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VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES NO. 2) BILL 2023

                                     2022-2023




       THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                         HOUSE OF REPRESENTATIVES




VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS
                 MEASURES NO.2) BILL 2023



                        EXPLANATORY MEMORANDUM




(Circulated by authority of the Minister for Veterans' Affairs and Minister for Defence
               Personnel, The Honourable Matthew James Keogh MP)


Table of Contents GENERAL OUTLINE................................................................................................................ i FINANCIAL IMPACT STATEMENT ...................................................................................... i STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS...........................................ii VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES NO.2) BILL 2023 ................................................................................................ 1 Clause 1 Short title ................................................................................................................. 1 Clause 2 Commencement ...................................................................................................... 1 Clause 3 Schedules ................................................................................................................ 1 Schedule 1 - Firefighters alignment ....................................................................................... 2 Schedule 2 - Employment programs ...................................................................................... 3 Schedule 3 - Rental assistance ............................................................................................... 5 Schedule 4 - Acute support package ...................................................................................... 7


VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES NO.2) BILL 2023 GENERAL OUTLINE The Bill amends the following veterans' affairs legislation to modernise and streamline its operation: - Veterans' Entitlements Act 1986 (VEA); - Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA); and - Military Rehabilitation and Compensation Act 2004 (MRCA). The Bill comprises the following four schedules: Schedule 1 - Firefighters alignment: Schedule 1 of the Bill will amend the DRCA to reduce the qualifying period of employment of Australian Defence Force firefighters in relation to primary site oesophageal cancer from 25 years to 15 years and changes the requirement for firefighting to have been a 'substantial' proportion of their duties to be a 'not insubstantial' proportion. Schedule 2 - Employment programs: Schedule 2 of the Bill will amend the VEA to allow for a determination to be made so that amounts received from specified Commonwealth and State or Territory employment programs are not considered as income for income support means testing purposes. A minor technical amendment to the Social Security Act 1991 (SSA) is also required to enable the amendments to the VEA to apply correctly. Schedule 3 - Rental assistance: Schedule 3 of the Bill will amend the VEA to include a permanent discretion to provide Commonwealth Rent Assistance beyond 26 weeks for eligible recipients who are temporarily absent from Australia and unable to return due to a prescribed event occurring. Schedule 4 - Acute support package: Schedule 4 of the Bill will amend the VEA, DRCA and MRCA to extend eligibility of the Defence, Veterans' and Families' Acute Support Package to grandparents who are full time carers for the children of a veteran. Existing provisions within these Acts can be utilised for some grandparents, while this Bill adds additional provisions to ensure that further eligible grandparents may have access to the Acute Support Package. FINANCIAL IMPACT STATEMENT The amendments in Schedule 4 have a low financial impact with estimated expense of $0.5 million. The amendments contained in the other schedules have no financial impacts. i


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES NO.2) BILL 2023 The Veterans' Affairs Legislation Amendment (Miscellaneous Measures No.2) Bill 2023 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Schedule 1 - Firefighter alignment Overview of the Schedule The proposed amendments in Schedule 1 amend the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) to reduce the qualifying period of employment of Australian Defence Force (ADF) firefighters in relation to primary site oesophageal cancer from 25 years to 15 years and change the requirement for firefighting to have been a 'substantial' proportion of their duties to be a 'not insubstantial' proportion. Human rights implications The Schedule engages the right of everyone to social security in Article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR). The Committee on Economic, Social and Cultural Rights elaborated on Article 9 in the General Comment 19 that 'State parties should also ensure the protection of workers who are injured in the course of employment or other productive work"1. Hence access to social security encompasses access to workers' compensation. These amendments to the DRCA are intended to improve access to workers' compensation by ADF firefighters. It does so by reducing the qualifying period of employment of ADF firefighters in relation to oesophageal cancer from 25 years to 15 years. Conclusion This Schedule is consistent with human rights and it promotes the right to social security. Schedule 2 - Employment programs Overview of the Schedule Schedule 2 amends the Veterans' Entitlements Act 1986 (VEA) and the Social Security Act 1991 (SSA) to allow for a determination to be made so that amounts received from Commonwealth and State or Territory employment programs, which may otherwise be income for income testing purposes under the VEA, will not be considered income for those purposes. Human rights implications 1 Committee on Economic, Social and Cultural Rights, General Comment 19: The Right to Social Security (art 9), U.N Doc E/C.12/GC/19 (2008), [17] ii


