the person with medical needs. A parent or person responsible for a dependent child who has medical needs would meet this requirement, including a foster carer of such a child.

Subsection 63C(3) provides that, for the purposes of section 63C of the Veterans' Entitlements Act, specified essential medical equipment means any medical equipment that is specified by the Minister for Families, Housing, Community Services and Indigenous Affairs in a legislative instrument under subsection 917C(3) of the Social Security Act.

Subsection 63C(3) further provides that, for the purposes of section 63C of the Veterans' Entitlements Act, a specified medical condition means any medical condition that is specified by the Minister for Families, Housing, Community Services and Indigenous Affairs in a legislative instrument under subsection 917C(3) of the Social Security Act.

Subsection 63C(3) also provides that, for the purposes of section 63C of the Veterans' Entitlements Act, a specified residence means any residence that is specified by the Minister for Families, Housing, Community Services and Indigenous Affairs in a legislative instrument under subsection 917C(3) of the Social Security Act.

Allowing these matters to be specified by legislative instrument provides flexibility in the nature of equipment and conditions covered, and using the legislative instrument made by the Minister for Families, Housing, Community Services and Indigenous Affairs for the Veterans' Entitlements Act, will ensure the requirements remain consistent under the two Acts.

New section 63D sets out the concession card requirement for the purposes of new section 63B.

Subsection 63D(1) provides that a person satisfies the concession card requirement on a day if the person is a holder of a concession card, or the person's name is included on a concession card. Dependants of the holder of a concession card are listed on the card in many instances (which will generally include the person's partner and any dependent children).

A person will also meet the concession card requirement if the person cares for a person who has medical needs, and the person with medical needs is the holder of, or included on a concession card on that day.

Subsection 63D(2) specifies that the following cards are, for the purposes of subsection (1), a concession card:

•

a pensioner concession card issued under section 53 of the Veterans' Entitlements Act (section 53 provides for fringe benefits under the Veterans' Entitlements Act, one of which is a pensioner concession card);

•

a seniors health card issued under section 118ZG of the Veterans' Entitlements Act;

•

a Repatriation Health Card - For All Conditions - this card is also known as the Gold Card and is issued to persons who are eligible to be provided with treatment for all injuries or diseases under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act; and

•

a Repatriation Health Card - For Specific Conditions - this card is also known as the White Card and is issued to persons who are eligible to be provided with treatment for specific injuries or diseases under the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act.

New section 63E sets out the energy account requirement on a day to meet new section 917B. A person satisfies the energy account requirement if the energy account for the relevant EMEP residence is in the name of that person or the person's partner. Alternatively, the person will satisfy the energy account requirement if the person contributes (whether wholly or partly) to paying the energy account for the relevant EMEP residence. This would potentially give rise to qualification in situations where the account is held within the household by someone other than the person or the person's partner.

For situations where the claim is being made by the carer for the person with medical needs, and the carer or their partner does not hold the energy account, the carer may none the less be qualified if the person with medical needs contributes (whether wholly or partly) to paying the energy account for the relevant EMEP residence.

Account is to take its ordinary meaning. This will cover households who can supply some or all of their own energy needs, for example, with solar panels, provided the household has a service relationship with an energy supplier.

An energy account means any account for electricity, or any other form of energy specified by the Minister for Families, Housing, Community Services and Indigenous Affairs in a legislative instrument under subsection 917E(3) of the Social Security Act.

Allowing this to be specified by legislative instrument provides flexibility in the types of energy used, and using the legislative instrument made by the Minister for Families, Housing, Community Services and Indigenous Affairs, for the purposes of the essential medical equipment payment under the Veterans' Entitlements Act, will ensure that the specified types of energy will remain consistent under the two Acts.

New section 63F sets out the rules around the availability of payments. Subsection (1) provides that no essential medical equipment payment may be made for an income year in relation to medical equipment that is used in an EMEP residence if an essential medical equipment payment has already been made for that income year in relation to the same equipment and the same residence.

However, an exception is made for situations in which an equipment user has a number of homes, and the medical equipment is used at each of the homes. In this case, no more than two EMEP payments may be made in relation to the same medical equipment for one income year. Subsection (2) provides that no more than two essential medical equipment payments may be made in relation to the same medical equipment for an income year (subject to subsection (1)). Because subsection (1) limits payments within a particular residence to only one payment per piece of medical equipment per residence, this results in more than one payment being available only if the same equipment is used in a number of residences, that is, to situations where the user has a number of homes. However, only two payments may be made in this circumstance.

Subsection 63F(4) provides that essential medical equipment payment for the purposes of this section, means such a payment under this Division, or under Division 4 of Part 2.18A of the Social Security Act. In other words, the same rules apply regardless of whether an essential medical equipment payment is paid under the Veterans' Entitlements Act or the Social Security Act.

