Veterans’ Affairs
Response to the Findings of the Clarke Review of Veterans’ Entitlements
The Government will provide $289 million over five years (including $9.1 million in 2003-04) for a range of measures in response to the findings of the Clarke Review of Veterans’ Entitlements. The Review was undertaken by a committee chaired by the Hon MJ Clarke QC in line with the Government’s commitment during the 2001 Federal election campaign.
The Committee concluded that the repatriation system has been, and remains, a major institution of social justice in Australia. The Government’s response announced in March 2004, ensures that the repatriation system continues to deliver appropriate and adequate benefits to the veteran community in recognition of service in Australia’s armed forces. It addresses a number of anomalies identified by the Committee that previously limited access to repatriation benefits for some veterans. The response also provides additional financial support for some members of the veteran community.
Further information can be found in the press release of 2 March 2004 issued by the Prime Minister and the press releases of 2 and 19 March 2004 issued by the Minister for Veterans’ Affairs.
Table 12: Clarke Review — Summary of measures
- Total includes expenditure of $5.8 million in 2003-04.
- Total includes expenditure of $1.7 million in 2003-04.
- Total includes expenditure of $0.5 million in 2003-04.
- Total includes expenditure of $0.8 million in 2003-04.
- Total includes expenditure of $0.3 million in 2003-04.
Clarke Review — Defence Forces Income Support Allowance
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 17.8 | 21.9 | 22.0 | 21.8 |
| Department of Family and Community Services | 6.3 | 1.1 | 1.0 | 1.0 |
| Total | 24.1 | 23.0 | 23.0 | 22.9 |
The Government will provide $99.6 million over five years (including $6.6 million in 2003-04) to establish, from 20 September 2004, an allowance that will be paid by the Department of Veterans’ Affairs (DVA) to compensate DVA disability pension recipients for the effects of income testing on income support payments paid under the Social Security Act 1991.
This allowance will ensure that DVA disability pension recipients are treated consistently, regardless of whether they receive income support payments under the Social Security Act 1991 or the Veterans’ Entitlements Act 1986. The measure is expected to benefit up to 19,000 veterans and their partners.
This measure addresses a recommendation of the Clarke Review that the Government should no longer regard the Veterans’ Entitlements Act 1986 disability pension as income for any payment of benefits under the Act or social security income support payments.
Clarke Review — extend rent assistance to war widows and widowers in addition to the Income Support Supplement
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 11.5 | 21.4 | 22.3 | 23.1 |
The Government will provide $78.3 million over four years to pay rent assistance to war widows and widowers, who are in private rental accommodation, in addition to the Income Support Supplement from 1 January 2005. This measure will also apply to war widows and widowers with qualifying service who are receiving the Service Pension. This scheme will benefit approximately 11,500 widow(er)s.
Currently, rent assistance is paid as part of the ceiling rate of income support supplement of $137.90 per fortnight. Paying rent assistance as an additional amount to the income support supplement will increase the amount of income support paid to eligible war widow(er)s by up to $95.40 per fortnight.
This measure will provide the same level of rent assistance to war widow(er)s receiving Department of Veterans’ Affairs income support as is paid to other income support pensioners in private rental accommodation.
Clarke Review — indexation of the Above General Rate component of Disability Pension
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 10.0 | 19.3 | 24.9 | 32.1 |
| Department of Family and Community Services | -0.1 | -0.2 | -0.3 | -0.4 |
| Total | 9.9 | 19.1 | 24.6 | 31.6 |
The Government will change the indexation of the Above General Rate components of the Department of Veterans’ Affairs disability pension from 20 March 2004, at a cost of $87.1 million over five years (including $2 million in 2003-04). The change will benefit around 45,000 veterans.
The measure will increase the Above General Rate components of the disability pension (that is, where a veteran receives Extreme Disablement Adjustment, Intermediate Rate or Special Rate pension) in the same way as the maximum basic rate of the Service Pension with reference to both movements in the Male Total Average Weekly Earnings Index and the Consumer Price Index.
There will be a reduction in expenses in the Family and Community Services portfolio as disability pension paid to veterans is taken into account through income testing arrangements under the Social Security Act 1991. The total benefit paid to individuals will be maintained by an offsetting increase in the Defence Forces Income Support Allowance. See the related measure titled Clarke Review Defence Forces Income Support Allowance.
Clarke Review — increase in funeral benefit
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 5.6 | 5.6 | 5.6 | 5.6 |
The Government will provide $22.5 million over four years to increase the maximum funeral benefit that is payable to the estate of a deceased veteran from $572 to $1,000, from 1 July 2004.
The funeral benefit is paid towards expenses incurred in the funerals of Australian veterans who were prisoners of war or were, upon death, receiving the special or totally and permanently incapacitated rate disability pension, extreme disablement adjustment of disability pension, disability pension plus an allowance as a multiple amputee, or in certain other circumstances as determined by the Department of Veterans’ Affairs, such as financial hardship.
