Senate

Revised Explanatory Memorandum

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

Schedule 6 - Delegation

Overview

Schedule 6 of the Bill amends the Military Rehabilitation and Compensation Act to provide for the delegation of the Minister's powers and functions.

Background

Section 384 of the Military Rehabilitation and Compensation Act provides for the delegation of the powers and functions of the MRCC to an individual commissioner, persons who assist the MRCC, persons in the Department appointed or engaged under the Public Service Act 1999 or a member of the Defence Force.

Unlike section 212 of the Veterans' Entitlements Act the Military Rehabilitation and Compensation Act makes no provision for the delegation of the Minister's powers and functions.

That omission has prevented the implementation of some of the administrative reforms being implemented to achieve efficiencies across the Department as part of the Government's commitment to reduce red tape.

As part of the reform process the Department appointed a Chief Operating Officer (COO) in 2014. The reforms had also identified that there were certain functions where it would be advantageous for the COO to act on behalf on behalf of the Commissions.

Explanation of the changes

After the appointment of the COO some of the powers and functions of the Repatriation Commission and the MRCC were delegated to the COO.

The other areas for reform concerned the need for the Minister to approve some of the instruments that are made by the Commissions, these include minor variations to the "Treatment Principles" and the "Pharmaceutical Benefits" schemes (as made under sections 90 and 91 of the Veterans' Entitlements Act and section 286 of the Military Rehabilitation and Compensation Act respectively).

The powers and functions of the Minister to approve those variations under the Veterans' Entitlements Act was delegated to the COO in 2014.

The powers and functions of the Minister under the Military Rehabilitation and Compensation Act which may be delegated are:

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section 79 - the determination of the interest rate payable on lump sum payments of permanent impairment compensation;

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section 258 - approval of determinations by the MRCC concerning variations to and the revocation of the MRCA Education and Training Scheme;

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section 286 - approval of determinations by the MRCC concerning variations to and the revocation of the Treatment Principles and the MRCA Pharmaceutical Benefits Scheme; and

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sections 293, 328 and 431 - minor determinations concerning reimbursement of travel expenses, requirements for medical examinations and the type of payments that may be deducted from payments of weekly compensation.

It is proposed that the powers and functions of the minister under sections 258 and 286 will be the only powers and functions which will form part of the initial delegation. The delegation is to be provided on the basis that the COO can only the approve instruments made by the MRCC which concern minor variations.

The other powers and functions of the minister which may be delegated concern sections 79, 293, 328 and 431. All of the powers and functions of the Minister in those sections concern relatively minor matters which can be delegated to officers of the Department at a lower level than the COO.

Military Rehabilitation and Compensation Act 2004

Item 1 inserts new section 437A.

New section 437A provides that the Minister may delegate his or her powers and functions under the Military Rehabilitation and Compensation Act, the regulations or any other legislative instrument made under the Military Rehabilitation and Compensation Act, in writing, to a commissioner of the MRCC, or an SES employee, or an acting SES employee, in the Department.

Commencement

Clause 2 provides that the amendments made by Schedule 6 commence on the day after the Act receives Royal Assent.