The Schedule engages the right of everyone to social security in Article 9 and the right to an adequate standard of living in Article 11 of the ICESCR. The Schedule allows for the determination to be made that payments from Commonwealth and State or Territory employment-related programs are not considered income for income support means testing purposes This would mean that payments from these programs can be used as intended by the recipients and it would not affect the income support under the VEA The amendments therefore improve the effectiveness of Commonwealth and State or Territory employment-related programs thus promoting the right to social security and the right to an adequate standard of living. Conclusion This Schedule is compatible with human rights and promotes the right to social security and the right to an adequate standard of living Schedule 3 - Rental assistance Overview of the Schedule Schedule 3 amends the VEA to include a permanent discretion to provide Commonwealth Rent Assistance beyond 26 weeks for eligible recipients who are temporarily overseas and unable to return to Australia due to specified events. The circumstances include serious accident, death of a family member, natural disaster or public health crisis. Human rights implications The Schedule engages the right to social security in Article 9 and the right to an adequate standard of living in Article 11 of the ICESCR. Access to Commonwealth Rent Assistance beyond 26 weeks for eligible recipients promotes human rights because the extension prevents social security entitlements of veterans being affected for extended absences from Australia due to unforeseen circumstances. Conclusion This Schedule is consistent with human rights because it promotes the right to social security and the right to an adequate standard of living. iii


Schedule 4 - Acute support package Overview of the Schedule The proposed amendments in Schedule 4 amend the VEA, DRCA and Military Rehabilitation and Compensation Act 2004 (MRCA) to extend eligibility of the Defence, Veterans' and Families' Acute Support Package (Acute Support Package) to grandparents who are full time carers for the children of a veteran. The amendments enable eligible grandparents to access a range of support available under the Acute Support Package when they are experiencing, or are at risk of experiencing, crisis. Human rights implications The Schedule engages the right to social security in Article 9 of the ISCESR, the right to protection and assistance to the family in Article 10 and the right to an adequate standard of living in Article 11. The purpose of the Acute Support Package is to provide a range of support to families managing challenging life circumstances. The range of support includes but is not limited to child care, household services and academic support for children. The package improves the health and wellbeing of families by broadening the scope of support available to veterans' families. By expanding the eligibility criteria, vulnerable children of veterans, who are cared for by their grandparents will have access to targeted and flexible support available in the Acute Support Package to help them navigate complex life challenges. The amendments, therefore, promote the right to social security, the right to protection and assistance to family and the right to adequate standard of living by ensuring that vulnerable families are financially supported and have access to services, complementing but not duplicating other services provided by the Government. Conclusion This Schedule is consistent with human rights because it promotes the right to social security, the right to protection and assistance to the family and the right to an adequate standard of living. . iv


VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES NO.2) BILL 2023 NOTES ON CLAUSES Clause 1 Short title This clause provides that the Veterans' Affairs Legislation Amendment (Miscellaneous Measures No.2) Bill 2023 (the Bill), when enacted, is cited as the Veterans' Affairs Legislation Amendment (Miscellaneous Measures No.2) Act 2023 (the Act). Clause 2 Commencement This clause provides for the commencement of the whole of the Act on the day the Act receives Royal Assent. Clause 3 Schedules This clause provides that legislation specified in a Schedule to the Bill will be amended or repealed as set out in the applicable items in the Schedule concerned. Any other item in a Schedule to the Bill will have effect according to its terms. This is a technical provision to give operational effect to the amendments contained in the Schedules. 1


