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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Veterans' Affairs

Building Excellence in Support and Training — additional funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs 1.0

The Government will provide an additional $1.0 million in 2017‑18 for veterans' advocacy funding through the Building Excellence in Support and Training Programme.

This measure delivers on the Government's election commitment and builds upon the Mid‑Year Economic and Fiscal Outlook 2013‑14 measure titled Building Excellence in Support and Training — restore funding.

Dental and Allied Health Provider Fees — defer and align indexation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs ‑4.4 ‑9.4 ‑9.0 ‑12.8

The Government will achieve savings of up to $35.7 million over four years by deferring indexation of Department of Veterans' Affairs (DVA) dental and allied health provider payments to 1 July 2016. This measure will align indexation of payments to dental and allied health providers with the indexation arrangements for DVA medical services.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Department of Veterans' Affairs Enhanced Compliance Programme — additional reviews

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs ‑4.1 ‑10.4 ‑13.6 ‑14.0

The Government will achieve savings of $42.1 million over four years by increasing the annual number of Enhanced Compliance Programme reviews from 12,000 to 20,000 from 1 July 2014. The Enhanced Compliance Programme is in addition to other standard reviews and is targeted toward veterans at high risk of changes in their financial circumstances to ensure that a change in their assets and earnings does not result in overpayments.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Repatriation Pharmaceutical Benefits Scheme — new listings and price amendments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs .. .. ‑0.1 ‑0.3 ‑0.4

The Government will achieve savings of $0.9 million over five years, by agreeing to a number of new listings on the Repatriation Schedule of Pharmaceutical Benefits (the Schedule) from 1 June 2014. The new listings have been recommended by the Repatriation Pharmaceutical Reference Committee, which advises on the clinical appropriateness of items to be made available under the Repatriation Pharmaceutical Benefits Scheme (RPBS).

Savings will be achieved primarily due to the cost of new items being less than comparable items already listed.

The Government has also agreed to small price increases for suppliers from 1 June 2014 on a range of items already listed on the Schedule.

The RPBS was established to meet the specific clinical needs of veterans with health conditions arising from war or military service.

Smaller Government — Defence Service Homes Insurance Scheme — independent scoping study

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs 0.2

The Government will provide $0.2 million in 2014‑15 to undertake a scoping study on the future management and operations of the Defence Service Homes Insurance Scheme (DSHIS) by an insurance industry expert. The scoping study will inform the Government on options for more efficient DSHIS operations.

Veterans' Disability Pensions — commencement of payments from date of claim

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 0.2 0.4 0.4 0.4
Department of Veterans' Affairs ‑5.8 ‑11.5 ‑11.4 ‑11.2
Total — Expense ‑5.6 ‑11.2 ‑11.0 ‑10.9
Related capital ($m)
Department of Veterans' Affairs

The Government will achieve savings of $38.8 million over four years by paying new claims and applications for an increase in the rate of Veterans' Disability Pension effective from the date of lodgement of the claim or application. This will commence from 1 January 2015 and will align the payment arrangements for the Disability Pension with those for the Service Pension for veterans.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Veterans' Incapacity Payments — review by medical specialist after 12 months

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs ‑0.1 ‑2.3 ‑4.5 ‑5.8

The Government will improve workforce participation and achieve savings of $12.7 million over four years by introducing a requirement for medical specialist reviews of Department of Veterans' Affairs clients who have been in continuous receipt of incapacity payments for 12 months or longer. Incapacity payments are military compensation payments for economic loss resulting from an inability (or reduced ability) to work because of an injury or illness.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Western Front Interpretive Centre — Villers‑Bretonneux, France — initial funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs 0.8
Related capital ($m)
Department of Veterans' Affairs 6.1

The Government will provide $6.9 million in 2014‑15 to develop a detailed business case for the construction of an Australian Western Front Interpretive Centre at Villers‑Bretonneux in France to be an enduring legacy of the Centenary of ANZAC. This funding will also enable the commencement of land acquisition, and preliminary project development and design activities.