New section 63G provides that the amount of an essential medical equipment payment for an income year is $140.00. However, a note advises that the payment is indexed on each 1 July under new section 198E (inserted by item 34).

New section 63H provides that an essential medical equipment payment is a debt due to the Commonwealth if the payment was made because the recipient knowingly made a false or misleading statement or knowingly provide false information.

Subsection (2) provides that the other debt creation provisions of the Veterans' Entitlements Act do not apply in relation to an essential medical equipment payment.

Subdivision C - Claim for essential medical equipment payment

New section 63J requires that a person make a proper claim for an essential medical equipment payment.

New section 63K sets out the special requirements for claims for an essential medical equipment payment. Subsection (1) requires that the person making the claim must include a statement that the medical equipment is used in the relevant EMEP residence.

Subsection (2) requires that, where a carer is making a claim for an essential medical equipment payment and the person with the medical needs is not a dependent child of that carer, the person with the medical needs must sign the claim.

New section 63L requires that a claim must be made by either the person who wants to be paid the essential medical equipment payment or, with the approval of that person, another person on their behalf.

Subsection (2) ensures that, where a person is unable to approve another person to make a claim on their behalf because of physical or mental incapacity, the Repatriation Commission may approve another person to make the claim.

New section 63M sets out the requirements making a proper claim. In accordance with subsection (1), to be a proper claim, a claim must be made in writing in accordance with a form approved by the Repatriation Commission. It must also be accompanied by any relevant evidence available to the claimant and be lodged at an office of the Department in Australia in accordance with section 5T of the Veterans' Entitlements Act.

Subsection (2) provides that a claim lodged in accordance with section 5T is taken to have been made on a day determined under that section.

New section 63N further requires that, to be a proper claim, the person making the claim, or on whose behalf the claim is being made, must be an Australian resident on the day the claim is lodged.

A note at the end of the section advises that Australian resident is defined in section 5G of the Veterans' Entitlements Act.

New section 63P sets out the conditions that apply to the withdrawal of a claim.

New subsections (1) and (2) provide that, if the claimant or the person representing the claimant seeks to withdraw a claim before it is determined, then the claim will not be taken to have been made.

Under new subsection 63P(3), the withdrawal of the claim can be made orally or in writing. A written withdrawal must be lodged at an office of the Department in Australia.

In accordance with new subsection 63P(4), an oral withdrawal must be made to a person in an office of the Department in Australia.

New subsections 63P(5) and (6) sets out the additional safeguards for oral withdrawals. The Secretary is required to provide a written acknowledgment of the oral withdrawal and give the person 28 days to reconsider his or her decision to withdraw the claim. If the person advises the Secretary within 28 days of receiving the acknowledgment notice that he or she wishes to continue with the claim, the oral withdrawal is taken not to have been made.

The note after subsection 63P(6) advises that the person's decision to revoke the oral withdrawal will reactivate the claim without affecting the commencement date of the claim.

Subdivision D - Investigation of claim

New section 63Q requires the Secretary of the Department of Veteran's Affairs to investigate the claim and submit it to the Repatriation Commission.

Subsections (1) and (2) provide that, where a person has made a proper claim for an essential medical equipment payment, the Secretary must investigate matters relating to the claim. The Secretary will then submit the claim to the Repatriation Commission for determination.

Subsection (3) requires that the claim be submitted to the Repatriation Commission with all the evidence the claimant has provided, all documents or other evidence obtained by the Department in its investigations and any other documents under the control of the Department that are relevant to the claim.

Subdivision E - Consideration and determination of claim

New section 63R describes the duties of the Repatriation Commission in relation to the claim.

Subsection (1) requires that the Repatriation Commission consider all matters relevant to the claim and that it make a determination about the claim.

In accordance with subsection (2), the Repatriation Commission must, in considering the claim, satisfy itself with respect to all matters relevant to the claim. It must also determine all matters relevant to the claim.

As specified by subsection (3), the Repatriation Commission must consider the evidence submitted with the claim under section 63Q and any further evidence that is submitted in relation to the claim.

Under new section 63S, if the Repatriation Commission is satisfied that the person is eligible for the essential medical equipment payment, it must determine that the person is entitled to the payment.

Division 4 - Review of decisions

New section 64A provides for the review of decisions of the Repatriation Commission about clean energy payments.

Subsection (1) enables a person who is dissatisfied with a decision of the Repatriation Commission in relation to a clean energy payment to request the Repatriation Commission to review the decision.

New section 64B sets out the requirements for an application for review.

Subsection (1) requires that a request for a review under section 64A must be made in writing, within three months of notification of the decision. It must also set out the grounds for the review and be lodged at an office of the Department in Australia in accordance with section 5T.

Subsection (2) provides that a request lodged in accordance with section 5T is taken to have been made on a day determined under that section.

