Senate

Revised Explanatory Memorandum

(Circulated by authority of the Minister for Veterans' Affairs, The Honourable Dan Tehan MP)

Schedule 3 - International arrangements

Overview

Schedule 3 of the Bill repeals and replaces section 203 of the Veterans' Entitlements Act to provide the Minister for Veterans' Affairs with the power to enter into arrangements with foreign governments to cover the provision of benefits and payments including rehabilitation that are comparable to those provided by the Repatriation Commission or the Military Rehabilitation and Compensation Commission under the Veterans' Entitlements Act, Military Rehabilitation and Compensation Act, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act or the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act.

Background

The power to enter into international arrangements is currently provided under section 203 of the Veterans' Entitlements Act. That section provides that the Minister is able to enter into arrangements with the governments of countries that are or have been Dominions of the Crown, for each government or government agency to act as an agent of the other country for the payment of pensions and the provision of assistance and benefits to eligible veterans or dependents from those countries who are resident in that country.

Formal arrangements have been made under the equivalent provisions of the redundant Repatriation Act 1920 with the United Kingdom and New Zealand. Those arrangements continue to operate under the provisions of section 56 of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986.

The need for the proposed amendments has arisen because the current arrangements can only concern the provision of benefits and treatment (including rehabilitation) that are comparable to those provided under the Veterans' Entitlements Act. Under those arrangements the provision of benefits and treatment is therefore restricted to veterans with service of a type that is the equivalent to that covered by that Act.

Current and former Defence Force members now have coverage for their service under other Veterans' Affairs portfolio Acts in addition to those who are covered under the Veterans' Entitlements Act.

There is a need for arrangements with foreign countries which also refer to the benefits and payments including rehabilitation that are provided by the Repatriation Commission or the Military Rehabilitation and Compensation Commission under the Veterans' Entitlements Act, Military Rehabilitation and Compensation Act, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act and the Australian Participants in British Nuclear Tests British Commonwealth Occupation Force (Treatment) Act.

Explanation of the changes

Section 203 currently provides the Minister for Veterans' Affairs with the power to enter into arrangements with the governments of countries that are or have been Dominions of the Crown. The existing arrangements with the governments of the United Kingdom and New Zealand allow for each of the governments as a party to the arrangement, to act as an agent of the other country for the payment of pensions and the provision of assistance and benefits to eligible veterans or dependents who are resident in that country.

The existing arrangements concern only those payments and benefits which are payable under the Veterans' Entitlements Act.

Section 203 has been repealed and replaced so that an arrangement which has been made under the section will now cover current and former members of the defence forces of the countries who are a party to the arrangement with service of the type for which benefits and payments including rehabilitation can be provided by the Repatriation Commission or the Military Rehabilitation and Compensation Commission under:

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the Veterans' Entitlements Act,

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the Military Rehabilitation and Compensation Act;

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

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the Australian Participants in British Nuclear Tests British Commonwealth Occupation Force (Treatment) Act.

The amendments also include a transitional provision to ensure the continuation of the existing arrangements with the United Kingdom and New Zealand until they are revoked or replaced under the new section.

The amendment also includes a new subsection 203(7) that clarifies that an arrangement made under subsection 203(1) is not a legislative instrument for the purposes of the Legislation Act 2003. As the international arrangements to be entered into will be agency in nature, it is not considered appropriate that they be subject to sunsetting.

Explanation of the items

Part 1 - Main amendments

Australian Participants in British Nuclear Tests British Commonwealth Occupation Forces (Treatment) Act 2006

Item 1 is a consequential amendment to insert a Note to subsection 7(1) of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006.

Military Rehabilitation and Compensations Act 2004

Item 2 is a consequential amendment to insert a Note to subsection 7(1) of the Military Rehabilitation and Compensation Act.

The Notes at Item 1 and Item 2 are inserted to alert readers to the arrangements which may be entered into under section 203 of the Veterans' Entitlements Act to provide payments, treatment and rehabilitation that is comparable to the provision of those items under each of those Acts.

Veterans' Entitlement Act 1986

Item 3 is a minor consequential amendment to paragraph 199(f) of the Veterans' Entitlements Act which concerns the appropriation of the Consolidated Revenue Fund. The reference in paragraph (f) to "Arrangements with Governments of other countries" is replaced with a reference to "international arrangements".

Item 4 repeals and replaces section 203.

New section 203 provides that the Minister for Veterans' Affairs may under subsection (1) enter into an arrangement with a foreign country concerning matters that:

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relate to reciprocal arrangements between the countries; and

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make provision for the making of payments, treatment and rehabilitation for or in relation to the classes of persons set out in the arrangement.

New subsection 203(2) provides that an arrangement made under subsection 203(1) may make payments, provide treatment of rehabilitation that is comparable to the payments, treatment or rehabilitation that is provided under the:

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Veterans' Entitlements Act;

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Military Rehabilitation and Compensation Act; and the

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Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act.

New subsection 203(3) provides that an arrangement that is in force under the provisions of section 203 will have effect despite "anything in any of the Acts referred to in subsection 203(2)".

New subsection 203(4) provides for the administration of the arrangements made under section 203 by either the Repatriation Commission or the MRCC.

New subsection 203(5) provides the Minister for Veterans' Affairs with the power to revoke or vary an arrangement that is in force under section 203.

New subsection 203(6) requires the Minister for Veterans' Affairs to arrange for a copy of an arrangement entered into under subsection 203(1) or that has been varied or revoked under subsection 203(5) to be published on the Department of Veterans' Affairs website.

New subsection 203(7) provides that arrangements entered into under subsection 203(1) are not legislative instruments for the purposes of the Legislation Act 2003.

Item 5 is a transitional provision that is applicable to an existing arrangement. Subitem 5(1) provides for the continuation of an arrangement that had been entered into under section 203 (including the arrangements that had been made under the equivalent provisions of the redundant Repatriation Act 1920 that had continued to operate under the provisions of section 56 of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986).

Subitem 5(2) provides that subitem 5(1) will not prevent the variation or the revocation after the commencement of the item of an arrangement which had been continued under that subitem.

Part 2 - Contingent amendments

Item 6 inserts a Note to subsection 4AA(5) of the Safety, Rehabilitation and Compensation (Defence-related Claims) Act.

The Note is to alert readers to the arrangements which may be entered into under section 203 of the Veterans' Entitlements Act to provide payments, treatment and rehabilitation that is comparable to the provision of those items under the Act.

Item 7 is a contingent amendment to insert a new paragraph (d) into subsection 203(2).

The amendment adds the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 to the list of Acts in that subsection. Subsection 203(2) provides that an arrangement made under subsection 203(1) may make payments, provide treatment of rehabilitation that is comparable to the payments, treatment or rehabilitation that is provided under the Acts that it lists.

Commencement

Clause 2 provides that the amendments made by Part 1 of Schedule 3 commence on the day after the Act receives Royal Assent.

Clause 2 provides that the amendments made by Part 2 of Schedule 3 commence on the later of:

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day after the Act receives Royal Assent; or

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immediately after the commencement of Part 2 of Schedule 1 of the Safety, Rehabilitation and Compensation Legislation Amendment (Defence Force) Act 2017.

The provisions of Part 2 of Schedule 3 will not commence if that Act does not commence.