EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 76
ISSUED BY THE AUTHORITY OF THE
MINISTER FOR DEFENCE
SCIENCE AND PERSONNEL
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, no specific calculations are made of the cost of treating a particular Defence Force patient because there is no requirement for the Commonwealth to bill itself for the treatment. 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 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 daily cost of treating a patient in a Repatriation hospital in the various States. That Department has now advised updated rates which more accurately reflect the cost involved from the period commencing on 1 July 1985.
Air Force Regulations (Amendment)
The Statutory Rule amends Schedule 5 by omitting Item 10, substituting a new Item 10 and inserting Items 11 and 12. The amendments increase the maximum amount recoverable for in-patient treatment in a service or Repatriation hospital from the period commencing on 1 July 1985 to reflect the new daily rates as advised by the Department of Veterans’ Affairs.
The new rates will apply only to 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 1988, issued under the authority of the Minister for Defence Science and Personnel, aim to address the issue of cost recovery for medical and dental treatment provided to Air Force members when their treatment is necessitated by circumstances for which they have a claim against another party. The primary objective is to ensure that the Commonwealth recovers the costs of treatment provided to Air Force members where such treatment was required due to events such as motor vehicle accidents, in which the member has a claim against another person. Regulation 632A of the Air Force Regulations facilitates the determination requiring the member to repay the Commonwealth for the treatment costs, contingent upon the member receiving damages from the other party. The amendment to Schedule 5 of the Regulations, which sets the maximum recoverable amounts for inpatient treatment in service or Repatriation hospitals, reflects updated daily rates provided by the Department of Veterans’ Affairs to more accurately reflect current costs from 1 July 1985. This adjustment ensures that the recoverable amounts are in line with the actual costs incurred by the Commonwealth, thereby facilitating effective cost recovery while maintaining fairness and transparency in the financial obligations of Air Force members.
Scope and Application
The Air Force Regulations, made under the Air Force Act 1923, govern the financial conditions of service for Air Force members, including the recovery of costs for medical and dental treatment provided by the Commonwealth. Specifically, Regulation 632A pertains to the circumstances under which Air Force members who have an enforceable claim against another person for the costs of their treatment must repay the Commonwealth. This repayment requirement applies only after the member has received damages from the third party responsible for the treatment costs. The amount recoverable from a member is determined based on the cost of treatment, which varies depending on whether the treatment was provided by a Commonwealth, service, or Repatriation hospital. The amendments to Schedule 5 update the maximum recoverable amounts to reflect the latest daily rates advised by the Department of Veterans’ Affairs, effective from 1 July 1985. These updated rates apply to determinations made post the commencement of the Statutory Rule, which comes into operation on the date of its gazette.
Key Provisions
The Air Force Regulations (Amendment) Statutory Rule modifies Schedule 5 of the Air Force Regulations, specifically in relation to the maximum amounts recoverable from Air Force members for medical and dental treatment received in service or Repatriation hospitals, effective from 1 July 1985. Regulation 632A(1)(c) of the Regulations, which was previously governed by the rates in Schedule 5, now incorporates updated rates as advised by the Department of Veterans' Affairs. This amendment ensures that the maximum recoverable amounts accurately reflect the current costs of treatment.
The Regulations impose certain financial obligations on Air Force members who have received medical or dental treatment and have an enforceable claim against another person due to the circumstances necessitating the treatment. Specifically, members are required to repay the Commonwealth the cost of their treatment, which is determined according to the rates set out in Schedule 5. This repayment obligation arises only after the member has received damages in respect of the treatment costs. Where treatment is provided by a non-Commonwealth hospital, the amount to be recovered is based on the hospital's account. However, for treatment provided by a service or Repatriation hospital, the cost is assessed at a daily average rate.
Failure to comply with the financial obligations under the Regulations could lead to legal consequences. While the Regulations do not explicitly outline criminal or civil penalties for non-compliance, the obligation to repay treatment costs is enforceable through the determinations issued under Regulation 632A. Any failure to repay the determined amount could potentially lead to legal action by the Commonwealth to recover the costs. The maximum penalties for such breaches are not explicitly stated in the text, but they would likely be pursued under the general legal provisions governing debt recovery and enforcement in Australia.