Jane Prentice (Ryan, Liberal Party) Share this | Hansard source

I rise to speak on the Military Rehabilitation and Compensation Amendment Bill 2014, having only recently visited the soldier recovery centre at Gallipoli Barracks at Enoggera in my electorate.

When a soldier is wounded in service to our country, we have a duty and a responsibility to do all we can to, sometimes literally, get that soldier back on their feet. The rehabilitation centre at Gallipoli Barracks is achieving some outstanding results, having recently invested in cutting-edge equipment and facilities optimised to assist recovering soldiers. The RSL has also funded an education room specially built for a wide range of disability access and use. With my colleague the member for Brisbane, I had the opportunity to talk with some of the soldiers currently participating in the program. Overall, they were impressed with the upgrades to the centre and the support the Gallipoli Barracks and the ADF were providing.

However, there is always more that can be done. Rehabilitation is a slow process and ensuring the correct level of medical support—provided continuously, and with flexible arrangements all the way through the process—is vital for a successful recovery. Following my visit to the barracks, I have been in communication with the Minister for Defence, who assured me that the government is determined to ensure that our soldiers—the men and women who have fought for our country—receive the best possible support.

Today, this bill is taking steps in the right direction to ensure that this is achieved. The purpose of this bill is to enable the Military Rehabilitation and Compensation Commission to retrospectively apply the methodology for calculating permanent impairment compensation to claims that have been the subject of claimant initiated reconsideration by the commission, a review but the Veterans' Review Board or a review by the Administrative Appeals Tribunal.

This bill is quite technical in nature. However, it is also very significant, as it will affect many of our patrons on a daily basis. Permanent impairment compensation payments and non-economic loss payments are paid to compensate for pain, suffering, functional loss or dysfunction and the effects of injury or disease on lifestyle. When the Military Rehabilitation and Compensation Act was enacted, it was necessary to determine how persons whose injuries has already been accepted under the Veterans' Entitlements Act 1986 or the Safety Rehabilitation and Compensation Act 1988 would be treated.

In April 2009 the then Minister for Veterans' Affairs announced that there would be a review of the military compensation arrangement to ensure:

… the Government is providing appropriate support and compensation to Australia’s veterans and ex-service personnel.

The review was conducted by a steering committee chaired by the secretary of the Department of Veterans' Affairs, Mr Ian Campbell PSM. The review report was released in March 2011.

The review found the military compensation system to be fundamentally sound, but noted that certain improvements could be made—particularly to permanent impairment compensation. The review noted that the assessment of permanent impairment under the Military Rehabilitation and Compensation Act was based on whole-person impairment methodology—that is, where multiple-service-related conditions exist, the impairment resulting from all service related conditions is not simply added but must be combined by applying a combined values formula which ensures compensation cannot exceed 100 per cent of the whole person.

The review examined the date provisions came into effect for permanent impairment compensation. Weekly permanent impairment compensation under the act became payable at the time of the review from the date the claim of liability was lodged or the date that the claimant's conditions were found to have become permanent and stable, whichever was the later. The review found inequalities for claimants with multiple conditions where the conditions became stable at different points in time and recommended that permanent compensation become payable on the basis of each individually accepted condition, rather than on the basis of all accepted conditions.

The government's response to the review was announced in May 2012. Consistent with the recommendation of the review the government made amendments to allow for permanent impairment compensation payments for a service injury or disease to be made on the basis of each accepted condition, rather than all accepted conditions together, and to incorporate lifestyle factors into the calculation of the amount payable. In addition, the Military Compensation Review Act contained transitional provisions to allow for certain transitional impairment calculations made from 1 July 2004 to 30 June 2013 to be recalculated under the new methodology. Importantly, past payments were to be adjusted retrospectively only if the recalculated amount would result in a benefit to the recipient. In that case, the serviceman or woman would be paid the difference between the amount originally paid and the new amount.

However, a technical barrier in the existing legislation was detected when the commission commenced its review of transitional permanent impairment calculations in order to apply the new methodology. The barrier had the effect of preventing the retrospective recalculation of transitional permanent impairment compensation in certain circumstances. The provisions in this bill operate so that the commission is able to retrospectively apply the methodology for calculating permanent impairment compensation to claims that had been the subject of claimant initiated reconsideration by the commission, a review by the board or a review by the Administrative Appeals Tribunal.

The amendments in this bill will result in beneficial or neutral outcomes only. Compensation is to be increased if it is found to be less than should be. However, if after review the commission is satisfied that the amount of compensation should not be increased, the commission may make a determination confirming the amount of compensation. Despite this assurance, the effect of the amendments is that the decision of the commission will be an original decision which can be reconsidered or reviewed as above.

This is just one step the government is taking to improve the lives of the Australian Defence Force men and women undergoing rehabilitation or living with a permanent impairment. I commend this bill to the House.

See this speech in context