Schedule 1 - Firefighters alignment The amendments in Schedule 1 mirror the amendments made to subsection 7(8) of the Safety, Rehabilitation and Compensation Act 1988 (SRCA) by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. These amendments ensure that Australian Defence Force (ADF) firefighters covered under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) have identical arrangements to their civilian counterparts covered under the SRCA. Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 Item 1 omits 25 years in subsection 7(8) table item 12 of the DRCA and replaces it with 15 years. Subsection 7(8) of the DRCA provides that if an employee suffers from a disease mentioned in the prescribed table in subsection 7(8), and before the disease was sustained, the employee was employed as an ADF firefighter for the prescribed qualifying period and was exposed to hazards of a fire scene during that period, that employment is taken to have contributed to the contraction of the disease, unless the contrary is established. Currently, the qualifying period of employment as an ADF firefighter for primary site oesophageal cancer is 25 years. This amendment reduces the prescribed qualifying period for primary site oesophageal cancer from 25 years to 15 years. Item 2 replaces the wording of paragraph 7(9)(a) of the DRCA "firefighting duties made up a substantial portion" with "the relevant authority is satisfied that firefighting or related duties made up a not insubstantial portion". This is to ensure that paragraph 7(9)(a) of the DRCA is the same as the equivalent provision paragraph 7(9)(a) of the SRCA. The amendment to the DRCA enables ADF firefighters to have identical arrangements to their civilian counterparts under the SRCA. Item 3 adds an application provision which confirms that the amendments to item 12 of the table in subsection 7(8) and paragraph 7(9)(a) apply after the commencement of this Schedule in relation to primary site oesophageal cancer sustained by employee on or after 4 July 2011. 2


Schedule 2 - Employment programs The amendments in Schedule 2 align with amendments made to the Social Security Act 1991 (SSA) by the Social Security Legislation Amendment (Streamlined Participation Requirements and Other Measures) Act 2022 which came into effect on 2 April 2022. The Schedule 2 amendments ensure that there is parity of certain beneficial arrangements between eligible veterans under the Veterans' Entitlements Act 1986 (VEA) to eligible recipients under the SSA. Social Security Act 1991 Item 1 repeals and replaces subsection 8(8AC) of the SSA with a new subsection enabling the Employment Secretary to determine programs to be employment programs for the purposes of: • paragraph 8(zv) of the SSA and paragraph 5H(8)(zzf) of the VEA; or • paragraph 8(zw) of the SSA and paragraph 5H(8)(zzg) of the VEA. Subsection 8(8AC) of the SSA allows the Employment Secretary, by notifiable instrument, to determine that payments and benefits from the Commonwealth and State or Territory employment programs, which may otherwise be income for social security law purposes, to not be considered as income for those purposes. Currently, subsection 8(8AC) only allows determination to be made by the Employment Secretary in relation to employment programs as exempt income for the purposes of the SSA. The amendment in this Schedule enables the Employment Secretary to determine employment programs as exempt income for the VEA as well. That means that when the Employment Secretary makes a notifiable instrument under this subsection, it would apply to both the SSA and VEA. Veterans' Entitlements Act 1986 Item 2 inserts two new paragraphs (zzf) and (zzg) at the end of subsection 5H(8) of the VEA that allow payments from Commonwealth and State or Territory employment programs to not be considered income for income testing purposes under the VEA. Subsection 5H(8) of the VEA provides that certain payments and benefits are excluded amounts for income testing purposes. This means that these payments and benefits are not taken into consideration in the assessment of income for the purposes of determining payments, assistance and support under the VEA. By adding two new paragraphs (zzf) and (zzg) at the end of subsection 5H(8) of the VEA, Commonwealth and State or Territory employment programs will be exempt income and payments and benefits from these programs can therefore be used as intended by recipients, providing certainty to recipients of benefits under the employment programs that their income support payments will not be affected. Item 3: adds an application provision which states that the amendments to the VEA made in this Schedule apply to payments made on or after the commencement of this item. 3


