EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 219
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
AIR FORCE REGULATIONS (AMENDMENT)
The Air Force Regulations (“the Regulations”), made under the Air Force Act 1923, prescribe certain financial conditions of service for members of the Air Force.
Background
Members of the Defence Force receive free medical and dental treatment to maintain the level of health and fitness required for Defence Force service. However, it is the practice for the Commonwealth to recover the costs of treatment where the necessity for the treatment arose in circumstances which give a member an enforceable claim against another person (eg, a motor vehicle accident).
Regulation 632A of the Regulations enables a determination to be made requiring a member of the Air Force who has an enforceable claim against another person to repay to the Commonwealth, subject to the comments below, the cost of treatment. The amount set out in the determination is then included by the member in the member’s claim against the other person.
In practice, where a member has such a claim, the member is not required to repay to the Commonwealth the costs incurred on the member’s behalf unless and until the member receives damages in respect of those costs.
Where treatment is provided by a non-Commonwealth hospital the amount to be recovered is established by the account or accounts rendered by the hospital. However, where treatment is provided by a service or Repatriation hospital, since there is no requirement for the Commonwealth to bill itself for the treatment of members of the Defence Force, no specific calculations are made of the cost of treating a particular Defence Force patient. The cost of medical and dental treatment in a service or Repatriation hospital is accordingly assessed at a daily average rate which includes the cost to the hospital of providing the treatment as well as a proportion of normal hospital running costs.
Paragraph 632A(1)(c) of the Regulations provides that the amount recoverable from a member who has received medical or dental treatment as an in-patient of a service or Repatriation hospital in a State is not to exceed the amounts set out for that State, for the period during which treatment occurred, in Schedule 5 to the Regulations.
Schedule 5 was inserted to overcome the difficulties encountered in legal proceedings of proving that the amount which a member was liable to repay to the Commonwealth did not exceed the expense incurred by the Commonwealth in providing treatment, by deeming the prescribed scale of rates to be the cost of a member’s treatment in a service or Repatriation hospital.
The rates adopted are those prepared by the Department of Veterans’ Affairs for internal costing purposes, showing the cost per bed per day per patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved for the period commencing 1 July 1982.
Air Force Regulations (Amendment)
The Statutory Rule amends Schedule 5 to the Regulations by omitting Item 7, substituting a new Item 7 and inserting Items 8, 9 and 10. The amendment increases the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital during the period commencing on 1 July 1982 to the new daily rates as advised by the Department of Veterans’ Affairs. The new rates apply for the purposes of determinations made after the commencement of the Statutory Rule.
Commencement
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Air Force Regulations (Amendment) Statutory Rules 1985 No. 219, issued under the authority of the Minister for Defence, amends the Air Force Regulations made under the Air Force Act 1923. This amendment addresses the issue of accurately determining the cost of medical and dental treatment for Air Force members who have received treatment in service or Repatriation hospitals, particularly where such treatment was necessitated by circumstances that entitle the member to claim compensation from another party. The primary policy objective of this amendment is to ensure that the Commonwealth recovers its costs appropriately by setting updated daily rates for in-patient treatment that more accurately reflect the actual costs incurred by the Department of Veterans' Affairs. The updated rates are effective from 1 July 1982, and apply to determinations made after the commencement of the Statutory Rule. This amendment was introduced to provide a more precise mechanism for cost recovery, aligning with the current costs as advised by the Department of Veterans' Affairs.
Scope and Application
The Air Force Regulations (Amendment) Statutory Rule 1985 No. 219 pertains to members of the Australian Defence Force, specifically those within the Air Force, who have received medical or dental treatment and have an enforceable claim against another party for the costs incurred. This amendment is made under the Air Force Act 1923 and serves to adjust the financial conditions of service for these members. The amendment modifies Schedule 5 of the Regulations by updating the maximum recoverable amounts for in-patient treatment in service or Repatriation hospitals, aligning these rates with the latest figures provided by the Department of Veterans’ Affairs. These updated rates, which reflect the true cost involved in providing such treatment, are applicable to determinations made post the commencement of the Statutory Rule. The legislation applies nationally, encompassing all states where service or Repatriation hospitals are located, and it operates to ensure that the Commonwealth can recover the costs of treatment from Defence Force members when appropriate.
Key Provisions
The Air Force Regulations (Amendment) Statutory Rules 1985 No. 219 amend Schedule 5 to the Air Force Regulations, which sets the maximum amounts recoverable from Air Force members for medical and dental treatment provided by service or Repatriation hospitals in various states. The amendment introduces new daily rates for in-patient treatment commencing from 1 July 1982, replacing the previous rates. These new rates are based on updated figures provided by the Department of Veterans' Affairs, which more accurately reflect the actual costs involved. These new rates apply to determinations made after the Statutory Rule comes into effect.
Under the amended Regulations, the obligations on Air Force members who receive medical or dental treatment in a service or Repatriation hospital and have an enforceable claim against another person are to repay the Commonwealth the cost of their treatment. This repayment is contingent on the member receiving damages from the other party for those costs. The amount recoverable is capped by the rates specified in Schedule 5 of the Regulations, ensuring that the Commonwealth does not recover more than the actual cost of the treatment. The new rates aim to provide a more accurate reflection of the cost incurred by the Commonwealth.
Failure to comply with the Regulations by not repaying the recoverable amount when damages are received from another party may result in legal consequences. While the Regulations do not explicitly outline specific offences or penalties, non-compliance could potentially lead to civil actions seeking repayment of the owed amount. The consequences of non-compliance would depend on the interpretation of the Regulations by the courts and the specific circumstances of each case.
The Statutory Rule, as mentioned in the Explanatory Statement, comes into operation on the date of its gazettal. This means that the new rates and provisions will be effective from the moment the rule is officially published, ensuring that any future determinations for treatment costs will be based on the updated rates set out in the amended Schedule 5 of the Regulations.