Matt Keogh (Burt, Australian Labor Party, Minister for Veterans’ Affairs) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Australians owe a debt of gratitude to our Australian Defence Force personnel, veterans and families, and we have a solemn duty to look after them. As a nation, Australia values their ongoing commitment to service, and it is our duty to provide support to veterans and their families as they transition from the Australian Defence Force, to enable them to continue their commitment to service in civilian life in different ways. Making sure our veterans and their families are well supported and looked after as they transition from the Australian Defence Force is an important task and responsibility of government—a solemn commitment. And that's why it is so disappointing the former Liberal-National government did not deliver on this commitment. This legislation does help deliver on this commitment to our veterans. The new Australian Labor government is committed to supporting our veterans and fixing the veterans crisis.

The unique nature of military service justifies rehabilitation and compensation arrangements specific to the needs of the military.

The government is committed to continuously improving and adapting to the needs of veterans, serving and former members and their families.

The Military Rehabilitation and Compensation and Other Legislation Amendment (Incapacity Payments) Bill 2022 will resume access to the beneficial calculation of incapacity payments for eligible veterans.

This means that eligible veterans—those undertaking approved study under a rehabilitation plan—will again have their incapacity payments based on 100 per cent of pre-injury earnings—payments that were reduced unnecessarily due to the inaction of the previous government.

Incapacity payments are compensation paid for a loss of earnings because of physical or mental health conditions related to military service.

These payments reduce or 'step down' to 75 per cent (or sometimes a higher percentage depending on hours worked) of normal earnings after a period of 45 weeks.

However, for veterans participating in a rehabilitation plan, and in approved full-time study, their incapacity payments were not reduced after 45 weeks.

This pilot program was due to expire on 30 June 2022. While the previous government said it would extend this through to 2023, it failed to actually introduce and pass legislation to do so before the end of the last parliament. Not only has this created much uncertainty for affected veterans, but these arrangements did end on 30 June 2022. That left some 370 veterans who were studying out of pocket, copping an immediate payment reduction of up to 25 per cent.

The financial support provided by involvement in the pilot program, being the beneficial calculation of incapacity payments to veterans undertaking approved full-time study, is vital for studying veterans as they transition from military service to a rehabilitation program focused on gaining sustainable employment in the civilian workforce.

The bill will enable veterans undertaking an eligible course of study to access the beneficial arrangements for an additional year, to 30 June 2023, where the calculation of incapacity payments is based on 100 per cent of the individual's pre-injury earnings.

The bill will amend the Military Rehabilitation and Compensation Act 2004 and the Safety, Rehabilitation and Compensation (Defence Related Claims) Act 1988 to provide for all eligible veterans covered under these two schemes.

Importantly, application provisions will ensure that student veterans who should have been eligible for the higher rate of payment can receive back payments to cover the period from 1 July 2022.

We're committed to delivering a comprehensive veterans employment program to support personnel as they transition to civilian life. This is a key part of that. It's initiatives like this that not only support a veteran financially but can support a veteran's mental health as they undergo their transition from service. We have an obligation to ensure all our defence personnel are kept safe here and abroad, mentally and physically. The same goes for when they come home. This pilot program will ensure that veterans can continue their education as they transition from service, ultimately increasing their capacity and, indeed, opportunities for employment, a key predictor of success in civilian life. It will ensure they are best placed to succeed.

Our serving personnel put themselves in harm's way to protect our national interest.

We want our service personnel, veterans and families to know that Australia is proud of them and that our country will always be there for them.

These proposed changes will result in positive outcomes for many in the defence and veterans communities.

I commend the bill to the House.

Debate adjourned.