Item 4: adds a savings provision to ensure that if a notifiable instrument was made immediately before the commencement of this Schedule for the purposes of paragraph 8(8)(zv) or 8(8)(zw) of the SSA under subsection 8(8AC), that instrument continues in effect on and after the commencement of this item. The instrument is also taken to have been made for the purposes of paragraph 5H(8)(zzf) or 5H(8)(zzg) of the VEA. . 4


Schedule 3 - Rental assistance The amendments in Schedule 3 mirror the amendments made to the SSA in the Social Services Legislation Amendment (Portability Extensions) Act 2021 which came into effect on 1 July 2021. It aligns the beneficial provisions introduced in the SSA to ensure that eligible veterans under the VEA receives the same benefits as eligible recipients under the SSA. Veterans' Entitlements Act 1986 Items 1 inserts "(1)" at the start of the paragraph before "Rent Assistance" at point SCH6-C3 of Schedule 6. This is to provide for the amendments contained in Item 2. Item 2 adds new subsections to point SCH6-C3 of Schedule 6. Point SCH6-C3 of Schedule 6 currently provides rent assistance in addition to a person's maximum basic rate or ceiling rate to an eligible person who is in Australia or a person who is temporarily absent from Australia and the period in respect of which the rent assistance is sought is not a period after the first 26 weeks of the absence. The equivalent provisions in the SSA have been amended to allow for an extension of the 26 weeks if the eligible person is unable to return to Australia due to unforeseen circumstances. To align the provisions in the VEA to the SSA, a new subpoint SCH6-C3(2) is added to Schedule 6 of the VEA. The addition of the new subpoint SCH6-C3(2) allows the 26 weeks to be extended where the Commission is satisfied that the person's absence is temporary and the person is unable to return to Australia because of an event referred to in subpoint SCH6-C3(3) of Schedule 6. Subpoint SCH6-C3(3) lists the events applicable to subpoint SCH6-C3(2). These include: • a serious accident involving the person or a family member of the person; • a serious illness of the person or a family member of the person; • the hospitalisation of the person or a family member of the person; • the death of a family member of the person; • the person's involvement in custody proceedings in the country in which the person is located, a legal requirement for the person to remain outside Australia in connection with criminal proceedings (other than criminal proceedings in respect of a crime alleged to have been committed by the person); • robbery or serious crime committed against the person or a family member of the person; • a natural disaster in the country in which the person is located; • a public health crisis affecting Australia or the country in which the person is located or both; • political or social unrest in the country in which the person is located; • industrial action in the country in which the person is located, and • a war in the country in which the person is located. A public health crisis affecting Australia or the other country which the person is located, or both, is included to cover events such the COVID-19 pandemic. 5


The new subpoint SCH6-C3(4) adds a caveat on the determination under subpoint SCH6-C3 (2). The event listed in subpoint SCH6-C3 (2) must have occurred or began during the period of absence starting on or after the commencement of this Schedule, and if the event is a political or social unrest, industrial action or war, the person is not willingly involved in, or willingly participating in, the event. This caveat is to ensure that extension beyond 26 weeks is to assist eligible persons affected by specified events. Subpoint SCH6-C3(5) provides that if the Commission determines another number of weeks under subpoint SCH6-C3 (2), then, immediately after that determination is made, a reference to a number of weeks in subparagraph (1)(e)(ii), and each reference to a number of weeks in subpoint SCH6-C3 (2), is taken to be reference to that new number. This allows the Commission to provide additional extensions if circumstances change Item 3 adds an application provision to this Schedule. Subpoint SCH6-C3(2) applies only if the period of absence from Australia starts on or after the commencement of this item. Additionally, it also applies if a period of absence from Australia started before the commencement of this item, where the person is absent from Australia immediately before the commencement and where the 26 weeks had not ended immediately before that commencement. 6


