Instrument No 3 of 2007
EXPLANATORY STATEMENT
Defence Service Homes Act 1918
Variations under subsection 38A(3)
EMPOWERING PROVISION
Subsection 38A(3) of the Defence Service Homes Act 1918.
PURPOSE
The Minister has varied, in accordance with subsection 38A(3) of the Defence Service Homes Act 1918, the Statement of Conditions of 23 January 1996 as varied on 29 May 1997.
The Australian Government provides domestic building insurance under the Defences Service Homes Act 1918 to eligible veterans and ADF personnel delivered through the Defence Service Homes Insurance Scheme. The Statement of Conditions (or insurance policy) sets out in detail the cover offered under this building insurance policy.
A number of variations have been made to the Statement of Conditions to ensure the product continues to be one of the most comprehensive building policies available.
The Department of Veterans’ Affairs has made an undertaking to provide the highest standard of client service. Consequently the variations to the terms and conditions of this policy document are inline with innovations in the insurance industry and further enhance the Defence Service Homes Insurance Scheme product.
RETROSPECTIVITY
The attached instrument has retrospective effect. It applies to insurance policies entered into prior to the date the Minister signed the instrument.
Subsection 38A(4) provides that the Minister shall not vary the Statement of Conditions so as to remove the right of a person to receive payment to which the person had become entitled before the variation. Similarly, Subsection 12(2) of the Legislative Instruments Act 2003 (LIA) provides (as paraphrased) that retrospective legislative instruments that negatively affect citizens are of no effect.
The attached instrument does not fall within these prohibitions because it is beneficial in nature and does not disadvantage any person or impose liabilities on any person (other than the Commonwealth).
CONSULTATION
Consultation in respect of the attached instrument was not considered necessary because it is beneficial in nature and it was unlikely any useful purpose could be served by consulting interested parties.
DOCUMENTS INCORPORATED BY REFERENCE
Subsection 4(1) LIA requires Explanatory Statements for legislative instruments to describe any documents incorporated-by-reference into the Instrument and to indicate how the document may be obtained.
No documents are incorporated by reference in the attached instrument.
Overview
The Defence Service Homes Act 1918, enacted by the Commonwealth Parliament, was introduced to address the need for comprehensive domestic building insurance for eligible veterans and Australian Defence Force (ADF) personnel. This Act established the Defence Service Homes Insurance Scheme to provide such insurance, with the terms and conditions of the policy detailed in the Statement of Conditions. The 2007 variation of this statement, detailed in instrument No 3 of 2007, aimed to update and enhance the insurance product to align with industry innovations and to uphold the Department of Veterans' Affairs' commitment to high-quality client service. This retrospective adjustment to the insurance policy ensures that it remains one of the most comprehensive available, while benefiting policyholders without imposing any new disadvantages or liabilities.
Scope and Application
The Defence Service Homes Act 1918, as amended by Instrument No 3 of 2007, pertains to the insurance policies under the Defence Service Homes Insurance Scheme provided to eligible veterans and Australian Defence Force (ADF) personnel. The Act applies to all persons who are insured under this scheme, ensuring that the coverage offered remains comprehensive and aligned with industry innovations. The scope of the Act extends to any policies entered into before the date the Minister signed the instrument, thereby having retrospective effect. This means that any insurance policies held by eligible veterans and ADF personnel prior to the date of the instrument are covered by these variations. The Act does not disadvantage any person or impose liabilities on any person other than the Commonwealth, and thus it adheres to the requirements that retrospective legislative instruments should not negatively affect citizens. As the variations are of a beneficial nature, consultation with interested parties was deemed unnecessary. The instrument does not incorporate any documents by reference, ensuring that all relevant information is contained within the explanatory statement itself.
Key Provisions
The key operative sections of the Defence Service Homes Act 1918, as varied under subsection 38A(3), primarily involve the modification of the Statement of Conditions for the Defence Service Homes Insurance Scheme. The Act ensures that eligible veterans and Australian Defence Force (ADF) personnel receive domestic building insurance that is comprehensive and up-to-date. The variations to the Statement of Conditions, as detailed in the instrument, aim to align the insurance policy with current industry standards and innovations, enhancing the overall product offered to the insured parties. These changes are retrospective, applying to insurance policies entered into before the Minister signed the instrument, while ensuring that no policyholder loses any entitlements they had already accrued.
The Act imposes several obligations and requirements on the parties involved. The Department of Veterans’ Affairs must adhere to the highest standards of client service, ensuring that the insurance policy remains one of the most comprehensive available. The Minister’s role is to ensure that the variations to the Statement of Conditions are beneficial and do not disadvantage any policyholder. Additionally, the Act mandates that the Minister cannot vary the Statement of Conditions in a way that removes any rights to payment that a policyholder had already obtained prior to the variation. This is further supported by the Legislative Instruments Act 2003, which prohibits retrospective legislative instruments that negatively impact citizens.
In terms of offences, penalties, or consequences for breach, the Act does not explicitly outline specific offences or penalties within the instrument. However, the variations to the Statement of Conditions are designed to be beneficial and do not impose any liabilities on the policyholders other than those that might be imposed by the Commonwealth. The retrospective nature of the changes is justified on the basis that they enhance the insurance product without disadvantaging any existing policyholders. The instrument's explanatory statement clarifies that it does not contravene any provisions that would negatively impact citizens or impose new liabilities, thus avoiding any potential penalties associated with such breaches.