Clarke Review — extend entitlement to disability pension and treatment arrangements to Australian aircrew involved in the Berlin Airlift
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | .. | .. | .. | .. |
| Department of Family and Community Services | .. | .. | .. | .. |
| Total | .. | .. | .. | .. |
The Government will provide $0.1 million over five years (including 2003-04) to extend entitlement to disability pension and treatment arrangements to Royal Australian Air Force (RAAF) aircrew involved in the Berlin Airlift.
The Berlin Airlift took place in 1948-49 to provide essential food and other supplies to West Berlin, which was then blockaded by the then Soviet Union.
The extension of the entitlement will ensure those RAAF personnel involved in the allied effort immediately after the hostilities period of World War II are recognised for their service. RAAF aircrew involved in the Berlin Airlift were not previously eligible to receive the disability pension or treatment.
Clarke Review — extend operational service to minesweeping and bomb/mine clearance service immediately after the cessation of World War II
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 0.1 | 0.1 | 0.1 | 0.1 |
| Department of Family and Community Services | .. | .. | .. | .. |
| Total | 0.1 | 0.1 | 0.1 | 0.1 |
The Government will provide $0.4 million over five years (including 2003-04) to extend operational service to minesweeping and bomb/mine clearance service undertaken immediately after the cessation of World War II. This will provide a small number of additional veterans with access to disability compensation and treatment under the Veterans’ Entitlements Act 1986. The cost of this measure is partially offset by a reduction of $0.1 million in expenses in the Department of Family and Community Services.
The Act provides qualifying service for those who hold the appropriate minesweeping or bomb/mine clearance medals for this service and had service before 3 January 1949. This measure addresses an anomaly affecting personnel who, despite holding the appropriate medal, do not have access to the benefits of the Act because their only service was after 3 January 1949 and they therefore do not meet the definition of veteran. By extending operational service to this period, these personnel will be able to access the benefits of the Act.
Clarke Review — extend qualifying service to the aircrew of Number 2 Squadron for service on the Malay-Thailand Border (1962-1966)
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 0.1 | 0.1 | 0.1 | 0.1 |
| Department of Family and Community Services | .. | .. | .. | .. |
| Total | .. | .. | .. | .. |
The Government will provide $0.3 million over five years (including 2003-04) to extend qualifying service to the aircrew of Number 2 Squadron of the Royal Australian Air Force for service on the Malay-Thailand Border (1962-66). This will provide access to the range of income and health support measures provided under the Veterans’ Entitlements Act 1986. The cost of this measure is partially offset by a reduction of $0.2 million in expenses in the Department of Family and Community Services.
The Clarke Review noted that Army air dispatch units who travelled in aircraft of Number 2 Squadron on the Malay-Thailand Border between 1962-1966 have coverage under the Act resulting from the Mohr Review in 2000. The Clarke Review concluded that, because the aircrews’ operational activity was on the same aircraft as the air dispatchers, the aircrew of Number 2 Squadron who flew on these missions faced similar risks, and therefore should be provided full entitlements under the Act.
Clarke Review — one-off payment to former Prisoners of War of the North Korean forces or surviving spouses
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | - | - | - | - |
| Department of Family and Community Services | .. | .. | .. | .. |
| Total | .. | .. | .. | .. |
The Government will provide $0.5 million in 2003-04 to make a one-off payment of $25,000 to former Australian Prisoners of War of the North Korean forces or their surviving spouses who were alive on 1 July 2003. The payment will be non-taxable, exempt under the lump sum income testing rules, and will be an exempt asset under the assets test for recipients of payments under the Social Security Act 1991 and the Veterans’ Entitlements Act 1986. Deeming rules pertinent to income flows received from investment of the payment will still apply to income testing.
Other measures in the Veterans’ Affairs portfolio
Commemorations programme — continuation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 3.6 | 3.7 | 3.8 | 3.9 |
The Government will provide $15.1 million over four years to continue the Saluting Their Service component of the Commemorations programme. This measure will provide resources for educational initiatives, community awareness activities, preservation of our wartime heritage, support for community commemorative events and recognition of significant anniversaries.
The Commemorations programme honours the contribution of Australia’s servicemen and women in wars, conflicts and peacetime operations.
Commemorations programme — one-off funding for significant anniversaries
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 2.3 | 2.2 | - | - |
The Government will provide funding of $4.5 million over two years for commemorative initiatives associated with significant anniversaries occurring in the period 2004 to 2006.
This measure will fund the commemoration of significant anniversaries such as the 60th anniversary of key World War II campaigns, the 90th anniversary of the Gallipoli landings, and the 40th anniversary of the Battle of Long Tan during the Vietnam War. It will also provide the opportunity to contribute to the production of specific documentaries associated with the 60th anniversaries.
Managing Health Care Information Programme
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | -11.3 | -10.0 | -10.2 | -10.5 |
The Government will continue and expand the Managing Health Care Information Programme.