Schedule 4 - Acute support package The Defence, Veterans' and Families' Acute Support Package (Acute Support Package) is provided to eligible veterans and their families who are experiencing, or are at risk of experiencing, crisis to assist them to navigate complex life challenges. A range of supports are available under the Acute Support Package. These include child care services, counselling, household assistance and academic and extra-curricular support services for children who are under 18 years of age. Some grandparent carers are already eligible for the Acute Support package - the amendments in Schedule 4 clarify that grandparent carers who are caring for the children of a deceased veteran are also eligible. Military Rehabilitation and Compensation Act 2004 Items 1 inserts "(5A)" after "(5)" in subsection 268B(2) of the MRCA. Subsection 268B(2) sets out the eligibility criteria for the Acute Support Package. Subsection 268B(5A) expands eligibility for the Acute Support Package to eligible grandparents. Items 2 inserts a new subsection 268B(5A) to the MRCA. The new subsection 268B(5A) sets out the following eligibility criteria for persons covered under paragraphs 268B(5A)(a)-(c): • the deceased member's death occurred no more than 2 years before the day the person's eligibility for the package is determined; • the deceased member's death was related to service rendered by the member or the Commission is satisfied that the deceased member's death was a suicide related to service rendered by the member; • the Commission is satisfied that the person is parenting a child of the deceased member; • at the time the person's eligibility for the package is determined, the child is under 18 years; and • the Commission is satisfied that the person, or the child, is experiencing, or is at risk of experiencing, crisis. In considering whether a person, or the child is experiencing, or is at risk of experiencing, crisis, an assessment of the family needs will be undertaken. Circumstances where the functioning of the family may be impacted and they would benefit from support include: • mental and physical health episodes including attempted suicide • substance abuse issues • addiction • family and domestic violence incidents, including child abuse • homelessness • family conflicts and breakdowns • sudden, significant events such as loss of employment or death in the family • at risk of disengagement with the community (particularly young people) • at risk of engagement with the criminal justice system. The following situations would not, in and of themselves, be considered circumstances that make a family eligible: 7


• financial distress • routine/known events • legal proceedings, court costs or fines, or • natural/environmental disaster. Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 Item 3 and 4 amends subsection 41B(2) and inserts new subsection 41B(5A) to identical effect to the amendments made to subsection 268B of the MRCA. The new subsection 41B(5A) sets out the following eligibility criteria for persons covered under paragraphs 41B(5A)(a)-(b): • the deceased employee's death occurred no more than 2 years before the day the person's eligibility for the package is determined; • the deceased employee's death resulted from an injury; • the Military Rehabilitation and Compensation Commission (MRCC) is satisfied that the person is parenting a child of the deceased employee; • at the time the person's eligibility for the package is determined, the child is under 18 years; and • the MRCC is satisfied that the person, or the child, is experiencing, or is at risk of experiencing, crisis. Circumstances that would be considered as a crisis under this subsection are the same as listed above for the MRCA. Veterans' Entitlements Act 1986 Item 5 and 6 amends subsection 115S(2) and inserts new subsection 115S(5A) to identical effect to the amendments made to subsection 268B of the MRCA. The new subsection 115S(5A) provides the following eligibility criteria for persons covered by paragraphs 115S(5A)(a)-(c): • the Commission is satisfied that the person is parenting a child of the deceased veteran; • at the time the person's eligibility for the package is determined, the child is under 18 years; and • the Commission is satisfied that the person, or the child, is experiencing, or is at risk of experiencing, crisis. Circumstances that would be considered as a crisis under this subsection are the same as listed above for the MRCA. Item 7 inserts an application provision noting that the amendments to the VEA, DRCA and MRCA as set out in this Schedule commence on or after the commencement of this item. 8


 


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