Supplementary Explanatory Memorandum
(Circulated by authority of the Minister for Veterans' Affairs, The Hon Danna Vale, MP)Schedule 6 - MRCA-related amendments
Overview
These amendments will cease liability under Part IV of the Veterans' Entitlements Act 1986 (VEA) for a defence-caused injury, disease or death that occurs on or after the commencement of the Military Rehabilitation and Compensation Act 2004 (MRCA) on 1 July 2004, and where the injury, disease or death relates to service rendered by a member of the Australian Defence Force (ADF) on or after, or before, and on or after, 1 July 2004.
Background
Until 30 June 2004, compensation coverage for ADF members is provided for under the Safety, Rehabilitation and Compensation Act 1988 (SRCA) and certain ADF members are also entitled to compensation coverage under the VEA.
Part IV of the VEA deals with pensions for certain members of the Defence Force and for members of a Peacekeeping Force and their dependants.
The groups of persons covered under Part IV are:
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- Members of the Forces including those with hazardous service;
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- ADF members of a Peacekeeping Force; and
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- Australian Federal Police members of a Peacekeeping Force.
Following the commencement of the MRCA on 1 July 2004, the VEA will cease to provide compensation for a defence-caused injury, disease or death that:
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- occurs on or after 1 July 2004; and
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- relates to service rendered by a member of the Forces or an ADF member of a Peacekeeping Force on or after, or before, and on or after, 1 July 2004.
All compensation coverage for these members will be under the MRCA. The new Military Rehabilitation and Compensation Scheme under the MRCA is designed to provide compensation coverage for the specific needs of the ADF for all future service.
Members of the Australian Federal Police (AFP) have also been involved in peacekeeping operations since 1947. Normal compensation coverage for the AFP is provided for under the SRCA. However, in addition, AFP members are currently covered under the VEA when serving as part of a Peacekeeping Force.
As the new Military Rehabilitation and Compensation Scheme under the MRCA is a military specific scheme, AFP peacekeeping members will not be covered under the MRCA. The Minister for Justice and Customs is currently considering options for the development of a scheme that will replace the VEA to cover AFP members when they are deployed overseas on peacekeeping missions. Until a new scheme is operational, it is intended that compensation coverage for AFP members for peacekeeping service on or after 1 July 2004 will remain under the VEA.
Explanation of the Changes
Amendments are being made to both the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (CTPA) and the VEA.
The CTPA has inserted a new section 9A in the VEA which will cease liability under Part II of the VEA, for members of the ADF with war-like or non-warlike service for a war-caused injury, disease or death that occurs on or after the commencement of the MRCA and that relates to service rendered by a member of the ADF on or after, or before, and on or after, 1 July 2004.
The amendments will insert a new section 70A, similar to section 9A of the VEA in Part IV of the VEA to put beyond doubt that there will be no liability under the VEA for defence-caused injuries, diseases and deaths that occur on or after 1 July 2004 and that relate to service rendered on or after, or before, and on or after, 1 July 2004.
This action makes clear the intent that all ADF compensation for service injuries, diseases and deaths on or after 1 July 2004 will be covered under the MRCA. This includes circumstances where:
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- the ADF member enlisted before 22 May 1986 (the date of commencement of the VEA) and rendered continuous full-time service on or after 1 July 2004 where the service is peacetime defence service (ie. not war-like or non-warlike service); or
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- the ADF member (who enlisted at any time) rendered peacekeeping service as part of a Peacekeeping Force described in an item in Schedule 3 to the VEA, or served in a force that is designated by the Minister for Veterans' Affairs, by notice in the Gazette, as a Peacekeeping Force for the purposes of Part IV of the VEA; and
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- the ADF member suffers from an injury, disease or death that occurs on or after 1 July 2004 and relates to service rendered on or after, or before, and on or after, 1 July 2004.
Explanation of the Items
Items 1 to 4 amend the Notes in a number of provisions of the CTPA by omitting reference to "section 9A" and substituting the words "sections 9A and 70A".
These Notes specify that compensation benefits for injury, disease or death under the VEA will not be available in respect of service on or after 1 July 2004. This is achieved through the insertion of sections 9A and 70A into the VEA.
Items 5 and 6 amend the VEA.
Item 5 adds a Note at the end of subsections 70(4), (5) and (5A).
The Note directs the reader to new section 70A and provides that on or after 1 July 2004 compensation will be provided under the MRCA instead of the VEA for most new defence-caused injuries, diseases and deaths.
Item 6 inserts a new section 70A after section 70.
Subsection 70A(1) will cease liability under the VEA for a defence-caused injury, disease or death of a member of the Forces or any other member (or former member) of the Defence Force that occurs on or after 1 July 2004 and where the injury, disease or death:
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- relates to service rendered on or after 1 July 2004; or
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- relates to a continuous period or contiguous periods of service which spanned a period before 1 July 2004 and on or after 1 July 2004.
Instead, compensation for such service injury, disease and death will be provided under the MRCA.
Subsection 70A(2) will cease liability under the VEA for aggravations of and material contributions to an injury or disease of a member of the Forces or any other member (or former member) of the Defence Force if the aggravation or material contribution occurs on or after 1 July 2004 and:
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- it relates to service rendered on or after 1 July 2004; or
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- it relates to a continuous period or contiguous periods of service which spanned a period before 1 July 2004 and on or after 1 July 2004; and
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- the member has lodged a claim for the aggravation or material contribution under the MRCA.
Instead, compensation for the service aggravation or service material contribution will be provided under the MRCA.
Subsection 70A(3) will make it clear that the MRCA will cover service before and on or after 1 July 2004 if it comprises a continuous period or contiguous periods both before and on or after that date.
Commencement
Subclause 2(1) provides that this Schedule commences at the same time as section 3 of the MRCA. Section 3 of the MRCA has been Proclaimed to commence on 1 July 2004.