Subsection (3) requires the Repatriation Commission to review its decision if a request for such a review has been made in accordance with subsection (1).

Subsection (4) means that, where the Commission delegated its powers under this section to the person who made the decision under review, that person must not undertake the review of the decision.

New section 64C sets out the Repatriation Commission's review powers. The Repatriation Commission must affirm or set aside the decision under review. If the decision is set aside, then, subject to subsection (3), the Repatriation Commission must substitute a new decision. If the decision set aside was a decision that a person ceases to be entitled to a clean energy payment, then the Repatriation Commission does not need to substitute another decision.

A note at the end of the section advises that the Repatriation Commission's evidence gathering powers are in section 64G.

New section 64D sets out the date of effect requirements for reviews. Under subsection (1), if the Repatriation Commission sets aside a decision and substitutes a decision that a person is entitled to a clean energy payment, the substituted decision takes effect from a date specified by the Repatriation Commission.

Subsection (2) requires that the specified date cannot be earlier than the date of effect that would have applied had the Repatriation Commission initially determined that the person was entitled to a clean energy payment.

New section 64E requires the Repatriation Commission to make a written record of its decision upon review. The written record must set out the Repatriation Commission's findings on material questions of fact, must refer to the evidence or material on which the findings were based and include reasons for the decision.

New section 64F requires that the Repatriation Commission must give to the person who requested the review, a copy of its decision and a statement about the decision. However, if the statement contains any matter that, in the opinion of the Repatriation Commission, is of a confidential nature or might be prejudicial to the physical or mental health or well-being of the person who requested the review, that information is to be removed from the statement. If the person has a further right of review to the Administrative Appeals Tribunal, the Repatriation Commission must give the person particulars of that right.

New section 64G sets out the Repatriation Commission's evidence-gathering powers in relation to reviews of clean energy payments. In accordance with subsections (1) and (2), the Repatriation Commission or its delegate, may take evidence on oath or affirmation and adjourn a hearing. The presiding member of the Repatriation Commission or the delegate may summon a person to appear at a review hearing to give evidence or produce documents, may require that person to take an oath or to make an affirmation and may administer an oath or affirmation to the person.

Under subsection (3), for the purposes of the review, the person who applied for the review is a competent and compellable witness.

Subsection (4) makes it clear that the oath or affirmation is an oath or affirmation that the evidence that the person will give will be true.

Under subsection (5), the Repatriation Commission's power to take evidence on oath or affirmation may be exercised on behalf of the Repatriation Commission by the presiding member, the delegate or another person. The oath or affirmation may be exercised within or outside Australia, and is subject to any limitation specified by the Repatriation Commission.

Subsection (6) provides that, where a person is authorised to take evidence for the purposes of taking evidence for the review, the person has all the powers of the Repatriation Commission under subsection (1) and all the powers of the presiding member under subsection (2).

Subsection (7) defines, for the purposes of the section, the term Commission delegate to mean a person to whom the Repatriation Commission has delegated its powers under section 64B and who is conducting the review in question.

New section 64H sets out the circumstances under which a person may withdraw a request for review. This may be done at any time before the review is determined and must be in writing. A person may make another request for review in accordance with section 64A.

Item 24 includes a reference to an essential medical equipment payment in paragraph 127(1)(b).

Item 25 inserts a new subsection 175(2A). New subsection 175(2A) grants jurisdiction to the Administrative Appeals Tribunal in relation to a decision of the Repatriation Commission under section 64C to affirm a decision or set aside and substitute another decision.

Items 26 to 30 renumber subsections of section 175.

Items 31 to 33 make technical amendments to sections 176 and 177 to include references to relevant new review provisions relating to clean energy payments. Sections 176 and 177 relate to the review of decisions by the Administrative Appeals Tribunal.

Item 34 inserts new section 198E after section 198D. New section 198E provides for the indexation of the amount of an essential medical equipment payment by the Consumer Price Index. The first indexation is to take place on 1 July 2013. The indexed payment will be rounded to the nearest dollar.

Part 3 - Application and transitional provisions

Item 35 provides that the amendments made by this Schedule apply in relation to the 2012-13 and later income years.

Item 36 provides transitional rules to allow for claims for the essential medical equipment payment to be made from 18 June 2012, for payment on 1 July 2012 . Subitem 36(1) allows a person to make a claim for an essential medical equipment payment under either the Social Security Act or the Veterans' Entitlements Act for the 2012-13 income year on or after 18 June 2012.

A note alerts the reader that a claim for an essential medical equipment payment for the 2012-13 income year must be made before 1 July 2013.

Subitem 36(2) provides that, for the purposes of the Social Security Act, the Social Security Administration Act and the Veterans' Entitlements Act, a person who made a claim for the 2012-13 income year before 1 July 2012 is taken to have made the claim on 1 July 2012.