House debates

Wednesday, 9 November 2022

Bills

Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2022; Second Reading

11:45 am

Photo of Shayne NeumannShayne Neumann (Blair, Australian Labor Party) Share this | Hansard source

I'm pleased to speak on the Veterans' Affairs Legislation Amendment (Budget Measures) Bill 2022. Australians owe a debt of gratitude to our ADF personnel and veterans. We have a solemn duty to look after them—especially our most disabled veterans, who can't work because of injuries sustained in the service of their country.

The former Morrison government loved to talk up their defence and national security credentials, and to mouth platitudes to veterans, but the reality is: they completely neglected the ex-service community and their families, and they presided over a crisis in the Department of Veterans' Affairs. Remember how, despite overwhelming support for a royal commission into defence and veteran suicide, the former Prime Minister, the member for Cook, had to be dragged kicking and screaming to establish one last year, after Labor called for one back in 2019? While many struggling veterans waited years for their compensation processes to be dealt with, the former government chronically underfunded and understaffed the Department of Veterans' Affairs, which had a backlog of over 60,000 claims, including many for disabled service pensions. In the words of the former veterans' affairs minister—the member for Calare, no less—their neglect and inaction was nothing less than a national disgrace. It took the former minister threatening to resign over funding shortfalls in DVA to prompt the Morrison government to increase resources for claims processing, only to rip away $430 million from the rest of the department's budget, as we discovered after the election in evidence given to the Royal Commission into Defence and Veteran Suicide.

There's probably no issue that typifies the coalition's arrogance and tin ear when it comes to veterans' issues more than the totally and permanently incapacitated, or TPI, pension. The fact is that the TPI Federation had been raising concerns about the adequacy of the TPI payment for around nine years, but the Liberal-National government completely ignored them. Before the 2019 election, the former Prime Minister, the member for Cook, raised expectations that he would increase the TPI payment by committing to a review of the pension and telling the TPI Federation that they had a 'compelling case for greater compensation'. He raised expectations.

The TPI review conducted by former senior public servant Mr David Tune would report back after the election. It was really just a cynical marketing exercise to placate veterans and buy votes. Unfortunately, many veterans fell for it. I remember being on a polling booth on election day in 2019 at Raceview State School and hearing veterans say they were going to vote Liberal because Scott Morrison was apparently going to fix the TPI issue. Following the election, the TPI Federation revealed they'd had limited consultation with the Tune review. The review met with the TPI Federation only once so they could put their case forward. However, shockingly, it completely dismissed the group's submissions, and they weren't even given a copy of the report.

The review, when completed in August 2019, was buried under the cloak of cabinet in confidence until the delayed October 2020 budget. After sitting on the report for more than a year, the government finally announced that, far from increasing the TPI payment, all they were going to offer was modest rent assistance to about 10 per cent of TPI veterans—around 2,700 people—who were living in private rental accommodation, leaving most TPIs disgusted that they would miss out on any form of increased assistance.

So, after raising the TPI Federation's hopes before the 2019 election, the former coalition government went on to dash them after the election. It was another case of bad faith—all announcement, no delivery—and it showed that veterans couldn't trust the coalition at the last election.

To add insult to injury, in response to Labor's questions in Senate estimates it was revealed that these benefits were due to start in September 2022, after the election—in two years—to allow for changes to legislation and IT systems. In other words, it would have been years before the people who were acknowledged by the Tune review as being in desperate need of help actually received assistance. Remember that this was only 2,700 veterans. It was only after pressure from Labor and TPI veterans that the start date was brought forward to January 2022.

As the former shadow minister for veterans' affairs and defence personnel, I took the time to meet with and listen to the concerns of TPI veterans and especially the TPI Federation and their president, Ms Pat McCabe, and Peter Thornton, who had undertaken extensive analysis of TPI pension adequacy over the years. I engaged with the Australia Defence Association and Executive Director Neil James, as well as groups like the Vietnam Veterans Association of Australia, who agreed that there was a good case for an increase in the TPI payment. In response, I resolved to refer this matter to an independent Senate investigation so that TPI veterans could have their say. To that end I worked with Labor senators to establish a Senate Foreign Affairs, Defence and Trade References Committee inquiry in March last year to examine the adequacy of the TPI payment. That was ably chaired by the late former Labor senator Kimberley Kitching, who did a fantastic job in that inquiry.

The committee found that submitters, including the TPI Federation, had 'made a persuasive case for a fair and just structural increase in the AGR'—the above the general rate—'component of the TPI payment to help restore the relative value of the payment and recognise and replace TPI veterans' loss of income'. The committee recommended a modest increase in the TPI payment and left it up to the government to give further consideration to the exact level of the increase.

What was so interesting in that inquiry was the fact that even the secretary of the Department of Veterans' Affairs, Liz Cosson, conceded that the government had raised expectations and that the TPI Federation had made a strong case for an increase in the TPI pension. Ms Kate Pope, a DVA official, did not even attempt to defend the government's position and agreed with the view that compensation for TPI veterans was insufficient. Based on all the submissions and evidence, the committee recommended that the government increase the TPI payment.

At the time Labor welcomed this and called on the Morrison government to respond to the committee's unanimous recommendation. Once again the Morrison government dragged their heels and eventually tabled a response on 1 October, completely ignoring the committee's recommendation. It was another slap in the face for TPI veterans. Ironically, some LNP backbenchers had said that this was the most deserving issue in the veteran community, yet their Prime Minister completely ignored them.

What's more, late last year the Royal Commission into Defence and Veteran Suicide heard evidence from the TPI Federation that a lack of support for TPIs had had a terrible impact on their mental health and wellbeing. As the shadow minister I was determined to do the right thing for our disabled veterans, who put their lives on the line for our country, so I was proud to announce before the election that an Albanese Labor government would introduce a permanent $1,000 increase in the annual rate of the special rate of disability pension, or TPI payment, for eligible disabled veterans from 1 January 2023.