The programme was established in the 1999-2000 Budget and has improved the capacity of the Department of Veterans’ Affairs to expand data gathering, implement data warehousing and enhance analysis of health care information. This has resulted in improvements to health services for the veteran community and has reduced health care costs.
The expansion of this programme is expected to result in savings of $63.5 million over four years, and will cost $21.5 million to administer, leading to net savings of $41.9 million over four years. This is in addition to the savings of $34.1 million already included in the forward estimates.
Medical specialists’ fees for services provided to veterans — ensuring access
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 24.9 | 45.2 | 43.5 | 44.0 |
The Government will provide $157.7 million over four years to ensure that veterans and their dependants in receipt of Gold and White Repatriation Health Cards retain access to specialists’ medical services as private patients.
This measure will create a schedule of fees payable by the Government to medical specialists for providing services to veterans and their dependants who are entitled to health services under the Veterans’ Entitlements Act 1986.
Military Rehabilitation and Compensation Scheme — enhancement
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 0.8 | 0.9 | 1.0 | 1.1 |
| Department of Defence | - | - | - | .. |
| Total | 0.8 | 0.9 | 1.0 | 1.1 |
| Related capital ($m) | ||||
| Department of Veterans’ Affairs | 0.3 | - | - | - |
The Government will provide $4.3 million over four years for a range of initiatives to enhance the Military Rehabilitation and Compensation Scheme.
The Government will provide all widowed partners with a death benefit of up to $103,000 regardless of whether the death of their spouse arose from warlike, non-warlike or other service, at a cost of $2.6 million over four years.
The Government will establish a Return to Work Scheme to apply to those people on the Special Rate Disability Pension whose condition improves and are able to return to work. Those who are on, or successfully complete, the Return to Work Scheme will retain benefits such as automatic entitlement to the Repatriation Health Card — For All Conditions (Gold Card), children’s education scheme and certain dependants’ benefits.
The Government will also modify the current Veterans’ Vocational Rehabilitation Scheme to increase the incentive for disabled veterans to participate in the Scheme by decreasing the reduction in benefits due to income received when the veteran is working a low number of hours per week. The cost of this initiative and the one immediately above is expected to be $0.4 million over four years.
The measure will also provide uniform access to the Veterans’ Review Board for appeals under the Military Rehabilitation and Compensation Scheme relating to peacetime, warlike and non-warlike service, regardless of the type of service from which the claim arises. This will cost $1 million over four years.
Official History of Peacekeeping and post-Cold War Conflicts
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Australian War Memorial | - | - | - | - |
| Department of Defence | - | - | - | - |
The Government will provide $3.2 million over five years to commission the writing of an Official History of Australian Peacekeeping and post-Cold War Conflicts. The Official History will encompass all multi-national peace operations and post-Cold War operations in which Australia has participated since 1947, excluding the recent operations in East Timor, Afghanistan and Iraq (2003).
The Australian War Memorial, along with the Australian National University, has applied to the Australian Research Council for a grant to part-fund this project. Subject to the outcome of this application, the Memorial and the Department of Defence will absorb the remaining costs of the project against existing resourcing.
Professor David Horner of the Australian National University, one of Australia’s most highly respected military historians, has been appointed as Official Historian for the project. The history is scheduled to be published progressively in four volumes between 2008 and 2011.
Pathways Home Programme — aligning hospital policy for veterans
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | - | -0.6 | -1.1 | -1.1 |
The Department of Veterans’ Affairs will develop agreements with State Governments, consistent with the Pathways Home Programme, to move veterans who are receiving long-term non-acute care from high-cost acute care beds to lower-cost step down (convalescent) facilities.
Veterans will continue to receive the hospital services they need. Once fully implemented, the measure is expected to affect up to 500 of the estimated 2,200 veterans a year that the Department currently subsidises as long-stay patients in public hospital acute care facilities.
The implementation of this programme is expected to result in savings of $2.7 million over three years from 2005-06.
Prisoners of War — payment of daily residential aged care fees for low-level care
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 0.3 | 0.6 | 0.5 | 0.5 |
The Government will provide $1.8 million over four years to extend the payment of daily care fees and exemption from income-tested fees to former prisoners of war (POWs) requiring low-level residential aged care.
Currently, the Department of Veterans’ Affairs pays daily care fees for former POWs in high-level residential aged care, but not for those in low-level care. In addition, POWs in high-level care are exempt from income-tested fees, but those who are in low-level care are not.
The measure is consistent with an established principle of the Veterans’ Entitlements Act 1986 that veterans with the same service should be treated equally.
War graves and memorials — continuation of the repair and replacement programme
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | 1.1 | 1.1 | 1.1 | 1.2 |
The Government will provide $4.5 million over four years to continue to ensure that memorial sites are appropriately maintained, refurbished and upgraded.
The Office of Australian War Graves maintains memorials, cemeteries and associated facilities in Australia and overseas. This includes more than 70 war cemeteries and war plots, and more than 250,000 official post war memorials (primarily plaques on the graves of ex-servicemen).