It was a pleasure to work with the TPI Federation in developing this policy, and I'm grateful for their support and the endorsement of Labor's commitment during the election campaign. This bill before the House delivers on that commitment. It is now a budget measure. It will provide a boost of $38.46 per fortnight. This will provide additional financial support to around 27,000 TPI pensioners, at a cost of $97.9 million over four years, to ensure our most disabled and vulnerable veterans are not left behind.

Let's be clear: the TPI payment is for life, it's tax exempt, it's not means tested and it's not offset by superannuation, but it can be by other compensation assistance. For a person to be a TPI recipient, particularly at above the general rate, they have to have 70 per cent or greater incapacity, have to be aged less than 65 years on making application, have to not be able to work for more eight hours per week due to service related conditions alone and have had to suffer a loss of earnings. These are the most disabled veterans in the country, so Labor is giving them an increase in their payment—something the coalition government refused to do.

This budget measures bill today is consistent with the Albanese Labor government's commitment in our first budget to deliver responsible cost-of-living relief. This TPI bonus means the payment is comparable with the national minimum wage and, crucially, greater than the after-tax national minimum wage. I know some people will feel it does not go far enough but there is a lot of pressure on the budget and this increase will help maintain the relative value of the payment over time. The measure will provide extra financial support to TPI veterans and their families on top of regular indexation increases every March and September. The top-up is comparable to a structural increase in the special rate of $50 per fortnight, around 5.75 per cent, separate to regular indexation measures introduced when the coalition government—the Howard government—did listen to veterans in July 2007 and backdated it to March 2007. The then Labor government—the Rudd government—delivered a five per cent, or around $16 per fortnight, increase to the general rate from March 2008, which also flowed through to the special rate. The increase in the TPI payment is due to commence on 1 January 2023.

I congratulate and thank the Minister for Veterans' Affairs, the member for Burt, for what he is doing in bringing forward this bill to ensure this can happen. Given the urgency, I'm calling on the opposition and crossbench to do everything they can to facilitate its passage as soon as possible. The coalition has a woeful record in the space in the last nine years. The least they can do is back this in now. After all, as the former Prime Minister, member for Cook said:

The fact that TPI veterans are not able to earn an income as a result of their service to our nation means that their loss of income during what would have been their working life should be appropriately recognised and replaced.

It's a pity he did not act on it.

Of course, this extra assistance to TPI veterans comes on top of the government's other measures to ease the cost of living for all Australians, like cheaper medicine and expanding access to the Commonwealth seniors healthcare card, while recognising the special circumstances of TPI veterans and their families face. This TPI boost is just one plank in our strong election and budget package of practical support for veterans with a focus on the cost of living, service delivery, jobs, housing and family support for veterans—not platitudes, not token gestures like dodgy discount schemes and lapel pins. Veterans and their families can have faith they now have a government and a Prime Minister who have their backs, who treat them with the dignity they deserve and who give them financial support. The new Labor government's plan to repair the coalition's decade of damage will restore services veterans and their families can count on to replace neglect with respect and financial support.

The Royal Commission into Defence and Veteran Suicide is an important opportunity for the government to ensure veterans have better access to the support they deserve. The government is also developing a pathway to implement the royal commission's recommendations to simplify the legal framework for veterans' compensation and rehabilitation, and it's not beyond our will or wisdom to make sure we have a code that covers the VEA, the MRCA and the DRCA legislation. The government is investing $233.9 million over four years to recruit another 500 staff in the DVA to speed up compensation claims processing, something the former coalition government refused to do. We are ending the outsourcing and privatisation of the department. In addition, $87 million over two years will be allocated to improve veterans' access to support services. I am very pleased to see the $46.7 million for 10 veterans and family hubs across the country, including one in my electorate of Blair. The coalition refused to do this by the2019 election, having promised they would do a veterans hub in my electorate in 2016, breaking their promise to the people of Ipswich and surrounds.

The budget includes $24 million to develop and deliver a veterans' employment program, which will not only support veterans as they transition into civilian life but champion veterans' employment by raising awareness of the skills and experience veterans have to offer civilian workforces. Too often under the previous government it was about handing out awards to businesses who supported veterans and not enough practical support for veterans on the ground to get into employment. On a similar note, there is $4.7 million for the development of the Operation NAVIGATOR, a smart phone application to better support our ADF personnel as they transition into the civilian workforce, a commitment I was delighted to announce at the Oasis Townsville veterans' hub during the election campaign. One in 10 people who leave the ADF in any given year leave from Townsville, so it's critical that the Oasis be supported, and I'm pleased to see that we are doing so.

There is $46.2 million to expand access to the Defence Home Ownership Assistance Scheme to boost defence personnel and veterans homeownership, on which I spoke earlier today. It's worth adding that the government plans to set aside $30 million to support veteran homelessness as part of our investments in social and affordable housing as part of the Housing Australia Future Fund. It is a critical issue, and I commend people and, particularly, organisations like those I saw in South Australia and in Queensland who do great work in helping veterans with homelessness and transitioning to housing after leaving the ADF. Finally, the government has committed to working with defence and veterans' families to design a support strategy involving better posting cycles, housing solutions and transition services. This is absolutely crucial in my electorate, where RAAF Base Amberley is located.

This measure in this bill demonstrates the Albanese Labor government's commitment to providing practical support for current and ex-serving personnel. I thank the minister for his continued commitment to veterans and for the budget measures here, which will make a difference in my electorate. I want to make sure that veterans' families in my electorate and around the country get a better future than they had under the previous coalition government.

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